RESOURCE CENTRE

Your EnterQuest Bulletin - Issue 189

Thought for the week: "The line between success and failure is so fine that we scarcely know when we pass it; so fine that we are often on the line and do not know it." Elbert Hubbard

• How to compete against bigger businesses
• Getting the right business insurance
• Top ten...tech products
• How's your business radar?
• There's a date for the English smoking ban
• Your business might never recover from a fire
• Pay-per-click data tool
• Tool to find temps and seasonal staff

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 and location 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.

How to compete against bigger businesses

One of the biggest worries facing the new business owner, or anyone thinking of starting up their own venture, is that they just won't be able to compete with all the bigger companies that are already out there. Understandably, they think the business world is dominated by large corporations and therefore they won't stand a chance of surviving, never mind competing.

Nothing could be further from the truth. In fact, small firms are inherently more competitive than their larger counterparts and have many qualities and advantages that big businesses often try to copy to improve their own performance.

Here are five reasons why small firms can beat much larger ones:

1) Small businesses are so much closer to their customers. In fact, the proprietor of a small business will very often meet and speak directly to customers every day. In large firms the owners or decision makers often don't get exposure to their market at all. The advantage to the small firm is they can spot opportunities and have the 'nose' to be much more need-oriented.

2) Small firms are more responsive. They can change things in their operation quicker than large businesses. This is mainly down to size and scale. So in this respect small firms usually find it easier to innovate or introduce something new at very short notice.

3) Small businesses can be fanatical. They allow their owners to be obsessive about their business and products, and as a result never give up in their attempts to make their service, new development or project a success, no matter how many times they can't quite get it right. Big firms, on the other hand, are often too inflexible to allow this.

4) Small businesses can keep their costs lower. They don't have any choice. They haven't got the overheads of their larger counterparts, and as a result the cost of innovating or developing something new doesn't have to be a competitive barrier.

5) Small firms are inherently more flexible. They can turn orders around fast, they can try several ideas at once, and they can have more informal business plans which allow them to react and adapt to market or customer needs almost at will.

It's sometimes easier for the smaller firm to concentrate on quality and service, maintain individuality and gain real advantage by simply trying to be better than everyone else in the eyes of their customers.

And it's worth remembering the old business maxim that people prefer to buy better products, not just the cheapest. So even though small firms may not be able to beat their larger competitors on price, they can certainly try to beat them on quality.

Here is a list of non-price factors that are proven to affect the decision-making process of purchasers.

• Product or service superiority - potential buyers will compare quality standards and performance levels between similar offerings.
• Specification - how close it is to meeting their exact needs.
• Convenience - of ordering, delivery, payment terms and so on.
• Customer service - before, during and after the sale.

All of these 'quality' factors come into play in a purchaser's mind, and they're all factors that a small business can do something about in a competitive marketplace.

So yes, small businesses can compete very effectively indeed, and fear of larger firms should certainly not put the budding start up off launching their own venture. Indeed, many large companies study small businesses very closely and will very often go out of their way to emulate their success.

For hundreds of practical tips and techniques about marketing your business on a shoestring budget, as well as finding new customers, increasing sales and growing your business, check out the UK Small Business Marketing Bible.

Getting the right business insurance

All businesses need insurance against risks that might threaten their viability and survival, such as the theft of equipment, or work-related injury to you or your staff.

Two types of insurance are compulsory for businesses: motor insurance, for any vehicle you drive for business purposes, and employers' liability insurance, if you employ any staff other than members of your immediate family.

Other types of business insurance are good practice - here's a quick guide to some of the policies you might consider:

• Building and contents cover for your property, stock and fixtures.
• Business equipment insurance to cover you, for example, for equipment breakdowns or the loss of information resulting from a computer meltdown.
• Business interruption insurance, to protect your income and overheads in the event of serious disruption caused by fire or vandalism.
• Public liability cover, to protect you against accidents to members of the public or damage to their property as a result of your business. It's good practice to have this type of insurance if you have premises open to the public.
• Product liability is similar to public liability but protects you specifically for claims made following loss, damage or injury sustained as a result of a product manufactured or supplied by your business.
• Professional indemnity cover is appropriate for any business that gives advice or provides certain professional services, such as lawyers and accountants.
• Key person insurance, to protect you if a fundamental member of your team dies, falls ill or is injured and is unable to work.
• Credit insurance covers you against debtors who can't pay money owed to you because they've gone bankrupt.

