WWW.FSB.ORG.UK JANUARY/FEBRUARY 2016
PLANNING
COSTS
ONLINE
HOW TO
Make sure you are prepared for a severe weather event
Get your finances in order for the year ahead
Make the most of what the internet can offer your business
Give a great elevator pitch that convinces potential customers
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4 | firstvoice | january/february 2016
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JANUARY / FEBRUARY 2016
CONTENTS
REGULARS
FEATURES
6 OUTSPOKEN
18 BRANDING
41 MEMBER NEWS
A welcoming home country; Stuart’s next fixture; everyday stories; handy apps
Small businesses need to ensure they keep their branding fresh and relevant, as FSB itself discovered
Young entrepreneurs Connect; bikes made safer; bucking the pub decline trend
8 ON THE RECORD Living wage worries; business rate saving controversy; debating digital opportunities
24 CUTTING COSTS
13 DATA: NEED TO KNOW
We look at areas where business owners can make savings as they organise their finances for the year ahead
Dragons’ Den thinking; home truths; keeping it in the family; age advantage
28 BUSINESS CONTINUITY
15 OPINIONATED Mike Cherry on the year ahead and Dame Kelly Holmes on how to succeed
37 HOW TO… …Give an elevator pitch to make a good g stomers impression on potential customers
A severe weather event could leave small firms reeling so owners need to ensure they take measures to build in resilience
33 ONLINE How to use the internet to its full potential both as a sales channel and to spread awareness of your y business’s brand
ELCOME TO YOUR new-look First Voice magazine, which has been comprehensively redesigned as part of a wider rebranding initiative by FSB. In November, we unveiled a new brand across the organisation – accompanied by a major digital investment – with the aim of making it easier for members to see what FSB can offer. The new design will help the organisation meet its core objectives, including being recognised as the most influential and trusted business organisation
W
45 DIALOGUE Strong opinions on the EU; cybersecurity concerns; FSB on the web and Twitter
46 MEMBERS’ SE RVIC ES Progress on modernisation plus a listing of useful resources for members to turn to
48 THE GOODS Gadgets galore for tasks ranging from easy shredding to creating a ‘landline’ abroad
50 MY BUSINES S How Steve Short turned his hobby into a successful career as a magician
JOHN ALLAN, NATIONAL CHAIRMAN
WELCOME
Illustration: Jim Spencer
NETWORKING
and fully representing the whole UK smaller business community. The redesign follows extensive research into what our members want from the organisation, which highlighted three main areas of networking, business advice and training. You can find out more about the redesign and how we went about this on pages 20-22, as part of our broader look at the importance of branding for small businesses. We’d love to know your thoughts on the new-look magazine, and welcome your comments at editorial@firstvoice.co.uk, and
would also urge readers to engage with our new Dialogue page on page 45. I’d also like to thank all those who were involved in the Small Business Saturday bus tour, which visited locations across the UK in November, and gave people the chance to meet FSB and local MPs or councils. This tour culminated in the main event on 5 December, which saw a series of local initiatives designed to encourage people to buy from small businesses and shop locally, particularly in the run-up to Christmas. Events such as these are vital in promoting the value of small firms, and ensuring this vital part of our economy gets the recognition it deserves. january/february 2016 | firstvoice | 5
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OUTSPOKEN DID YOU KNOW?
Hot
Julie Deane, founder of the Cambridge Satchel Company, is reviewing, then making recommendations to Government on, more flexible self-employment
UK ‘welcomes entrepreneurs’ f asked about a typical environment in which I entrepreneurship might be expected to thrive, most people would picture Silicon Valley – but it seems ms your start-up would be more welcome on these very shores. ores. The Amway Global Entrepreneurship Report asked more than 49,000 people about attitudes towards entrepreneurship hip in their domestic politics, media and among people they know. now. Out of 45 countries, the UK was rated the fourth most entrepreneur-friendly country, with 75 per cent of respondents dents claiming society here looked favourably on entrepreneurs. The UK was beaten only by Denmark (84 per cent), South Africa ca (78 per cent) and Thailand (also 78 per cent). The global average erage was centt a and (67 pe per ce cent). as 50 per pe ce d tthee US was as ranked a ed 10th 0t (6 t)
Hot
Rabbie Burns. Although dead, the Scottish poet is still doing his bit for haggis sales in January, as people celebrate Burns night
HOT OR (NOT)?
Hot
Daniel Ek, founder and Chief Executive of Spotify, which is to offer its staff six months’ parental leave with 100 per cent pay
g A light-hearted look at the world of small business STAR START-UP
Stuart Lancaster
Photography: Getty, Rex
After his team recorded its worst ever performance at a World Cup, the recently deposed head coach of the England rugby team could well have some extra time on his hands. Brought in to rebuild after a disappointing tournament in 2011, Stuart introduced a grounded ethos to the England dressing room. He couldn’t deliver on the pitch, but he did develop a forwardlooking spirit among the group. Perhaps a clairvoyance business could be his next career move?
Not
Late payers. Small firms were owed £26.8 billion as of July 2015, according to Bacs
Not
Snow and ice. Delays. School closures. Cancellations. The scourge of businesses everywhere
Not
January 31. The deadline for submitting online tax returns is many a sole trader’s worst day of the year
6 | firstvoice | january/february 2016
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YOU DO WHAT?
Crafting life stories hat if you can’t remember details of the amazing stories your grandfather told you and make a promise not to let your own stories, and those of others, be lost in time? If you’re Rutger Bruining – founder of Story Terrace – you establish a firm to help ordinary people turn their family histories and life stories into a bespoke, personal autobiography. Story Terrace gets prospective clients to fill out a questionnaire to help bring back old memories. It then matches an individual with a suitable professional writer, who will interview the person at length to help build their unique story. Once the draft is approved and photos included, a bound, hardcover book of your life story will be posted to you. To be featured in our ‘You do what?’ slot, tell us about your unusual business venture. Email us at editorial@firstvoice.co.uk
W
‘Hire people who are better than you, then leave them to get on with it’ DAVID OGILVY, FOUNDER OF OGILVY & MATHER
5 TO WATCH
Handy apps for the small business owner 2
1 Pocket It’s simple, yes. But handy. During a busy day, rushing from meeting to meeting, it’s tricky to keep up with all those links you need to read. Through a browser extension, Pocket bookmarks web pages and saves them for you to read offline later
3
Expensify
Evernote
For any small business, keeping a tight rein on the bottom line is vital. This free app allows you to quickly scan all billable expenses, without having to worry about keeping hold of the paper receipts
Once you start using Evernote, it’s hard to see how you ever did without it. Store notes, interviews, business cards, web research and images, all in a single place that you can access from any device
4
5
RescueTime
Todoist
Helps you understand your digital habits and aids time management for busy people. It runs in the background on your devices to track time spent on applications and websites, giving accurate reports on your own activity
To-do lists and task manager made quick, simple and ever so easy. Todoist allows you to work collaboratively in the easiest way – you can prioritise and assign tasks, set due dates, share content and conduct discussions, all in real time
january/february 2016 | firstvoice | 7
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ON THE RECORD PAY
Concern over living wage ‘widespread’ O
VER A THIRD (38 PER CENT) OF
small firms expect the introduction of the national living wage to have a negative impact on their business when it is introduced in April, according to FSB research. Many businesses believe they will have to slow job creation, raise prices or postpone investment decisions as a result of the new rate of £7.20 an hour. Just 6 per cent believe the higher wage would be good for their organisation, while 54 per cent think the proposal to increase the rate still further, to £9 an hour by 2020, would be damaging. “Over half of our members already pay their staff above the voluntary living wage, but those that don’t are often operating in highly competitive sectors with very tight margins,” said John Allan, FSB National Chairman.
“In many of these industries, the only sustainable way to deliver real long-term wage growth is to improve productivity. Without this, there is a risk that higher enforced statutory wages will lead to fewer jobs being created, fewer hours for existing staff and in some cases to job losses.” Businesses in the wholesale, retail, accommodation and food services sectors are most concerned about the increase, while geographically those in Yorkshire, the West Midlands, Wales and the south-west are most downbeat. “With the economy recovering, it is right that employees should be rewarded with a pay rise but we cannot allow wages to become a political football,” warned Mr Allan. “It’s important that the independent Low Pay Commission continues to play a central role in setting the minimum wage.”
FSB gave its full support to the Small Business Saturday campaign in December. Members nationwide joined in events and promotions that helped small firms get the most from the Christmas trading period. In Burton, Derbyshire, business owners formed a flash conga (pictured) to highlight the role they play in supporting the local economy. Mike Cherry, FSB National Policy Director and Burton business owner, welcomed the group at the end and said: “I was delighted to be asked to meet the Burton Small Business partners’ conga group.”
LEGISLATION
THE LATEST POLICY NEWS AFFECTING YOUR BUSINESS
Backing for Enterprise Bill progress FSB has welcomed several measures outlined in the Government’s Enterprise Bill, including the proposal to establish a Small Business Commissioner with the aim of clamping down on cases of late payment. But the organisation has also called for greater clarity on what the role will entail, and for the Commissioner to have the powers to make a referral to the Competition and Markets Authority – a powerful independent regulator – if there is clear evidence that late payments and poor supply chain practice are having a negative impact on the wider economy. “The role of the Commissioner hasn’t been clarified yet, but the Government anticipates it dealing with around 500 alleged cases of late payment every year,” said John Allan, FSB National Chairman. “It will try to settle disputes between debtors and suppliers around unfair business practice and, specifically, late payment. “But figures from this year alone show the total amount owed to small business is £28.6 billion, so 500 cases is not enough. We have proposed amendments to peers in the House of Lords to beef up the powers of the Commissioner, including the power to name and shame businesses who repeatedly pay suppliers late.” FSB is also involved in the Bill’s reforms to the business rates appeal system, which in part is supposed to help clear the backlog of ratepayer appeals lodged with the Valuation Office Agency (VOA). “We want a fairer and more transparent appeals system, but the reforms shouldn’t simply make it more difficult to appeal,” said Mr Allan.
8 | firstvoice | january/february 2016
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Diary Dates
February nd
2 FSB CONFERENCE 2016
nd
QEII Conference Centre, London
th
2 FSB WORLDPAY AWARDS
GALA AND CHAIRMAN’S DINNER QEII Conference Centre, London www.fsbworldpayawards.org.uk fsbevents@fsb.org.uk
18 NATIONAL SUMMIT SKILLS
(FSB to speak) Central London www.skills-summit.co.uk
March th
th 17 19 NATIONAL CONFERENCE AND
SMALL BUSINESS EXPO 2016 SECC, Glasgow www.fsbevents.org.uk fsbevents@fsb.org.uk
BUSINESS RATES
Many firms hit by questionable deals on business rate savings A
N INCREASING NUMBER
of small businesses are being stung with unexpected and unfair bills from companies that claim to deliver savings on business rates. The companies offer to negotiate reductions to business rates, but require a cut in whatever savings they can achieve. However, following the Government decision to delay the next update of business rate assessments by two years, some small firms say they have been receiving unexpected bills for the extra two years of fixed rates.
Don’t get stung: if a deal looks too good to be true, it probably is
REGIONS
Business owners are calling the actions blatantly unfair, accusing these organisations of trying to benefit from the Government’s decision to delay rate reviews. Some say they have been billed upwards of £10,000, followed by threatening legal letters if they refuse to pay up. Given the controversy, FSB is warning small business owners to think carefully before entering into any deal that could leave them exposed to unexpected costs. Martin McTague, FSB Business Rate Policy chairman, commented: “If it looks too good to be true, it probably is.”
