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Your EnterQuest Bulletin - 20 July 2004

Thought for the week: "It's kind of fun to do the impossible." Walt Disney

In this week's issue:

  • why good manners, common sense and tact mean so much to business success
  • working with the marketing experts
  • the advantages of setting up a limited company
  • RFID: what's all the fuss about?

Why good manners, common sense and tact mean so much to business success

We've all heard the expression, or seen it first hand, that "all's fair in love and war", and for a lot of people that applies to business as well.

And you might even have come across one of those ultra successful entrepreneurs who's the meanest, most ruthless son-of-a gun you're ever likely to meet. Nothing will stand in their way as they seek to build a business at whoever's expense, whether it's their competitors, critics, customers or sometimes even their friends and family.

Single-minded, determined and focused on getting what they want, is how they are often described, and how they will usually describe themselves. Which are admirable virtues, but cut-throat, cold-hearted, unfeeling, tactless and insensitive are often more accurate ways to describe them.

Now it's certainly true that many people make it in business by being like this, or because that is what they're like. But the reality is that successful entrepreneurs who take this approach are few and far between.

Why? Because to have a successful business means having a business that other people like to do business with. In other words, they like you, and trust you and the people that you employ.

The problem with the heartless, hard-nosed, cut-throat approach to entrepreneurship is that the people you are doing business with can end up regarding you as devious, shady, unscrupulous and possibly even unlawful. So you wipe out a whole host of prospects who will never deal with your firm simply because they don't like you and the way you run it.

Think about it. Look at who you currently like doing business with and buying from the most. The corner shop, the computer repair service, the local car dealer, the plumber, the insurance broker. Why do you keep on dealing with or shop with the people that you do? And why are there others that you'd rather avoid like they've got some sort of disease?

Because you feel more comfortable with and prefer to spend your money with people that you trust and like.

People that you feel are above board, moral, principled, trustworthy, friendly, sympathetic and considerate are more likely to see the contents of your wallet than people that you feel are not.

So when it comes to trying to persuade prospects to buy from you, or your customers to buy again and recommend you to someone else, your level of tact, good manners, sympathy or empathy with these buyers will need to shine through.

The more courteous, sensitive and understanding you are of their needs, and the more they believe that is genuinely what you are like, the greater the likelihood that they will become and remain a loyal customer for a long time to come.

Common sense really, and something you should pay attention to as much as you can.

Marketing tip

Working with the marketing experts

We've talked a lot recently about ways in which you can do your own marketing relatively simply and cost-free, for example by generating customer testimonials. However, if you've drawn a blank in terms of ideas, and your budget stretches far enough, you might consider engaging a professional to help you spread the word about your business.

The type of help available ranges from freelance marketing, design and PR consultants and copywriters who can be engaged on an ad hoc basis to discuss ideas and produce promotional designs and sales copy for your business, to more complete marketing and PR agencies which take control of the whole shebang. This might include anything from organising direct mail campaigns and promotional events, to overseeing your public relations. Agencies are often considered prohibitively expensive for small businesses, but the expertise they offer can be useful if you don't have a clear idea of what sort of promotion you should do, or aren't sure how to go about doing it.

Here are a few tips to consider if you're thinking of working with a marketing and advertising professional.

  1. Do your research first to make sure the contractor or agency you're considering doesn't already have one of your competitors on their books.
  2. Insist on getting to know the people who will be handling your account. This is essential so that you can monitor their work and be certain that they understand what you're trying so hard to achieve with your advertising.
  3. Pick and choose which services you need. If you've got your own ideas and resources, you won't want to waste precious cash on a full-service agency. Consider appointing individual freelance helpers instead, such as a creative consultant to analyse your ideas, a copywriter to put them into words, or a media specialist to cover your PR.
  4. Use the media itself. Often, local newspapers, magazines and radio stations may be willing to help with basic design or copywriting services either free of charge or for a nominal fee.
  5. Continually evaluate whoever you decide to appoint in terms of how their input is positively affecting your business; their track record with other businesses; their approach to the work, and its reliability and quality; and their reputation within your market sector.

There are a number of places where you can find useful information about professional consultants and agencies in order to check their reputations and credentials. The Institute of Practitioners in Advertising publishes information about its members, as does the Marketing Communication Consultants Association.

You can locate individual agencies though the Advertising Agency Register or check out Campaign and Marketing Week magazines for relevant news and features.

The Good Small Business Guide contains hundreds more tips, tricks and practical guides to managing your marketing, figuring out your finance and developing your business. It's the ultimate resource for anyone thinking about starting or already running a small business.

Legal tip

The advantages of setting up a limited company

Limited companies are a little more complex than the partnerships and sole trader status we've already looked at, but they shouldn't present too many hurdles to a start up and can have quite a few advantages.

For a start, they have to be registered with Companies House, the central body for company registration in Britain. This means checking on name availability, then getting together all the relevant details such as directors' names and addresses and your company's office address, and drawing up articles of association and a memorandum. You'll have to fill in an annual return, hold an annual meeting, and if your turnover is above a certain amount, you'll need to register for VAT.

So with all this admin work, what are the benefits? The 'limited' in limited company means that your liability is no higher than the amount unpaid on the company's share capital, so if you get into trouble you won't be in danger of losing your personal possessions to meet a debt. So your company can take risks which will allow it to invest and expand. People often take a limited company a bit more seriously than a partnership or a one-man-band, so you should be able to work with other companies more easily and get better credit terms from suppliers. And pooling your colleagues' talent and experience together into a board of directors means that everyone can be rewarded fairly for the effort they put into the company and will have a clear idea of what their responsibilities are.