Check out the website of the Association of British Insurers for a comprehensive guide to different types of business insurance.

You can also see our practical introduction to insurance cover for business for more information, or check out our guide to choosing and using an insurance broker for tips on finding the right policy.

Tech products

IT and technology news service CNET names the following as the top ten most popular technology products, services and websites of the past decade:

1) The iPod MP3 player
2) The TiVO entertainment system
3) The Google search engine site
4) The Napster music download site
5) The FireFox web browser
6) The PalmPilot personal digital assistant
7) The Motorola Startac flippable mobile phone
8) The Apple iMac computer
9) The Sony Digital Mavica camera
10) The Sims computer game

You can check out our reports on the UK markets for music, PC and video games and PC software for more information about the trends in these sectors.

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

Here is this week's idea:

• Will Writer

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 'nascent' means?

a) beginning to exist or develop
b) well-established
c) decreasing or declining
d) knowledgeable or experienced

Answer at the end of the Bulletin.

The following topical business issues have been reported in the media over the past seven days. Did your radar pick them up?

1) Which bank topped a biennial poll by the Forum of Private Business (FPB) that focuses on the best bank service for business customers?

a) Clydesdale Bank
b) Allied Irish Bank
c) Royal Bank of Scotland
d) HSBC

2) Which long-awaited new software application was launched for business customers last week?

a) The Mozilla Foundation's new FireFox web browser
b) Microsoft's latest version of Internet Explorer
c) Microsoft's Vista operating system
d) Apple's latest Safari browser

3) Which of the following represents the latest string added to Tesco's online retail bow?

a) Clothing
b) Insurance
c) Electronics
d) Music downloads

Answers at the end of the Bulletin.

There's a date for the English smoking ban

Smoking in public places will be outlawed in England on 1 July next year. The law, which will have far-reaching repercussions for small businesses, will come into force on 2 April in Wales and Northern Ireland. The British Beer and Pub Association (BBPA) is pleased that the announcement will allow pubs and bars enough time to prepare for the ban. Non-service based industries will also be affected, as employers will be liable for staff members who break the law by smoking indoors at work. Scotland has banned smoking in public places since March this year.

Your business might never recover from a fire

Statistics from the Government show that six out of ten small businesses that have a major fire never recover and eventually go bust as a result. It reckons the average cost of a fire at business premises is £147,400, so the Chief Fire Officers' Association (CFOA) has produced a guidance document that includes some useful information to help small business owners understand what they can do both to prevent and minimise the impact of fires.

Pay-per-click data tool

The SpyFu tool can be used to find out how much is being spent on pay-per-click (PPC) search engine advertising by category or industry - you can even check what your competitors are up to in terms of PPC activity, plus the number of clicks their sites get every day. Other useful data revealed by the tool includes the top ten advertisers for different keywords.

Tool to find temps and seasonal staff

A new website has been launched with a focus on the concept of buying and selling time. Slivers of Time aims to help businesses find staff for peak or seasonal periods, and can also be used by people who want to find flexible work opportunities. The idea is based on the eBay-style idea of auctioning time, and funding for the service has been provided by the Government.

This book, new for 2007, provides a comprehensive overview of the issues surrounding how to improve the conversion rate on your business website. It's written in a practical, how-to, jargon-free style, and is packed with illustrative screen shots and examples. Although its main focus is on e-commerce and getting people to buy from your website, the techniques are valid for any business with an online presence, even if your call to action doesn't relate primarily to sales. Check out:

Call to Action: Secret Formulas to Improve Online Results, by Bryan Eisenberg, Jeffrey Eisenberg and Lisa T. Davis

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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.