EUROPE
Study highlights value of small companies to Northern Ireland
FSB hails EU plan to facilitate access to funds for small business
FSB Northern Ireland has launched a detailed study of small businesses, at the organisation’s 30th anniversary celebrations in Belfast. The report, entitled The Contribution of Small Businesses to Northern Ireland, was conducted with the Ulster Business School and is based on an independent survey of 200 local firms, highlighting both their social and economic value. One of the key findings was that small businesses provide 75 per cent of all private sector
FSB has welcomed the publication of an EU action plan for the Capital Markets Union, but stressed the need for it to deliver tangible benefits to small businesses. “The ‘think small first’ principle must provide the guiding focus to this plan as it seeks to address ongoing challenges facing small businesses and supports economic growth,” said John Allan, FSB National Chairman. “Some of the initial measures in this action plan are promising,
employment in the region, while 80 per cent say they have ambitions to grow. Wilfred Mitchell OBE, FSB NI Policy Chair, said: “This research will form the basis of our work, as we act on what small businesses have highlighted to us.” Prof Marie McHugh, Dean of the Ulster University Business School, added: “The call to Stormont is that the research should form the foundation for the next programme for Government and economic strategy.”
notably around encouraging cross-border angel investing, sharing credit data, promoting securitisation and modernising the prospectus directive.” Mr Allan also called for the ability to share best practice rather than harmonise markets across the EU. “Since the development of markets varies so widely, it is vital that each EU member state has the ability to implement this action plan in the format that best suits them,” he said. january/february 2016 | firstvoice | 9
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ON THE RECORD
EUROPE
Small and big business eye digital opportunities
Photography: Getty, Photoshot
F
GROWTH
POLICY NEWS
SB, IN ITS ROLE AS A MEMBER OF
the European Small Business Alliance, participated in a joint event in October with eBay and Choice in eCommerce on exploring the opportunities of the Digital Single Market for small businesses. The event enabled nine small online businesses from across Europe – including FSB member Lars Anderson from London (MyNameTags and Arty Lobster) – to raise their concerns directly with EU officials. Mr Anderson and the other small businesses raised issues and questions concerning VAT registration, parcel delivery and regulation directly with the EU officials, while Claire Bury from the European Commission encouraged more small businesses to take part in public consultations and noted this insight as crucial.
Access to top EU officials: Commissioner Oettinger
The day-long event included a conference, a lunch roundtable and one-to-one meetings with EU officials, including Commissioner Günther Oettinger. It ended with a reception at the European Parliament hosted by MEP Kaja Kallas.
Policy conference sets the agenda FSB will host its second policy conference on 2 February, entitled ‘Small Business 2020: inspiring growth, innovation and ambition’. To be held at the Queen Elizabeth II Centre in Westminster, London, the event will focus on rebalancing the UK economy, high-growth small businesses, and growing tomorrow’s entrepreneurs. The day will be hosted by television’s BBC Breakfast business presenter Steph McGovern (pictured), and will bring together senior politicians, business leaders, policymakers and FSB members to discuss and set the small business policy agenda for the future. For more information, visit the FSB policy conference website at www.fsb-policy-conference.co.uk. The conference will also be available to watch live at this address
NATIONAL CONFERENCE
TV’s Kirsty Wark reveals her passion for business
Television presenter Kirsty Wark (pictured) has spoken of her early exposure to the world of enterprise, recalling watching her uncles and grandfather run a
tomato-growing business in the 1950s and 1960s. “My great-grandfather started the business in the tomato boom of the mid-to-late 1800s, and became the first big tomato-grower in the Clyde Valley,” said Ms Wark, who presents BBC’s Newsnight. In the end, the high oil prices of the 1970s meant it was uneconomical to continue running the tomato houses. In an exclusive interview with First Voice, she also spoke of the “strong entrepreneurial streak” in Scotland, pointing to well known entrepreneurs such as Tom
Hunter and Stagecoach founders Ann Gloag and Brian Soutar, as well as the flourishing digital and gaming sectors. Ms Wark, who grew up in Kilmarnock but now lives in Glasgow and commutes every week to London, also told of her pride that the FSB National Conference is being held in her home city this year. “Glasgow is such a beautiful city, and it’s very welcoming,” she said. Ms Wark will be hosting the event, and is keen to meet small business owners from both Scotland and the rest of the UK.
The business speaker at the Small Business Expo will be young Scottish entrepreneur Fraser Doherty. Now 27, Mr Doherty started SuperJam when he was just 14, after learning to make jam in his grandmother’s kitchen. Two years ago, he was awarded the MBE for services to business. The FSB National Conference will be held at the Scottish Exhibition and Conference Centre in Glasgow on 17-19 March. To book your place, visit www.fsb.org.uk/fsb-events
10 | firstvoice | january/february 2016
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Employers, don’t ignore the Workplace Pension
Employers across the UK – however small your business, will soon have to offer a workplace pension – even if you employ just one person. Whether you own a florists, architects practice or employ a personal care assistant or a nanny – then as an employer you will have ‘duties’ under pensions law. To find out what you need to do, when to do it and for help through the steps, go to www.workplacepensions.gov.uk Qualifying criteria apply.
p11.FV.JanFeb16.indd 28 .indd 1 The Pension Regulator FP
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ON THE RECORD
Help shape our research. Join Big Voice, our free online research community at www.fsb.org.uk/benefits/big-voice
NEED TO KNOW
QUICK STATS
TRENDS
Credit when it’s due
23%
‘I’m in’: new thinking I
S IT THE DRAGONS’ DEN
effect? An ICM/British Banking Insight (BBI) survey of 5,000 SMEs across the UK shows that businesses founded after 2010 are twice as likely (42 per cent) to consider taking investment from friends and family as older ones (22 per cent). Furthermore, 36 per cent of newer companies would consider peer-to-peer lending to expand their business, compared with just 18 per cent of firms created before 2010. Newer firms are also more open-minded about where they get advice – more than half would use a mentor compared with 29 per cent of older firms, and 56 per cent would use financial advice sites compared with 32 per cent of more established companies. John Longworth, Director General of the British Chambers of Commerce and BBI spokesperson, said: “It’s vital that traditional lenders and advisers adapt to the changing demands of SMEs.”
Close to home The vast majority (92 per cent) of SME owners say they started as a local or UK business rather than European or global. Four-fifths (82 per cent) worry more about local than global threats. The RSA data reveals three-quarters of SMEs want more Government help to expand internationally. And more than half (55 per cent) want help dealing with the scenario of the UK leaving the EU.
It’s a family affair Succession at family firms is a tricky business. The children may not want to follow their parents, and there may be better candidates. A poll by Constructaquote.com finds that 97 per cent of family business bosses hope their children will follow them into the firm. One in five admit they should employ from outside to help the firm to grow, but blood ties are clearly strong.
UK companies that would consider approaching acquaintances and relations for business investment
22%
of under-35s have used their credit card to fund their business, research from Albion Growth Reporting found
42% post-2010
pre-2000
Indemnity gap
3.3m
UK companies that would turn to friends and family for guidance on finance
45%
of the UK’s 5.2m SMEs have no professional indemnity insurance, according to Direct Line for Business
64% post-2010
pre-2000
Cyber chop
UK companies that would consider peer-to-peer lending if they wanted to expand their business
18%
86%
36%
pre-2000
of UK procurement managers would axe an SME for suffering a cyber breach, research from KPMG suggests
post-2010
SKILLS
Golden oldies DO YOU WANT TO HIRE ambitious young go-getters or experienced staff with a touch of silver in their hair? The FSB survey of attitudes to skills reveals the older generation offer far more than their millennial rivals. We asked employers “which skills are most lacking?” in recruits under the age of 24 and over the age of 50. Headteachers should take a long look at the results.
70% 60%
under the age of 24 over the age of 50
50% 40% 30% 20% 10% 0% General attitude to work
Literacy
Communication skills
Numeracy
Problemsolving
january/february 2016 | firstvoice | 13
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OPINIONATED
MIKE CHERRY
2016 OUTLOOK
A mixed forecast
Illustration: Jim Spencer
A positive economic climate and the Autumn Statement’s good news should make this a reasonably happy new year for small firms, but some concerns remain HE YEAR AHEAD LOOKS SET TO BE ONE T of challenge and opportunity. The economic outlook on the whole remains favourable, although small businesses will have to cope with issues such as auto-enrolment and the introduction of the National Living Wage. Last year’s Autumn Statement, however, was something of a welcome relief. In the run-up to the Spending Review, there was some doubt over whether the small business rates relief would be extended for another year, so we were pleased that the Chancellor listened to what we had to say on this issue and extended this for another year, ahead of the wider review into business rates. Other elements of the Autumn Statement also brought good news. The news that the electrification of the Trans-Pennine, Midland Mainline and the Great Western railway routes will go ahead was welcome, as was the increased investment in the road infrastructure on which so many of our members depend. We were also pleased to hear the proposals on apprentices, although we need more detail on how this scheme will work in practice to support small businesses. What is important here, though, is that any scheme is about not just delivering numbers but quality apprenticeships that can be understood by business, as well as true vocational training being seen as equal to an academic route for apprentices. There are other concerns on the horizon. Many members continue to have issues with not just broadband and mobile connectivity but also quality of service and transparency of contracts. As we move throughout 2016 and into 2017, we shall be working hard with providers to ensure both the Government
and providers are held to account, and that members get exactly what for. at they signed up for This year also promises to be a busy one for FSB and our members. A key date is our second policy conference, which will be held in London at the beginning of February. This follows the same format as the successful inaugural event we ran in 2014, which was attended by many members and senior politicians, including the Prime Minister and the Chancellor. This year’s policy conference will be even bigger, and we hope to encourage as many members as possible to come along and participate in the Q&A events that will be running throughout the day. The day itself will be followed by FSB’s National Chairman’s Dinner and FSB Worldpay Awards, while our annual conference in Glasgow will also be a focal point in March. I would also like to thank all members who take time out of their businesses to engage with the Big Voice community and complete our surveys. These activities are critical to the work that we are able to do on your behalf, and are how we engage with the Government and others to deliver your message and seek policy changes. Finally, I would like to wish all our members a very happy New Year, and a successful and prosperous 2016.
‘What is important is that any scheme is about delivering quality apprenticeships that can be understood by business’
MIKE CHERRY is Policy Director at FSB
january/february 2016 | firstvoice | 15
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OPINIONATED
DAME KELLY HOLMES
GOING FOR GOLD
Olympic efforts
Illustration: Jim Spencer
Reaching the top in the world of athletics requires incredible dedication and determination to succeed. A similar mentality ity is required to run a successful business HE PREPARATION IT TOOK TO RUN T around a track as fast as I could was hard. After years of physical exertion and psychological pressure, athletics took its toll. Now I’m in business – at ‘club’ level, keeping to the athletics analogy. There are differences – it’s not as black and white as sport but there are also similarities. The pressures of getting it right every day, and the expectations of reaching the highest standards while relying on others to help take your vision further, are a mind game each day in the same way as they are for an Olympic athlete. As in athletics, in business there’s this underlying acceptance that you have to dedicate your life to the pursuit of excellence. Planning, tracking, monitoring, adjusting, succeeding – and failing – are all part of your journey. How do we understand the emotional rollercoaster that we go through? Being an elite international athlete is about finding your best form, understanding the enormous commitment required to be even better than your last race, and always focusing on the outcomes, adjusting the targets and mindset so you can believe in your ability on a regular basis. It’s the ability to see progress as small steps, as well as wanting to climb the mountain to glory, that sets people apart. As long as you learn to accept and work well with the team around you, using their skills to help you make these incremental gains, you can go far. A vision is about strategy, and strategy cannot be implemented on your own. The life of an athlete can be painful and terrifying as much as magical and rewarding. The experiences last a lifetime. This is where I see so many parallels. One lesson I have learned from athletics is that your competitors want success as much as you do.
We are all individuals, and that’s what can make our businessess unique. air and creativity that you unique Th Thee fl flair bring to your planning can set you apart. To bring a team together, they have to buy into the same vision. Without that, they are not good enough to help you reach your potential. Business is as cut-throat as athletics. There can only be one winner for you – you. So the attitudes, attributes and behaviours you adopt to succeed in business are the same as those of an elite athlete – being prepared for change and understanding the pitfalls, as well as finding the openings. Knowing what ‘gold’ is to you sets the vision for you to follow, researching your competitors to gain learning and understanding. Daily, weekly and monthly targets enable you to climb those same small steps that keep you focused on the overall goal, and on top of your own mountain. Having project-managed the build, and now implementing my new business, Café 1809 in Hildenborough, Kent, I know only too well the long journey ahead. It involves intense psychological pressure, and a life of dedication, determination, planning, excitement and hunger to succeed, with inevitable disappointments along the way. I still have that big mountain to climb, but I’m determined to succeed, just as I was on the track.
