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May 24, 2005

Growing Your UK Small Business

The outlook for UK small business for the coming year is optimistic. In fact, many small business owners in the UK believe their businesses will perform better in 2005 than in previous years. This is encouraging news considering the economy suffered a bit of a decline last year. As the world’s fourth largest economy, the UK handled the recent economic hard times better than most other countries.

UK small, mid and large business owners attribute much of their positive outlook to recent goals made by the Government to keep inflation and borrowing under control. In fact, many UK small business owners plan to increase their recruitment and hiring efforts in the coming months. Already at all-time highs, the employment picture looks promising. To read several current articles about the outlook of the UK economy, visit Britainusa.com

If you’re a UK small business owner planning to hire employees in the upcoming months, you’ve got some things to take care of, especially if this is your first time hiring employees. It’s true that once you hire employees, you’ll have others with whom you can share your workload. But at the same time, you’ll be creating a whole new type of work for yourself. With employees you’ll have payroll responsibilities, health and safety responsibilities and general employee-related responsibilities such as writing job descriptions, scheduling, and performing periodic performance reviews.

UK small business owners, especially those who hire friends and family or who have only a few employees on staff often make the mistake of assuming that these employees are capable of working without any policies and procedures in place. Other UK small business owners know they need written policies and procedures, but don’t have time to assemble these types of documentation. If you are nodding your head in agreement with either of these scenarios, stop nodding and take action. If you don’t take steps to control your employees, you’ll soon find you’re not in control. And worse, you could find yourself involved in costly litigation that could put you out of business.

There are plenty of books, software products, and companies available that can help the UK small business owner with these types of employee-related issues. If you’re going to invest the time to put together these types of guidelines and procedures, you want to make sure you do it right. One valuable source of information is DTI . Here you’ll find information about motivating your employees, offering employee training programs, creating flexible work environments, effective ways of dealing with employee diversity and more. Plus, you’ll find additional links to help you through the employee management maze.

Spare yourself from hearing those dreaded words, “That’ not my job!” or “You never told me I was supposed to be at work at exactly 9:00 am!” or any of the other spine-tingling outbursts employees are known for. As the owner of a UK small business, you owe it to yourself and your business to remove any and all potential for employees to make assumptions!

David
Small Business Resource

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May 23, 2005

UK Small Business Service

The UK Small Business Service is ready to provide small business owners or those considering starting a small business venture with the advice and assistance necessary to take root and become successful. Working as a branch of the Department of Trade and Industry, the main goal of the UK Small Business Service is carry out the Government Action Plan for Small Businesses. The approach to accomplishing this objective can be summarized in this manner: it works to encourage and convince small business owners to set up shop in the UK.

Whether you currently live within or outside the UK, if you’re considering making the leap into small business ownership, you need to take a look at all the UK has to offer. The best place to begin is by visiting the UK Small Business Service website. Once on this site, you’ll be able to review press releases covering current small-businesses related news and actions, you’ll have access to links to the agency’s annual business plans, annual reports and even to the Government Action Plan for Small Businesses, you can review the objectives of the agency, obtain information on sources of financing, and find links to other agency partners ready to help the small business owner. There’s more, too, all in one convenient location.

Many of today’s well-known companies either got their start or have a branch in this part of the world. What do these companies know about the UK that you don’t? Speaking with a representative of the UK Small Business Service will provide insight and can demonstrate ways it can help your small business succeed just as it has helped so many others.

One arm of the UK Small Business Service works to gather statistics and other information about the on-going needs and operations of small business. It utilizes this information to assist with the creation of new policies that are geared towards facilitating and/or enhancing small business in some manner. This agency also provides input as to how newly proposed legislation might impact (positively and negatively) small businesses. Knowing that there’s such an actively involved agency such as the UK Small Business Service looking out for the small business is reassuring.

One of the major goals of the UK Small Business Service is to encourage more women to make the leap into entrepreneurship. Another goal of the UK Small Business Service is to assist ensure all small businesses have access to and are able to secure the financing they require to grow and succeed. The agency offers advice and consultation to small businesses in the area of improving financial management. As anyone knows, mismanaging a business’s finances can prematurely end the life of a viable company; a main reason why the UK Small Business Service offers this type of assistance.

