RESOURCE CENTRE

Your EnterQuest Bulletin - 18 May 2005

In this week's issue:

• are you guilty of the "me too" small business mistake?
• measuring the results of direct mail
• essentials for new employers
• weblogs - what they are and how they can help your business
• the new Office of Public Sector Information 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

Are you guilty of the "me too" small business mistake?

One of the biggest and saddest realities in the small business world is that too many good or even great business ideas will either fail altogether or fail to achieve any sort of impact in the marketplace. So why exactly is this?

Because these businesses end up being guilty of what is known as "me too" marketing. In other words, they fail to find, differentiate and communicate any differences or advantages that their products and services have over those offered by their competitors. They don't promote themselves any differently and, as a result, their customers can't see any difference in their products.

The problem - and also the reason that this happens so often - is that it is seen as an easy way to run and promote a business and is therefore an attractive option for the budding entrepreneur to pursue.

Of course, this is a complete no-brainer, and a trap that far too many new small business owners fall into right from the outset. They look at what all of their competitors are doing in the market, and then decide to do exactly the same, using the same promotional messages, and the same promotional techniques.

One of the deadliest mistakes small businesses make is not being unique, or not finding a unique way to set themselves apart or promote themselves in a different way to their rivals.

With so many people seeking and being encouraged to start up these days, every small business sector is becoming more competitive than ever. And with an explosion of consumer choice already, it only takes a slight economic downturn to result in the same number of small businesses competing for diminishing numbers of prospects and customers.

The more competitive it gets, the more difficult it gets for the consumer to choose you.

So what are you going to do, be a "me too" marketer as well? Because if you are, then you're taking a heck of a big risk. If you really want to survive, and not just when the economy is booming, then you've got to differentiate your business, product or service in the eyes of your customers and prospects. You must find and shout about your Unique Selling Proposition (USP).

Not only do successful entrepreneurs find a USP, that little edge that their competitors haven't found, but they make sure they also promote it, articulate it and make it crystal clear in all their marketing messages.

In your business, your USP might be the fact that you're open longer hours, have more choice, offer home delivery, have more free bonuses, a better guarantee, the most qualified staff, the highest performing product on the market, or the newest model available.

Great. But if you don't tell anyone about it, how will your customers find out?

No matter how short or long your marketing message is, it's absolutely vital that you communicate as clearly as possible why you are different. Here are some quick tips that could help you create a more compelling and persuasive message than you've already got.

• Explain that whatever your customer's problem or requirement is, you can solve it now, without delay.
• Explain the precise benefits or unique combination of benefits you can offer your customers that your competitors cannot (but please be sure that you really can deliver on these promises).
• Explain how your guarantee (if you haven't got one, then find one) is better than those offered anywhere else, and make this a selling point.
• Provide examples and testimonials from customers that specifically mention the unique benefits they got from you.

If, like most other businesses, you are guilty of this "me too, we're just the same as everyone else" syndrome, then put some uninterrupted time aside today or tomorrow and work out exactly what it is that you can offer but that your competitors currently can't. And then work out how you are going to tell your prospects about it.

It could well be the most valuable time you ever spend on your business.

Marketing tip

Measuring the results of direct mail

Direct mail is extremely easy to measure precisely, making it possible to judge the success of a particular approach or campaign and find out accurately whether or not that campaign made you a profit.

Including an easy-to-use response mechanism makes it easy for recipients to respond and has the added benefit of making sure the results are simple for you to track. Easy-to-implement ideas that you could use include:

• a pre-paid envelope for people to return
• the details of a freephone telephone number
• a cut-out coupon, unique to the mailshot, which people need to bring in to claim a special offer or discount

For your own records, you should also note what was sent, to whom and when, along with the actual response rate contrasted with your target response rate, and the cost of creating and sending out the mailing.

Here are some practical resources where you can find more tips and advice about direct mail.

The Direct Selling Association and the Institute of Direct Marketing both offer news, surveys, research and publications providing tips on using direct mail in your marketing strategy, as well as information about the legal aspects of direct selling.