‘As in athletics, in business there’s this underlying acceptance that you have to dedicate your life to the pursuit of excellence’
DAME KELLY HOLMES won gold in the 800-metre and 1,500-metre events at the 2004 Olympics. She owns Café 1809 and founded the Dame Kelly Holmes Trust www.cafe1809.co.uk
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FEATURE BRANDING
The way you brand your business speaks volumes about what it stands for, how it operates and how it will be perceived by customers. Keeping it fresh and relevant is vital, as FSB itself has discovered. Steve Hemsley reports on how to make the best impression 18 | firstvoice | january/february 2016
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BRANDING FEATURE
she advises. One way such feedback can HE FOUNDER OF be obtained is through social media. This Amazon, Jeff Bezos, enables a small business to connect with famously said that customers as easily as any large your brand is what organisation in a cost-effective way, so people say about firms should use it to their advantage. you when you are not in the room. For any small business, it can be easy to forget Freshening up the power of branding in creating Many small businesses have been customer loyalty, fuelling around for decades, so they can find it a recommendations, boosting new business challenge to keep their branding fresh. and, ultimately, increasing sales. Brand is For Dover-based shipping and sailing about more than just a company’s logo. merchant Sharp & Enright, the Anne Godfrey, chief executive of the company’s strong brand comes from its Chartered Institute of Marketing, family heritage, and the trust it has believes that any small business will get built up in the area over more than its branding right only once it is clear 150 years. about what it does, what it stands for The brand got a massive bonus piece of and where the directors want it to go. publicity recently when it was featured Does, for instance, the quality of its on the BBC’s The Apprentice television products and customer service mirror series. The candidates visited the shop the company’s vision, or do customers during their search for a ship’s anchor experience something different? “Small and an inflatable dinghy. Director Sarah firms are natural marketers but they do Sharp was even invited to appear on the not always realise it or apply marketing follow-up programme The Apprentice – principles scientifically, because they You’re Fired. “For a family firm such as often lack a marketing us, reputation is department,” she says. everything,” she says. The CIM had a rebrand “We use a simple itself in October 2014, so anchor as our logo and Ms Godfrey understands sweatshirts for the staff, how difficult the process because branding does can be. “All our members not have to be Identify what you stand for had an opinion, and complicated when you and where you want to go considering they are all have been around as Don’t be afraid to speak marketers you can long as we have. to customers appreciate the confusion “What does have an Create a logo that is simple there was about what the impact on how your and reflects your values CIM stood for,” she says. brand is perceived is Ensure branding is consistent “In any organisation, your level of customer across all communications someone needs to make service,” she adds. “If Make sure these values are the final decision.” we do not have reflected in how you operate But companies must something in stock it Use promotional merchandise not be scared of reflects badly on us. but don’t appear to be ‘cheap’ customer feedback to Next-day ordering is Bring in external expertise improve their branding, vital, as is attention to where needed
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Illustration: Andy Smith
Need to know
detail and friendly and helpful staff, so that people come back again.” One much younger FSB business taking its branding seriously is the You Image Consultancy. This company, which helps professional workers dress to impress, is run by Deborah Turner, who used to work in the male-dominated chartered surveyor sector. “I was one of only a handful of women in the industry, so I used to be
‘Small firms are natural marketers but they do not always realise it or apply marketing principles scientifically’ suited and booted to blend in. But I noticed I was not standing out and was hiding my own personal brand,” she says. “So I decided to ‘be myself’ more. I then started to get noticed and was offered a promotion. I realised I could do more to support people in improving their personal image in the workplace.” Turner needed to get the branding of You Image Consultancy spot-on, and it helped that she understood her audience. She created a set of brand values that now focuses her mind when making any business decision. These are ‘unique’, ‘strength’, ‘genuine’, ‘congruent’, ‘energetic’ and ‘positive’. “I also spoke to professional marketing agencies to decide on colours,” she says. “My branding is black and white, so it does not put off either men or women. You need to think about what your brand says about you and what makes you different.” january/february 2016 | firstvoice | 19
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Set the right tone One of FSB’s newest members is The Little Branding Company, based in Luton. It is run by Jo Wareham, who helps other small firms improve their brand image. “Many companies do not have brand guidelines concerning the colours or tone of voice they use, while others are very strict,” she says. “Your brand needs to be consistent.” easyJet is a case of the latter category, she says – everything it does is in its famous orange colour. The Little Branding Company supplies promotional merchandise, which includes everything from snow globes and Santa hats to coasters, mugs, diaries and smart conference folders. Ms Wareham works closely with a graphic designer to help her clients select the most appropriate items for their brand, and she can create bespoke products.
“I act as a branding consultant,” she says. “I ask a client what it wants to achieve and whether it is looking for a corporate or novelty item. The quality of the promotional item you choose says a lot about you as a company, and what you think about the person or client you are giving it to.” Sometimes a company’s own brand name can become secondary in awareness terms to the brand name of one of its products or services. For example, Claimaday.com helps event planners avoid a clash of dates that could have a negative impact on attendance figures and revenue. But it also launched the National Events Diary – a nationwide list of events which has, arguably,
‘We use a simple anchor as our logo and sweatshirts for the staff. Branding does not have to be complicated’ become the stronger brand in customers’ eyes. A strong brand will stick in the minds of potential clients or customers, so it is something that every business must take seriously, or it risks losing market share and sales. Small firms are no exception. STEVE HEMSLEY is a freelance business journalist
Branding in action at FSB FSB has recently completed a major rebrand to ensure it continues to reflect the needs and aspirations of its members in a digital era SB HAS REBRANDED TO ensure it remains front of members’ minds when they think of business support, particularly in a world where people see thousands of adverts every day. Research carried out by FSB three years ago revealed that some members felt the organisation was old-fashioned and not always as responsive as it could be. There were plenty of positive views, too, including FSB being regarded as trusted and professional, although many felt it needed to be more confident, approachable and friendly. FSB needed to become clearer about what it stands for, so it has
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devised a new set of brand values. These are: Essential Credible Professional Knowledgeable Influential Confident Each one is backed up with hard evidence and, together, they act as a set of beliefs that everyone within the organisation can relate to and be engaged with, whatever their role. “We identified that in a digital world we needed to modernise and transform our brand,” says FSB Operations Director
Dave Stallon. “We started by redesigning the website to make it more user- and mobile-friendly, and then we looked at how we communicate to our diverse audience through everything we do.” FSB understands that smaller businesses are joined by a common mindset and ambition to make their business a success. So the rebrand had to convince existing and potential members that FSB can help them to grow, while reiterating to everyone that it is run by members, for members. The rebrand will help to explain who FSB is, what it does and why it matters to various audiences. These include the ‘Lifestyle’ audience, who want their
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FEATURE BRANDING
business to give them a better work-life balance; the ambitious ‘Challenger’ audience, who need help to grow; and the entrepreneurial ‘Gazelle’ audience, who want fast growth and are driven to be the best they can be. “The perception of FSB needed to be addressed,” says Mr Stallon. “We have looked at our tone of voice and made sure the colour scheme for our new logo reflects our modern values. We had to strengthen our position in the market to meet the needs of all our members.”
‘We started by redesigning the website to make it more user- and mobile-friendly, and then we looked at how we communicate to our diverse audience’
All FSB-branded communication now explains clearly what is available to members. This includes the advice offered in areas such as tax; health and safety; energy saving; financial assistance, which helps with business banking and fuel cards; and the broader membership support, including lobbying, networking events and the purchase of energy. “Your brand is about everything you do as an organisation – it is reflected at every customer touch point,” says Mr Stallon. He adds that when any organisation or business rebrands, it is important to remind existing customers that the fundamentals of how it operates are not affected. “We are still there supporting small businesses up and down the country. That will never change.”
Developing the new FSB brand
Communicating the brand: the home page and ‘resource hub’ on the organisation’s revamped website
Rebranding took the marketing team and senior stakeholders on a journey to define FSB’s distinctive value in the marketplace – one that members desire, pay for, engage with and recommend to others. Branding can be a complex process. We took six practical steps to steer FSB’s brand in the right direction.
several pieces of FSB creative, to identify what works and what does not. We defined the key audiences and stakeholders that FSB needs to appeal to, and discussed how we can identify and organise outputs. This process gave us a lens with which to develop the brand that emphasised three key areas: policy, regions and membership
Communications and market review We conducted a review of our competitive landscape, existing brand and marketing communications through insight from members, small business support websites and our own FSB site
1
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Proposition development We engaged with smaller businesses – both members and non-members – asking them what they wanted from a business service provider and what FSB should offer its members. We got a real sense of ambition as a key business unifier, and of FSB’s advice, support and financial benefits being key to members and desired by non-members
3
Internal stakeholder feedback We held a workshop to harness the innate brand, audience and industry knowledge in the senior FSB team, and took the senior team on a journey to review
Creative development Using the newly defined brand essence ‘Experts in Business’ and the core values, we developed a campaign that focused on pulling out the key member benefits and tapping into the mindset of the smaller business Montage of creative Creation of campaign creatives and development of the key messaging hierarchy and elevator pitch
Campaign strategy and implementation We took time to consider the right channels through which to target the audience, and how we were going to maximise engagement with the brand across all internal and external stakeholders. An array of channels are being used to communicate the new brand. These include a new website, email, direct mail, content marketing, PR, social media, and both online and offline advertising
22 | firstvoice | january/february 2016
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I’ve got my
‘‘
The internet is a huge place, having a .uk really helps you stand out from the crowd. It lets people focus in more on your brand name. Bianca Miller
’’
Brand Ambassador and Apprentice 2014 runner up
It’s your business www.agreatplacetobe.uk
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FEATURE CUTTING COSTS
WAYS TO CUT COSTS E ALL FEEL THE PINCH AT this time of year. Christmas bonuses or parties didn’t come cheap, not to mention the family presents. Consumers are sluggish after their December spending binge too, as we all tighten our belts to rein in the end-of-year excess. So it’s an apt time to look for costs to cut, and the following top tips to save your business money should help you do just that.
W
1
Be more energyefficient
Making a small energyefficiency saving today will cut costs off next month’s utility bill, while a complete overhaul of your energy efficiency measures could significantly cut costs for the long term. The Department of Energy and Climate Change estimates the average small firm could reduce its energy bill by 18-25 per cent, while a 2015 FSB member survey on energy efficiency found the most popular measures were energy-saving lightbulbs (40 per cent), switch-off
The post-Christmas period is a time when small business owners can take steps to get their finances in order for the year ahead, writes Tim Smedley timers or sensors (24 per cent) and draught exclusion, including insulation and double-glazing (23 per cent). But there are other measures. Reducing your office temperature settings by 1°C could cut your heating bill by as much as 10 per cent. Or if you’re a heavy paper user, try using digital PDFs or doublesided printing instead: 25 people printing 40 fewer sheets of paper each week saves 52,000 sheets each year. You could even switch to delivering post by bicycle or electric vehicle with FSB Print and Mail’s new offering, Velopost, which delivers local mail to organisations in Bath, Bristol and Edinburgh, and can save up to 40 per cent on standard postage costs.
Finally, switching your supplier could cut your energy bills by an average of 23 per cent. FSB Energy, provided by Make It Cheaper, can compare prices from across the market and choose the deal that’s right for your business, so you can ensure you’re not wasting money unnecessarily.
2
Get clued up on taxes
As we all know, there are two things guaranteed in life: death and taxes. But while you can’t do much about the former, there’s plenty you can do to reduce the latter. “From April 2016, dividends will be taxed, so businesses need to talk to their accountant as soon as possible to get the maximum dividends out of the company before then,” suggests Clive Lewis, Head of Enterprise at The Institute of Chartered Accountants in England and Wales (ICAEW). “After April, trading as a limited company may save tax and national insurance, but because of additional costs associated with being a
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limited company, it is unlikely to save money unless business profits are in the region of £40,000 a year.” On 1 November, George Osborne’s increase in insurance premium tax (IPT) also took effect, rising from 6 to 9.5 per cent. Substantial savings can still be made, however, by “spreading benefit provision across a range of products and services, not all of which will be subject to the change in IPT,” advises Brett Hill, Commercial Director at The Health Insurance Group.