Companies House has the low-down on everything to do with sole traders, partnerships and limited companies. The Red Tape BUSTER also has a comprehensive guide to limited companies, 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

What RFID might mean for you

Is RFID going to change the world? Will it affect any business that supplies supermarkets, or car manufacturers, and will it help a mail-order business track down a missing parcel when the customer calls up to complain? Well yes, but probably not this year. Even so, people like Tesco are already experimenting to see how it can be made to work, and it's worth knowing something about RFID now that it seems to be inevitable.

When it becomes cheap enough to mass-produce, Radio Frequency Identification (RFID) will mean suppliers attaching a tiny microchip to every item they produce. This will include an antenna allowing it to be picked up on a radio channel so it can be tracked down and identified. The potential benefits are fairly obvious: when consignments go missing or get stolen it should be easier to find them, and when your local supermarket is running low on bread, a bakery company somewhere will get a message asking them to put the oven on and get baking.

So it's a similar system to the barcoding we're familiar with, except that RFID chips can hold more information and don't have to pass a laser reader to be checked off or counted. In other words, the supply chain is going to be pretty much transformed.

The How Stuff Works website has put together a handy explanation of RFID at http://electronics.howstuffworks.com/smart-label.htm, and Wikipedia has a good guide too (including the controversies over RFID which it's worth being aware of) at http://en.wikipedia.org/wiki/RFID.

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

We've talked a lot about various computer nasties in recent weeks, but the terminology is still evolving and can be confusing. Do you know the meaning of the following words, all of which are now being used to refer to different types of software?

a. Malware
b. Adware
c. Freeware
d. Spyware
e. Shareware

Try to link up the following definitions with the correct term:

a. Programs that are freely available for a testing period.
b. Programs that are freely available to download and use.
c. Programs that are usually free, but which generate constant advertising.
d. Any form of malicious software (such as viruses, worms and Trojan horses).
e. Programs that surreptitiously monitor your online activities, often reporting back to a third party.

Answer at the end of Bulletin.

Did you know?

Dishonest traders beware

Dishonest traders peddling dodgy goods or sucking consumers into sales scams are being targeted by a new telephone and online service. Launched in Scotland, Consumer Direct aims to inform consumers of their rights as well as giving advice on locating a reputable trader. This is all part of a major shake-up of consumer policy. The Government is currently consulting on making Consumer Direct the single, national point of contact for consumer advice, as well as developing a single 'unfair trading' law, and improving the processes for consumers to follow through disputes with businesses. Any business that sells to consumers needs to keep up to speed with legal developments in this area.

To have a look at the new site, go to:
http://www.consumerdirect.gov.uk

You can read the DTI's consumer strategy at:
http://www.dti.gov.uk/ccp/topics1/consumer_strategy.htm

New guidance on investigating accidents

A new advice booklet is available from the Health and Safety Executive (HSE) covering how to investigate accidents and dangerous incidents occurring in your workplace. The guidance is intended to make sure all business owners understand the importance of carrying out investigations, even for near misses and non-serious incidents, as well as explaining how to record the information properly and ensure it is followed up.

To find out more, and to get contact details for ordering the booklet, click on:
http://www.wired-gov.net/WGLaunch.aspx?ARTCL=25587

Making a big splash

The Government's new 'Big Splash' initiative could give you free advice on how to reduce your water bills and consumption. Saving on water has the twofold bonus of saving you money and protecting the environment, and Big Splash aims to give businesses tips on simple strategies for using less water. If you participate, you receive a free audit to identify the best water-saving measures for you. Businesses saving the most water will be awarded a certificate of excellence next March. Applications for the scheme must be received before 17 December 2004.

To get a Big Splash registration pack, go to:
http://www.envirowise.gov.uk/bigsplash

Worth a visit

Catch the wave on the Trends Portal

This portal is a fascinating resource for any business owner who's keen to stay ahead of the game. It links you to all sorts of different information on new and emerging trends, from e-zines and weblogs to online articles. General trends are covered, as well as trends categorised by sector, and it's really easy to navigate. You can also link to a free ten-minute quiz to assess your own creativity levels.

Check the Trends Portal out at:
http://trends.creax.net/#

Sayonara spyware

The good people at PC World have produced a list of the top eight resources available online for protecting your computer against spyware, as well as for dealing with the pesky stuff if you've been unlucky enough to get infected. All the resources are free, and most of them are only a few months old, so they're new enough to be able to tackle all the latest threats. They don't expire and won't bombard you with pop-up 'nag screens' to try and force you to buy other software products.

To browse the list, click on:
http://www.pcworld.com/downloads/collection/0,collid,1307,00.asp

The Retail Academy

As well as having a lively website and providing a selection of training courses for anyone involved in selling from shop-based premises, the Retail Academy also publishes a series of advice guides for retailers. Covering issues like detecting and dealing with counterfeit banknotes and how to cope during a robbery, the guides are free to download and packed full of practical advice. You can also try out their free online test which analyses how fit your business is in terms of its values, competitiveness, ideas and strengths.

Visit the Retail Academy at:
http://www.retailacademy.org

Worth a read

Google is the world's most popular search engine, and in recent weeks we've let you in on a few tips and tricks for how to get the best out of it. Now you can read a whole book on the subject. Covering special search techniques, secret tools and little-known corners of Google that can save you hours of search time, this is the Google manual that we've all been waiting for. Check out:

Worth a read

Google: the Missing Manual, by Sarah Milstein and Rael Dornfest.

 

Just one word answer

a. Malware links with definition d.
b. Adware links with definition c.
c. Freeware links with definition b.
d. Spyware links with definition e.
e. Shareware links with definition a.

There can be some crossover, as some adware also tracks your activities online and reports back the information it has gathered about you to help the advertiser learn more about you.


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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.


© 2004 Cobweb Information Limited
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