RESOURCE CENTRE

Your EnterQuest Bulletin - 11 May 2005

In this week's issue:

• a very important eight-letter word for small businesses
• handling customer complaints efficiently
• understanding Terms of Employment
• website accessibility - start from scratch or use text-only?
• the Office for National Statistics 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

A very important eight-letter word for small businesses

Before we get started with our small business lesson this week, we thought we'd chip in with our views now that the voting's finished and the dust's finally settled over the closer than expected - but completely unsurprising - result following the main event that's been distracting the nation (or more like less than half of it) over the last month or so.

Of course, the EnterQuest view of the result is naturally biased as the winner resides not a stone's throw away from us up here in the north east of England.

So we're delighted to congratulate Terry Miller, the Geordie who swept his competitors aside to win the £250,000 prize in ITV's Hell's Kitchen competition, and who will now use the money to launch his own restaurant. This will provide a major boost to the north east's business start up figures and an excellent opportunity for some self-admiration from our Regional Development Agency.

Now back to our lesson. What's this critical eight-letter word that's so vital to every small business?

Before we tell you this word, let's look at a well-known business quotation that says, "God has mercifully withheld from humanity any foreknowledge of what will sell".

What this means is that it's a level playing field for every new business start up and small business owner considering a new venture. Everyone thinks or believes they know what might sell, but in reality the majority of people haven't got a clue and plunge themselves headlong into a new enterprise or launch a new product with nothing more than a "hit and hope" strategy.

And then they can't believe their bad luck when their great idea doesn't find a target audience that's interested in it or prepared to buy it.

So what can you do to make sure you increase your chance of success? You can use that important eight-letter word, that's what.

Research.

Research your market, research some real live customers and prospects, research trends and developments in your sector, research the demographic characteristics and buying patterns of your target audience, research your competitors' activities and gaps they aren't filling, research newspaper and trade publications to see what's hot and what's not.

Research anything and everything, in fact, about your business idea, product or service and find out not only whether there is demand, but where it is, how much there is, how often people will buy, how much they will pay, and how much this might change in the future.

Fortunately there are hundreds of sources of information that will help you with this research if you know the right places to look. Try the following as a useful starting point:

• The-List.co.uk is a search engine for market reports and publications. If you type in keywords for your market sector or business activity, it identifies thousands of relevant executive summaries which you can browse free of charge - often these contain most of the report's key information presented in digestible form.

• Government statistics can be accessed via the Office for National Statistics (ONS). Other statistical publications and reports are available from the Stationery Office, and try www.neighbourhood.statistics.gov.uk for local statistics on income, population and socio-economic t rends in your area.

• The websites www.gro-scotland.gov.uk and www.nisra.gov.uk provide the same sort of demographic information for Scotland and Northern Ireland.

• UpMyStreet.com also provides a range of free statistical information, localised by postcode and looking at the area's economic climate and social demographic data.

• Dun & Bradstreet provides business and credit reports, country risk services and various documents about currently operating businesses.

• Experian operates the postcode-based Mosaic consumer classification system, which uses information from the 2001 census, electoral roll and ONS local area demographics to divide the UK's adult population into over 60 different consumer types, including several new groups, reflecting lifestyle changes and evolving social trends.

• Trade bodies or professional associations will often provide market information to their members. They may also be able to provide advice on finding further data and interpreting your results. You can find a list of these organisations by accessing the Directory of British Associations at your local library. You could also try the Trade Associations Forum.

Even after you've done this initial research there's an even more critical part of the research process you need to carry out.

Your market test.

Test your concept. Test your market before you go completely mad for it. Test it small to start with, learn from it and then test it again. Then when you're confident and your desk research backs you up, you can start to promote things in earnest.

By the way, apparently there was a general election last week. Did anyone hear the result? We were too busy working and missed it, and we're worried that the new Government might have introduced something that will have a big impact on the small business scene. Or as much as Hell's Kitchen does anyway.

Have a great week.

For more market research tips, check out the UK Small Business Marketing Bible, which also contains hundreds of tactics for increasing sales no matter what sector you're in.

Marketing tip

Handling customer complaints efficiently

We've explored the legal aspects of customer complaints in previous bulletins, looking at issues such as what customers are entitled to by law in terms of refunds and exchanges.

But the way you handle a customer complaint is also an opportunity not to be missed in terms of potentially winning you a long-term devotee, as well as enhancing the word-of-mouth reputation of your business.