3
Manage your cashflow
New businesses often make the mistake of thinking profit is more important than cashflow, says Mr Lewis. The first thing is to prepare a cashflow forecast, he says, taking into account known commitments such as payroll. “In addition, businesses should build in predictions of receipts and payments from future sales, purchases and expenses over the forecast period,” he says. “This will highlight when the business might run low on cash, and can form the basis of an action plan to remedy a situation before it happens.” Accounting software can do much of this automatically. You also need a system for chasing money owing from customers. More than £67 billion is owed to UK businesses in unpaid invoices, says Michael Court, Director and co-founder of online collections website www.collectadebtpro. com and an FSB member. Legislation
‘After April, trading as a limited company is unlikely to save money unless business profits are in the region of £40,000’ including the Late Payment of Commercial Debts (Interest) Act 1998, “allows a business to add on 8 per cent interest – above the current Bank of England base rate – from the date the invoice became overdue, as well as a fixed fee to cover the collection costs, either £40, £70 or £100 depending on the balance”, he advises. One of the newer FSB member benefits can help here, by giving members a risk-free way of raising finance for their business. FSB Business Cash Advance allows members to get access to funds without having to secure them to assets – something that should help to tide businesses over while they extract money from customers.
4
Embrace digital and ecommerce
Small businesses could increase productivity by 10 per cent by doing more online, estimates consultancy McKinsey. This online activity could be as simple as replacing mailouts with email, or something more fundamental such as reducing retail space by trading online. Switching from landline telephones to VoIP services is also increasingly seen as a
valuable way to integrate communications services while reducing costs. Making more of online channels can also lead to increases in sales. A recent FSB report found that half of all small businesses are already offering goods and services online, with an additional 15 per cent planning to do so in the near future.
5
Reduce landfill waste
Landfill is the most expensive way to get rid of your company’s waste. The current standard charge is £82.60 per tonne, and it is ratcheted up every year. Up to 90 per cent of all waste could be recycled, according to The Food Waste Network, and recycling costs far less than landfill. “Businesses can save money by becoming more efficient in their use of raw materials, food waste and recycling,” says Marissa Lippiatt, Head of Resource Efficient Scotland. “This could include a confidential waste audit, the details of which can then be presented back to the organisation to illustrate the ways in which everyone can collectively help reduce and prevent waste.” According to WRAP, the wasteprevention charity, the true cost of waste can be up to 4 per cent of turnover for UK businesses, which can save at least 1 per cent of turnover at little or no cost. Tips include composting rather than throwing away raw food and vegetables, and drinking tap water rather than bottled water or soft drinks. There may also be businesses out there that view your waste as their raw material, such as manufacturing off-cuts. These could even provide an additional revenue stream – or at least a free waste pick-up. january/february 2016 | firstvoice | 25
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he says. “Even a 5 per cent fuel saving for a fleet of 10 vehicles for a year makes a big difference to the bottom line.”
6
Recruit the right people
This can often rank low on a small business owner’s priorities. But the costs of hiring the wrong person can be as damaging as hiring a high performer is rewarding. “Being able to articulate what makes you different and special will enable you to attract potential candidates,” says Sophie Adelman, General Manager at recruitment platform Hired UK. “The little things matter: weekly breakfasts, work-fromhome days, cycle-to-work schemes; such perks don’t need to be expensive.” Referrals from existing employees can bring in high-quality candidates, and offering a small referral reward can be far cheaper than the equivalent process using recruitment agencies.
7
Review your vehicle policy
One of the most overlooked money-saving ploys for small firms is vehicle ownership, believes Chris Barnard, Technical Manager for UK-wide accountancy practice Crunch Accounting. “Many people assume buying a car through their company is the most cost-effective way to get a vehicle for business use, but that’s not always the case,” he says. “It’s often more tax-efficient to purchase the vehicle personally and claim HMRC’s approved mileage allowance rates when using it for business.”
‘It’s often more taxefficient to purchase the vehicle personally and claim HMRC’s approved mileage allowance rates when using it for business’
HMRC’s current approved allowances are 45p per mile for cars/vans, 24p for motorcycles and 20p for bikes. “As long as you keep a mileage log, HMRC allows you to claim those rates for business travel,” says Mr Barnard. “Someone who drives for business a lot could save hundreds of pounds.” FSB Vehicle Services can help members assess the various options here, and ensure they reach the right decision for their business.
9
Outsource nonessential operations
Look at your operation to see if any part of it could be done cheaper for you off-site. Mr Monaghan gives the example of outsourcing storage of products to avoid warehousing costs. “An e-commerce company can even have their stock held and distributed by Amazon, so that someone working from a ‘hot desk’ or their attic can manage large sales without getting their hands dirty,” he says. Outsourcing manufacturing can also avoid production overheads, says Mr Monaghan. “Imagine a small company that gets a massive order from a supermarket, meaning it would need a new factory,” he says. “In that case, the manufacturing could be partially or wholly outsourced to a larger manufacturer.” In time, your business premises may become non-essential, especially for online firms. In that case, working from home, or renting desks in a co-working space, could prove more cost-effective than leasing an entire building.
8 10 Seek savings on fuel bills
Checking out how you pay for your fuel should also form part of your vehicle policy review. An FSB Fuel Card, for instance, can give preferential rates on both diesel and petrol, as well as providing a single consolidated, HMRCapproved, VAT invoice. Using telematics in vehicles to monitor driver behaviour can bring big savings, says Simon Monaghan, Regional Director for Leeds and North Yorkshire at Business Doctors. “Telematics technology identifies bad driving practice and techniques, in addition to monitoring hours of work,”
Use your member benefits
With the wrapping paper recycled, relatives seen and Christmas becoming a distant memory, now is the perfect time to take the time to ensure you are making the most of your membership. Visit www.fsb.org.uk/benefits to find out more ways to save. TIM SMEDLEY is a freelance business journalist
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SIMPLE AN EASY SOLUTION TO A COMPLEX PROBLEM
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16/12/2015 12:39 11:35 11/12/2015
FEATURE BUSINESS CONTINUITY
Whatever the weather? It’s easy to dismiss the risk of bad weather as something that happens to other people, or businesses. But almost anyone could be affected, and the impact can be devastating. David Adams outlines how small firms can prepare for the unexpected
T IS A CLICHÉ THAT THE British only ever talk about the weather, but when it comes to business we have good reason to do so. When it turns nasty, the weather could put a small company out of business. If you work somewhere that has never been affected by severe weather, you might think this is not your concern. But you could be wrong: indirect consequences of severe weather, such as power cuts, staff being unable to get to
I
work or suppliers being unable to deliver can be just as disruptive as direct damage to your premises. Remarkably, two-thirds of the smallest businesses in the UK have been negatively affected by severe weather events during the past three years, according to research published by FSB last year. Even more worryingly, the average cost of these events was £7,000. But 46 per cent of the 1,199 small businesses questioned, most employing no more than 10 people, had taken no action to manage risks related to severe weather; and only 25 per cent of microbusinesses have a resilience plan that specifically includes severe weather. “Few small businesses have a resilience plan of any kind, let alone one that deals specifically with severe weather,” says Allen Creedy, Chair of the Energy and Environment Committee at FSB. Business owners with no contingency plans will have to hope this winter is not a repeat of
2013-14, the wettest since UK-wide records began, when more than 3,200 commercial properties were damaged by flooding and/or storms.
Counting the cost Nor is it just the immediate aftermath of an incident that can be problematic. When storms damaged powerlines and telephone lines in Berkshire, ValueMAxess, a consultancy serving the pharmaceutical industry, was left without power for 24 hours, and without internet or phone services for four weeks. Owner Andreas Guhl had to rent an office during this period, adding to operational expenses. Once the problem was resolved, he put in a claim for compensation, based on costs incurred and lost earnings. At first the telecoms provider offered him £13, then, after he complained, around £100. He then launched legal action. Two days before the hearing, it paid him the full
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£7,000
Photography: Getty
The average cost to small businesses of a severe weatherrelated incident amount claimed. “Don’t be shy,” he says. “Take those guys to court.” Mr Guhl has now relocated to Northamptonshire and put arrangements in place to use rented offices in Northampton or Milton Keynes if necessary. Are severe weather events becoming more frequent, possibly as a by-product of climate change? In October, Mark Carney, Governor of the Bank of England, in a speech at Lloyds of London, warned climate change poses a huge risk to global stability. He said the number of registered weather-related loss events had tripled in 30 years. But Carney was talking on a global scale. Are severe weather events occurring more frequently in the UK? “I’m not sure they are,” says Andrew Morrish, Claims Operations Director at Aviva, although he says his firm watches such trends closely. “But even if it’s not a catastrophic, wide-ranging event, for any individual business major weather events can be a catastrophe.”
Action plan What can small businesses do to protect themselves? Simply keeping up with weather forecasts can help – the Environment Agency provides a free flooding-alert service for firms (and homes) at risk of flooding, with warnings sent by phone, email or text. According to FSB’s research, more than one in five businesses (22 per cent) based in flood-risk areas were unaware of this service last summer. FSB also recommends that small companies produce a resilience plan covering the potential impacts including on their supply chain, and consider how easily staff could work remotely if necessary. Resources are available to help a small firm create a continuity plan, but they vary in quality, says Mr Creedy. “We’re trying, with Government, to set up a
How to plan for severe weather Create a resilience plan that covers the potential impacts of severe weather on your business and your supply chain Investigate the level of flood risk you face and sign up to the Floodline Warnings Direct service (www.gov.uk/sign-up-for-flood-warnings) Plan for staff to be able to work remotely or from home if necessary Consider additional continuity arrangements Make sure you have insurance that is appropriate to the risk you face. You can get free insurance-related advice from FSB Insurance Service (www.fsb-insurance-service.co.uk/)
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one-stop shop, where businesses can get a resilience-plan template, good insurance and advice.” It’s important to develop a strategy that suits the needs of the company, says Mark Nicholas, Managing Director of Easy Continuity, a business continuity product and service provider. “Look at risks that could render your building ineffective. You need recovery options for buildings, staff and IT.” You also need to have a plan in place that will help you communicate with staff, customers and business partners in the event of an incident. “Customers are more likely to react sympathetically to a disrupted service or a closed facility if they know what’s going on,” says Tim Morris, Director of Marketing at emergency communications technology provider Crises Control.
Take cover The other key precaution is to ensure you have all the insurance you need. In November, the Flood Re initiative, which helps homeowners at risk from flooding find affordable flood insurance, came
25%
The proportion of microbusinesses with a resilience plan in place that includes severe weather
into force – but there is no equivalent for small businesses. More than half (52 per cent) of small firms based on flood plains do not have flood insurance, with 9 per cent reporting difficulties in finding cover, and 6 per cent having been refused, says FSB. It is asking the Government for measures to ensure small businesses can access affordable flood insurance. Meanwhile, firms finding it hard to get cover should contact brokers who specialise in obtaining it even where
CASE STUDY
Alight buoyant again after floods Amante Witherick runs the Alight Balloon Company, creating decorative products (pictured) for weddings, corporate events and similar occasions, from a large garage workshop next to her house in the Somerset village of Moorlands. When the 2013 floods struck, she expected the house and garage to be flooded, so she moved some stock and equipment to higher surfaces. But the floodwaters rose to a height of 1.5 metres and stayed there for weeks, wrecking the family home and the garage workshop.
