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Your EnterQuest Bulletin - Issue 234
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| Thought for the week: "They always say time changes things, but you actually have to change them yourself." Andy Warhol |
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In this week's issue:
Postal strike cripples laboratory enterprise
The series of postal strikes has been a nuisance for many businesses but the lack of post has literally cut off some small enterprises' livelihoods.
Westgate Laboratories is one such business to be hit incredibly hard by the Communication Workers' Union's (CWU) dispute with Royal Mail over pay and modernisation. Husband and wife David and Gillian Booth set up the enterprise in 1999 to help horse owners decide whether they need to treat their horses for worms. David, who had worked in labs all of his life, set up the business after the vet carried out one of these 'worm counts' on his family's horses.
He said: "It was over a fortnight before we got the results which we thought was very slow. I thought it was just a scientific process."
He and his wife began offering the service to family and friends, before developing the idea into the business based in Morpeth, Northumberland. Customers post samples of their horses' manure in small pots to the lab for testing and the results are generally given by telephone or e-mail. However, no post means no business for Westgate Labs.
"We've had nothing, no income," said David. "We're making the best of a bad job.
"We've lost over £1,000 in two or three days."
One or two packages made it through after being posted by recorded delivery via Royal Mail's express service. Whereas other businesses can turn to couriers to deliver their goods, David can't because he's is relying on his customers posting items in to the lab.
He said: "Like any business we have high spots and low spots. Normally, we'd expect to be very busy now."
Instead, they received four samples to analyse in three days rather than the "several hundred" which is usual for this time of year. The business doesn't have any contingency plans or insurance to guard against loss of earnings, so it has been forced to sit it out.
This is the latest postal blow to hit Westgate Labs. The introduction of Pricing in Proportion (PIP) last year, which bases the cost of posting a package on its volume as well as its weight, also increased the business' costs.
"It tripled our postal costs overnight from 30p to £1.09," David said. "A lot of our customers say they aren't aware of it."
Because of this, either David or Gillian pay visits to the postal sorting office two or three times a week to pick up under-stamped packages. In addition to paying the extra postage costs, there is a £1 'fine' for each parcel that has been sent with insufficient stamps.
"Our local postman is lovely." David said, but he added: "But we have a little Plasticine model of the person who thought of Pricing in Proportion and we stick pins in that."
Writing effective sales letters
Sales letters can be a cost-effective way of promoting your products or services. You can keep your customers up to date with the latest developments in your business, and encourage them to consider your product rather than those of your competitors.
A well-crafted sales letter can provide solutions that will help overcome the hurdles that can lead to buying resistance in the minds of your customers who may be saying to themselves:
Your sales letter should address some or all of these objections and you can achieve this by following a series of sales copywriting tactics as outlined below:
For more information see our practical factsheet on writing effective sales letters.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
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Portable appliance tester - A portable appliance tester (PAT) tests a range of appliances for businesses and individuals. Businesses will require regular PAT testing on their workstation equipment and communal appliances to ensure the equipment is in keeping with regulations.
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Women-friendly car showrooms - Clutch, a San Francisco car dealership is billing itself as female-friendly and has devoted time and effort into researching women's car-buying habits. Much of the showroom's appeal lies in the hassle-free approach it takes when customers buy cars, as well as the stylish interior of its showroom.
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 'slake'?
a) to satisfy or quench
b) to increase
c) to water down
d) to short change
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) Clothing and shoe sales rose in September, according to the British Retail Consortium (BRC). What reason did it give for the increase?
a) mid-season discounts
b) the cooler weather
c) back-to-school shopping
d) loyalty card schemes
2) According to a new report from uSwitch, what do consumers now have less of than what they previously had in the last ten years?
a) leisure time
b) disposable income
c) knowledge of pension funds
d) spending savvy
3) Half of the small firms that want online shops haven't got them, a survey by Amenworld.com says. What was the top reason respondents gave for failing to join the e-commerce revolution?
a) lack of technical knowledge
b) their customers aren't computer users
c) cost of running an e-commerce site
d) security fears
Answers at the end of the Bulletin.
Google Product Search
A useful addition to the Google search engine, the Product Search option allows you to look for items for sale online. It links to the online shop selling the product and lists the prices, so searchers can compare items and look for the best deal.
E-filing for pension schemes
Pension schemes must now file certain information online, including applications to register pension schemes and accounting for tax returns. Scheme administrators must register with HMRC's Pension Schemes Online service.
Online calculators for small businesses
This website by Contractor Calculator has a range of useful calculators for small businesses, enabling you to calculate VAT amounts for invoicing, PAYE and National Insurance. You can also access a range of other calculators, including ones for salary, taxation and permanent employees.
Businesses urged to enter awards competition
Businesses, entrepreneurs and inventors alike are being urged to fill out their application forms for the Queen's Awards for Enterprise. Businesses can enter in one or more of three categories - International Trade, Innovation, and Sustainable Development. Individuals can be nominated for the award, which recognises people who have played a significant role in promoting the growth of enterprise and/or entrepreneurial skills and attitudes in others. The deadline for applications is 31 October.
This book takes its title from the fable of the monkey who couldn't get his hand out of a jar because he was holding too many bananas. The author says that people often grab too many 'bananas' and don't realise they're being held back by them. He's put together a 12-point plan on how you can drop your expendable bananas, to benefit both your business and personal life. Check out:
Just one word answer
The answer is a).
Slake means to satisfy or quench.
The café's location near a gym attracted a ready supply of customers seeking to slake their thirst after their workouts. |
How's your business radar? The answers
1) The answer is b). The BRC said people were spending more on clothing and footwear because of the cooler weather.
2) The answer is b). Consumers' disposable income levels are now at their lowest level for a decade, the report said.
3) The answer is a). A lack of technical knowledge was the most common reason enterprises gave for failing to open an online shop. |
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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. |
