Three in four small business owners will work through holidays

MORE THAN three quarters of small business owners will work through the upcoming festive holidays, as they sacrifice time off for the bottom line.

A One Poll survey of small businesses, conducted with 500 respondents on behalf of Xero, found 15 per cent will work more than half a day through the holidays, while as much as 17 per cent planned to take no break at all.

Gary Turner, managing director at accounting software firm Xero, said: “As Christmas approaches, small business owners, like anyone else, deserve a break. But these results highlight that even during a time like the festive season, it isn’t possible for most of them to switch off altogether.”

When asked about future plans, just 35 per cent of 18 to 24 year olds said they would prioritise on their company’s performance.

This jumped to more than seven out of 10 for 45 to 54 year olds who put profit at the top of the agenda.

Younger respondents may have a better mix of work and leisure, with less than one in five 18 to 24 year olds and one in 10 25 to 34 year olds saying they need to improve work-life balance. This rose to around two in five for business owners aged 45 and over.

Mr Turner added: “Getting a good work-life balance is tricky, but it’s really important that we all switch off occasionally.”

Click here to read original article 'Three in four small business owners will work through holidays'

UK small businesses contribute £22 billion to UK economy by working overtime

Overtime worked by small business decision makers is worth an estimated £22 billion to the UK economy, according to new research.

The research by Everline, the digital lender for small businesses, and the Centre for Economic and Business Research (Cebr) found that the value of small business overtime was equivalent to more than 1% of the UK’s annual GDP.

The research surveyed over 1,000 small business decision makers as part of the Everline Small Business Tracker and found, on average, almost four in five of those with responsibility for a small business reported working overtime in the last month, with 18% working more than 60 hours or more per week.

In addition, half (52%) of small businesses owners that usually work conventional weekday hours (i.e. not at a restaurant or a pub) plan to work on their business to some extent on at least one bank holiday over the next 12 months, with more than one in ten expecting to work this Boxing Day and New Year’s Day (12% and 13% respectively).

This additional work would boost the UK economy by up to an estimated £1.7 billion over the next year.

For the majority (51%), working over bank holidays is performed because owners do not want to get behind on their work. Interestingly it is the older generation of small business owners that tend to work more hours outside of their standard working day than their younger counterparts (13 hours vs 9 hours in the last month). As a result, older business owners are more likely to be primarily responsible for a wider range of functions such as marketing, administration and finance.

Russell Gould, managing director at Everline, commented: “Skills remain an issue for small businesses, and evidently working ‘9 to 5’ is a misnomer for employers who are working longer days in order to compensate for those gaps.

"The worry is, that in a digital world where speed and time are paramount, small business owners are spending too much time covering other people’s work when they could be focusing on growing their business.“

Sam Alderson, economist at Cebr said: The strong pick-up in business activity illustrated by the Everline Small Business Tracker is evidently stretching the capacity of small businesses.

"A shortage of skills is constraining the ability of businesses to expand their resources and as such decision-makers are being forced to take on responsibility for greater range of functions.

"While small business owners should be applauded for their dedication and hard work, it’s a shame that these qualities are being devoted to tasks such as administration rather than strategy and business development; areas that could translate into sustainable growth for the small business sector.

Click here to read the original article: "UK small businesses contribute £22 billion to UK economy by working overtime"

Victoria Beckham tops chart of Britain’s most successful entrepreneurs

Designer heads rankings based on turnover growth and job creation over the past five years for her fashion label

Victoria Beckham, the pop star, model and Wag who reinvented herself as a fashion designer, has topped a list of Britain’s 100 most successful entrepreneurs of 2014.
The woman formerly known as Posh Spice came in at No 1 in the list compiled for business magazine Management Today. The rankings are drawn up by assessing turnover growth and job creation over the past five years.

The magazine said of the designer, who opened a 6,000 sq ft (550 sq metre) boutique in Mayfair, central London, for her fashion brand last month: “Beckham is living proof that celebrity may be the most marketable commodity of all.”

Philip Beresford, who drew up the list, said it was “her finely tuned business acumen” that won her the top spot.

Since the 40-year-old mother-of-four and former Spice Girl set up her fashion business five years ago, her staff has grown from three to a 100-strong team with the latest turnover at £30m.

Offering leather credit card holders for £150, T-shirts for more than £700 and handbags for up to £18,000, she has seen sales growth of 2,900% and employment growth of 3,233%. “Deservedly she is number one in these two crucial measurements for success,” Beresford said.

The accolade follows her topping of a poll to find the greatest style icon at London fashion week in September.

Beckham spoke of her transformation from singer to designer in a recent Guardian interview, saying: “First time around I felt famous, but now I feel successful.”
She added: “I used to wear clothes which would make me stand out and now I don’t so much because I don’t feel I have anything to prove.”

Born Victoria Adams in Harlow, Essex, she burst on to the pop scene with the Spice Girls in the mid 1990s and married the England footballer David Beckham in 1999. The couple’s joint wealth is estimated at £380m, and she is credited as the driving force behind “Brand Beckham”.

