RESOURCE CENTRE

Your EnterQuest Bulletin - 05 October 2005

In this week's issue:

• more tips from the real small business world
  
• tips and tools for understanding CRM
  
• the CAP Code and sales promotions
  
• zipping through your work
  
• the Federation of Small Businesses (FSB) website reviewed
  
  

Small business answers

If you have any questions about your business idea or target market, or need help tracking down a grant, subsidy or 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.

To access over 800 factsheets, guides and small business reports, go to www.scavenger.net.

Weekly stir

More tips from the real small business world

The business world just isn't fair. Not fair at all.

The smartest and most solvent of people, the hardest workers, those with the brightest ideas, and those who are quickest to get a new product on the market go bust just as easily, and quite often more easily, than anyone else.

And more often than not, these people become enraged at their misfortune, angry that the market that should have been begging for their product didn't end up beating a path to their door. They can't understand how their business brilliance and dazzling ideas failed when the laziest, uneducated, shoestring-budget-bummers they were competing against stole it all from right under their noses.

No, the business world just isn't fair at all. And why should it be? There are always winners and there are always losers.

So what are the mystery factors that set successful small businesses apart, and which the losers fail to grasp? Clearly there will be a complicated set of factors in any given situation, but here's a list of successful entrepreneurial traits that will almost certainly be found in those people who run small businesses that win more than they lose.

1) They look behind themselves for opportunities

The problem with finding business opportunities is that most people just don't know where to look. It's too easy to look ahead for an opportunity, or to assume that one will eventually appear around the next corner. Business owners that find and exploit the most opportunities recognise that the best place to find them is where you've already been. Looking behind you at things you've already explored and considered will often reveal things you didn't spot before. And in any event, keeping an eye in the back of your head will also help you to spot your competitors creeping up on you. There may be opportunities as a result of that, too.

2) They don't do what everyone else is doing

As doing what everyone else is doing is what most people do when they start a business, this presents itself as an opportunity for someone who is prepared to do something new or in a different way. This may seem a little bit too obvious, but clearly it isn't obvious to most people, as it's only the minority of small business owners that twig or have the courage to be different.

3) They run their businesses to avoid going broke

What we mean by this is that the people who survive in business recognise that there is no automatic guarantee of success, and they know exactly when their cash will run out if the orders dry up. The best way to look at this is by starting every day in business as if it could be your last, because it actually could. This requires a twist in the way you think about your business: you should permanently view things in terms of avoiding going bust as the way to ensure you will survive. Work out where your danger line is and work your butt off to stay above it.

4) Everything they do is believable

As there is usually so much rubbish on the market in every small business sector, this is another opportunity that winners will exploit. But this isn't about offering something that's better than the general dross that's already out there. It's about making sure that whatever you offer, your customers will believe you. In other words, whatever you promise your customers, make sure you back it up with substance and delivery. Don't pretend you're better than you are, and don't pretend that something is easy when it's difficult. If your customers stop believing you, you'll be doomed in no time.

5) They keep things simple and easy

This is just common sense again, but it isn't common to most small businesses. Simple business processes, simple marketing messages, simple pricing and simple customer promises that can be delivered. Everything kept simple, along with easy ordering, easy to understand instructions, easy to contact customer service, easy to return, easy to find and, most importantly, easy to do business with.

6) They don't just say it - they do it, and enjoy the knocks

Ultimately this is probably the biggest differentiating factor between business winners and losers. Anyone can say they are going to do or develop something new, or raise the bar with quality standards, or be the first to get something into a marketplace. In fact, most small businesses will make promises along these lines at some point. But very few of them will actually make it happen. Planning and talking about things is one thing, but doing them is another. Getting knocked back and criticised for trying something new and not quite getting it right will teach you more - and earn you more - in the long run than doing nothing at all.

Marketing tip

Tips and tools for understanding CRM

Building relationships with potential and existing customers is one of the most crucial areas of running your business successfully. Customer Relationship Management (CRM) is a process that lets you collate all the information you hold on customers in one place. This can help you improve customer service and personalise your relationships with your customers, by helping you to:

• Get to know your customers better, in terms of what they need and want, and how they go about purchasing products and services.
  
• Up-sell (encourage customers to order new or better products) and cross-sell (find or develop other products which they might be interested in).
  
• Reduce operating costs by targeting your marketing more accurately.

The resources below offer practical tools and advice for finding a CRM supplier, setting up a CRM system and using the software effectively.

• Destination CRM is a useful source of news and practical information on implementing CRM, and you can also find news and tips on building customer loyalty at the CRM Daily news site.
  
• CRM 101.com offers a CRM glossary, tutorials and buying tips, plus reviews of software and links to suppliers, relevant books and manuals.
• This tool lists and compares UK-based CRM software suppliers.

You can also check out this practical factsheet, which introduces the concept of CRM and provides advice on setting up your first system.

And there are hundreds more tips, techniques and tactics for increasing sales and finding new customers in the UK Small Business Marketing Bible.

Legal tip

The CAP Code and sales promotions

Offering prizes or gifts to attract attention to your business or persuade people to get in touch with you is often an effective marketing ploy. But there are certain legal restrictions on how you can run this sort of promotion. The main rules are found in the British Code of Advertising, Sales Promotion and Direct Marketing (the CAP Code).

• Firstly, there are no restrictions on giving customers or potential customers free gifts to encourage them to buy from you. And running a 'chance-based' prize draw is also relatively simple, as long as it's open to everybody free of charge and without any strings attached.
• But you can't run a chance-based prize draw if your customers are obliged to buy your product in order to take part. Instead, the Code says there must be an element of skill involved in this sort of draw, otherwise it becomes a lottery (for which you need a licence). This is why many promotions involve crosswords, quizzes and tiebreaker questions.
  