Ms Witherick lost thousands of pounds-worth of stock, equipment and personal belongings. She now believes she could have saved more, but at the time felt unable to do so. “It’s so overwhelming – with everything devastated, you
go into this sort of numbness,” she says. “I didn’t answer emails for about a fortnight, so I lost a lot of business.” The family home and garage have now been refurbished, and the company is thriving again. A government grant for domestic flood defences has funded the construction of a new wall that should offer the property more protection. If she was flooded again, the main thing Ms Witherick would do differently would be to act more quickly to move items into a storage facility, and keep trading from there, she says.
there have been previous flooding losses, says Martin Bridges, Technical Services Manager at the British Insurance Brokers’ Association (BIBA). “Our members understand the risk associated with an individual business, and the measures they have taken to reduce the effects of flooding,” he says. “The broker may also have details about the likelihood of flooding that they can share to obtain better terms.” In addition, business-interruption insurance can compensate businesses for any reductions in profit and increases in operating costs caused by a business interruption. But only 46 per cent of small firms have this type of insurance in place, according to FSB. If you do buy it, check the small print. The 2013-14 floods left Oxford Ironmongery, an architectural ironmongery firm, unable to reach its premises and serve customers for five days, even though the premises themselves were not flooded. Managing Director Julian Newman put in a claim on his business-interruption insurance for five days’ worth of profit – about £2,500 – based on average takings and outgoings over the previous three years. The insurer’s loss adjuster recommended that the insurer offer the firm just £47. “I got in contact with the local media,” says Mr Newman. “The television interview went out at 6.30pm on a Tuesday evening, and at 6.35pm I was having a phone conversation with the head of the insurance company.” The insurer subsequently improved its offer. No one wants to be forced to put the strength of their insurance policies to the test or end up in lengthy media or legal battles. For most small businesses, the priority should be to take reasonable precautions and think of how any impact can be mitigated, should something unexpected strike. As the old phrase goes, forewarned is forearmed. DAVID ADAMS is a freelance business journalist
30 | firstvoice | january/february 2016
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FEATURE ONLINE
Webof opportunity The internet is becoming a vital tool for small firms, as both a sales channel and a means of increasing awareness. Jo Faragher outlines how you can ensure you’re making the most of its potential
HE INTERNET HAS become an indispensable part of how small businesses operate. Recent research by FSB found that 94 per cent of members felt that it was either critical or very important to their business. These companies aren’t all tech-savvy digital start-ups, either. Many offer traditional services but communicate with suppliers online, some use social media to heighten brand awareness, while others use the internet as a reputation-building or customeracquisition tool. That said, many smaller businesses face barriers in getting the best out of their online access. Research by Ofcom found that only 68 per cent of small businesses have access to superfast broadband, compared with 83 per cent of residential premises, for example. Few have a full-time IT manager to advise on technology-purchasing decisions, so they can struggle to understand the fast-changing market. In spite of these challenges, many still use the internet to support business growth, reach out to more customers and increase productivity. Here, we look at 10 of the most effective ways to do this.
T
1. Sell, sell, sell According to FSB, 51 per cent of small businesses do business online, while 15 per cent plan to do so in the future. One outdoor goods retailer saw its sales rise by 40 per cent in a year after deciding to sell products online, its research found. James Barron, who runs e-cigarette firm Evaporate, started selling on eBay, and progressed to selling via his own website. “Going online gave me the freedom to sell, and to build my brand identity and customer base,” he says.
2. Here is the news Email newsletter marketing should be a no-brainer for small firms. But creating something that potential customers will click on is easier said than done, says Jessica Phillips, an Account Executive at technical PR agency Stone Junction. “To avoid appearing pushy and impersonal, ensure your email is around 80 per cent content and limited to 20 per cent promotion,” she advises.
3. Get productive While the internet is an effective way to market your
business to potential new customers, it can also improve how employees collaborate and communicate. FSB’s research found that 55 per cent of small businesses used cloud computing, for example, allowing staff to access systems and documents from anywhere. One software provider used Google software that allows teams to collaboratively edit documents, while an accountancy firm has moved all documents into the cloud, reducing admin and allowing staff to focus on fee-earning work. Mike Cherry, FSB Policy Director, says this trend will only accelerate as more employees demand flexible working and broadband infrastructure improves.
4. Make your website work for you It’s no longer enough to have a static website that simply states what your business does and offers a point of contact. Building a visually engaging and interactive experience is crucial if you want to get the best return. Sue Nelson, Chief Executive and founder of Breakthrough Funding, which helps tech start-ups access research and development credits from the
january/february 2016 | firstvoice | 33
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FEATURE ONLINE Government, felt it important to reflect her customers’ expectations through the company’s web presence. So there’s a live chat function, or people can use an interactive calculator to see if they qualify for funding. “Our potential customers tend to be in their late 20s or early 30s, and prefer to be online than use the phone,” she says.
5. Be creative with content Businesses can benefit from hosting short pieces of content or blogs on their website. A blog can host anything that can showcase your industry knowhow and experience. “Blog posts have to be interesting and bring added value to the reader,” says Ms Phillips at Stone Junction. A blog acts as dynamic content to use elsewhere in your internet marketing strategy – by sharing on social media platforms, or to start a discussion in a professional forum. Using the right keywords can also help your search engine rankings.
6. Thrive on feedback Paying for a listing in a trade directory or securing a listing on one of the many ‘trusted business’ sites, can be worthwhile. Mr Barron from Evaporate says such sites have been useful to increase brand awareness and his website’s search engine optimisation. Reviews can also add to your ‘searchability’. Facebook and search engines won’t allow adverts for e-cigarettes, so marketing his firm in this way has opened his business up to other potential customer channels.
7. Video stars Gymnastics chain Affinity Gymnastics has acquired a faithful following, which it hopes to grow through its online presence. One of the ways it will do this is through
publishing videos on its site, says owner Jennifer Page. “Our members are young people who are all over YouTube, and it also helps us to reach out to those who can’t make our classes.” In spheres where learning or demonstration is a key part of the business, video can provide an interactive, three-dimensional view of your brand.
are a your target audience, and which a web w channels do they use?” t It’s not just about broadcasting b messages about your m brand to potential b customers. Embed c social feeds into the s sales pages of your s site, for example, so s customers can see c Facebook or Twitter F feedback from f people who have p invested in your product or service. It’s even possible to help fund your business using social media – one company Ms Cairns has worked with asked LinkedIn followers to ‘crowdfund’ the development of an app, and received enough to go to market with its product.
‘To avoid appearing pushy and impersonal, ensure your email is around 80 per cent content and limited to 20 per cent promotion’
8. Pay it forward ‘Pay per click’ is an advertising model used to direct traffic directly to your website, and refers to how much you’re prepared to spend to get customers to click on your home page. This can be done through Google AdWords, where you choose search terms that will make your brand appear in Google results. However, it’s important to take a joined-up approach, says Ms Nelson at Breakthrough. “You may drive more people to your website, but is someone there to answer the phone if they call, and do your back-end systems work?” You also could boost your SEO by peppering keywords through your site, but Google’s algorithms change frequently.
9. Shine on social Getting your name out on social networks such as Facebook and Twitter is one of the most basic and cost-effective ways to improve your online presence, but businesses need to approach this process strategically. Zoe Cairns, who runs a social media consultancy, says: “Go back to pen and paper. What do you want to do? Who
10. Measure, review, amend “Change is the only constant when doing business online,” says Mark Layzell, Chief Executive of HITeam Group, which helps companies refine their web presence. “What works now might not work in the future.” It’s crucial to embed ways of measuring the success of your online efforts, reviewing the data produced and tweaking the site or how you drive people there accordingly, he says. Google Analytics is free software that shows which pages visitors look at on your site. You can also add tags to links you put out on social media or through flyers, indicating how visitors came to those pages. Consider what these results show and, if something isn’t working, it could be time to take a different approach. JO FARAGHER is a freelance business journalist
34 | firstvoice | january/february 2016
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DON’T GAMBLE WITH YOUR FIRE RISK ASSESSMENT! If you are responsible for a business premises, the law requires that you KDYH D ƆUH ULVN DVVHVVPHQW 7R ƆQG FRPSHWHQW SURYLGHUV \RX QHHG %$)(
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BAFE scheme ‘Life Safety Fire Risk Assessment 63 Ĺś KDV EHHQ GHYHORSHG VSHFLƆFDOO\ to address this situation, and will provide reassurance to the Responsible Person that they are doing everything possible to meet their obligations. Don’t leave everything to chance. Make sure that your suppliers are registered with BAFE.
WWW.BAFE.ORG.UK 16/12/2015 10:13
ADVERTORIAL
Direct Access Barristers
By Chantal-Aimée Doerries QC, Chairman of the Bar
M
ANY SMALL AND MEDIUM ENTERPRISES (SMEs) don’t factor into their business plans unexpected legal issues or disputes. If one crops up many business owners won’t have an obvious place to turn to for help and even if they find a lawyer, how do they know how effective they will be in handling the matter at hand, whether that be a problem with a lease of premises occupied by the business, the need to obtain rapid and expert employment advice or a pressing requirement to recover payments being withheld by a larger customer? These are just examples of commonly occurring problems, which may arise without notice and which frequently require fairly quick action. On the other hand, business may from time to time have more predictable requirements for legal advice in the form of advice on copyright or trade mark issues or the renewal of a business lease. Traditionally, businesses and members of the public were only allowed to instruct a barrister through a solicitor. That changed over 10 years ago through an initiative now called Direct Access. SME owners and managers are often unaware that they can now go directly to a direct access qualified barrister for legal advice and, should they need it, advocacy. With several thousand barristers now qualified to do this type of work in England & Wales, SMEs can obtain advice that is expert in nature, within a short time and at affordable cost directly from a barrister.
But why use a Direct Access barrister?
The vast majority of barristers are self-employed, although they, largely, operate from chambers, in which a number of barristers share premises and administration costs. The chambers’ structure generally results in low
overheads meaning that barristers’ rates are often very affordable to businesses of all sizes including SMEs. This is vital for any small or medium sized business with one eye on its finances. Barristers’ clients can in some circumstances also arrange a payment plan through a Bar Council approved partner, Legal Costs Finance (LCF). Barristers are experts in disputes and, in turn, also understand how to avoid disputes reaching the court room. If a legal matter does nonetheless get that far, they are well equipped and qualified to represent businesses in the court room, or before tribunals. If it does become necessary to instruct a solicitor at any point, barristers are able to help you choose an appropriate solicitor. Barristers are robustly regulated, insured and have gone through a rigorous qualification process to get to where they are.Complaints against barristers are very low in number. Statistics from the Legal Ombudsman show that in 2014/15 just 4.6% of all complaints about lawyers were against barristers. Part of the reason there are so few complaints is because of rules which prevent barristers from handling client money. The Bar Council, the Bar’s representative organization, operates an escrow account through BARCO. When using BARCO the client is able to pay money into an escrow account, so that its money is never directly held by the barrister until the time for payment of those fees arises. No funds can be drawn from the account unless the client has given prior permission. The client can therefore have complete confidence that their money is being within an Financial Conduct Authority (FCA) regulated third party entity and not a party who has any direct personal interest in the funds.Add to these reasons the high reputation barristers in England & Wales enjoy internationally for independent and specialist legal advice and advocacy and
the advantages of using a Direct Access barrister are clear.
How to find the right barrister
Not all barristers are qualified to do this type of work, but those that have completed the relevant Direct Access training can be found on the Direct Access Portal www.directaccessportal. co.uk which is backed by the national Bar Council and is completely free to use. Businesses can find a barrister who specialises in the particular area of law which they need advice in and who is local to their business. The Bar is a rich repository of specialist knowledge and experience. It has never been more easily accessible for businesses and individuals alike. How you choose to make use of the expertise of a barrister will depend upon your specific needs and can be tailored to meet those needs. We know how SMEs operate, we understand their needs. The use of a Direct Access barrister resonates with the core principles by which many SME operate: excellence of service combined with delivery on time at an affordable price.nce of service combined with delivery on time at an affordable price.
36 | firstvoice | january/february 2016
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HOW TO...
GIVE A GREAT ELEVATOR PITCH ADVICE
Good first impressions Small business owners could get just a minute or two to explain to potential customers just what they do and why people should buy from them, so make the most of it, says Kolarele Sonaike
Illustration: Jamie Jones
O
NCE UPON A TIME, A BLIND BOY SAT BEGGING FOR
money, next to a sign that read: “Please help me, I’m blind”. Although some people dropped a few coins in his bowl, most simply passed by until, one day, a kind man decided to help. He took the boy’s sign, wrote a few words on the back and then replaced it, with the new text showing. Immediately, lots of people began dropping coins into the boy’s bowl, and by the end of the day it was overflowing. 1
Brand the problem
Don’t just launch straight into what you do. First set out the problem that your business exists to solve, and emphasise its seriousness by highlighting the impact it has on people’s lives. The reason is simple: only when your audience cares about the problem will they also care that you have the solution. Better still, if they think that you ‘get the pain’, they will trust that you have the solution, and be far more receptive to hearing about what you do.
2
Tell them what you do Once they feel the pain, they’ll be looking to you to cure it, so now is the time to tell them what you do. Keep it short. You should have a go-to definition of your business that is no more than 20 words. It should be clear and concise, but also broad (covering all of what you do), and precise (specific to your service, not general or vague). Then list the best features and benefits of your product or service, so that they can see that you really do have the answer.
When, later, the boy recognised the kind man’s footsteps as he walked past, he asked the man what he had written on his sign. “I just said the same thing you did, but in a different way,” he replied, and left. The sign read: “Today is a beautiful day, but I can’t see it.” The above story may or may not be true, but I always think of it when people ask me how they can stand out when they meet people for the first time.