She joined the other Spice Girls for a world tour in 2007/8, but chose not to perform a solo song, instead posing as though in a fashion show, in a nod to where her real ambitions lay.
Beckham launched her eponymous fashion label in 2008, and a lower priced diffusion label in 2011. As a businesswoman, she has demonstrated herself to be “an adept exploiter of her own celeb value”, according to the list. By 2011 she was a fixture at New York fashion week.

Her Dover Street shop opened in September, but she missed the official opening to speak to the UN general assembly in New York about her role in the UNAids campaign. Since then a steady stream of celebrities have been through its doors. It has been likened to an art gallery, with sparse interior, clothes hanging from chains on the ceiling or a jagged rail, and no cash tills as all purchases are completed through an iPad.

The “burgeoning entrepreneurial talent” of Britain’s Asian community is also evident in the list, said Management Today, with nine individuals or families making the rankings. They are led by brother-and-sister team Amit and Meeta Patel, in second place, just pipped by Beckham. The siblings’ London-based pharma operation, Auden McKenzie, specialises in the development, licensing and marketing of niche generic medicines, and is at the cutting edge of work into areas such as treating heroin addiction.

Mahmud Kamani, 50, of online fashion site Boohoo.com, is ranked third, while Julian Dunkerton 49, of clothing chain SuperGroup, claims fourth spot.

Apart from Beckham, the list includes 14 other women, up from 11 when the rankings were last published in 2011. Among them are software entrepreneur Suzanne Marshall-Forsyth and Cathie Paver, founder of Paver Shoes.

The top 100 were “real job creators”, said Management Today. “In five years, they have added more than 61,556 employees to their payrolls taking their head count to 158,189. This represents a 64% rise, and shows that in the critical area of productivity,(in which much of the UK economy is notably lacklustre) our MT 100 members are right on top of their game.”

Spice Girls – where they are now?

Emma Bunton, 38, Baby Spice. She has guest-hosted on shows including GMTV, Lorraine and was a judge of Dancing on Ice. She presents a show on Heart FM and has two children

Melanie Brown, 39, Scary Spice. She has been a judge on a number of reality TV talent shows. She is currently a judge on X Factor and has three children,

Melanie Chisholm, 40, Sporty Spice . She has sold more than 12 million records as a solo artist, including collaborating with Bryan Adams on the hit “When You’re Gone”. She has also won acclaim in muscial theatre. She has a daughter.

Geri Halliwell, 42. Ginger Spice. She has recently appeared as a judge on Australia’s Got Talent and has one daughter.

Click here to read original article 'Victoria Beckham tops chart of Britain’s most successful entrepreneurs' 

Are your customers paying you what you’re worth?

When you’re feeling the pinch and money is tight it’s easy to assume that everyone is feeling the same way. You transfer your money beliefs over to your potential customers, by thinking: “Surely they won’t pay that” or “They can’t afford those prices”.

And your mind reinforces these beliefs by adding little comments such as: “Who do you think you are, charging those prices?” and “They’ll see through me and realise I’m not as good as they think”. This is what happened to someone I was chatting to recently. Instead of positioning herself as the true expert and brilliant coach she is, she made it into a money issue.

There are loads of business owners who feel uneasy when they’re discussing price and who subsequently charge a fraction of what they’re really worth. And assuming their customers have the same money beliefs as themselves is just the start.

They don’t know who their ideal customers are and, as a result, don’t understand the huge value they bring to them. They have a “spray and pray” approach to marketing, where any customer will do, and then they end up competing on price. Bad place to be.

Let’s face it, when you get into the “competing on price” game you’re always focused on being the cheapest. If you only attract people who want the cheapest, you will always have to offer more for less, just to keep up. It’s a hard way to make a living.

But do you really want to be the cheapest? People looking for “the cheapest” probably won’t be loyal. They don’t really care about you. They just want a commodity at the lowest possible price. Which is fine if you’re selling baked beans or toilet rolls.

But you’re a small business. Your business is a huge part of your life, filled with your passion, energy and time. So it’s better to find those ideal customers – people who really value you, love what you do, for whom you make a real difference. They aren’t looking for cheap. They’re looking for the best fit for them. There’s a big difference. Leave cheap to the others.

Value what you do. Price it so you make a decent profit. Get clear on how you make a difference to your ideal customers. Then, only market yourself to your ideal customers, not people looking for “cheap”. It will make a huge difference to both your bottom line and brand value.

Click here to read orignal article 'Are your customers paying you what you’re worth?'

Making switching simple for small businesses

Small Businesses can also use the free bank account switching service launched by the banking industry

It isn't just personal current account customers who can take advantage of the free Current Account Switch Service to swap between banks - small businesses up and down the country can make the most of the service, too, if they want to move to another current account provider.

Launched by the banking industry last September, the service ensures that existing payments such as Direct Debits or standing orders will be moved to the new account automatically, and any transactions which do go through to the old account will be redirected to the new one for 13 months, avoiding the problem of any payments going missing. 