The Code advises you to talk to a legal adviser before running this sort of promotion. But the Committee of Advertising Practice's guidance notes on this sort of promotion is also a good place to start.

This factsheet explains the CAP Code in detail, looking at the different rules according to the marketing activity you are planning, and providing links to numerous sources of further information.

And you can find scenarios, checklists and frequently asked questions on advertising rules and every small business legal situation in the UK Red Tape Buster.

IT tip

Zipping through your work

Broadband may be getting faster and hard drives may be giving you more storage space, but it can still be handy to use a Zip compressor to reduce the size of certain files.

• A Zip compressor is a small program which reduces the amount of storage space a file takes up. This makes it quicker to send by e-mail, allows you to fit more onto a floppy disk or CD, and makes it easier to upload files if you have a website.
  
• The most recent versions of Windows have a compressor as standard. Right click on your desktop and then go to 'New' and 'Compressed (zipped) folder'. A new folder icon with a zip will appear. You can then add Word documents, graphics files or any other file, and the folder will squash them - usually to around 50% of their original size.
• If you don't have a compressor as part of Windows, by far the most popular application is called WinZip, which you can download as shareware. WinZip allows you to compress files, unzip them again, and even put a password on them to prevent unauthorised access.
  

There are also more complex compressors available to download at the Download.com site. And you can check out reviews for the most popular applications at this freeware guide.

New business idea

Each week we provide you with summaries of some popular or emerging business ideas in the UK.

Here is this week's idea:

• Airbrush Tattoos

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 the word 'nadir' means?

a) the highest, or best point
b) the lowest, or worst point
c) an arch-enemy, the bane of someone's life
d) a formal or authoritative proclamation

Answer at the end of the Bulletin.

Website review

The Federation of Small Businesses (FSB - www.fsb.org.uk)

The FSB offers a range of help and support to entrepreneurs, including a 24-hour legal advice helpline, and a range of information and news through its website. But how user-friendly and accessible is the site?

• Navigation and presentation - an overwhelming amount of information is fairly poorly presented here, with distracting flash images and a number of different topics shoehorned into two difficult-to-read columns. The inclusion of fresh news and press releases keeps things current, but these are difficult to navigate as the news columns have to be scrolled through individually.
  
  
  

• Accessibility - there are some options for different ways to view the site according to your preferences or browser, but the addition of access keys, foreign language options and a text-only version of the site would improve the score here.
  
  
  

• Content and usefulness - there is some useful information here, with a regularly updated and comprehensive news section, plus a range of interesting reports and publications on small business issues. Tools like the searchable directory of members are highly practical, and signposting to other helpful organisations is thorough and thoughtful.

  

• Relevance - although you have to click through to a different site to get the FSB's press releases, the wealth of information is impressive, with new stories added every couple of days. The stories are nicely opinionated, too, providing a good insight into the FSB's lobbying activities on behalf of small firms.

  

A highly useful website overall, featuring plenty of small business news and views, legal guides and useful tools. A revamp of the navigation and accessibility of some of the information would make it even more usable.

Our rating - 13/20

Did you know?

Equality law and the National Minimum Wage have changed

The common commencement date of 1 October has seen a raft of legislative changes that affect small businesses, including amendments to product safety requirements and changes to certain aspects of employment law. The EnterQuest team has produced a practical, at-a-glance summary of the key legal changes coming into force this week, with links providing more information about how you can comply.

Mobile devices at risk of 'Bluesnarfing'

Your Bluetooth-enabled mobile phone or personal digital assistant (PDA) could be vulnerable to attack, according to a recent study of commuters. The survey revealed that one in ten people carry unsecured mobile devices that could easily be hacked into through a process known as 'Bluesnarfing'. Your voicemail messages, address book, e-mails and diary can all be stolen or manipulated, so it's important to keep your mobile equipment secure by setting security to 'high' and considering installing a firewall - check out this guide to help you select one.

Worth a visit

Find a partner in an instant

Company Partners puts new and existing entrepreneurs in touch with each other through a low-cost online networking service (it currently costs £9.90 a month to be a member). You can use the service to just swap advice and tips, or try to hook up with potential new partners, associates or even staff through the service. Advice and useful links on issues like finding an accountant and raising finance are also offered, often for free.

Simple online VAT resource

The British Chambers of Commerce (BCC) and HM Revenue and Customs (HMRC) have joined forces to help teach small business owners about the number of VAT simplification schemes available to them. Research has shown that many small firms are unaware of the schemes available to make paying VAT easier. The two organisations have set up a plain-English online resource to explain VAT.

Food Fortnight champions local fare

Food Fortnight is running until 9 October, supporting independent suppliers and producers of local food and drink by encouraging pubs and restaurants to champion local produce and helping tourism businesses to promote regional food and drink. The campaign is supported by a great website, featuring plenty of hints and tips on getting involved, as well as downloadable posters and advice for retailers and caterers.

Competitivity calculator for businesses

A new calculator has been launched which aims to help you evaluate the level of innovation in your business as compared with your competitors. Using 2005's recently released Value-Added Scorecard, the calculator asks for basic information about your enterprise, then ranks it alongside other businesses in your industry.

Worth a read

Covering how to tackle awkward situations involving complaining customers, rebellious employees or difficult partners, this practical manual offers step-by-step guidance on tackling tricky or sensitive problems in your business.Together with Lifescripts, which we featured last week and which includes actual scripted conversations to try in these situations, it offers a useful combination for beating just about any problem. Check out:

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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.