The UK Small Business Service lists far too many objectives, goals and newsworthy items to list here. If you’re a small business owner, you owe it to your company to check out this important agency. Visit it today at UK Small Business Service

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May 21, 2005

UK Small Business Accounting Basics

The best time to get a grip on your UK small business accounting is on Day 1. That’s right. Managing your company finances from the beginning can help you avoid wasting a lot of time further on down the road and can help keep your headaches at bay. This habit might even keep your business from dying a premature death. Why?

Because in business as in life it all comes down to cash flow. Money moves into your business account and money moves out of it. Sometimes it seems that money moves out a lot faster than it moves in, but that’s a different story. Understanding basic UK small business accounting principles really isn’t all that difficult.

It’s likely that you can remain in business for a while without having your UK small business accounting under control, but if you’re looking to grow and expand your business, it won’t be possible without knowing exactly what funds are coming in and, equally important, when, and what funds are being spent (and how quickly). Another advantage of understanding basic accounting principles is that you’ll know when your UK small business turns a profit. Just because money is coming in doesn’t mean that it’s all profit! In fact, even when money rolls in, businesses operate at a loss.

Budgeting might seem like another unnecessary accounting task for the UK small business owner, and perhaps in the beginning it is. But if you look at budgeting from another view, you can begin to understand that it can actually help you control your finances. It’s also a great way to ensure you have money available in the future for whatever business bills you’ll need to pay. A budget should cover a period of time. Its goal is to ensure that the income you expect to come in over this period of time exceeds or equals your expenses that flow out. This point is commonly known as the break even point.

Having a business checking account and a basic accounting system will help keep your UK small business on track. It’s not necessary at this point to spend money on highly-paid s or a software-based accounting system, especially if these types of expenditures have not been budgeted for.

But as your UK small business grows, so too will your accounting needs and responsibilities. From this point forward, you’ll probably begin dealing with more complex accounting procedures that involve things like depreciation, payroll, VAT, corporate and income taxes, travel expenses, profit and loss statements, balance sheets, accounts payable and accounts receivable, vendors and related credit issues, and more.

The good part of all this is that it generally means your business is beginning to grow. The bad part is that if you’re not good with figures, this growth can rapidly escalate out of control. It’s important to realize if and when it’s time to hand your UK small business accounting responsibilities over to someone with more experience in this area and also someone you can trust.

Barclay's Bank sponsors a small business web site with a wealth of UK small business accounting links. View them at Clearlybusiness .

David
Small Business Resource

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May 20, 2005

Is UK Small Business Insurance Necessary?

UK small business insurance coverage means different things to different people. Because the needs of small businesses vary so greatly, general answers to questions about the type of business insurance that is best suited for a particular small business are difficult to provide. The best advice is to discuss your business insurance needs with an agent who specializes in UK small business insurance.

Some of the issues to think about before you approach the overall subject of UK small business insurance have to do with the business itself. Two important considerations are the size of the business right now in terms of number of employees, and its physical location. If you’re the sole business owner/employee working out of your home, your business won’t need as much insurance coverage as a business that is renting office space and/or equipment and employing several full-time workers.

At a minimum, you want to investigate the following types of UK small business insurance: commercial vehicle insurance, product liability insurance, professional indemnity insurance, public liability insurance, and Tax/VAT Investigation insurance.

If your UK small business uses company or commercial vehicles to transport employees, clients, or even property you may need commercial automobile insurance. The type of commercial auto insurance you get depends on the type of vehicle you use in your business. When selecting a plan, be sure you know the process for updating your commercial automobile coverage.

Product liability insurance protects your UK small business if the product you manufacture causes damage to someone using it. If your small business is a supplier of the product and not the manufacturer, it’s important to clarify which party would be at fault should this type of event occur.

A different type of insurance is needed if your UK small business provides a service rather than a product. This type of insurance is called Professional Indemnity insurance and protects you against clients who feel you gave them bad information or advice or information/advice that caused them to make an incorrect decision based on your advice. The peace of mind you get from this type of cover is worth the price you have to pay!

Pubic liability insurance covers third parties against damage or injury that occurs at your place of business, such as when a vendor trips over a torn piece of carpet or wayward computer cable. It also protects you from damages caused by outside vendors providing services to your place of business such as plumbers and electricians. Don’t overlook these types of situations when selecting insurance for your UK small business. They happen all the time.

