|
Your EnterQuest Bulletin - 30 March 2004
| Thought
for the week: "He who asks a question is a fool for
five minutes; he who does not ask a question remains a fool
forever." Chinese Proverb |
In
this week's issue:
- the
facts of life about grants
- a
factsheet about applying for Government grants
- why
you should plan for the worst
- a
book that teaches you how to make your business memorable
The
facts of life about grants
We've
reached that utterly bizarre time of year when agencies in the public
sector go a little bit off the rails.
Why?
Because they've reached the end of their financial year, and are
about to begin a new one. And they will either have no money left
to spend at all until their new budget clicks in, or they'll be
spending like the clappers to justify having the money in the first
place, whether they need to spend it or not.
Crazy?
Yes, but totally true, and this will be happening both in local
government and in those business support agencies that exist to
'help' the UK's small business community.
It's
also a time of year when other major changes take place within the
business support sector and the organisations that deliver services
to us, including a raft of changes to business support schemes and
grants aimed at small businesses and start ups.
Now
this is a subject very close to our hearts, as we keep our small
business customers and subscribers in the reality loop, and also
as we maintain our database of every business support initiative,
grant and other business subsidy across the whole of the UK. We
actually supply this information into the Small Business Service's
own business support and grants directory.
And
at this time of year this is a thankless task, because not only
does the public sector not know what the changes are going to be
yet, with less than a week to go, but neither does anyone else,
including ourselves.
What
we can tell you, is that out of the current 2,300 or so small business
schemes and grants available nationally in the UK, around 40-50%
will change in the next week in terms of either the scheme name,
geographic coverage, who provides it, eligibility criteria, amount
of funding available and so on.
Which
makes it very difficult for the small business owner to understand
what's currently available. As we said earlier, this really is a
bizarre time of year.
But
do you know what's worse? There are some 'expert' organisations
out there telling us all (small business owners and entrepreneurs,
that is) that there is £5 billion in grants just sitting there waiting
to be claimed, and that every small business and start up in the
UK is eligible and just needs to fill in a form a two to get their
share.
And
it grows on trees in your back garden as well.
Well,
we can tell you that not only is £5 billion not the amount that's
available directly for businesses, as much of it goes into intermediary
organisations and regional development infrastructure, but also
that only a fraction of the cash is earmarked for start ups.
Another
little appreciated fact is that certain business sectors, such as
retail and financial services, are excluded from receiving funding
altogether, and the MAJORITY of UK small businesses are not eligible
for grants in the first place.
And
even for those of you that are eligible, you've got one other little
problem you need to overcome. You need to have a viable project
that you can justify will benefit from the grant funding available,
and must be able to match funding with money of your own or from
another party. And you will need to back this up with a thoroughly
researched and detailed business plan showing that your project
and its requirement for additional funding tota lly stacks up. All
of this will take up a heck of a lot of your time, even before you
get anywhere near the application forms.
These
are the plain and simple facts. We know this because we have been
gathering data on UK funding availability and eligibility since
before the Business Links became a twinkle in the last Tory Government's
eye. And our team has been involved in helping start ups and small
business owners apply for funding and prepare their business plans
since as far back as we can barely remember.
So
be wary of what you're told or what you hear elsewhere.
The
reality is that grants are hard to get. And grant funding for small
businesses is totally discretionary.
Even
if you've got a great project idea, have checked that you're eligible,
and have a fantastic business plan, many grant applications still
get turned down. And the grant funding available for start ups averages
around £1-2,000, which you will also have to match from your own
funds.
We
aren't trying to say that you shouldn't apply for a grant - quite
the contrary - we just want you to be realistic.
If
you do feel that your business project, at start up or otherwise,
all seems to stack up in your business plan, then it is certainly
worth checking out whether you are eligible for a grant or other
form of business subsidy.
Just
be realistic, and ask yourself how you will fund your project if
your grant application isn't successful.
To
help you understand the different types of grants available, where
to find them and whether you are eligible, we've included a factsheet
this week that you might find useful.
Here
is the factsheet:
A Guide to Applying for Grants
We'll
also start looking more closely at this whole area in future bulletins.
If
you'd like us to help you identify whether you are eligible for
a grant in your local area or sector, or need any information or
help with your project idea, then please don't hesitate to ask our
team by e-mailing us at enterquest@cobwebinfo.com
Weekly business tip
Plan
for the worst case scenario.
There
are too many new businesses that get themselves off the ground and
then make the same crucial mistake. They start trading comfortably,
get their first customers or orders through the door, and successfully
source their preferred suppliers of services and stock items for their
business.
And
then do nothing to safeguard this initial platform they have built.
They
fail to have a contingency plan for replacing lost customers, or
to replace suppliers who also disappear, put their prices out of
reach, or fail to deliver to their promised lead times and requirements.