3
Explain why they need to use you
Chances are there are lots of other businesses doing what you do. Even if you have a strong unique selling point, that doesn’t mean you don’t have competitors. Your elevator pitch also gives you the chance to explain why you’re the right choice, and what you know that they don’t. Watch the YouTube video of how Apple’s Steve Jobs explained to potential customers why they should use Apple rather than Blackberry when he first unveiled the iPhone in 2007.
4
Offer real value
5
The clincher in any pitch is when you highlight the value that your business brings to people’s lives. This is more than what you do, or even how you do it. It’s about your mission, your purpose, and why you do what you do. So you’re not just selling greeting cards; you’re helping bring people closer by letting them share their emotions. You’re not just a bookkeeper; you’re giving businesses financial control and security. Showing your value is how you answer people’s true question: “What’s in it for me?”
Call to action
The final step is your call to action. Know what you want out of your pitch, and ask for that. Make sure it’s one simple action, so you don’t make it too hard for your audience to figure out what you want. Finally, the real secret to a great pitch is stories. I’ll bet that, despite everything I’ve said, it’s the story about the blind boy that you’ll most remember. Stories work. If you’ve got a great case study that highlights the value of what you do, use it. It’s far more powerful than your traditional elevator pitch.
KOLARELE SONAIKE is a public speaking consultant and an FSB member www.elevatorpitchschool.com january/february 2016 | firstvoice | 37
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ADVICE
LEGAL PENALTY CLAUSES
Losing on penalties A recent ruling by the Supreme Court means business owners facing ‘penalties’ for breaching a contract may find it harder to challenge these, says John Moore
Y
OU MAY HAVE READ ABOUT AN ATTEMPT TO
challenge the validity of a parking charge for overstaying the motorist’s welcome. It was challenged on the basis that it was a ‘penalty’ clause because the parking charge was seen as ‘excessive and unfair’ after the motorist had gone over his allotted two free hours. Recently this case was heard by the Supreme Court with another, similar case, to consider the whole question of ‘penalty’ clauses.
What’s the problem? For years, under English law, any clause that attempted to set an arbitrary amount that a party to a contract must pay that seemed excessive was considered to be a ‘penalty’ clause and open to challenge. If it was successfully challenged, then any payment due under the contract would be unenforceable.
What’s been the way of getting round them?
1 2 3
Inserting in the contract what’s called a ‘liquidated damages’ clause – which effectively attempts to insert an amount that’s deemed to be a genuine pre-estimate of loss Changing the structure of the contract so that any payment due is triggered not by the breach but by an alternative option Inserting appropriate wording to provide that the clause is ‘commercially justified’ because it serves an important purpose that the parties to the contract have agreed on
What has the Supreme Court had to say? Both cases before the Supreme Court explored whether clauses setting an amount to be paid by one party to the other in the event of a breach were penalty clauses, and so unenforceable. For example, in the parking case, because the motorist overstayed a couple of hours, the argument was that the £85 was a ‘penalty’ charge. The Supreme Court reviewed both cases and upheld both clauses, saying they weren’t penalties. They decided the old concepts of ‘deterrence’ and ‘genuine pre-estimate of loss’ weren’t helpful, but decided against scrapping the old law. Instead, they held that the ‘legitimate interest’ of the party relying on the clause justified its enforcement. They also confirmed that, in future, parties could try to avoid getting into
any discussion over whether something is or isn’t a penalty clause if they structured the contract in such a way that any payment due wasn’t triggered by the breach. This means that now a clause will probably be enforceable even if it’s not a genuine pre-estimate of the innocent party’s loss, or if it’s designed to deter a breach of contract. What matters is whether or not the innocent party is protecting a ‘legitimate interest’. In the parking case, the court found that, although on the face of it the £85 charge appeared to be a penalty, it wasn’t, because the landowner had a ‘legitimate interest’ in the efficient management of the car park.
‘If you’re given a contract, look carefully at any clauses that require a payment if the contract is broken’
What this means
The courts are effectively saying that they’re less inclined to interfere in contracts that are freely entered into, particularly when it comes to commercial contracts, where the parties have access to legal advice. Challenging a clause that, on the face of it, is a penalty clause will be increasingly difficult because the other party is likely to say the clause is there to protect a legitimate interest. It will now be possible to challenge such clauses only if its impact significantly exceeds the innocent party’s legitimate interest. So if you’re given a contract, look carefully at any clauses that require a payment if the contract is broken. Don’t think that, just because any figure inserted looks to be on the high side, it can automatically be challenged later. Any attempt to do this might be met by the other party arguing that the amount reflects their legitimate interest in having such a clause in the contract. Of course, you’re free to ask them what this interest is.
JOHN MOORE is Commercial and Technical Advice Services Manager at LHS Solicitors, FSB’s legal services provider. If you have a legal query, call 03450 727 727 or visit www.fsb.org.uk/benefits/legalbenefits
38 | firstvoice | january/february 2016
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TH E
VOICE Surrey & West Sussex
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FSB MEMBERS BEFORE THE DINNER AT ARUNDEL CASTLE
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As in previous years branches took MP’s walkabout on 5th December but earlier in 2015 the Region came up with a super small business Saturday idea. Let’s encourage local Councils to provide free car parking on the day to encourage shoppers to the local high streets. If approved Small Business Saturday and Keep Trade Local would be working hand in glove. More than half the borough and district councils agreed and we would like to thank Mole Valley, Epsom & Ewell, Tandridge, Reigate and Banstead, Waverley and Elmbridge Councils for generously agreeing not only to small business Saturday free parking but in some cases specific dates in December when footfall is notoriously low. Special thanks as well to the Chief Executives for allowing ured You’ favo‘Thank of FSB collateral! erection of hands show a the almost g car And finally, placards inick participatin
MP: SUP ERFAST INTE RNE T ESS ENT IAL FOR BUS INES S Herbert Arundel & South Downs MP Nick is now has said that superfast broadband and “essential infrastructure” for business must be extended to rural areas. of Nick was speaking to an audience at 65 of our members at a dinner held Arundel Castle on Friday 18th September. divide” He warned that a growing “digital villages meant that cities, towns and large but were getting superfast broadband, rural areas were losing out. Superfast but broadband was no longer a luxury for was now “an absolute necessity” businesses. Growing demand and new services meant that ever faster speeds were
rity caused secu l members 140 regiona House, at Portcullis congestion Jamie Oliver and delayed on Westminster ct committee e sele a to e reach the Attle giving evidenc r attempts to ual irman’s ann health in thei Regional Cha Suite for the e everyon report. delayed, but that The start was o reported Antonio Falc nts were settled and business eve five more than 50 ughout the region with thro g more ctin conducted attra le events very high profi h. During the gates at eac but six of all than 100 dele with s a meeting nio showed year we had RY FRENCH OBE, l MP’s and Anto us of a very O WITH ROSEMA ind our Regiona ANTONIO FALC DIAMOND ic show to rem CTOR, GATWICK photograph r. EXECUTIVE DIRE member yea tely followed by successful immedia was rt up e el made The repo es a fair wag with the pan loye e’ ick emp Tim y n Gatw den ay at Gatw small ‘Questio Banking, nt room would burden on a second runw parks. iness world. e at this eve a ose a huge Loughton MP from the bus ly but everyon on it does imp vering from unanimous rance and Tim e undecided ers still reco reham as well Airport, insu panellists wer business own thing and Sho s to Wor MP’ er including or out’ question. y. t ing und Eas nom e for of visit r eco irman d cam of Small l byCha and published for the Federation is produced the EU ‘in VOICE EDITORIAL: iona ous stream ents. poo This publication k of Scotlan Reg s, Lancs, FY4 2FE. stitu Ban FSB iam al con Blackpool Business Park Blackpool, r Way, o, Whittle Will Roy as a continu Frank Sir k thei Businesses, James Connor. Tel: ind Editor: The rights reserved. t Mar rem Businesses all Antonio Falc e to greet © Copyright 1996 Federation oftinu con Small e to of this publicationll errors or omissions are fellow panellis trying to Email: james.connor@fsb.org.uk. 361179will 01253 the Attlee Suit small business packed “we compilation n attack from our sma every care has been taken in the in Businesses a and opinions expressed are those concludedWhilst of Small asks the Federation erwriter whe to not the responsibility ent of ofour It all made for the policy of the Federation. of the authors and are not necessarily insurance und ience that they want published the Governm ncil, o written and Mark e the aud Cou ifest as afternoon. th nty vinc man s con Cou grow s ey busines tion” for busines rantee Leader of Surr plenty to say from his 2 eral Elec Gen PAGE lend money on their gua had prior to the it was only David Hodge n discussing pointed out g houses as audience whe living wage included usin seat in the m terms which ents minimu on in the the Governm h not one pers oug alth l proposa
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growth without superfast broadband this would be severely hampered. Mr Herbert said that his broadband summit in 2011 had led to West Sussex County Council’s ‘Better Connected’ Surrey & West Sussex programme which, with local and access Government funding, aims to give in to more than 90 per cent of premises the County by Spring next year. In May the County Council announced point, that they had passed the halfway with more than 36,000 homes and to just businesses upgraded, equivalent t over half of all premises. The Governmen of is committed to support the delivery of all superfast broadband to 95 per cent UK households by the end of 2017. t in Ministers reiterated their commitmen August with the publication of a 10-point plan for boosting productivity in rural areas. 5 But Mr Herbert pointed out that the would or 10 per cent of households that not have access to superfast broadband be under these plans would inevitably in rural areas. The MP said that new
FSB SURREY MEMBER IS APPOINTED TO EU COMMITTEE
DELEGATES AT THE CONFERENCE
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THE SURREY COUNTY POLICY CONFERENCE IS A SUCCESS
by means of turnover was Regional Vice-Chairman, a definite no no. Brian Woods an expert in Findings from this these matters. meeting were fed You can imagine in to our Press and that many and varied but ry Office Parliamenta 80 members met at the WWF Living Planet suggestions to reform find policy toannual you shouldfor thiswish year’s the current methodCentre in Woking conference.out more please email of calculation were k Stuart Shorttle, Surrey Policy Chair s@fsb.org.u ray.abraham mentioned but calculation
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hosted the event and Antonio Falco, FSB Regional Chairman proudly introduced www.fsb.org .uk local MP Jonathan Lord to open the 3 hour conference. Jonathan remarked that he couldn’t remember a time when small businesses are as highly regarded by the Government
process making council contracts more easily available to micro businesses. They praised the FSB for the tireless work over the past 2 years in helping by giving member feedback and approving procurement documents. Surrey County and the FSB working in partnership for the benefit of Surrey small and micro businesses. Not such a friendly reception for the next presentation from BT. It would seem that in spite of 90% of the County enjoying superfast broadband with
John Walker, Surrey member and past National Chairman has been appointed to the EU’s Economic & Social Committee (EESC) as one of eight employer representatives from UK. The position, which is for five years, was a recommendation by the UK Government to the Council of Ministers and was formally approved in September. The EESC is a statutory consultee in Brussels and provides opinions on legislative proposals from the European Parliament in such areas as the Single Market, Transport and the Environment. The UK has 24 representatives on the EESC, from employers, employees and civil society with Mr Walker joining representatives from the other 27 EU Member States. John said “Although this is a personal appointment, without my FSB service as National Chairman and Policy Chairman, I doubt I would have been considered. I am very much
n as a ch chairma Croydon bran Barwell. l MP Gavin ister of ning guest of loca a Soubry Min official ope Rt Hon Ann Business, r for Small Following the ired a roundtable State (Ministe se) for ister cha rpri Min Ente the s matters Industry and on busines iness, discussion ent for Bus and Bryan. the Departm Skills was d by both Ann t rights nde atte and l elopmen Innovation in, Regiona Permitted dev e in Crawley to Ann Swa Policy introduced issu West Sussex came up as bry said Treasurer and introduced to n. Anna Sou from and Croydo Chairman was the opening of ring this a lot would she was hea r at in ANN SWAIN London and tre the Ministe in Cen MP (LEFT) WITH businesses Innovation r government ANNA SOUBRY othe the Sussex with take it up by Gavin es oed Croydon. nde Ech atte rs. 7324 2776 list of ministe ERTI SE CALL 020 uded A small VIP ADV incl TO MP. l also which Barwel TACT S 14 were invited elected REGI ONA L CON erne newly 3-10 Bryan Treh
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NETWORKING
MEMBER NEWS
DIALOGUE
SERVICES
THE GOODS
MY BUSINESS
YOUNG MEMBERS
FSB Connect for young entrepreneurs F
SB HAS LAUNCHED A
campaign aiming to engage, represent and focus on entrepreneurs, however young. The campaign, called FSB Connect, is itself spearheaded by young business leaders and members of FSB. “We want to support and invigorate FSB by engaging with younger entrepreneurs, to understand their follow #FSBconnect on twitter
p41-43 First Voice Networking news Jan-Feb 2016 v2cc.indd 41
needs,” said Kieran Miles, FSB Connect Committee Member. “FSB Connect will provide a suite of physical opportunities that are accessible to younger entrepreneurs, helping to support their development through job creation and business start-ups. Kieran added: “FSB Connect events will be held across the UK to benefit young business owners,
Some of the FSB Connectors who met up in Leeds recently to help launch the initiative. Back row, left to right: Kieran Miles, Zoey Easey, Shaun Roberts, Gudrun Lauret, Ian Whitehead-Ross. Front row, left to right: Thomas Machnik, Jiten Raikundalia, Mairaid McMahon
engaging existing members to inspire and mentor the next generation of business leaders and ensuring that FSB’s member benefits are fit for purpose in the 21st century.” january/february 2016 | firstvoice | 41
18/12/2015 15:14
NETWORKING
MEMBER NEWS IOT
Sensor boosts motorbike safety W
E ARE ALWAYS ON THE
lookout for entries involving the so-called Internet of Things (IoT) – ordinary devices hooked up to the net. Smart televisions are connected so you can watch iPlayer on your big set. Traffic lights are connected so they can be rephased remotely. IoT toothbrushes track usage and wi-fi kettles can be boiled using an app. Even farms are getting the treatment, placing sensors in animals’ bellies to monitor stomach acid and hydration. For a while, cars have had sensors embedded in the bumper, so that in a crash the factory knows when your airbags inflate. But not motorbikes, yet, despite being 38 times more lethal than cars in the UK, with more than 300 riders killed every year and 5,000 seriously injured.
