|
Your EnterQuest Bulletin - 14 July 2004
| Thought
for the week: "If you are going through hell, keep
going." Sir Winston Churchill |
In
this week's issue:
- what
to look for in a business adviser
- the
advantages of trading as a partnership
- firewalls
and your computer
- get
up to speed on claiming late payments
What
to look for in a business adviser
This
week we're going to discuss another one of our favourite subjects.
Business
advisers and how to find one.
Our
long-term bulletin readers will be familiar with our views on the
variation in competence and experience of the many types of so-called
small business advisers working out there in the field. (Hint -
be wary of anyone describing themselves as an "expert".)
Now
this is where we're lucky, because we work with most of them in
the UK, in the sense that they buy, use or read our information.
But
you aren't so lucky to have such first-hand knowledge, and while
there are some very good advisers indeed, especially the ones that
subscribe to our information products (of course), there are a number
that are total duck eggs when it comes to getting a professional
service from them.
So
what can you do, and for that matter, what should you do when seeking
advice?
Well,
if you're just starting up in business then our view is that you
should definitely get the help of an adviser. Statistics overwhelmingly
prove that those of you that do will be more likely to survive,
or less likely to start up and then fail, than those who give it
a go without an adviser.
The
best start up advice around will most likely be found from a local
enterprise agency, which you'll find listed in your local Yellow
Pages, or you can look on the National Federation of Enterprise
Agencies website at http://www.nfea.com.
Interestingly
enough, we've also just been involved in an extensive survey of
small businesses that started up in the last four years, which has
found that the most popular source of advice at start up stage was
split evenly between local enterprise agencies and accountants (understandably),
with solicitors (steady now) and personal visits to start up exhibitions
next on the list.
No
other source of advice even got a look in, although you'd be surprised
at how helpful the high street banks can be, especially if you shop
around them all.
Once
established and trading, the survey respondents indicated again
that accountants were the most used source of advice, followed this
time by Trade Associations, with newspapers and Business Links not
far behind these. Your Business Link in particular will be a definite
port of call if you are seeking a grant or other form of subsidy
as well as advice.
Sound
straightforward enough? Well, maybe not, as it can be a bit of a
minefield out there, so we've included a factsheet for you to download/read
this week which will help you find, select and use the services
of an appropriate business adviser.
Here is the factsheet:
Choosing and Using a Business Adviser
Marketing
tip
How
to surprise your customers
According to the latest survey (this time, by the
Chartered Institute of Marketing, if anyone's keeping track), most
small businesses think that "proper" marketing is something that
only big corporations can afford. And because they think they're
precluded from marketing strategically because of the cost, they
mistakenly believe that they shouldn't get involved with it at all.
They
couldn't be more wrong.
There
are hundreds of marketing strategies that any small business in
any sector can implement, and most of them are child's-play simple
and comparatively low-cost. Successful marketing doesn't have to
mean paying a fortune to a marketing or PR firm for an expensive
campaign that only achieves a fraction of the results you hoped
it would.
One
of the best ways to increase sales in your business is to get your
customers to do your promotion for you, by recommending you to friends
and colleagues and by returning to you time and again. So, what's
the best way to get them so worked up about how fantastic your business
is? Surprise them. Make sure their experience of buying from you
is more memorable than with any other business.
Here
are a few ideas for cheap or free ways to carry out stealth marketing
by making sure your customers are so impressed that they can't help
but recommend you to others.
- Get to know your regular customers. Regulars
are the bread and butter of any business, and you should make
that extra effort to make them feel good about doing business
with you. Learn their names and greet them when you see them,
or make exceptions to your usual business policy to show your
regulars how much you appreciate them.
- Talk to your customers and get their opinions
on how well you're doing. Give customers a personal call, or even
a visit, to ask how they're getting on with the latest product
or service they bought from you. If they've hit any problems,
ask for their opinion on how these could be fixed - and listen
to it.
- Admit to, and apologise for, any mistakes that
you make. No business is perfect, and the proof of the pudding
is often not in the mistake itself, but in how you handle it.
If you've made a mistake with a customer, always be prepared to
go the extra mile and offer them a discount, waive their bill,
or offer them another product for free to make up for the inconvenience
to them.