The company making or taking the payment using the old account details will also get a message instructing them to update their records with the new account information. On top of that, the service is backed by a guarantee which means that if something should go wrong during a switch, any charges or interest will be refunded.

Until the service was brought in, changing from one account to another could be a lengthy process, with the switch typically taking between 18 and 30 days after the new account had been opened. 

That was a huge hurdle for small businesses heavily reliant on cash flow, with worries about missing out on invoice payments landing in the right account or suppliers not being paid according to terms, with the possibility of late payment charges being incurred.

But that timeline's been reduced right down to seven working days from the day the switching process starts to when the switch takes place.

One of the drivers behind the Current Account Switch Service has been to increase competition between banking providers, and make it much easier for small businesses to vote with their feet when it comes to picking the account which works best for them.

So, is it time for you to look at whether you're getting a good deal with your business banking? Here are the things you should consider:

Do I need a business bank account at all?

If your business is either a limited or incorporated company you must have a business account. If you are a sole trader or partnership, you could use your personal current account but that can make your finances messy - keeping personal and business accounts separate is the better option.

Am I spending too much on bank charges?

Some banks charge a fee for business banking services, and some don't. Other costs are transaction-based, like fees for cash withdrawals, cheques, Bacs transfers and overseas payments. Think about exactly what you need to use and check the charges for each service. Some providers offer free banking, either for a set time or with limits on the number of transactions over a month - look at the penalties for going over those limits, and charges which kick in when the free banking period ends.

What if I need an overdraft?

Costs can be quite high but will vary between banks - check interest rates, set up fees and the amount you can borrow this way.

And what about a business debit card?

Lots of business accounts come with these facilities but ask if you're eligible for a debit card - and a cheque book, if you need one - before changing to an account where you might not qualify for these.

What if I'm not happy with the service at my new bank?

With the new Current Account Switch Service, you can change your provider again quickly and easily.

Will switching bank accounts affect my business credit rating?

No -  as long as you repay any outstanding overdraft with your old bank or building society. If there are any problems with payments as part of the switching process, your new bank or building society will deal with them as quickly and make sure your credit rating is not affected.

Click here to read original article 'Making switching simple for small businesses'

Are you next on the taxman's hitlist?

HM Revenue & Customs has special task forces that investigate specific job sectors. Here we explain how the taxman picks its targets.

Tax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline. 

Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors. 

They say middle-class professionals become anxious when faced with a bill for underpaid tax – and so are more likely to settle claims without dispute. The targeting of professionals began in 2007, but has become more prominent in the past three years, with the Revenue collecting almost £1bn. 

Here we explain how HMRC decides which groups to target – and who is on its radar.

How job sectors are picked: 

The taxman is not allowed to engage in “fishing expeditions”. Instead it must show evidence to justify wider inquiries. 

First it collates as much information as possible from third parties, such as banks and local councils. This is fed into the Revenue’s powerful computer system, called Connect, which cost £45m to build three years ago and is said to hold more data than the British library. 

A formula is applied to bring to the fore what would otherwise be undetectable information. 

For example, the computer holds details of every property bought in the UK, as it has access to the Land Registry. This was instrumental in the Revenue’s crackdown on buy-to-let landlords who had not paid enough tax. 

The computer also stores records from the Driver & Vehicle Licensing Agency, hospitals, insurers – and even the official list of gas engineers. All this data can be compared against an individual’s tax returns. 

The computer joins the dots to give an indication of particular industries where there might be tax shortfalls. 

Paul Noble, a tax director at Pinsent Masons, the accountancy firm, said: “The computer is the tax version of Big Brother, because so much personal data is being watched. 

“The computer system has only been up and running for three years, but during this time it has already targeted several professions and there are plenty of others it will also be watching over right now.” 

Scare tactics :

When the Revenue has enough hard evidence to launch a campaign against a particular sector, it offers workers the chance to get their tax affairs in order. 

Letters are sent out to taxpayers suspected to have underpaid. A deadline date to repay anything due is offered. If taxpayers pay straight away they can avoid a fine. Those who do nothing, or challenge HMRC, will be investigated further. If found guilty, non-payers can face prison. 

To “scare” people into paying up, the Revenue heavily publicises prosecutions, according to Dawn Register of accountants BDO. 

A recent example of this tactic was on show earlier this month, when an eBay trader was imprisoned for two years for failing to pay tax on more than 500,000 sold items. 

“For every campaign, one or two people are jailed and HMRC makes a huge song and dance about it,” Mrs Register said. 

“The people they jail are always extreme cases, such as the eBay trader, but publicising the sentences handed out is part of the Revenue’s agenda to unnerve people into paying early without challenging the taxman’s claims.” 

Who’s on the hitlist today? 

The taxman is currently focusing on two areas: people with multiple sources of income and landlords. 

Landlords are under scrutiny because the Revenue estimates that £500m is lost every year. It said thousands of landlords paid little or no tax on rental income, while others did not declare capital gains on second properties. 

Last month the Revenue said 40,000 landlords were suspected of bending the rules. Letters will be sent out over the next four months, which will give landlords an opportunity to clear their name. 