Now two entrepreneurs in the north-east of England, Zoe Farrington and Andrew Richardson, have taken action, creating an app, Realrider, that uses the smartphone accelerometer to detect crashes. If there’s no deactivation by the rider by two minutes after a
Andrew Richardson and Zoe Farrington: making bike-riding safer
smash, the app messages the ambulance service with the GPS location. It has already won the UK leg of the European Satellite Navigation Competition. Chillingly, Realrider advises keeping the phone on you, not on your bike, as after a crash the two often end up far apart.
WEB DESIGN
BRANDING
Apps are not the only route
Metamorphosis at nursery chain
Half of all internet traffic is now mobile. So do you need a phone app? It’s a question that many businesses ask. An app can use smartphone functions such as a push notifications, calendar, camera, accelerometer, which a website can’t. Is it a done deal, then? “It depends,” says Kelly Molson (pictured), co-founder of web design business Rubber Cheese. “We believe you need an app only if you can create one that is engaging, useful, or receives continuous use.” The alternative, she says, is responsive web design. “This resizes and changes the layout of a web page depending on the screen
it’s viewed on, so it’s accessible to all and searchable on mobiles. You need to be mobile-friendly, because Google will punish your mobile search results if you are not. Apps can do amazing things, but so can websites.” Rubber Cheese recently redesigned a responsive site for the post-graduate medical centre at Addenbrooke’s Hospital in Cambridge. “They run everything through the site: course bookings, invoicing and lots more,” she says. Apps aren’t going away. But the rise of responsive sites is providing strong competition.
Is your branding stale? Lots of companies think about a revamp, but are put off by the cost. Is it worth it? One company that will tell you to go ahead is Little Inspirations, a chain of four children’s nurseries in Rhondda, South Wales, run by Jenine Gill. Its brand was a decade old, and looking unsuited to a growing business. “We got a £3,000 grant from Rhondda Cynon Taf Business Club for new branding and a new website,” says Gill. “We used a company called Jammy Custard.” Jammy Custard examined the values of Little Inspirations, and a caterpillar-and-butterfly scheme was agreed on. The website got a new build, in line with modern standards. The grant covered half the cost. The rebranding is beginning to pay off. “Our numbers have picked up, and the parents are happy with the information we’ve added to the website,” says Jenine.
42 | firstvoice | january/february 2016
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STRATEGY
Taking on the big boys START-UPS
Refreshing difference B
RITISH PUBS ARE CLOSING AT THE
rate of 29 a week. It’s a decline dating back to 1980, since when 19,000 have gone. So who’d open a boozer in this market? In fact, as one Manchester start-up is proving, if you get the pitch right it is possible to thrive in any market. Dean Hilton (pictured) is an unlikely entrepreneur. He launched The Beer Shop when he retired aged 60, in 2011. “I was so fed up with having nowhere to go for a decent pint that I thought: why not start up on my own?” he says. His initial model was to primarily sell speciality beers and ales from across the globe from his premises in Stockport’s Heaton Mersey, but says this model has
morphed into much more of a pub offering succour to real-ale connoisseurs. The market is dominated by giant pub companies, which demand that tenants purchase their beers. But Dean is shaking up the market with a few innovations. He’s got a huge range. The Beer Shop stocks 150 bottled ales, from Norway, Germany, the US, Netherlands and from microbreweries all over the UK. You can try before you buy – he allows customers a broad tasting of cask beers before committing. And there is a specific demographic appeal. “We sell mainly to people under 30, or over 55,” he says. Fuse the three innovations, and the result is a business growing 30 per cent a year.
EXPORTING
Japan visit pays off for whisky maker Japan is a lucrative export market. It’s also a tough one to crack. It’s nine time-zones east, the language is complex, the written script unintelligible, and it’s expensive to explore. A watermelon can cost £100.
However, a growing number of brave British firms are finding that if you can make it out there, the opportunities will come. Dornoch Castle Hotel (pictured) is celebrating a successful trade mission to Fukuoka, Osaka and Tokyo to promote its new ownbrand whisky. Managing Director Philip Thompson took part in the Hankyu British Fair, held at the Hankyu department store – known as the ‘Harrods of Japan’. Each year, around 20 British firms show their products to retail buyers and consumers.
“It was hard work,” he recalls. “I’d never been to Japan before.” He packed his schedule, holding a tasting for 50 Japanese whisky enthusiasts, opening a pop-up shop, and meeting potential importers. “We’ve been featured in Japanese whisky books,” he says. “So we had a lot of interest.” The export market for Dornoch Castle’s whisky will offset the seasonality of the core hotel business. “We are 45 minutes north of Inverness, so it’s hard to get to in winter,” says Philip. Now, Dornoch Castle is gaining an international reputation for its whisky festival and tastings.
Asymmetric warfare is when large armies take on minnows. And so often the underdog wins. One recent case study arrives courtesy of Elegance Natural Skin Care, which is celebrating its 30th birthday. Skin care is a ferocious global sector, with giants such as L’Oréal, Clarins, Clinique and Procter & Gamble spending billions on research and development and marketing. So how did Elegance carve out such a great niche? First, says marketing boss Craig Heard, be unique. For example, goat’s milk moisturising cream has no rivals from the majors. The milk is soothing for eczema and dermatitis. Second, play to your strengths. Elegance makes products by hand. The manuka honey range would be hard to make industrially. Third, stay in touch with your base. “Many of our loyal customers have been with us for the full 30 years,” says Craig. “We often receive letters and notes from them, and many are on first-name terms with our team.” Trade shows are great for staying in touch. “We use the shows we attend to promote our products and allow people to sample them before purchasing. We also engage with our existing customers via social media channels, email and the post.” Last, respond to requests. “We listen to our customers and create new products and ranges to meet their needs,” says Craig. This approach has worked for 30 years, and there’s no reason it won’t keep working. january/february 2016 | firstvoice | 43
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ADVERTORIAL
The Co-operative Bank renews its commitment to the SME sector The Co-operative Bank has recently signed a new contract with the Federation of Small Business (FSB), extending the established relationship and reaffirming its commitment to the small and medium enterprise (SME) sector.
T
HE INITIAL RELATIONSHIP between The Co-operative Bank and FSB began in February 2004 with the bank providing a variety of services including free banking and advice, along with a host of benefits to FSB members. In addition, FSB Business Banking customers receive £25 Loyalty Bonus paid annually to members who maintain an active account. With more than 10 years working in partnership, The Co-operative Bank currently have 33,000 FSB Business Banking customers. Some products and services have changed and developed over the years, in line with customer demands and the ever-changing business landscape, with the Bank remaining the preferred high-street partner of FSB. The Co-operative Bank has always been a supporter of small businesses and has a long heritage of helping local
enterprises, and this remains at the core of the Bank. Values and ethics are fundamental to the Bank and we remain the only High Street Bank to have a customer led Ethical Policy. Values and ethics have always been more than words on paper. They underpin how we run our business, distinguish us in the market place and run through everything we do. We have listened to our
“Every business has its demands, none more so when running a small business and here at the Co-operative Bank we are always keen to work with our customers and listen to their feedback” customers and colleagues – more than 74,000 of them shared their views with us and have helped us shaped the extended Policy. Our customers continue to care about the major issues in the world today. But they also want the Policy to address issues nearer to home. When asked about the areas that are most important to them, the two they felt the strongest
about are operating with honesty and transparency and promoting responsible banking – so we now have Ethical Policy commitments are how we operate as a business. Mario Arnone, Head of Business Banking at The Co-operative Bank, says, “We are delighted to have signed a new contract with FSB which offers their members, who are our customers, access to free business banking and support, market-leading products, as well as a voice in parliament. “Every business has its demands, none more so when running a small business and here at the Co-operative Bank we are always keen to work with our customers and listen to their feedback, learning how we can develop products and services to help them maintain and run their business effectively, as well as helping them to grow.” David Stallon, Operations Director from FSB adds, “We’ve been working with The Co-operative Bank for more than 10 years and are thrilled to be continuing our relationship. We know that our members have access to the best advice and customer service, essential for their business, as well as having a range of products available that have been developed with their needs in mind.” To learn more about The Co-operative Bank FSB Business Banking account visit www.co-operativebank.co.uk/business/ currentaccounts/fsb-current-accounts or by calling 0800 14 14 15.
44 | firstvoice | january/february 2016
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NETWORKING
DIALOGUE
GET IN TOUCH WITH THE FIRST VOICE TEAM AT EDITORIAL@FIRSTVOICE.CO.UK
EDITOR’S INBOX
Small towns need banks
Photography: Alamy
O
UR TOWN, STURMINSTER NEWTON IN
Dorset, recently received notification that the local bank branch is to close at the end of February. Our surrounding parishes have already lost their banks, so there is a knock-on effect throughout the area. Although any business that is experiencing cashflow problems has to adjust, there appears to be no consideration as to how the banks are affecting small, rural towns. They are now forcing people to go to the bigger neighbouring towns, but unless you have transport this is not that simple. The other problem is the long-term impact on small firms. A lot of small businesses are family-run,
and don’t earn huge sums for the hours they put in. Consequently, when we decide we want to sell, we will struggle because larger towns are attracting the footfall. Before long, the banks will cause small towns to die. I don’t expect the banks to re-open. But they need to come together and work out a way where they can all work out of one building, share the costs and keep customers happy – and allow us to still be able to within the small towns. conduct our banking w
Best of the web The new FSB website is now packed with new resources that can help to support members in their business ambitions. The website has more information about events, membership benefits and resources for business than ever before.
DEBORAH D HURST, owner, M Market Place Dry Cleaners, Sturminster Newton St Agree or disagree? Email Ag editorial@firstvoice.co.uk ed
First Voice will also be available to read on the site, which is fully responsive to whatever device you use to log on. See the new look at www.fsb.org.uk and let us know what you think. Email editorial@ firstvoice.co.uk
TOP TWEETS
From the webinar
First rst Voice’s webinar in October looked at cybersecurity. Panellist Dr Emma Philpott, Director and Chief Executive of IASME Consortium, answers readers’ questions
Q
Are there simple measures people can take to check the security of cloud storage?
