Your EnterQuest Bulletin - Issue 161
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| Thought for the week: "A wise man will make more opportunities than he finds." Francis Bacon. |
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In this week's issue:
If
you have any questions about your business idea or target market, or need help tracking down a grant, subsidy or 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.
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The fun of running your own business
One peaceful Monday morning, the owner of a small hotel in a UK town received a surprise and completely unannounced visit from an official from his local HM Revenue & Customs (HMRC) office.
"I'm here to investigate a suspicion that you might not be paying your staff the National Minimum Wage," the official claimed.
"OK," replied the hotel owner, who was somewhat taken aback by the visit. "What exactly do you want to know from me?"
"Simply give me the details of who you employ and how much you pay them," was the mechanical instruction from the civil servant.
"Well," said the hotel owner, "I employ a cook and pay her £250 for a 35-hour week, I have a barman who also serves food and I pay him £200 for a 30-hour week, and there's a student who cleans the rooms, washes dishes in the kitchen and answers the phone, and she works 20 hours a week for £110 and lodges in one of the rooms."
"Is that everyone?" asked the official.
"No," responded the hotelier, "there's also a dummy who works here 20 hours a day, seven days a week, who does everything else in the bar, kitchen and office, and who fixes everything that goes wrong for £10 a day if he's lucky."
"I knew it!!" barked the official. "I must speak to this person straight away."
"You're looking at him," said the hotel owner.
Yes, it certainly is fun being a small business owner.
Fun dealing with the inspectors from the HMRC, the environmental health department, the Health and Safety Executive (HSE), your local fire officer, the trading standards office, the local valuation office and so on.
And it's even more fun ensuring that your staff get paid the legal Minimum Wage, and paying all your other business expenses, while keeping the sales coming in to ensure you can pay yourself or draw out what's left to feed and provide for yourself and your family.
Is running a business really that much fun? And if so, why do so many people do it?
Because at the end of the day, it's about winning.
Winning the daily battles that every business owner is faced with. Winning the fight against the regulators and officialdom. Winning the challenge against more and more competitors. Winning more sales from customers. And generally just winning in what you set out to do at the outset in your business plan and strategy.
Successful small business owners enjoy winning, and realise that just the very fact of being in business and staying in business makes them winners.
Even though sometimes, like when an HMRC inspector turns up at your door, being a small business owner can be a complete pain in the butt.
You can read more about how to comply with Minimum Wage regulations in our comprehensive factsheet.
What expenses can you claim against tax?
Allowable business expenses are those that are incurred 'wholly and exclusively' in the course of running your business.
The following list is not exhaustive, but should give you an idea of the extent and type of expenses that can and can't be offset against tax:
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Wages and salaries for staff are allowed, but if you're self-employed, money taken out of your business as drawings is an advance against profit and is not an allowable expense.
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Similarly, employers' Class 1 National Insurance contributions for staff can be offset against tax, but self-employed people can't make similar deductions for their own contributions.
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The interest on a loan, overdraft or hire purchase item, and any related arrangement fees, are allowable, as are leasing or hire charges for equipment.
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Liability and business insurance are allowable.
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The interest on a loan or mortgage is allowable, if it has been taken out to buy property for business use, or to rent out on a commercial basis.
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Costs associated with running business premises, such as heating, lighting, rent, rates, telephone, postage, advertising, insurance, special uniforms or protective clothing and repairs, are allowed. If you are running your business from home, you can claim for part of the expenses associated with this - get advice from your accountant about what is permissible.
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Goods bought for re-sale and materials bought in for manufacturing are allowed.
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Packing or delivery costs are allowable.
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Books, publications, printing, stationery and advertising are allowable.
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Travel and accommodation expenses, for trips or visits to undertake work, are allowable, but travel to or from a fixed place of work on a day-to-day basis isn't. Running costs for cars (including fuel) used for business purposes can be claimed, proportionally if the vehicle is used partly for business and partly for private use.
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Legal costs, bank charges and professional fees in connection with your business can be claimed.
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Subscriptions for membership of approved, business-related trade associations and professional organisations can be claimed for.
Business owners who are yet to start trading can offset expenses that would be allowable if they had been incurred by a trading business. However, determining your allowable expenses can be complex, and advice specific to your situation should be obtained from an accountant or your local HMRC Business Support Team.
For more details about allowable business expenditure, check out our practical factsheet.
A short guide to the Licensing Act 2003
This piece of law regulates the sale and supply of alcohol and the provision of late-night entertainment and refreshments. It came into force last November, revising and simplifying a mix of about 40 previous rules that dated back to the 1960s.
Under the old law, pubs in England and Wales could only stay open only until 11pm. Under the new scheme, however, all licensed premises can apply for an extension of their opening hours.
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It also explains the conditions that have to be met if a licence is to be granted, the duration of the licence and how it can be varied, such as special provisions for clubs or temporary events like concerts.
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Offences under the Act relate to issues such as unauthorised activities, drunkenness, opening hours and the sale of alcohol to children. The Act also provides for licensed premises to be closed under certain circumstances.
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In Scotland, liquor licensing is governed by the Licensing (Scotland) Act 1976 - a piece of law that is currently being revised and modernised. In Northern Ireland, this area is covered by the Licensing (Northern Ireland) Order 1996 and the Licensing and Registered Clubs (Northern Ireland) Order 1999.