The “second incomes” campaign targets everyone from consultants and part-time taxi drivers to car boot traders. 

Andrew Watt, a partner at Watt Busfield Tax Investigations, said this campaign started only in April and would be one of the Revenue’s main focuses over the next couple of years. 

“With all the data they have at their disposal the Revenue will catch all sorts of people,” he said. “There is no end date given on the campaign, which is unusual, but this perhaps indicates that there is a big pool of tax sharks to be caught.” 

Who could be next on the taxman's radar? 

Expats could be next to feel the heat, experts say. 

The Government could prevent expats who let out British properties from using the personal allowance (income on which no tax is paid). The proposals are under consultation. If they are given the go‑ahead, the Exchequer is expected to raise £400m a year. 

The Revenue is also keeping a close eye on undeclared offshore bank accounts. It recently obtained powers that make it much easier for the Connect computer system to spot overseas assets. 

“This is high on the agenda, so it is best to make a voluntary disclosure before the Revenue comes knocking,” Paul Noble of Pinsent Masons said. 

Dawn Register of accountants BDO said solicitors and barristers could be targeted next. “The Revenue now has access to legal aid data, so if it spots a trend it could well take another look on a much bigger scale,” she said. 

Click here to read the original article 'Are you next on the taxman's hitlist?'

Most UK SMEs ambivalent about Scottish independence

After a poll on sunday found the Scottish pro-independence camp in the lead, the Government and the no campaign has been scrambling to convince voters north of the border to stick with the union. 

We've heard repeated apocalyptic warnings from business leaders and the city, but there are signs that businesses across the UK as a whole aren't so worried about the prospect of a yes vote. 

Vistage, the business leadership organisation, asked a representative sample of its members, primarily mid-sized and larger small businesses, how they felt independence would effect their company. 

Just 20 per cent agreed that it would have a negative impact, while 6 per cent said they were uncertain but worried. 66 per cent said the impact would be neutral or better. 

Vistage CEO Steve Gilroy said: "While many financial and large international businesses may not like the prospect of Scottish independence, it will have little impact on most small and medium-sized businesses in the rest of the UK.

"Whatever the result of the poll in Scotland on 18 September, our research shows that most owners of SME businesses in the rest of the UK will not be losing sleep over the result damaging their firm.

"Partly this is because Scotland is a relatively small market for most SMEs in the rest of the UK, and also because independence will not suddenly close the Scottish market. Whatever the result business will continue, although we can expect a hiatus amongst Scottish businesses should there be a vote for independence while they digest the implications."

Click here to read original article 'Most UK SMEs ambivalent about Scottish independence '

Don't forget to prepare for the forthcoming minimum wage hike

The Government has urged employers to be ready for the minimum wage hike which comes into force in just over three weeks. 

The rate for workers aged 21 and above is set to rise from its current level of £6.31 per hour to £6.50 on October 1st , with severe potential penalties for those employers which fail to comply. 

The wage rate depends on a worker’s age (£5.13 for those aged 18-20 and £3.79 for 16-17 year olds) and apprentices aged 16-18 will have a minimum wage of £2.73. 

The provision of accommodation, uniform hire and on-the-job travel times can also affect the level that should be paid. 

The Government has stepped up action against employers who flout the rules of late. Those guilty of not paying their workers correctly could face a fine of £20,000 and being named and shamed, or even being prosecuted.

Tips to help ensure you are paying the correct amount of National Minimum Wage:

- Check what rates you should be paying to each worker as there are different rates for different types of workers. Visit www.gov.uk/national-minimum-wage for more information.

- Have a conversation with your worker to ensure you have the correct details (e.g. check their birthdays, and whether they are an apprentice).

- Keep a record of the number of hours worked by each worker, such as a timesheet 
system, to make sure you are paying them for the correct number of hours per week/ month.

- Keep your payroll updated for each worker to ensure you are paying the correct amount. 

Click here to read original article 'Don't forget to prepare for the forthcoming minimum wage hike'

Diesel business mileage rates cut

DIESEL company car drivers look away now: changes to company car business mileage rates by HMRC are targeting the key 2.0-litre and under sector.

While the business mileage rates, known as advisory fuel rates (AFR), remain unchanged for petrol, LPG and diesel engines larger than 2.0-litre, the reduction in rates, effective from Monday 1 September, for smaller diesel engines will hit a large section of company car diesel users in the UK today.

And likely to be the hardest hit are those company car drivers in the SME small fleet sector, because the majority of their company cars will come from the most frugal and tax-efficient sub 2.0-litre diesel range.

AFR is used to claim back business mileage in company cars or to repay private mileage if fuel is provided by the company so to avoid car fuel benefit tax.

HMRC reviews the AFR every quarter, basing its calculation this time on average fuel prices on 19 August from the Department of Energy and Climate Change and LPG average price quoted on the AA website.

The new company car business mileage rates are listed below.

