RESOURCE CENTRE

Your EnterQuest Bulletin - 2 March 2005

In this week's issue:

• it's a fact...support for UK business start ups can sometimes be very good
• how to go that extra mile
• insurance for employers - a welcome break for small businesses
• networking for home-based businesses
• the Information Commissioner's website reviewed
  

Small business answers

If you have any questions about your business idea, are lacking some basic data about your target market, or simply need help tracking down a grant, subsidy or other source of business support in your local area, then send an e-mail with your query to the EnterQuest information team and we'll do our best to help.

Send your question to enterquest@cobwebinfo.com.

Weekly stir

It's a fact...support for UK business start ups can sometimes be very good

Last weekend we took a stand at the "New business - new life" start up event organised by the East Midlands Development Agency (EMDA) and held at Donington Park.

We have to take our hat off to EMDA and the event organisers. It was like a breath of fresh air. A thoroughly well-organised and attended event, with an immense amount of co-operation and enthusiasm evident between the various exhibitors, comprising both private companies and public sector agencies, and with a common objective of ensuring that budding start ups who came to the event got maximum value from their visit.

And a valuable lesson can be learned by other agencies who run similar events around the UK. This was an event where everyone focused on the needs of the visitor, without any politics in sight.

Unlike an event we attended a couple of years ago in the north east of England, where we were only allowed to exhibit if we agreed to masquerade ourselves as Business Link staff. And the event was so ineffectively promoted (despite an alleged £500,000 budget) that hardly anyone turned up, with the support agencies in attendance whinging the whole time about having to step outside of their comfort zone. Not only did it fail to meet the needs of the target audience, it was also a waste of taxpayers' money, and a lot of people's time.

For several years, we've been researching and gathering information about business support initiatives that are operating in every corner of the UK. We publish this data in some of our other information services.

But over the last year we have also been looking closely at the quality of business support that's on offer, and are in the process of compiling a UK Business Support and Start Up League Table. In other words, a guide to the best and worst places to get support and assistance with setting up and running a small firm in the UK.

We'll let you know more about this as we complete our work on it. But in the meantime, if you've got any first-hand experience, either good or bad, of receiving or attempting to access help and advice from a business support agency, then please let us know about it as your views and opinions could help us with our research.

If you want to share your experiences with us, send an e-mail with a short description of the support you received or tried to receive, stating either the agency involved or simply the town or city where you are located if you don't want to specifically name the agency involved. We will not reveal your personal details to anyone under any circumstances.

E-mail us at startupsupport@cobwebinfo.com.

You never know, you might help us get an important message across to the policy makers.

Marketing tip

How to go that extra mile

Last week, we explained how offering free giveaways can be a simple, low-cost way to do something that will impress your customers, make them remember you, and ensure they return to your business.

Small business owners often talk about creating customer loyalty but few seem to achieve this goal. Businesses tend to believe that if they deliver a quality product, their customers will be happy with them, but not all happy customers make 'loyal' customers. Loyal customers are those who not only come back to do business with you, but who recommend and refer your business to their friends and associates.

The key to creating a loyal customer is not in meeting their expectations, but in exceeding them. In many cases, the only way to differentiate your small business in a meaningful way is to provide a surprising buying experience by going above and beyond what your customers expect.

The following are just a few different ways to take your customers by surprise and create a memorable experience that will win their hearts and minds.

• Apologise for your mistakes. Mistakes are inevitable. People care less about the mistake and more about how you handle the situation. Always admit your mistake, own up to it, and apologise for making it.
  
  
• Ask for suggestions on how you can improve things. People love being asked for their opinion, and it will mean even more if you send your customers who give suggestions a follow-up communication on how you used their suggestion to improve your business.
  
  
• Make a big deal out of a referral by sending a voucher for two free meals in the best restaurant in town to the referrer.
  
  
• Remember the children. Gestures of goodwill toward your customers' children will make a big impression. Even simple things like keeping a stock of lollipops or balloons to give to customers' children when they visit can be memorable.
  