And these scenarios happen to every small business sooner or later.
So
what can you do about it?
You
should plan for the worst. Write down a list of your top five or
ten customers, or other numbers appropriate to your business. Now
work out what would happen if they stopped buying from you suddenly.
What impact would this have on your enterprise, on your cash flow
and on your bottom line? How exposed are you to these top customers
disappearing?
If
one particular customer accounts for more than 20% of your overall
sales, then you need to start doing something about this reliance
on them now. If you can't do anything to reduce it you will need
to have a plan in place to deal with the scenario arising where
you no longer have the cushion of the revenue from them, ie if they
stop doing business with you.
Could
you reduce your costs accordingly, to maintain a profit? This is
what planning and forecasting are all about in real business situations.
Being prepared and being able to continue to trade should the worst
happen, like losing your biggest customer or group of customers
unexpectedly. And being prepared well before this happens.
In
the case of losing your suppliers, what would happen if your most
important supplier let you down or ceased trading unexpectedly?
You'd almost certainly be in trouble. So plan for and expect this
scenario to happen as well, by making sure you've got a reliable
and viable (one that you can afford) second source of supply lined
up for all the stock and services you need to run your business.
Look
at your list of suppliers and make sure you've identified and checked
out a second source for all of them.
This
may seem like an unnecessary task to undertake, but many a small
enterprise has lost its battle for survival as a result of not being
prepared to deal with exactly the type of scenarios we have described.
Scenario
planning and having contingency plans for the worst happening is
unfortunately generally considered only to be appropriate for big
businesses. The reality is that it's small businesses that will
benefit the most by doing it, and you should be doing something
like this now if you haven't already done so.
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.
What
is the meaning of the word "extraneous"?
a)
irrelevant
b) extensive
c) offensive
d) thorough
Answer
at the end of Bulletin.
Did you know?
There's
a new scheme to help with escalating insurance premiums
Help
may be on the way for small businesses that follow good health and
safety practices. Many firms end up paying more for liability insurance
because businesses that don't follow the rules force up premium
costs for everybody. The Federation of Small Businesses (FSB) has
developed a Safety Network Scheme to provide small businesses with
an affordable way to differentiate themselves from business cowboys
that disregard the rules.
To
read more, go to:
http://www.fsb.org.uk/news.asp?REC=P2004/12
More
employment law changes are on the way
The
final version of the Employment Act (Dispute Resolution) Regulations
2004 has been approved by Parliament. The radical overhaul of dispute
resolution procedures will require employers to follow a minimum
three-stage process to ensure that disputes are discussed at work.
Use of these procedures is set out in the draft Regulations, building
on the Employment Act 2002, and all employers must have these procedures
in place by October 2004.
To
get further information and guidance, go to:
http://www.dti.gov.uk/er/disputeresolution.htm
Maternity
and paternity pay is going up again
Employers
will have to pay staff higher rates of statutory maternity pay (SMP),
statutory paternity pay (SPP) and statutory adoption pay (SAP) from
4 April. The standard rates will increase from £100 per week to
£102.80 per week.
To
find out more, go to:
http://www2.dti.gov.uk/er/workingparents/htopics.htm
Worth
a visit
Help
with claiming interest on late payments
The
Better Payment Practice Group (BPPG) is urging businesses to remember
that they have a statutory right to claim interest on unpaid debts.
However, its latest survey shows that many businesses find it difficult
to calculate late payment interest due to them, and the BPPG is
concerned that this stops them from using the Late Payment of Commercial
Debts (Interest) Act 1998 and recouping the money.
To
get further guidance on the late payment legislation, and access
to a statutory interest calculator, go to:
http://www.payontime.co.uk/documents/
legislation/legislation_main.html
Approach
franchising with confidence seminars
A series
of seminars, organised by the British Franchise Association (BFA),
will take place across the UK. The seminars are designed to help
individuals assess whether franchising is right for them, find out
the benefits and pitfalls of franchising, and explore the opportunity.
The available dates are: Newcastle 13 May; Bristol 17 June; Merseyside
15 July; Reading 11 August; Leeds 9 September; Birmingham 28 October;
and London 10 Nove mber. The cost for attendance is £25 plus VAT
per person.
For
more details, go to:
http://www.british-franchise.org/seminarfe.asp
Worth
a read
Most
successful entrepreneurs invariably manage to make themselves and
their businesses stand out from the crowd. By reading this book
you'll learn how to make sure your name and business get remembered
by everyone you meet. Check out:
Just
one word answer
The answer is a) extraneous means irrelevant or not essential.
The effective small business owner manager will avoid all extraneous
thoughts and ideas and focus only on what needs to be done.
|
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.
|