 Petrol: Company car business mileage rates from 01 September 2014
Engine size 1400cc or less: 14p - unchanged
1401cc to 2000cc: 16p - unchanged
Over 2000cc: 24p - unchanged

Diesel: Company car business mileage rates from 01 September 2014
Engine size 1600cc or less: 11p – 1p reduction
1601cc to 2000cc: 13p - 1p reduction
Over 2000cc: 17p - unchanged

Hybrid and LPG-fuelled company car business mileage rates
Drivers of petrol/electric hybrid company cars should use the petrol rates.
Drivers of diesel/electric hybrid cars should use the diesel rates.
Drivers of LPG company cars should use the following rates: Engine size 1400cc or less: 9p –unchanged; 1401cc to 2000cc: 11p – unchanged (LPG); Over 2000cc: 16p – unchanged (LPG)

The AFR business mileage rates are to be used by company car drivers and should should not be confused with Approved Mileage Allowance Payments, known as AMAPs, because these are the tax-free pence-per-mile rates applicable only when drivers use their private cars for business purposes.

Click here to read original article 'Diesel business mileage rates cut'

Beyond networking

For many smaller businesses (particularly business to businesses) marketing equalled networking. But as a central way of promotion, those days are your business are long gone. 

So what are some of the best methods to win new clients that work today? Alastair Campbell from the Ideal Marketing Company explains the three key areas that every organisation should now be looking into.

Some say that selling and marketing is a numbers game. It’s a question of getting out there and speaking to as many people as possible, but I’m not so sure. Think of it like this. You want to make a hole in the wall, so you run at it as hard as you can. You knock yourself out; when you regain consciousness you walk back 20 feet and run at the wall again. You can do this all day, but you aren’t going to make much impression on the wall – and I’d suggest that you’ll end up in a worse state by the end of the day than you were at the start.

What if there was a better way of knocking a hole in the wall, or perhaps better still, walking around it?

I’d suggest that a way of getting around the wall is to focus on three essential areas of marketing:

◾Attention
◾Conversion
◾Retention

The problem is, if we put all our new business focus on any one of these (and ignore the others), then results are likely to be patchy at best. 

So here are a few ideas for specific marketing in each area – and how to apply them.

Gaining people’s attention:

 You can’t sell to somebody until you have their attention. You need to interrupt people’s thought pattern with your message before you can explain the service you offer. For example, nobody is walking around thinking ‘I’d love to speak to a builder’. But they might be walking around thinking ‘how much is this roof repair going to cost me?’ or ‘what is the best way to extend my house?’ This gives you a chance to get people to tune in to your message, to get their attention. 

One of the best ways to do this is to create an information rich product with a compelling headline / title. A builder could mail a booklet offering free advice on the most creative ways to add space to your home. 

Other businesses could consider some of the following:

◾A free e-book on preparing your business for sale
◾A recruitment agency may create a short video demonstrating interview techniques to get the best out of candidates
◾A law firm might publish a free report on the six questions you should ask a divorce lawyer before engaging them.

In each case, you are creating a valuable, but low cost product that is of great interest to a targeted group of people. Some people will not be interested in specific activities, for example, some companies will not be hiring at the moment, but for those who are, or considering doing so in the near future, the video is certainly going to be of interest.

Any of these guides (and hundreds of variations thereof) will get the attention of the people you want to speak to, when you want to speak to them.

Once you’ve prepared the guide, you now have a reason to speak to people, call them, write to them and e-mail them. You also have something to post on your blog, tweet about and post on your LinkedIn or Facebook pages. Each time there is something in the news about the subject, you have another reason to repeat the message with a new topical twist.

Converting the curious:

Getting people’s attention is the hard part. However, even when you have a prospect in front of you, it’s easy to let them slip away. 

High pressure sales techniques are almost certain to do more harm than good, so here are a few ideas to gently give confidence in your services if you are meeting clients at your offices.

Make the meeting room comfortable, uncluttered and professional. Messy files piled high, a bulging in-tray or a constantly ringing phone give the impression that their work won’t be given the priority it deserves. 

Where possible, a special meeting room for prospects should be used rather than an individual’s office.

What proof do you have of your previous successes? Convincing evidence can come from four possible areas.

1. Awards, accreditations, qualifications – any certificates, awards, photos of prizes being handed over all help to add credibility to your professional status.

2. Media coverage – have you been featured in the press commenting on industry matters, helping community causes or perhaps winning some of the above mentioned awards? If so, why not highlight these press cuttings in a cuttings book on the table? A second copy of this book could be in the reception area.

3. Case studies – for many people new areas of investment are the ultimate grudge spend. Given the choice, they’d either do it themselves or are hesitant to work with someone new. In fact, they are not buying your time; they are buying the RESULTS that they want you to achieve. So, in order to make them feel better about the hiring process, you can show how you have specifically helped other people. 

A collection of case studies could include examples of different problems within one industry, or problems relevant to different sectors within the same industry. Each should show how, by employing your services, your clients were able to turn things around and get better than expected results. 

You might not always need to go into precise details, or even name names, but 300 – 500 words that explain the results you were able to achieve with past clients can be a significant reassurance to a reluctant visitor.