  
• Increase your guarantee. The longer your guarantee, the greater the perceived value. In most cases, a six-month guarantee will result in no more product returns or service calls than a 30-day guarantee.
  
  
• Make the final moments memorable. Studies show that it's the final moments of a customer's experience that are remembered most. If you plan to give away a freebie, save the experience for the end of the customer encounter.
  
  
• Give away a 'best tips' e-book or CD. Think of 50-100 tips for your customers that relate to using your products or services, and create an audio recording on your computer that you can burn to a CD to give away to your customers.
  
  
• Give away a favourite magazine. Find out what your customers like to do and give them a one-year free subscription to a magazine that they would find interesting.
  
  
• Hold an annual customer appreciation party that includes fun events and plenty of food and drinks for the whole family.

These are just a few examples of little things you can do to create an exceptional
experience for your customer. Throughout your day, take note of what other businesses do to thrill their customers and try to apply them to your own small business. You really can make a big impact just by doing small acts of kindness for your customers.

Read more about how to go the extra mile to impress your customers in Chapter 7, 'How to thrill your customers', of the UK Small Business Marketing Bible, where you can also find hundreds of ideas, tips and techniques for increasing sales.

Legal tip

Insurance for employers - a welcome break for small businesses

This week has seen the abolition of the requirement for limited companies with only one employee - that is, the owner - to take out employers' compulsory liability insurance. Until now, incorporated sole traders had to be insured to the value of £5 million against accidents in their own workplace or while carrying out work for the business elsewhere, but since they were the only employee and were unable to sue themselves, there seemed little point in the rule.

The change is good news for around 300,000 small firms, and represents an average saving of £250 a year, according to the Association of British Insurers (ABI).

But since most insurance comes as part of a package, including other policies such as public and product liability, it may be difficult to tell whether you're actually making a saving or not when the time comes to renew.

You also need to be aware that employers' liability insurance is still compulsory under certain circumstances:

• If you hire temporary staff, even for a short period.
  
  
• If you recruit other self-employed people on a contract basis.
  
  
• If you rely on volunteers or other workers in special circumstances, such as student placements.

Where you still have to take out insurance, the law says your policy should be to a value of £5 million. Infringing the law could cost you a penalty of up to £2,500 for every day you are uninsured.

Bearing in mind this week's changes, it's worth reading the Health and Safety Executive's useful background guide to employers' liability insurance.

And the UK Red Tape BUSTER offers hundreds of other factsheets, scenarios and frequently asked questions about the laws affecting all small firms in the UK.

IT tip

Networking for home-based businesses

For home-based businesses, linking two nearby computers up can be a handy way of sharing information and IT resources.

• It will allow you to download information from a laptop to a PC - especially useful when your files won't fit onto a floppy disk.
  
  
• You can connect two computers to the Internet at the same time.
  
  
• You can share printers and other devices.

In other words, connecting two computers will give you a simple network which will make life easier for your home office. What follows isn't a comprehensive manual, just a few useful pointers to finding the quickest method and the minimum amount of equipment you'll need.

Firstly you need to decide which networking method will suit your circumstances best. There are plenty of options, but we recommend what's known as ethernet, because it's ideal for linking two computers.

You'll need:

• An ethernet network card for each computer. Basic ethernet network cards cost no more than £15. You should make sure they include the relevant drivers (software) for your system (most come with a CD which supports Windows 98, ME, and XP).
  
  
• A crossover cable, or what's known as a "Category 5" cable. This will cost around £2.
  
  
• Around an hour to install the link.

Installing these gadgets is usually fairly simple. You'll need to take the back off your computers to insert the network cards, plug in the cable and install the driver software. All the equipment should come with instructions, though, and Windows XP even offers an installation wizard - just click the Start button in the bottom left hand corner of your screen and select the wizard.

Confused? Try PC Stats for a step-by-step guide to all types of network, including the basic ethernet this article talks about. And if you have wi-fi, a wireless connection might be a sensible option. There's an overview of all the alternatives to ethernet at Homenethelp.

New business idea

Here is this week's idea:

• Lifestyle Portal

Just one word

Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.

