How Do Businesses Survive A 23% Rise In Costs?
With tight margins that many businesses experience; often with bottom line profits in single figures, it is amazing that over the last 5 years more businesses have not gone under with costs rising by 23%.
A study by ‘savings advisor’ Make It Cheaper and the Centre for Economic and Business Research found that small business overheads have risen by a staggering 22.8% in the past five years, with as many as 55% of SME bosses now warning that their company won’t survive much longer if things keep going at the current rate.
Cashflow, or lack of it, is the main killer of businesses.
If you are a struggling business, then a review of your finances may be in order.
Read more: http://www.managementtoday.co.uk/news/1081971/smes-rising-costs-shocker/
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You’ve Got To Be Kidding Me – Small Businesses Waste £30.8M Per Day
This is unbelievable as well as being totally averse to looking after one’s carbon footprint!
Small businesses are leaving computer equipment on standby overnight and at weekends, wasting energy, as well as increasing their utility bill unnecessarily.
The survey by E-On of 1000 businesses revealed that more than a third of small businesses don’t turn off their computers at the end of the working day, with 10% falsely believing that standby uses the same amount of energy as shutting down.
Furthermore, one in five small business owners admitted to only switching off their computers properly at the weekend.
Read more: http://www.growingbusiness.co.uk/uk-s-small-firms-waste-30-8m-a-day.html
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You’re Probably Pay Too Much For Your Accountant
I saw the following article recently and it reminded me that a lot of SMEs I work with are paying over the odds for accountancy services.
For a start a lot of what needs doing is primarily bookkeeping services which can be sourced for a significantly lower hourly rate than you are probably paying your accountant to enter invoices and receipts.
I have noticed that there are a lot more online services that are offering a much lower cost than traditional High Street firms of accountants; with many package options aimed at the small business.
One in particular that caught my eye has a very competitive solution providing you with all the necessary requirements to meet your statutory commitments. I suggest you take a look: Accountants Team. Packages start from £19 per month.
Small Firms Not Happy With Rising Accountancy Fees
According to new research 15% of small businesses say that rising fees is their biggest accounting gripe.
The survey of 269 businesses by Crunch.co.uk, which questioned attitudes to and experiences of accountants, was carried out in July.
Other top gripes were jargon, or ‘accountant-speak’, and charging for communication such as phone calls and emails — 18% combined agreed these were pet hates.
Of the 183 businesses that said they used an accountant, 18% felt they were boring, in-line with popular opinion.
When asked who they’d rather be stuck in a lift with, politicians beat accountants (36% of the vote against 33%), however accountants did score higher than model Katie Price, AKA Jordan, who came last.
Overall, the majority of small businesses that took part in the survey were limited companies (61%). 38% were sole traders, with just 1% operating through an umbrella company.
Almost two thirds (65%) of those using an accountant preferred to use an online service, while 14% favoured old-fashioned methods.
A fifth of respondents weren’t completely happy with levels of communication from their accountant, rating them ok to poor.
9% of those surveyed had incurred penalties from HMRC as a result of late filing by accountants at least once.
16% of small businesses questioned said their accountant hadn’t given them advice on the most tax-efficient way to pay themselves. When asked if they understood IR35 – HMRC’s controversial freelancing tax legislation – 58% did, with the rest not understanding or recognising it at all.
Source: http://www.freshbusinessthinking.com
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Banks Aren’t Lending – So What Do You Do?
There are an increasing number of stories in the press about the lack of funds being made available for small businesses.
So what is a small business to do if funds are required to help with growth plans or support cash flow?
Well, in the current climate there are a number of innovative cschemes coming to the market that could well provide alternative sources of funding for small businesses. Recently there have been £500k interest free loans and invoice funding from 0.9-2%; all of which are viable options for small businesses.
If you’re unsure of the different sources of funding that are available, you may find the following article of interest: Different Types Of Funding
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What’s the point of mentors that can’t give advice?
Please take a look at the article below – I totally endorse the UKBA‘s view on this.
Whilst I can understand the concern of 1,000s of ‘Government’ mentors giving out advice that may end up not being the best advice and then who is responsible for the liability of that; I cannot see the point of having someone visit a business that needs help and may be struggling and the mentor cannot advise the business what to do!
Begs the question then, “What are the mentors going to do with these businesses and how are they gong to help.”
What do you think?
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UK’s financial sector damages SME recruitment, according to Work Foundation
The UK’s financial sector is systematically failing SMEs, which could provide the greatest source of innovation, jobs and growth, according to a submission to the Independent Banking Commission (ICB) by Will Hutton executive vice chair of The Work Foundation.
His paper, co-authored with Paul Nightingale from SPRU at Sussex University, shows firms with the greatest potential for high growth are the most likely to face financial restraints on their growth. This is leading to a “discouraged economy in which innovation, investment and dynamism are stymied by a self-serving and inflexible banking sector.”
Read full article: http://www.hrmagazine.co.uk/hro/news/1019740/uks-financial-sector-damages-sme-recruitment-work-foundation
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Small business lending to become an even bigger problem?
Banks have threatened to raise the cost of borrowing for small businesses. Given the number of complaints we hear that it’s too expensive already, that’s less than ideal.
What do you do when your customers complain that the cost of your product is too high? Presumably, the answer isn’t ‘raise prices even more’. But according to a report by the Bank of England, UK banks are planning to do exactly that, raising the cost of borrowing for small businesses over the next three months or so, despite the fact that SMEs have spent the last few years vociferously complaining that they can’t afford to borrow in the first place. Time for the Government to start cracking the whip a bit harder?
Read full article: http://www.managementtoday.co.uk/news/1078121/small-business-lending-become-even-bigger-problem/
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Why should SMEs invest in occupational health?
OH services can play an important role in helping to maintain workplace health and wellbeing in this sector. Anecdotal evidence suggests that small businesses can receive huge benefits from the provision of readily available OH advice, providing there is awareness of the issues that motivate the SME and the ability to motivate and educate the small business in seeing the bigger picture.
While SMEs experience the same types of difficulties as larger businesses, there are a number of differences when focusing upon the OH needs of this sector.
Read full article: http://www.personneltoday.com/articles/2011/07/01/57551/why-should-smes-invest-in-occupational-health.html
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