4. Testimonials – similar to case studies, but usually much shorter and written word for word by happy clients. Testimonials are an endorsement of what you’ve done. The best way to get a client to say something about what you have done is to ask them – either in person, in an individual e-mail or as part of a survey. 

One client of ours received about 3 letters a year without asking, but over 60 a year when his clients were prompted gently – quite an improvement.

In all cases, these subtle messages are there to reassure and reinforce your words and deeds.

Another simple way to help the conversion process is simply to keep your word. If you say that you’ll send a letter the next day, do it. If you say you will call at 3pm, make sure you do so – or if you don’t have the answer, still call and explain why you haven’t got the information and when you will have it.

The better the relationship you can build and the more confidence and trust you create, the more likely you are to leave the meeting with a new client.

Retaining the business:

 Some clients may appear to be ‘one offs’ at first. But it is useful to consider how people will recall you. Most people will remember the service they received rather than the details, in a similar way that people think about their doctor or their dentist. You will remain their point of contact unless something changes the situation – or if you do a very bad job (as they perceive it).

A gentle, perhaps annual reminder that you are still there, still thinking about them, is always a good idea to stimulate memories and subtly keep you at the back of their mind. It’s also why regular publicity in the local press is a good idea to remind people that your company is doing good / interesting / helpful things in the community.

For business to business clients, it’s a different situation as you are likely to be called upon on a more regular basis. The focus here should be on education and support.

Education is about explaining the different range of services that you can offer. The company may have used you for a specific project, but making them aware that your skills can be applied to other areas of their business is important. This involves regular communication, explanations and campaigns that will help with awareness of your services.

Support can be through a variety of ventures. One popular area is joint seminars. In the past, I’ve run seminars with solicitors on creating a brand, whilst they have talked about how to legally protect a brand and trademark.

Running regular events for clients (and prospects for that matter), is an excellent way of positioning yourself as the expert at the centre of activities. It gives companies a reason to stay with you, and enhances your reputation.

If it’s hard to win new clients in the first place, the good news is that it’s relatively easy to retain them. Your job is really to keep clients updated on the full range of services that you could offer them, and explain how your services rather than cost them money, can in many cases actually save them money – or at least protect them from serious potential risk.

Some further thoughts:

The three stages of marketing hold true for most organisations, but are certainly true in the most competitive business environments. By splitting your activity into the holy trinity of marketing: attention, conversion and retention; you can be sure that you are making the most of your marketing spend.

However, in 2014, you may need to go a little further. We are living in a world of information overload, where the under 20s are just as likely to learn about the latest news stories on Twitter or Facebook as they are from the TV news. Tomorrow’s newspaper is an age away for many. With hundreds of e-mails pouring in every day, and a hundred demands on our time – where are your communications going to sit with prospects and clients?

Most will be ignored of course (and this has always been the case), but now more than ever we need to create messages that are ‘remarkable’. Standing out from the crowd is the only way to get noticed today and so, even doing all the right things is not always enough. 

Creating a strong benefit led message, creating a brand around it and presenting it in a way that people will notice and remember should be central to your strategy. If you can’t cut through all the other messages, then you won’t get far.

Ultimately, effective marketing is far more than a firm handshake over a glass of warm Chardonnay at a Holiday Inn. If you are to succeed and thrive in today’s competitive economic climate, it must be a central and ongoing part of your business growth plans.

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10 alternatives to a bank loan for growing businesses

The economy is returning to growth but there are concerns that growing businesses cannot access the finance they need to maintain pace.

While banks remain the main source of funding for Britain's businesses, for many this is far from the best solution as they will not be successful or because they won't get the funding on terms which are favourable to them.

Here are ten alternatives to a simple business loan which could help you grow your company.

Debt finance
The type of funding you pursue will obviously depend heavily on the the status of your business, its eligibility, how much you can afford to take on, and whether you're willing to give away equity.

If you want to retain sole ownership then debt funding is likely to make the most sense.

1. ABL
Asset-based lending (ABL) allows you to borrow against the value of your assets, whether that's your premises, stock, machinery or unpaid invoices.

ABL has struggled a little due to perceptions that it is a last resort for struggling companies who need to turn assets into working capital or risk going bust. But attitudes are changing and for many businesses the opportunity to turn invoices into working capital is a useful way to boost growth.

ABL is available from some banks, and other traditional providers include Close Brothers, GE Capital and Investec.

2. Invoice trading 
Not entirely distinct from ABL, invoice trading is a new form of invoice finance which connects you directly with investors through an online portal. Providers say this option is more flexible and transparent than traditional invoice finance, which can often tie you into long commitments.

The two leading players in the UK market are MarketInvoice and Platform Black.

3. P2P loans
Sometimes referred to as “debt crowdfunding”, P2P lending allows savers to lend directly to businesses in return for interest. All you have to do is create a pitch and provide some key pieces of business data and then your platform assigns you a risk band before passing the pitch on to investors.

The benefits of this form of funding tend to be speed and convenience compared to applying for a bank loan, not to mention a higher likelihood of approval.