Do you know what an 'actuary' is?

a) a certificate proving that an insurance policy is valid
b) an intermediary between a business and an insurance company
c) an amendment added to an insurance policy after it was taken out
d) a trained professional who can advise on the technical aspects of insurance

Answer at the end of the Bulletin.

Website review

The Information Commissioner's website

Any small business that holds personal information about its customers, staff or suppliers has to comply with the Data Protection Act 1998. It's one of the pieces of law that impacts on virtually all businesses, regardless of their size or sector. This week, we've reviewed the Information Commissioner's website, which explains the Act and provides guidance on how to comply, in terms of navigation, accessibility, content and relevance.

• Navigation - the website is pretty easy to use, although its focus is definitely for consumers wishing to find out about their rights under Data Protection law, rather than businesses wanting to find out what they have to do to comply. There's a dedicated section for small businesses which is fairly easy to find from the homepage, and the Quick Links listed on the homepage make it easy to navigate quickly if you know what you're looking for.
  
  
  

• Accessibility - the site features advice on how to access downloads, plus a link to Adobe's reader for those who don't already have it. There's also a link to the Macromedia plug-in needed to operate Flash movies, screen reader options, plus advice for people using different web browsers.
  
  
  
  
• Content - unfortunately, this is where it all goes wrong. All the accessibility features above are there precisely because this site is all style and not much in the way of content. For example, the small business section we mentioned above contains a very pretty Flash movie - nice and entertaining, but you don't actually feel like you've learned anything practical at the end of it. Similarly, the press releases and guidance on the site are virtually all tailored towards the consumer - making it a rather confusing experience for a small business owner who just wants to understand his or her legal obligations.
  
  
  
  
• Relevance - again, the site is much more relevant if you're a consumer than if you're a business seeking practical advice. The site's latest press release is over a month old - in fact, there have only been two releases so far for 2005. And the main page explaining the remit of the Privacy and Electronic Communications Regulations 2003 makes no mention of the amendment that took effect from 25 June 2004, after which businesses were allowed to register their details with the Telephone Preference Service if they don't want to receive unsolicited calls. The information is there on the site, but it's extremely hard to find.
  
  

So, a total score of 10 out of 20. Very disappointing for a site explaining such an important piece of law to business owners. If the site was revamped with more practical factsheets and tools and fewer movies and pictures, data protection law would be much clearer for business owners.

Our rating - 10/20.

Did you know?

Chip and PIN legal position has been made clearer

The organisation behind the Chip and PIN campaign has issued advice for retailers to clarify and summarise their legal position regarding liability for card fraud following the introduction of the new card payment system in January this year. If you're a retailer, you're not legally obliged to install the new equipment but may be held liable for any card fraud committed in your business if you choose not to do so. The Chip and PIN organisation also publishes a list of FAQs for retailers to help explain how the new system is working.

Worth a visit

Just ask SAM about your software licensing worries

Just Ask SAM is an online source of help and support for businesses concerned about software licensing. The site takes a step-by-step approach to explaining the whole process of obtaining the licences you need and keeping them up to date. It also includes a couple of free and free-trial downloads covering issues such as auditing your software, as well as an interactive quiz to assess how good you are at managing your software.

Genesis initiative questions small firms

Opinion pollster YouGov is conducting a survey of small business needs ahead of the looming General Election. This is part of an all-party initiative, which aims to encourage and support small businesses. Competition and sniping between the various parties and their promises to small firms has been heating up of late, and this survey is an attempt to gauge what entrepreneurs actually want from Government.

Worth a read

This newly published book explores the reasons why people decide to set up their own businesses, looking at how to find a business idea that is profitable while also being meaningful. It provides case studies and examples of firms that have developed a particularly unusual culture or strong ethical values, and examines how to motivate staff to care about your business as well as just work for it. Check out:

If you have any feedback or suggestions for us to make this service more relevant please e-mail your comments to enterquest@cobwebinfo.com

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Remember that we guarantee never to sell or give your e-mail address to anyone else.

Good luck

The EnterQuest Team

This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.