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Your EnterQuest Bulletin - Issue 233
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| Thought for the week: "There is no more noble occupation in the world than to assist another human being - to help someone succeed." Alan Loy McGinnis |
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In this week's issue:
Carving out a business niche
The birth of a daughter inspired carpenter and cabinetmaker Gavin Kirkbride to take stock of his life and start his own business.
Gavin knows his trade - he spent 15 years with the world-renowned 'Mouseman of Kilburn', Robert Thompson's Craftsmen Ltd, in Kilburn, North Yorks, making bespoke furniture featuring a hand-carved mouse on each piece.
After daughter Lillie was born, Gavin used his savings to start Lily Handmade Furniture. Taking a tip from his former employer, he finishes each piece of bespoke furniture with a hand-carved lily.
Gavin, a member of the Guild of Master Craftsmen, sought advice from Business Link but found a friend's tips for success more useful.
He said: "received far better practical help and advice from Bill Simpson, a carpenter and specialist joiner who had given me some work experience when I was at school. He was the man who put me in touch with Robert Thompson's and has remained close throughout my career, offering me advice when I require it."
Bill told Gavin to stay in work while establishing his own enterprise.
"It meant I was always busy, working full-time, and carrying on my own work when I returned home of an evening. When I had built up my own work to 20 hours a week, I realised that the time was right to go it alone."
"It is a struggle at first, but it gets better with time. I've been going for a year, and expect it to take another two years to become really well-established."
Gavin rents a workshop and displays his furniture in other shop premises in Northallerton. Interested customers receive a business card from the owners, which they can use to contact Gavin.
However, Gavin says people think they can barter because he doesn't own his own premises.
"Around 30-40 hours of work can go into a chair. I sell it for around £300-£400. However, customers who do not appreciate that amount of work try to get the price down."
"Mass produced furniture is easily available on the High Street. What I produce is bespoke and particular to specific customers' requirements."
Gavin's future plans include exhibiting at the Harrogate Flower Show, the South of England Show and the Badminton Horse Trials next year. In the longer term, he's keen to pass his skills to apprentices of his own.
Importing issues
Buying goods from overseas involves unfamiliar transactions and contractual arrangements. There are particular documents to complete, and there may even be a need for official authorisation such as an import licence. Some of the main issues to consider include:
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Import duty and VAT are payable on goods arriving from outside the European Union (EU) and are due as the goods arrive in the country. The Harmonised System (HS) tariff number applied to the goods determines the level of duty payable. The amount of duty is calculated on the invoice value, including the cost of freight and insurance. VAT is then charged on the cumulative total, at the appropriate rate. For more information about VAT and import duty, see the HM Revenue and Customs (HMRC) website.
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The tariff number scheme will reveal where an import licence is required. The EU controls certain imports through the issuing of these licences and you must have any necessary licences in place, as HMRC will refuse your goods entry into the UK without them. The licences can be obtained from the Department for Business, Enterprise and Regulatory Reform (BERR). Note that there are quotas on the importation of certain goods from certain areas.
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For most goods arriving from within the EU, import duty is not payable (although tobacco and alcohol are exceptions), and VAT is collected when you submit your VAT return. The supplier can 'zero rate' their invoice (so that they do not charge VAT) by showing your VAT reference number on the invoice. If it is not shown, the supplier becomes liable for the VAT at their local rate. Your supplier (if VAT-registered and based in an EU country) is required by law to submit a monthly report to their tax authorities showing the VAT numbers and the value of all exports during the month. This information is transferred to the UK tax authorities, where it is matched against your corresponding VAT return.
For more information see our practical factsheet on importing for the first time.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
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 the meaning of the word 'redoubtable'?
a) slightly suspect
b) a certainty
c) not to be believed
d) illustrious, worthy of respect
Answer at the end of the Bulletin.
The following topical business issues have been recently reported in the media. Did your radar pick them up?
1) Britain's entrepreneurs rely on family members as advisers, investors and members of staff, the Tenon Forum says. What proportion of small enterprises did it say were run by couples?
a) half
b) a quarter
c) more than a third
d) two-thirds
2) Following a recent survey by the Federation of Small Businesses (FSB), which of the following red tape regulations are considered more bureaucratic than they were five years ago by 72% of small businesses?
a) tax regulations
b) working time legislation
c) environmental duties
d) health and safety
3) Credit and debit card fraud increased by 26% in the first half of the year, according to new figures from payments association APACS. What reason did it give for the rise?
a) the introduction of Chip and PIN
b) fraudsters using UK cards abroad
c) an increase in handbag thefts
d) more people buying goods online
Answers at the end of the Bulletin.
Train to Gain website
Train to Gain is a government service that helps businesses to get the training they need to get on and grow. Skills Brokers are on hand to assess your business' training requirements and will find suitable and affordable training that will enable your employees to perform to the best of their abilities.
Webware site
Webware is an online resource where you can read about new and useful Web 2:0 applications. The site is categorised, so it's easy to navigate to topics you might find interesting. Topics include social networking, browsers, chat and e-mail, and commerce developments. There's a handy Webware 100 list of applications chosen by regular readers/users of the site.
Free factoring information and advice
Creative factoring offers free advice and information to businesses looking for help with their factoring and invoice discounting needs. The website contains articles and case studies and lists useful publications. There's also a free factor finder service you can use to discover the right factor for your circumstances.
What would you do with seven extra hours?
The FSB has produced a report into how much time business owners spend on administration. The report is packed with entrepreneur's thoughts on what they would do with their extra time, such as spending more time training staff, mentoring, and creating new jobs. Download the report, in pdf format, from the FSB website.
This book promises to help you get ahead by creating your own personal brand to help you stand out from the crowd, with 'drop-dead brilliant' advice on those all-important first impressions, appearances and everything else you need to create the right image. Author Lesley Everett has put together a seven-point plan for creating your personal brand, ranging from deciding on who you really are, to your body language and voice. Check out:
Just one word answer
The answer is d).
Redoubtable means illustrious, eminent, worthy of respect.
After a decade as a self-employed plumber, David had earned a redoubtable reputation in his local area. |
How's your business radar? The answers
1) The answer is c). The survey found more than a third of small businesses were run by couples.
2) The answer is d). The FSB found that 72% of small firms think that health and safety legislation is more bureaucratic than five years ago.
3) The answer is b). APACS says domestic card fraud dropped by 4% but overseas incidents rose by 126%, pushing up the overall total. |
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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. |