Funding Circle is by far the market leader in P2P business lending in the UK, although other companies like Zopa, which has focused more on consumers up to this point, are following in its footsteps.

4. Unsecured digital lenders
In recent years a number of business-orientated unsecured lenders have popped up, which allow you to borrow flexibly at very short notice. Companies like Ezbob and Everline use complex algorithms to deliver a lending decision which is much quicker and, they say, more accurate than can be calculated by banks. Money can typically be in your account on the same day.

This convenience comes at a cost though, with high interest rates compared to banks. The maximum you can borrow will typically be around £50,000 so it's mainly useful for relatively small companies or specific short-term projects.

5. Bonds
Bonds have been identified as a key growth area for business finance.

These effectively act as an IOU offering investors, who tend to be individuals rather than institutions, a fixed return on the value of the bond, followed by repayment of the full amount some years later. They are typically used by fast-growing businesses who are confident of future performance.

Retail bonds are those listed on the London Stock Exchange's Order Book for Retail Bonds, and can be freely traded by investors. The amounts raised through this method tend to be particularly large – from £25m to £300m so they are suitable for successful, well-established businesses with a high growth trajectory.

Some businesses go down the route of issuing their own mini-bonds, which are non-transferable (so investors are tied in for the whole period). Hotel Chocolat, John Lewis and King of Shaves have all raised money through this method. Crowdcube, an equity crowdfunding platform, has also launched a service allowing growing businesses to raise money through mini-bonds.

Equity finance
Equity finance is suitable for those entrepreneurs willing to give up a stake in their business to investors. While this might seem unattractive to those wanting to retain a firm grip on their business, investors can also act as mentors who help you take your business in the right direction.

6. Venture capital
Venture capital (VC) funds invest in early-stage businesses with high growth potential. Though they are generally willing to take on greater risks than other investors, they will need to see strong potential for growth in your business, and that you are a capable leader.

VC funding tends to be invested over a number of years and investors will expect you to do all you can to develop a solid return for them, so you will need to be ready to really push for growth.

There are dozens of VC funds in the UK, which has the largest VC market in Europe, but notable ones include Index Ventures and Balderton Capital.

Related: How to pitch your business to VC investors.

7. Private equity
In contrast to VC funds, private equity funds tend to go after larger companies with a well-established historical track record. These take money from institutional investors and buy equity in under-performing private companies which have strong potential to be turned around.

The investment is usually over a long-term cycle and as with VC funds investors will be seeking a strong return so will generally work very closely with management teams to achieve growth. For some entrepreneurs private equity investors can be too much of an intrusion, but others value the discipline and professionalism they can bring to a growing business.

8. Equity crowdfunding
Equity crowdfunding harnesses the money of dozens if not hundreds or thousands of supporters who buy small amounts of equity in your business.

As well as raising the money you need, this has the added bonus of bringing on your loyal customers as an extra set of voices in your organisation.

Many companies choose to use crowdfunding platforms such as Crowdcube or Seedrs. Others have done it independently, with craft beer company Brewdog's “Equity for Punks” scheme perhaps being the most high-profile example.

Others
9. Pension-led funding
If you've got a decent amount of cash sitting in your pension pot then it could be possible to turn this into business funding.

Clifton Asset Management is a leading provider of this form of finance. It allows customers to invest their own pension fund in their business, either by lending money against the value of its IP or buying your company's assets and leasing them back at a commercial rate.

More on how this works here.

10. Autofinancing
It's worth having a really good think about whether you really need funding at all. Even if you think you will need growth finance in the future, if it's possible to keep costs low and margins high then you might be better off waiting.

Not taking on debt has the obvious advantage of minimising costs later down the line, and not giving up equity means you can have a greater control over your business.

If you can prove the success of your model without needing to take on external funding then you could be in a better position later down the line; both because it demonstrates your prowess to investors and also means the stake that you hold will be worth more as a proportion of the company's total value.

Autofinancing can be a difficult concept to get your head around and it certainly won't work for all companies but it can work. For instance German consumer appliance giant Miele, which now turns over £2.5bn each year, has been self-funded throughout almost all of its 100-year history.

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Self-employed work longer hours but earn less

The recession ramped up the number of self-employed in the UK - but a new report has found they work harder for less than their employed counterparts.

Office for National Statistics (ONS) stats today show that the self-employed accounted for two thirds of the 1.1.m jobs created since 2008.

These were primarily in 'professional, scientific and technical activities,' like consultancy and accounting.

Londoners were the most likely to be self-employed, at 17.3 per cent, compared to 16.6 per cent in the South West and 10.8 per cent in the North East.

The research found many self-employed workers were working longer hours for less pay. 

More than 13 per cent of self-employed clocked up working weeks of 60 hours or more - when just 4 per cent of employees did. A third of self-employed people worked 35 hours a week, compared with 23 per cent of employees.

Despite these longer hours, self-employed workers saw their income fall. Their real wage, after tax, fell by more than 20 per cent since 2008.