Licensing rules can vary a surprising amount between different local authorities, so it's vital to contact yours for guidance about the rules in your area. You can also check out the information about the Act provided on the Department for Culture, Media and Sport's (DCMS) website. Finally, you can read our practical factsheet about alcohol licensing for an overview of the main provisions of the law.
Podcast starter kits for beginners
Podcasting has been increasing in popularity throughout 2006, with high-profile celebrities like Ricky Gervais reaching new international audiences with podcasts, and even some churches getting in on the act.
As the technology becomes cheaper and easier to use, podcasting is also becoming a viable option for business owners. It's a useful way of summarising your website, an article or a newsletter, and can also be an effective way of communicating your marketing message to customers.
Jake Ludington's Podcasting Starter Kit is a cheap and easy method of producing a podcast quickly and effectively. The kit covers:
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Learning the basics of recording audio.
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Editing recorded voice tracks.
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Interviewing techniques.
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Recording phone calls with your PC.
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Publishing your podcast.
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Avoiding podcast hijacking.
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Generating interest from subscribers.
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Making money with your podcast.
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Getting listed in iTunes.
The kit costs $20 but users receive free updates for life, a free subscription to a range of practical podcasting tips - and once your podcast is up and running, it will be added to a newsletter distributed to over 50,000 subscribers.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
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 'gamut' means?
a) an addendum to a legal contract
b) a range or scale
c) a ploy or strategy
d) a promotional contest or competition
Answer at the end of the Bulletin.
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The South East England Development Agency (SEEDA) website
(www.seeda.co.uk)
Regional Development Agency (RDA) for south eastern England, this organisation is responsible for overseeing economic development, regeneration and business support. But how user-friendly and accessible is its website? |
Navigation
and presentation - there's lots happening on the homepage, including rolling news, press releases and flashing advertisements for various programmes and partners involved with SEEDA. This all makes for a rather confusing experience, although the site's navigational tools are easy to use and reasonably intuitive.
 
Accessibility - there is an impressive array of options here, with the site meeting established standards and also providing detailed guidance on access keys, plus help with resizing text, using different browsers, and downloading and printing information. Some foreign language options would have made for a perfect score.
Content
and usefulness - the site features a useful, if concise, summary of the region's key characteristics, and information about funding programmes is pleasingly easy to find and surprisingly practical, with easy to follow eligibility charts and minimal reliance on redirecting users to bigger Government sites where they would promptly get lost.
Relevance - news, press releases and a business events calendar are kept refreshingly up to date, and businesses can even download a free copy of the organisation's quarterly magazine for detailed discussion of SEEDA's most recent programmes and initiatives.
A solid score of 15 for the SEEDA site, which in particular makes vital information about funding easy for business users to find. Unlike many other public sector websites, it also provides plenty of its own explanatory information, rather than simply signposting users to other sources.
Our rating - 15/20
Disaster help is available for small firms
Small firms can now turn to their local authorities for help in planning for disasters such as terrorist attacks, a bird flu epidemic or a fire, under the terms of the Civil Contingencies Act 2004. Councils now have to provide a service to help businesses deal with the effects of such a disaster, as part of the Government's plans to minimise their impact on the economy.
Businesses failing to put credit terms in writing
More small firms must ensure they put their credit terms in writing when dealing with customers, according to the Better Payment Practice Group (BPPG). One in three don't bother with this basic piece of financial housekeeping when starting a business relationship with a new client, according to a poll carried out by the group. If you don't put your credit terms in writing, you're risking cash flow problems in the future from late payers, as well as potential disputes.
Google is favourite brand in the UK
Internet search engine Google has topped a poll of the UK's favourite brands. Other online giants to make the list, drawn up for 'Marketing' magazine, include eBay and Amazon. Computer firm Dell was also among the most popular, while Tiny made number five in the most hated list. The survey looked at consumers' 'emotional attachments' to brands, rather than their shopping habits.
Find a blog in your niche
Shiny Media is dedicated to what it calls "high-quality blogs written by supremely talented writers that cover niche areas". You'll find blogs on technology - including a gadget blog aimed at women - weddings, fashion, cricket and even Coronation Street. The newest is 'Who ate all the bratwurst?' a football blog launched just ahead of the World Cup kick-off this summer - but there are plenty of useful blogs for unusual business niches, too.
Another marketplace for small e-tailers
Affinity Shopper is an e-marketplace that provides users with an "instant online shopping mall business". It works like this: you sign up for an account free of charge, and create your own shopping mall featuring selected products from over 700 household-name retailers. You then earn commission for every sale made via your mall, making this an ideal way to sample e-commerce for hobbyists or home business owners that don't have much technical expertise.
Keep up with trends in what people want
A good place to keep up to date with new trends and crazes, I Want One Of Those is a website dedicated to discussion of new products, gadgets and gizmos in a number of different sectors and spheres - from office tools to outdoor equipment. The homepage features a regularly updated top ten - and the site also features engaging content, such as this booklet on things we didn't know.
We've featured bestselling manual on personal effectiveness, The 7 Habits of Highly Successful People, in EnterQuest before. This accompanying publication focuses specifically on selling skills, and is crammed with practical tips for honing your selling technique. It's written by a renowned sales trainer and cold calling expert, and acts as a good refresher even for accomplished salespeople. Check out:
Just one word answer
The answer is b).
Gamut refers to a range, scale or array.
When doing market research, business owners need to understand the whole gamut of trends and influences affecting their sector. |
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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. |
