Downturn leads to greater efficiency
Almost 65% of business owners think that the recession has actually made their firms more efficient, according to research conducted by as part of the Barclays Take One Small Step Campaign.
The survey also found that 34% have taken on a greater focus on customer service and a quarter of businesses said they had made improvements to their business strategy as a result of the downturn
“Businesses are finding the upside of adversity wherever they can. UK firms have taken a pragmatic approach by tackling head-on the big challenges such as improving their business strategy, increasing innovation and focusing on their employees,” said Steve Cooper, managing director for Barclays Local Business.
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Work/life balance improves profits
Small companies that help employees achieve a good work/life balance earn 20% more per year from each employee, according to research conducted by talent development firm Morgan Redwood.
The businesses surveyed understand that a good work/life balance is important with 93% believing there is some connection between the wellbeing of their staff and the performance of their business and 58% saying they are very closely linked.
Redwood’s study shows average net annual earnings per employee of £26,557 but this figure rises to £32,769 in companies which take care to ensure staff have a good work/life balance as it reduces absenteeism, improves wellbeing and increases productivity.
“We all instinctively know that a good work/life balance matters – but to have the actual value of it quantified is a breakthrough moment,” said Janice Haddon, managing director of Morgan Redwood.
“It means that when weighing up different management options, companies have some real numbers to factor into their decision making. This means that a change that perhaps will save money in the short term, but put additional workload onto staff, can be properly assessed.”
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What does Warren Buffet, the world’s 2nd richest man have to say about business and life?
1. He bought his first share at age 11 and he now regrets that he started too late! Things were very cheap at that time. Encourage your children to invest.
2. He bought a small farm at age 14 with savings from delivering newspapers. One can buy many things with few savings. Encourage your children to start some kind of business.
3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence. Don’t buy more than you “really need” and encourage your children to do and think the same.
4. He drives his own car everywhere and does not have a driver or security people around him. You are what you are…
5. He never travels by private jet, although he owns the world’s largest private jet company. Always think how you can accomplish things economically.
6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. Assign the right people to the right jobs.
7. He has given his CEO’s only two rules:
Rule number 1: do not lose any of your shareholder’s money.
Rule number 2: Do not forget rule number 1.
Set goals and make sure people focus on them.
8. He does not socialize with the high society crowd. His pasttime after he gets home is to make himself some popcorn and watch Television. Don’t try to show off, just be yourself and do what you enjoy doing
9. Warren Buffet does not carry a cellphone, nor has a computer on his desk.
10. Bill Gates, the world’s richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
His advice to young people: “Stay away from credit cards & bank loans and invest in yourself and remember:
a.Money doesn’t create man but it is the man who created money.
b.Live your life as simply as possible.
c.Don’t do what others say – listen to them, but do what you feel good doing.
d.Don’t follow brand names; just wear those things in which youf eel comfortable.
e.Don’t waste your money on unnecessary things; rather just spend on those things you really need.
f.After all, it’s your life so why allow others to rule your life?”
A recent interview with Warren: http://www.cnbc.com/id/15840232?play=1&video=1257407167
Source: CNBC
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Small Businesses To Benefit From Graduate Talent
The Government has joined forces with the Federation of Small Businesses (FSB) to offer up to 10,000 graduates a boost to their future employability, through internships in small and micro businesses announced the Prime Minister Gordon Brown today.
The Prime Minister said:
“Our guarantee to all young people is that with millions of new opportunities from apprenticeships to internships to a new class of modern technicians, we will discover, coach, develop and showcase the wealth of aspiration and talent that exists in Britain.
“To add to the 100,000 new young people’s jobs we are already creating, we can today offer in partnership with the Federation of Small Businesses, 10,000 skilled internships so that, even in the midst of tough economic times, we are encouraging a whole new generation of young Britons to embrace ambition and British enterprise.”
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Small firms fear rising rates bills
Small business owners fear that they will be forced to pay inflated rates bills for five years, according to a survey conducted by the Forum of Private Business (FPB).