However this data included failed and failing businesses - which reported a negative income in the 2012/13, distorting the data.

The self-employed population was also on average older than the employed: 43 per cent are aged 50 or over, with an average age of 47 - seven years older than that of employees.

Jamie Jenkins, a labour market analyst at the ONS, said: "More people are now working beyond the normal retirement age of 65," he said. "A lot of people who set up businesses did so in the 1980s, when there was a big entrepreneurial push.

"While we only have anecdotal evidence as to why people are not leaving self employment, many people I ask say they have been self employed for over 20 years or more," as reported in the Telegraph. 

A report last week found that Britain is now the self-employment 'capital' of western Europe with the number growing by more than 1.5m in the last 13 years, and accounts fro 15 per cent of the labour force in the UK. The highest in Europe is Greece, 32 per cent.

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Should we be worried about the self-employment boom?

The UK is becoming the 'self-employment capital' of western Europe, but is it a sign of slack in the economy?

Self-employment is booming in the UK, at such a rate that our workforce could soon look decidedly southern European. 

It climbed 8% year-on-year in the first quarter of 2014 – a jump only shy of those in Slovenia, Cyprus, Bulgaria and Lithuania.

Self-employed workers now make up 14% of the UK’s workforce, according to the research by think tank IPPR, ahead of 10% in France, 11% in Germany and all of the Baltic and Nordic nations.

Britain still pales in comparison to the beleaguered economies of southern Europe, where self-employment is 17% in Spain and Portugal, 23% in Italy and a staggering 32% in Greece. 

But these latest figures will stoke the debate over just how secure the economic recovery is, despite unemployment tumbling to 6.5% and stonking GDP growth.

Around a third of the rise in employment since 2010 has come from self-employment, leading many economists to point the finger as productivity has stagnated and wages still lag inflation. 

The Resolution Foundation, a think tank, estimates the self-employed earn 40% less than the employed.

But there hasn’t been any increase in the number of people self-employed for less than six months since 2012, the Office for National Statistics said last month. 

Much of the increase came from people delaying retirement, with more than half self-employed workers having gone it alone for at least a decade.

If wages really start to recover, rather than edging up in fits and starts behind inflation, then self-employment won’t seem like such a bad idea after all. 

But if that elusive ‘slack’ in the economy stays stubbornly put, the number of people working for themselves, but not at their full potential, should start to jab policy makers into action.

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Health and safety law exemption proposed for the self employed

Stephen Thomas, safety technical consultant at Croner, discusses the ramifications of a proposal to exempt certain self-employed people from health and safety red tape.

Between July 7th and August 31st 2014 the Health and Safety Executive (HSE) has sought views on their proposal to exempt certain self-employed persons from Section 3(2) of the Health & Safety at Work etc. Act 1974 (HSWA).

The proposal arose from the government-commissioned 2011 Löfstedt Report 'Reclaiming health and safety for all', which recommended that self-employed persons be exempt from health and safety law where they pose no potential risk of harm to others through their work activity. If introduced up to 1 million people could be affected.

The current position 
The Great Britain regulatory framework for health and safety, in particular section 3(2) of HSWA, places general duties on everyone 'at work' including the self-employed. Section 3(2) states: 

'It shall be the duty of every self-employed person to conduct his undertaking in such a way as to ensure, so far as is reasonably practicable, that he and other persons (not being his employees) who may be affected thereby are not thereby exposed to risks to their health and safety'. 

Section 53 of HSWA gives a broad definition of a self-employed person. It states that a 'self-employed person means an individual who works for gain or reward otherwise than under a contract of employment, whether or not he himself employs others'. There is no proposal to amend this definition.

The proposed change 
Section 3(2) of HSWA may be amended in order to exempt self-employed persons from the general duty in respect of themselves and other persons (not being their employees), except those undertaking activities on a prescribed list. The list includes:

• Any agricultural activity
• Landscaping including the creation, maintenance and management of parks, gardens,
• Construction work
• Electricity
• Equipment and plant. Examination, maintenance and testing (as prescribed)
• Health & social care
• Waste Management

Reaction and concerns
The reaction among business organisations such as the Federation of Small Businesses, the British Chamber of Commerce and the Institute of Directors has been positive, with a general feeling that it will enable small, self-run businesses to thrive without the additional burden of health and safety legislation.

Safety bodies such as the Institution of Occupational Safety and Health, the Trades Union Congress and Royal Society for the Prevention of Accidents greeted the proposal with significantly less enthusiasm, believing that it could lead to a reduction in standards and a possible increase in injuries and work related ill-health and that the exemption will be difficult to apply correctly.

There are also other concerns as to how certain organisations such as insurance companies and contractor approval schemes will respond to the change. Furthermore many companies may simply choose not to engage self-employed persons to carry out work on either their behalf or on their premises due to the belief that these persons could not be prosecuted and therefore they could find themselves becoming liable.

What next?
The HSE will assess the costs and benefits of the proposed changes as set out in the impact assessment in the consultation document, and will then decide on how best to take the proposals forward, based on the consultation responses.

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