No matter how professional their staff and processes or how high-quality their goods or services, all small businesses have to face complaints eventually. If unresolved, or handled poorly, these can lead to a loss of business and damage to your reputation. But customers whose problems are taken care of efficiently will be more likely to use your service again, and to recommend you to others.

Having a process in place for dealing with complaints quickly and effectively enables you to deliver the highest standards of customer care at a time when the customer most needs it.

Here are a few tips on putting in place a simple complaints-handling procedure.

• Appoint someone specific to deal with complaints. It's important that the communication with the customer is co-ordinated and consistent, so it's better to have one person dealing with phone calls or e-mails than a few people whose wires could get crossed.

• Write your complaints policy down. This is helpful to show new or inexperienced staff the ropes and means you have a standard process that is always followed, so customers are treated exactly the same.

• Set a timescale for dealing with complaints - for example, within 24 or 48 hours - and stick to it.

• Carry out regular workshops, role-playing different types of complaint and emphasising the need to stay calm, polite and focused.

• Make sure there's an escalation procedure in the event that a customer wants to speak to someone senior. Include this in your written policy.

Read more about dealing with complaints in the 'Working with customers' section of the Good Small Business Guide, a 500-page practical manual for business owners, which we have part-authored in partnership with publishers Bloomsbury.

Legal tip

Understanding Terms of Employment

When a small business becomes busy and regular work or orders start coming in, many business owners begin considering the possibility of taking on new staff to help. Employment law is famously complex, however, and for the first-time employer, recruitment can seem like a legal minefield.

One of the first questions you should ask yourself is what sort of contract of employment you and your new employee will need to make. Perhaps surprisingly, a contract of employment exists as soon as your employee unconditionally accepts your offer over the phone - it's a verbal contract, but no less important for that.

Within two months of your new recruit's starting date, however, you'll also need to provide a written statement of their main Terms of Employment.

As a minimum, to comply with employment law, the written statement of the main Terms of Employment will need to cover the following:

• The number of hours to be worked per week.
  
• The salary and any benefits.
  
• Holiday allowances.
  
• Sick pay.
  
• Pension scheme arrangements.
  
• Capability and disciplinary procedures.
  
• What your employee should do if they have a grievance, and appeal procedures.
  
• The notice period.

These details are required by law. After that, you may need to mention other terms, making some more detailed, or introducing terms specific to your employees' duties. Many businesses get round this by developing an employee handbook, which explains the way your business operates in more detail. You can then refer employees to the handbook within their written statement of main Terms.

You can find out plenty more about employment law in the UK Red Tape BUSTER, including factsheets, FAQs and checklists on recruitment, working hours and payment.

IT tip

Website accessibility - start from scratch or use text-only?

Making your website accessible is not specifically mentioned in the 1995 Disability Discrimination Act, but as many advisers have pointed out it can help attract Internet users who have a variety of disabilities such as impaired vision or motor disabilities (including difficulties using a mouse or a keyboard). In this way, businesses with accessible websites can also improve their reputation, and perhaps gain an edge on competitors who haven't ye t considered accessibility.

An accessible site is one that meets Priority 2 of the World Wide Web Consortium's (W3C) guidelines.

So what can you do if you have a website which isn't already designed with accessibility in mind? There are two possible solutions.

The first is to change the design so that it meets the W3C standards; the second is to build a separate site based on text. This means continuing to offer all the functions of your existing site, but in a simplified way.

Both of these options have advantages and disadvantages, so here's a brief summary of what they might mean in practice.

• Changing the design of your site is perhaps the most professional way of making it accessible. The result will be a single website which can be used by all your visitors, and has the advantage of building on and adapting a design which you're already happy with. One potential downside is that complex sites can take a long time to change, and the level of technical knowledge required obliges some businesses to hire in a professional web designer to do the job. This leads to greater expense.
  

• Building a parallel site based on text, removing the images and ensuring visual clarity in the use of colour and fonts, is a popular option for businesses on a tighter budget. However, it means you have to run and update two websites at the same time - this adds to the complication of maintaining your site, takes up more server space, and makes it more difficult to keep track of hits and visitor numbers. But there's no doubt that it's easier (an d cheaper) for somebody who's not a web designer to build and keep an eye on this sort of site.

So which is best? It depends on your website and what your resources and requirements are. If you're planning to make your site accessible, however, there's plenty of information that will provide advice.