Just fewer than 80% of respondents said that they think their business rates will increase when changes take place in April 2010.
Business properties are revalued every five years to ensure that rateable values reflect the changes in the property market. However, because the present revaluation is based on rent prices from April 2008 – before the recession – small businesses are concerned that their rates bills will be unfairly high.
“Small businesses are already under a great deal of pressure to pay their business rate bills and most do not see the corresponding value in local authority services. It is extremely important that the government provides an appropriate and fair system of transitional rate relief for small businesses who will see an increase in their rateable value from 2010,” said Matt Goodman of the FPB.
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A million small firms hit by late payments
Over a million small and medium-sized business have been affected by late payments totalling over £30bn, according to data released by to Bacs Payment Schemes Limited.
This figure means that small firms have seen an increase in money owed of more than £11bn from two years ago, and the number of SMEs reporting that they are experiencing payment delays rose by over 65% from 2008 to 2009.
The report also highlighted how the problem can spiral out of control, with 52% of small firms stating that if they’re paid late, they’ll pay their invoices later too. A third of small companies reported that they are paying others later this year than in 2008.
Cashflow is the most common reason for overdue payments, with 30% of businesses surveyed citing this as the main excuse given. But 6% of late payers claim they forgot all about it, with the same number relying on the age-old excuse ‘the cheque’s in the post’.
“While many businesses which owe money to others do undoubtedly have problems in paying bills quickly, there is a question mark over those who may be ‘playing’ the system and delaying payment for as long as they can,” said Michael Chambers, managing director of Bacs.
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Lack of funding for training threatens economic recovery, claims learning body
A lack of cash to fund the Train to Gain training scheme is threatening to hamper economic recovery, a trade association has warned. The Association of Learning Providers (ALP), which represents training providers of the scheme, claims that a lack of funding means that many employers are unable to enrol staff on Train to Gain. It adds that most business sectors “are adversely affected” by the shortfall. The Learning and Skills Council (LSC) responded by saying that demand had “increased dramatically” but that it would “deliver 100,000 more starts and learners than planned” between 2008 and 2010.
Read report: http://www.learningproviders.org.uk/file/?id=266&type=item
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More than 40% of small firms to consider closing pension scheme
Around 41% of small businesses are considering closing their existing pension scheme ahead of the Government’s planned changes in 2012, according to a survey carried out by the Association of Consulting Actuaries (ACA). The Government plans to make it compulsory for employers to enrol their employees into a pension scheme from 2012. The ACA survey results also show that 86% of small business owners are planning to review their pension provision because of this impending change, while only 16% of employers have budgeted for increases to costs due to the changes.
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SMEs using own cash to fund their firm
More than half of UK entrepreneurs have revealed that their most likely source of funding for major business projects will have to come from their own money, according to a survey by business advisory firm Deloitte.
The survey highlights the tough lending conditions that small business owners are experiencing at the moment, although recent data has suggested that banks are slowly beginning to increase their lending.
Despite tougher lending conditions entrepreneurs continue to rely on banks as their primary source of funding, with 18% of small business owners listing banks as their main source of funding, followed by 10% that turn to existing shareholders.
Just 12% said external investment from private equity, venture capital and angel investors would be their most likely source of cash over the next year – down from 28% in 2008.
“The survey reveals that current business conditions have created an alarming reliance on working capital at a time when more than a quarter of respondents say they are having to monitor their cash position daily,” said Simon Manning of Deloitte.
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Contraction of UK economy revised
The Office for National Statistics (ONS) has revised the figure for the rate of contraction in the UK economy in the second quarter of the year downwards.
The ONS originally reported that Gross domestic product (GDP) declined 0.8% in the second quarter of the year, but this has been reduced to 0.6%.
“There is some good news in the mass of UK data released today, but generally the figures highlight the fragility of the economic recovery,” said Vicky Redwood, an economist at Capital Economics.
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