- Do things differently and make your business
stand out from the crowd by providing a service that just isn't
available elsewhere, such as immediate delivery following a purchase,
providing a free buffet on Saturdays or having a longer guarantee
on your products than any of your competitors.
- Reward customers that give you referrals or agree
to write testimonials for you. Make a big deal of your appreciation
by sending a thank you card, gift voucher or free gift.
These are just a few examples of little things you
can do to make sure your customers have an extraordinary experience
when they do business with you. For hundreds more tips and tactics
for boosting your sales using proven marketing strategies that work
no matter what product or service you sell, check out our UK Small Business Marketing Bible
Legal
tip
The
advantages of trading as a partnership
Partnerships are a convenient way for two or more
people to run their business, and like sole trader status, which
we looked at last week, many start ups choose to trade as a partnership
because it's simpler than forming a limited company. When it comes
to tax returns and accounts, there's less paperwork involved, and
unlike a limited company, you don't have to register with Companies
House before starting to trade. Like sole traders, partners are
self-employed, but they can share the costs of running the business
and spread the burden if one partner falls ill or goes on holiday.
You
should bear in mind, however, that a partnership still has unlimited
liability, and if it gets into financial difficulties both partners
will be liable to pay its debts. And trust between partners is vital,
since if one partner makes an agreement with a customer or supplier,
both partners are responsible for carrying it out. So it suits people
who have known each other and perhaps worked together for several
years, and a deed of partnership setting out everybody's responsibilities
is essential.
In
terms of tax, a partnership and a limited company can offer similar
advantages over being a sole trader. However, a business making
profits of under about £25,000 (the figure varies from year to year)
may find partnership status more beneficial.
The
Red Tape Buster has a guide to all aspects of partnerships,
as well as hundreds of scenarios, frequently asked questions and
tips on complying with and understanding the laws that apply to
small businesses.
IT
tip
Firewalls
and your computer
Everybody seems to be talking about computer security
these days, but sometimes the advice is all about IP packets, DOS
attacks and other mysteries only the techies understand. So here's
a quick guide to firewall security with barely a technical term
in sight.
A firewall
is important because hackers are finding it increasingly easy to
look at the information you hold on your computer. Your personal
details - bank account numbers, credit card details, passwords and
company accounts - are all at risk, especially if your Internet
connection is broadband or cable. Hackers sometimes have the tools
to wander the net looking for unprotected computers, but a firewall
can usually keep them out.
Microsoft
is finally taking the threat seriously, and Windows XP now comes
with a firewall. It should keep most hackers at bay, but it's not
a terribly good firewall since it won't stop software or spyware
on your computer accessing the Internet and perhaps giving away
information you'd rather keep secret. Zonelabs and Norton both offer
'two-way' firewalls that prevent intrusion and stop your computer
accessing the Internet when you don't want it to. Zonelabs' effort
is basic but free, whereas Norton's comes as part of its Internet
Security package and offers a number of extra features.
Looking
at the destruction hackers can cause, this sort of security is essential
for businesses nowadays. A firewall is easy to install, most are
cheap, and in the end it could make the difference between business
disaster and long-term success.
Scope
out Norton's Internet Security package at:
http://www.amazon.co.uk/exec/obidos/ASIN/B0000B3A6K/researchexpre-21
More
about Zonelabs' firewall is available by clicking on:
http://www.zonelabs.com/store/content/home.jsp
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:
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 'precipitate' means?
a. speed up or cause the occurrence of something
b. put your business in a dangerous situation
c. make predictions for the financial year ahead
d. set conditions that must be fulfilled before an agreement is
honoured
Answer at the end of Bulletin.
Did
you know?
Get
up to speed on claiming late payments
The amount of interest that you're allowed to charge
on overdue payments owed to your business rose on 1 July. This has
happened to reflect the recent rise in the Bank of England base
rate, which crept up to 4.5% back in May. Once a commercial debt
passes its deadline, interest accrues everyday until the debt is
settled. If you're one of the thousands of small businesses currently
awaiting overdue debts, you can now calculate the interest due by
adding 8% to the base rate (so that's an extra 12.5% of interest
chargeable in total). In some cases, you might even be able to claim
compensation from the debtor of up to £100. The Better Payment Practice
Group has published practical guidance for businesses awaiting overdue
payments from mysteriously vanishing customers.