The most important thing is to try to work out where your data is. Sometimes you will have a contract with a cloud provider and they’ll contract out to someone else. You need to know if they’re hosting in one of their own data centres and where that is. This is important because under the Data Protection Act, certain data needs to remain within the EU. It is also important to look for certifications, so check if your provider is certified to security standards such as ISO27001 or IASME.
Q
If my firm uses Macs instead of Windows computers, do I still need anti-virus?
It used to be that most people had Windows machines, so cyber-criminals
wrote viruses for Windows. But now so many people have Macs that there are lots of viruses for Macs. When CryptoLocker first came out, it affected only Windows, but it’s been affecting Macs for a long time now. So you need anti-virus for your Mac.
Q
What about removable media? Can you protect these external drives?
There are some you can protect more than others. Ideally, you should have an encrypted USB stick. Then if you lose it, you don’t lose the info on it. But you shouldn’t really put memory sticks into lots of computers – it’s such a common way of introducing viruses. If you can email the info to someone, that’s much better. Always scan a memory stick before you open it. bit.ly/1T3RfyI
Buckingham Coffee Lounge @FSBLondon Someone should look at the decrease in small business space in central London @BCL_SW1 FSB are. Join our campaign. Holding a property forum 23/11 looking @ this & more @FSBLondon That’s fantastic, but more awareness needed for all small businesses
FSB @fsb_policy Fast internet for all including small businesses. Read FSB reaction via @Telegraph bit.ly/1MumvGC Eleanor McEvoy @Eleanor_McEvoy Delighted to join #BudgetEnergy up as a member of #FSB East Devon IT @eastdevonit Great networking this morning @BizatBreakfast good to see some new faces – informative presentation by #Exeter #FSB Chair @Mik1G #networking january/february 2016 | firstvoice | 45
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NETWORKING
MEMBERS’ SERVICES IN THE WORLD OF FSB
administration we are living in exciting times, with all of the plans we have been reporting on these last few years coming together. The investment that started early in 2014 to modernise the business is now gathering momentum. Recently, it took more than an hour to report to National Council all the good things that are happening in the organisation. We reported the highest year-on-year figures for the recruitment of new members at any point in the past seven years, and have also launched our new branding, logo and benefits. Members can now navigate our new website faster than ever before through a variety of devices, including smartphones and tablets. The use of modern technology will further enhance our abilities to retain members and attract new ones, and we have further benefits and developments planned. Over the next few months, our aim will be to please the current membership and attract new members, as well as demonstrating that we are worthy of our new strapline ‘Experts in Business’ and of our reputation as the best small business organisation.
Stallon says…
FSB member services As experts in business, we offer our members a wide range of vital business services including advice, financial expertise, support and a powerful voice in government. Some of the main products are listed below: ADVICE FSB Tax Investigation Protection: Free tax advice and tax investigation insurance FSB Legal Protection Scheme: Legal and tax support, insurance protection FSB Employment Protection: On-demand employment legal advice FSB Health and Safety Advice: Latest advice and training FSB Online Legal Documents: More than 200 factsheets and 500 legal documents FSB Financial Healthcheck: Independent business and personal financial planning FSB Care: Practical and emotional support for serious health conditions FSB Insurance Service: Free insurance-related advice FSB Energy: Better rates for business electricity and gas FINANCE FSB Cash Advance: Unsecured business loans FSB Business Banking: Exclusive business banking package FSB Workplace Pensions: Auto-enrolment and workplace pensions FSB Independent Financial Services: Independent business finance advisors FSB Card Payment Terminals: Maximise your sales opportunities with card payments FSB Card Payment Processing: Take payments wherever you’re doing business FSB Fuel Card: Simplify your fuel purchases SUPPORT FSB Networking: Regular business networking breakfasts or events across our 33 regions FSB Print and Mail: Save more than 70 per cent on print and mail costs FSB Business Leads: Data services for high-quality marketing campaigns FSB Vehicle Services: Vehicle advice and support FSB Telecom: Expert advice and the best deals FSB Lobbying: Champion causes closest to your business FSB Business Continuity: Free business continuity report
DAVE STALLON is Operations Director at FSB
Make sure you are making the most out of your membership. For more information, visit www.fsb.org.uk/benefits or call customer services on 0808 20 20 888
Publisher: Aaron Nicholls Editor: Nick Martindale Email: editorial@firstvoice.co.uk Senior designer: David Twardawa Sub-editor: Clare Cronin Production: Aysha Miah Email: aysha.miah@redactive.co.uk Tel: 020 7880 6241 Advertising sales: Lee McLoughlin Email: lee.mcloughlin@redactive.co.uk Tel: 020 7324 2776
First Voice is published on behalf of the Federation of Small Businesses (FSB) by Redactive Publishing Ltd. www.firstvoice.co.uk www.redactive.co.uk
FSB publications manager: James Connor Email: james.connor@fsb.org.uk Tel: 07595 284088 Chairman, FSB Publications Ltd: David Miles Email: david.miles@fsb.org.uk Tel: 07956 165674
www.fsb.org
While every care has been taken in the compilation of this magazine, errors or omissions are not the responsibility of the publishers or of the editorial staff. Opinions expressed are not necessarily those of the publishers or editorial staff. All rights reserved. Unless specifically stated, goods or services mentioned are not formally endorsed by the FSB, which does not guarantee or endorse or accept any liability for any goods and/or services featured in this publication. ISSN 1460-809x Copyright: FSB Publications Ltd
Redactive Publishing Ltd, 17-18 Britton Street, London EC1M 5TP Tel: 020 7880 6200
First Voice is available on subscription at £42 per annum. For details, contact Tina.Riddiford@fsb.org.uk First Voice has an audited net average circulation of 158,255 (six issues between 1 July 2014 and 30 June 2015).
AccessAbility help. If you require this document in an alternative format, please ring 01253 336036 or email: AccessAbility@fsb.org.uk
46 | firstvoice | january/february 2016
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| firstvoice | 47 16/11/2015 16:51
16/12/2015 10:53
NETWORKING
THE GOODS
PRODUCT OF THE MONTH
Devices and desires Shredding proving too long-winded? In search of a local ‘landline’ number for when you’re abroad? We’ve got just the gadget or app for that and other needs
1. Rexel Auto Feed 100x
Shredding documents can be a tedious and costly process. The Auto Feed’s 26-litre bin and automatic feed enables it to render 150 sheets of 70gsm A4 (or 100 sheets of 80gsm) of the sensitive stuff unreadable in a single load, and you don’t even have to remove the staples. Simply fill it and forget about it, while you get on with making – and saving – money. The shredder’s RRP is around £625, but it is available for considerably less online. www.rexeleurope.com
2. Drayson Technologies CleanSpace Tag
Commuting can be bad for your workforce’s respiratory health. The CleanSpace Tag is a portable sensor that tracks users’ exposure to ambient carbon monoxide, helping them to rethink any potentially poisonous journeys. The £60 tag harvests power from wireless signals, so never needs charging or new batteries. An accompanying app rewards ‘clean’ travel with points that can be exchanged for goodies from partners including Halfords, Boohoo and Payasugym. www.draysontechnologies.com
3. Leitz Icon
The Icon offers industrial-scale printing while occupying little more space than a shoebox. Capable of producing more than 200 labels per minute and coping with paper, plastic and card, the compact wireless machine can be operated by a smartphone or tablet (using a free app), or by PC, which makes it eminently portable. The Icon is available on Amazon for around £100. www.leitz.com
48 | firstvoice | january/february 2016
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4. Tableau Vizable
The Vizable is designed to make even the most complex business graspable at a glance. The free iPad app’s intuitive graphical interface enables business owners to create striking ways in which to visualise facts and figures using standard gestures – swiping, dragging and so on – and then share their creations via email, instant messaging or social media. The app is available from Apple’s iTunes store. www.tableausoftware.com
5. RDM LUTZ Pathfinder
Great news for roundabout haters: driverless cars could soon be transporting people around Milton Keynes. The prototype LUTZ Pathfinder pod will become the first autonomous vehicle used in a public area when it is trialled in the city later this year. The electric vehicle, which can seat two people, has a maximum speed of 15mph and a range of 40 miles. It employs 19 different types of sensors and cameras, including three lasers, two radars and one lidar. www.rdmgroup.co.uk
6. ADI Verus
The UK’s conversion from paper to polymer banknotes in 2016 will render much of today’s note-counterfeiting technology obsolete at a stroke. The Verus, from Salford-based Advanced Digital Institute, aims to keep retailers one step ahead of fraudsters by scanning notes at the point of sale and immediately identifying any that appear to be suspect. The handheld device, which is about the size of a USB stick, is slated to cost between £30 and £35. www.adi-uk.com
7. Vonage extensions
Smartphones may have made the planet your office, but there’s nothing quite like a proper business number for inspiring trust in an operation. VoIP specialist Vonage has released an app that enables you to use a local ‘landline’ contact number, wherever you are in the world, from which calls are forwarded, at no extra charge, to your mobile. The free app is available on Android and iOS, and requires users to have an existing Vonage call plan – these start at £7. www.vonage.co.uk
january/february 2016 | firstvoice | 49
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NETWORKING
MY BUSINESS That sat-navs had been invented earlier. Finding venues for shows with just a map was always a nightmare.
How does your FSB membership help?
Tell us about your business… My main business is as a stand-up and close-up magician and entertainer. I also perform magic on trade stands at exhibitions and at product launches.
When did you start up? When I was 11 my father bought me a magic book. Later, my mother took me to a shop where all the magicians bought their tricks. When I left school, I was offered work as a holiday camp entertainer.
Can you run me through a typical day?
product with the magic, such as producing a tin of beans from an empty box for Heinz. On one occasion I was asked to make asbestos entertaining. We decided the product was too controversial to do this.
What one thing couldn’t your business function without? Fun and laughter. Well, that’s two, but I am a magician.
What’s the best thing about working for yourself? Thinking I have made my hobby into my profession.
If there is such a thing, it’s office work during the day and getting ready to entertain at a function in the evening.
And the hardest part?
What’s been the highlight for your business?
Having to get up early for an early meeting or trade show performance.
One highlight was entertaining on cruise liners. This was a great way of seeing the world, getting paid for it, and meeting other entertainers.
What’s the strangest request you’ve had? I can always think of a way of linking a company
MY BUSINESS
Steve Short Having worked as a professional magician since 1985 after starting out as a holiday camp entertainer, Steve Short has built a successful business out of a hobby
What do you wish you’d known when you first started out? That it was going to be even more fun than I thought.
If you could go back and change one thing, what would it be?
I have had a tax investigation, and FSB helped me all the way through. Also, the networking events are useful. Many years ago, I was travelling between shows, driving at just over 100mph, and was stopped by a police officer. I contacted FSB and it supplied a barrister. During the case, a police officer asked me for a business card and booked me for a police function. So I received two bookings.
Where will the business be in five years’ time? Because I invested the money I earned from magic, I will be retiring in five years’ time.
What do you do outside work? My hobby is still magic, so I attend magic conventions and visit the Magic Circle in London. I was also involved in the biography of my magical hero, David Nixon, and speak to various groups about entertainers.
Could you feature in My Business? Email editorial@ firstvoice.co.uk with My Business in the subject line, explaining why your firm is a little bit different
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Bank for free with the FSB Business Banking Current Account, exclusive to FSB members. This means all cheque debits and credits, standing orders, Direct Debits and electronic transfers are free of charge. In addition, you can pay in up to £2,000 cash – free each month. Charges apply for exceeding these limits and for special services such as stopping cheques and CHAPS payments. See our online tariff for full details.
To find out more call 0800 14 14 15 Lines open 8.30am to 6pm Mon to Thurs and 8.30am to 5pm Fri
co-operativebank.co.uk/fsb
The Co-operative Bank p.l.c. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (No.121885). The Co-operative Bank, Platform, smile and Britannia are trading names of The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No. 990937. Credit facilities are provided by The Co-operative Bank p.l.c. and are subject to status and our lending policy. The Bank reserves the right to decline any application for an account or credit facility. The Co-operative Bank p.l.c. is a member of the Council of Mortgage Lenders and subscribes to the Lending Code which is monitored by the Lending Standards Board. Calls to 0800 and 0808 numbers are free from landlines and mobiles. Calls may be monitored or recorded for security and training purposes. Information correct as of November 2015. AH7509 11/2015
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