And Royal Mail has a dedicated section offering expert advice on creating an effective mailshot, as well as a free demo of how to put a mailing together. You can also get tips on the nuts and bolts of addressing envelopes and actually distributing your mailing.

Finally, the Direct Mail Information Service (DMIS) Sector Intelligence Surveys are a leading source of information about direct mail as a marketing medium, providing statistics on response rates and consumer perceptions about direct mail.

Read more about direct selling in 'Communicating with your customers' in the Good Small Business Guide, which we have part-authored in partnership with publishers Bloomsbury.

The UK Small Business Marketing Bible also offers advice on creating a great mailshot, along with hundreds of ideas, tips and techniques for increasing sales whatever your business sector.

Legal tip

Essentials for new employers

Last week, we looked at what you must legally consider before hiring a new employee, and what you might need to include in a contract of employment.

But once you've taken on a new recruit, there is other important paperwork to consider. This week, we're looking at two of these key issues for new employers: the National Insurance number and the P45.

Before anything else, you'll need to register with HM Revenue & Customs (HMRC) as a new employer. You can do this by post or by calling the new employer's helpline on 0845 607 0143 (HMRC has some information about registering).

Shortly afterwards, the New Employer's Pack will arrive. It contains a bewildering number of factsheets and forms, but unless you're in an unusual line of business such as fishing or farming, the basics should turn out to be relatively simple. To tackle them, you'll need your new employee's National Insurance (NI) number and his or her P45.

• You'll need your new employee's NI number when you first register as a new employer and every time you send tax and NI contributions to HMRC.
  
  There are details about NI numbers at this HMRC web page.
  
  
• The P45 is a certificate filled out by a previous employer. It gives information about your new employee's tax code and total tax paid to date. It will also tell you whether or not you'll have to make deductions for student loans. You'll need to complete part 3 of the form and send it off to HMRC.
  
  If your new employee doesn't have a P45, you'll have to fill in a P46 (which you should find in the New Employer's Pack the taxman will send you). Or rather, your employee fills in the first part, so that you can work out what tax code they need to be on and complete the second part.

Making sure you know your new employee's NI number and have their P45 is extremely important. The first is essential whenever you have a query and need to contact HMRC to clarify things. The second will help you decide how much to deduct by way of income tax and NI contributions.

Of course there's plenty of red tape lurking in other areas of employment law, and the UK Red Tape BUSTER has background information and factsheets on everything from the National Minimum Wage to dealing with grievances properly.

IT tip

Weblogs - what they are and how they can help your business

For the past few months, there have been countless stories in the press about weblogs ('blogs'), those Internet sites run by amateurs (or 'bloggers') dedicated to bringing a new slant to the news or their favourite hobby. But blogs are being used commercially too, and several visionaries claim that in the future they will be essential for any business.

Blogging is a quick and easy way of adding news, information or opinion to a website. The latest blog articles appear in chronological order, with the most recent at the top of the page, and there is usually an archive of old articles and a section devoted to interesting or relevant links elsewhere on the Internet.

Businesses use their blogs to talk about the industry they're involved in, let visitors know what they've been doing recently, and (crucially) to receive feedback by allowing readers to add their own comments. So blogging's a good way of getting in touch with existing or potential customers and finding out what they really think about your products or services.

It can also be good for business. A London tailor recently announced he had tripled his turnover after starting a blog called English Cut. And this American nursery and landscaping business uses its blog to display plenty of photographs of its products and tempt people to buy online.

How can you get started with blogging, and get your business into the public eye online?

• The simplest, and quickest, way is to set up a standard blog on Blogger or Typepad.
• Or if you're feeling confident enough, you can download software from a developer such as Movable Type or WordPress and set up a blog on your own website. This will give you the freedom to tinker and add your own features.
• What should you write? It all depends on your business, but as a guide, make it short and succinct, keep it simple and topical, and maintain the personal touch.
• You can also check out Website 101 and BlogWrite for practical tips on effective blog writing.
  