For
more guidance on how to calculate interest on late payments, go
to:
http://www.payontime.co.uk/news/commercial_rise.html
To
get the latest advice, click on:
http://www.payontime.co.uk/collect/tracing_techniques.html
New
security threats for businesses
If you do your business banking online, you need
to be aware of a new scam, spreading via a harmless-looking pop-up
ad, which uses a malicious file to steal login information for a
number of banking sites, including Barclays and HSBC. According
to Microsoft, you can avoid being a victim by switching your browser
security settings to 'high' (do this by opening your browser, clicking
'Tools', then 'Internet Options', then 'Security').
To
make matters worse, a new version of the Lovegate worm is wreaking
fresh havoc worldwide. Lovegate is a 'mass-mailing' worm, which
means it spreads through e-mail and file sharing. It uses the same
vulnerability, present in several versions of Windows, that enabled
the Blaster worm to do so much damage last year.
The
self-proclaimed security whizzes at Microsoft have issued advice
on what to do if you've been infected by the Download.Ject virus,
also known as Scob, which we told you about a couple of weeks ago.
Wise
up about the banking scam by reading:
http://www.computerweekly.com/articles/article.asp?liArticleID=131661&liFlavourID=1
Get
McAfee's advice on the Lovegate worm at:
http://vil.nai.com/vil/content/v_126560.htm
Check
out Microsoft's Download.Ject support at:
http://www.microsoft.com/security/incident/Download_Ject.mspx
Worth
a visit
Phishing
for advice
New scams and fishy schemes are appearing so often
that you'd be forgiven for thinking that it's impossible to keep
up. With this in mind, the Fraud Advisory Panel has published 'Have
You Been Scammed? - A Guide to Identifying Internet and E-mail Scams',
which explains techie terms such as phishing and cybersquatting,
tells you how to recognise the problems, and shows what you can
do to avoid being a victim.
Download the guide at: http://www.fraudadvisorypanel.org/pdf/Have_You_Been_Scammed_Jul04.pdf
Improve
your IT know-how
The National Business 2 Business Centre provides
small and medium-sized businesses based in the five West Midlands
Counties with superb practical advice and support on using IT more
effectively. It offers a huge range of factsheets, one-to-one consultancy
sessions, workshops and seminars, and also operates a 'test drive'
service whereby eligible businesses can try out real-life technologies
and business processes in a risk-free environment. This is a great
way for small businesses to try out dynamic new technologies safely,
and the Centre can also provide help and support for translating
the 'test drive' experience into reality.
Check
it out at:
http://www.nb2bc.co.uk
British
library online
The British Library's website is an excellent research
resource for businesses of all sizes and from all sectors. Some
of the highlights include an Intellectual Property centre where
you can search the world's most comprehensive directory of existing
patents; searchable catalogues of books, newspapers, journals and
other publications providing access to over 10 million items; and
a catalogue of thousands of images.
If
you've never checked this out before, go there immediately:
http://www.bl.uk
The
UK Business Barometer
This
is an online survey that gives smaller businesses an up-to-date
and direct voice to all levels of government. It's carried out entirely
online, is totally confidential and only takes two minutes each
month, and the information your answers provide will help government
officials and policymakers to understand exactly which issues affect
you.
To
take the survey, go to:
http://www.ukbb.ac
Worth
a read
We've
recommended books on eBay before, but since the UK site recently
broke its own record by attracting 9 million users in one month,
we thought we'd bring this latest offering to your attention. It's
written by a veteran eBay trader, and takes the reader step-by-step
through the site's features, the buying and selling process, key
tactics to use and how the payment system works. It's a great primer
for beginners, and also an excellent source of advanced tips and
inspiration for the more experienced eBay trader. Check out:
Just
one word answer
The answer is a)
Precipitate
means to cause, or speed up, the occurrence of another event.
By not installing a firewall,
you may be precipitating an attack on your computer.
|
If
you have any feedback or suggestions for us to make this service
more relevant please e-mail your comments to enterquest@cobwebinfo.com
If
you wish to discontinue your subscription to EnterQuest please send
a blank e-mail to enterquest@cobwebinfo.com putting
UNSUBSCRIBE in the subject box.
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.
|