• There's an explanation of the Disability Discrimination Act at the Government's Disability Unit.

• The Disability Rights Commission offers information on requirements for website accessibility.

• And you can try using use Watchfire to test your existing website for compliance with the W3C guidelines.
  

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:

• Wine Tasting Events

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 a 'claque' is?

a) a business meeting held via webcast
b) a group of over-the-top admirers or fans
c) a type of worm spread by chat programs
d) an appendix to a legal contract

Answer at the end of the Bulletin.

Website review

The Office for National Statistics (ONS) (www.statistics.gov.uk)

This is a crucial site for any business carrying out market research, as it contains key information about local demographics based on the results of the 2001 Census, as well as important data about inflation rates and the sales of consumer goods in the UK.

• Navigation - the homepage is difficult to read, with news items clustered busily in the centre and other links and information listed quite confusingly down each side. However, in terms of accessing key information quickly, navigation works OK - it's obvious how to get to the Census data and the sections about the economy, for example.
  
  
  
• Accessibility - it's really difficult to find any information about accessibility options on this site. Just about all you can do is download a plugin for Adobe's Acrobat PDF reader. As bad as we've come across on a Government website.
  
  
  

• Content - this is a really interesting, content-rich site, and even though the amount of different topics and data could be overwhelming, key information such as Census demographics and employment figures are all clearly presented and easy to understand. The breakdown into mini-reports of the Census data, along with the offshoot Neighbourhood Statistics site, are extremely u seful.
  
  
  

• Relevance - for a site that handles so much frequently updated information - broadband statistics, inflation rates and sales indexes to name just three - the news section is admirably fresh and up to date. The wealth of press releases are easy to find and well written, to boot.
  
  

A very modest score of 11 for the ONS - although this could be dramatically improved through the addition of some sorely lacking accessibility options.

Our rating - 11/20

Did you know?

The DTI has been renamed

As part of his post-election cabinet reshuffle, Tony Blair has mystifyingly announced that the DTI is getting a new minister, a new name and a new brief. Headed up by former Work and Pensions minister Alan Johnson, the new Department for Productivity, Energy and Industry (no, we don't know what that means, either) is charged with the task of reducing red tape for businesses (wasn't the DTI already doing that?) and boosting the UK's high-tech econ omy, among other things. Other promises outlined in Labour's pre-election manifesto include boosting the number of women entrepreneurs in Britain (sorry guys, you're not needed anymore), pumping more cash into support for start ups, and setting up a skills academy to help the manufacturing industry. The bad news is that they've also promised to increase the National Minimum Wage and extend the amount of paid holiday for employees. C'est la vie!

You can read more in Labour's fascinating business manifesto.

The Apprentice is in the firing line

A new survey by employment law specialists ELAS has revealed that real small business owners wouldn't dream of treating their employees in the same way as The Apprentice boss Sir Alan Sugar. The "you're fired" approach on the TV show sees staff dismissed for relatively minor misdemeanours and even pe rsonality clashes with Sir Alan himself. But most small business owners know that new employment legislation makes these unfair, summary dismissals illegal and could result in them having to cough up at an employment tribunal.

Programmes like The Apprentice and Dragons' Den are made for entertainment - not educational - value, and their high-profile stars have a lot to answer for by promoting themselves as role models for aspiring entrepreneurs.

Worth a visit

Help with scanning for security flaws

IT security monitor the SANS Institute has released details of the top critical security vulnerabilities currently affecting Internet users worldwide. Vulnerable web servers top the list of critical problems, and affected businesses are urged to address the top 20 vulnerabilities immediately to avoid falling prey to an attack. Security supplier Qualys is offering firms a free scan against the top 20 flaws. And as usual, here's a link to get the latest Microsoft security updates and patches.

Phishing information site launched

A website called Phishspot, which aims to provide a central resource for reporting and finding out more about phishing, has been launched. It includes information about how phishers set up fake websites in order to ferret out financial and personal information about web users, and provides a free news service for warnings and developments in phishi ng.

Worth a read

This fascinating book profiles 25 of eBay's so-called 'Titanium PowerSellers' - that is, people who sell more than $150,000 worth of goods on the site each month. It's an inspiring read for the growing number of eBay entrepreneurs, and also provides 50 top practical tips for selling profitably on eBay, covering how to choose your merchandise, dispatch goods to buyers and keep your customers happy. 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.