New business idea

Here is this week's idea:

• Photo Restoration and Repair

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 'concomitant' means?

a) suitable or appropriate
b) merged with another business
c) not compliant with the law
d) associated or related

Answer at the end of the Bulletin.

Website review

The Office of Public Sector Information (www.opsi.gov.uk)

This was previously Her Majesty's Stationery Office (HMSO), and changed its name this week in the latest unhelpful, unnecessary and confusing departmental name change following the general election.

The old HMSO site was notoriously difficult to understand and navigate, despite being an essential resource - it's there that all the Acts, Regulations, Orders and Codes that are passed by Parliament are reproduced for businesses to download and refer to. But has the revamp made any improvements?

• Navigation - the homepage is clearly presented and effective. It's obvious where to go to search for a specific bit of law, and Scottish and Northern Irish areas of the site are clearly designated. The links to track legislation currently in progress are also a useful addition.
  
  
  

• Accessibility - there is a link from the homepage to comprehensive information about access keys, options for users of different browsers and users with screen reading systems. An impressive effort.
  
  
  
  
• Content - although it's fairly easy to find bits of law on the site, what you eventually get is still tricky to understand due to overly complex legislative jargon and terminology. The site would benefit from some practical factsheets explaining key pieces of law in real terms.
  
  
  
  
• Relevance - the 'What's new?' section includes an up-to-date list of 2005 Acts of Parliament, but again these have no practical explanation. There's no news or press releases on the site, except for news about the OPSI revamp, although the list of most requested pieces of law makes for interesting reading.
  
  

So, 14 out of 20 for the HMSO (we're refusing to refer to it by its ridiculous new name). The addition of some factsheets and layman's guidance to key business legislation would make this site an excellent research resource.

Our rating - 14/20

Did you know?

ID thieves are targeting small firms

Legal experts are warning that fraudsters are increasingly trying to steal the identities of small firms. Fraudsters simply forge forms and lodge them at Companies House in order to gain complete control of a company. Companies House has introduced two new tools to help you avoid falling prey to this type of scam. One is an electronic filing system which prevents changes being made on paper, and the other is an e-mail alert system which warns you if your details are changed. The tools are all part of the Metropolitan Police's major 'St£rling' initiative to combat ID fraud.

The DTI is now called the DTI (again)

Just when we were all trying to stop rolling around on the floor after it was given its new name, the Department of Trade and Industry (DTI) has said that it will ditch the new moniker of the Department for Productivity, Energy and Industry (DPEI) and revert back to DTI. Got that? Apparently, the u-turn is due to businesses jibing at the rebranded title. No! Were they?

Worth a visit

Europe Direct - except in Britain

A new network of European information centres has been launched in all 24 European Union (EU) member states except the UK. Our Government has opted out of what we think is an intelligent and helpful European information initiative (presumably until it can think of a meaningless new name for the Home Office).

The centres aim to act as one-stop information resources for European citizens, providing a question-and-answer service and practical information about European laws, policies and funding schemes for businesses, as well as access to the Internet. Luckily, much of the information is also available online via the Europe Direct site, where you can have questions answered via e-mail.

Practical guidance on employment law

The Advisory, Conciliation and Arbitration Service (ACAS) has updated several of its excellent online information leaflets. The information covering contracts of employment, communicating with employees, dealing with grievances, discipline at work, induction training, tackling absence, paying staff, personnel records, recruitment and selection and controlling labour turnover has all been revised to take account of recent changes to employment law.

PDFs for free

This website from Neevia Technology allows you to convert your documents to PDF files free of charge. There's a 1MB size limit for files, but the tool is easy to use and you can select which version of Adobe Acrobat you want your new PDF to be compliant with, as well as choosing the resolution.

Worth a read

This book starts off by providing a series of practical assessment tools to help you gauge how brilliant you already are. It then uses realistic examples and clear strategies to explain how you can get to where you want to be. It covers topics such as improving communication, getting motivated to succeed and prioritising your goals. Check this out (and forward the link to the DTI's new minister, Alan Johnson, while you're at it):

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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.