One type of insurance UK small business owners are paying more attention to is Tax and VAT Investigation insurance. No business owner wants to go through the hassle of an investigation of this nature, however should you find yourself in disputes with HM Customs and Excise or other types of employer-related tax disputes, this type of insurance will offer some peace of mind as well.

There are a great number of UK business insurance providers. Here is a link to a service which can get you quotes from several companies at the same time. UK small business insurance quotes

David
Small Business Resource

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May 19, 2005

UK Small Business Ideas are all Around You

UK small business ideas form as a result of many different life experiences. Some individuals were born with the entrepreneurial spirit and their drive towards self-employment began at a very young age. Some people come up with UK small business ideas because they’re tired of working for others. Sometimes, owning their own businesses makes sense for those who have specialized talents. And there is a growing group who make this type of move after being laid off from their jobs or as a result of not being able to find suitable employment.

The explosion of the Internet is making it possible for UK small business ideas to take root right from home. With more and more global business being transacted on the Internet every day, more and more people are trying to get their own piece of this action.

Perhaps even you are considering this type of move towards self independence. Striking out on your own is both exciting and stressful. It’s definitely not something for the faint of heart. You’ve got to be willing to invest double the amount of time and effort into your business to get it off the ground and to keep your UK small business ideas generating income. If you’re working on your own, especially in the beginning, you’ll have to play all roles: sales and marketing manager, negotiator, bookkeeper, administrative assistant and any other position required by your business.

Oftentimes, your ideas will actually result in a UK small business where you’ll need to hire others. That’s a major accomplishment but one that doesn’t necessarily mean your life will get easier. Employees expect to be paid on a regular basis. It’s up to you to ensure they do or they will move on. It may make sense for you to hire contractors whom you can pay by the hour or the project.

If you know you want to be your own boss, and you’re ready to explore UK small business ideas, there are several sources available to help with your search. The press lists business opportunities currently for sale in a particular area. To look at businesses for sale throughout the UK visit Daltons weekly . Here you’ll find pubs, guest houses, catering companies, shops and many other business opportunities.

If you feel you need a bit of assistance when starting out on your own, other viable UK small business ideas are franchises. Take a look around you – there are some 600 different businesses in the UK that actually are franchised. The costs of owning a franchise and the services you get from the franchise in return for those costs does vary between franchises, so you need to do your research. To begin your search for a franchise opportunity in the UK visit www.british-franchise.org.

Hopefully this information has got you thinking of ways you can turn your ideas into a successful UK small business venture. When you’re ready to turn your ideas into reality, you’ll find plenty of companies and branches of government ready to assist you in your pursuit!

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May 18, 2005

Taking the Mystery out of UK Small Business Grants

If you own a UK small business, grants can give you the funding needed to take your business or your ideas to the next step. Why do government agencies and other entities make this type of funding available? Small businesses make up the backbone of economic activity. Those willing to take the risks of small business ownership help to create new jobs and drive global trade. If you own a UK small business, your business can benefit by knowing more about grants.

One thing is certain about UK small business grants; many different types of grants are available, but you’re the one who has to aggressively look for them. To those unfamiliar with grants, be forewarned that the search and application process is long and tedious, but the payoff can be significant.

The UK Small Business Service is a good source for finding out about official government grant programs. You can find out more here www.sbs.gov.uk . Be sure to check out the other links on that site as well. There is a wealth of information available.

Monies obtained from the grants process generally are used by a UK small business to help fund a business-related project such as the creation of a new product that a company wants to bring to market. Before the product can get to market, a business may need additional funding for machinery, materials or special equipment that it will use in production. Grant money typically is not awarded for general business expansion. There are other types of funding available to help with this.

When applying for UK small business grants, keep in mind that those reviewing grant applications want to understand more about the actual product and, to a lesser extent, how the monies will be distributed. Those awarding grants do so with the ultimate goal of keeping the economy growing. If you’re applying for a grant, be sure to highlight how the product you plan to produce will benefit the overall economy. For example, will it generate new jobs? Will it be exported? You do need to show how the equipment you spend grant money on contributes to the project overall, but as a secondary issue.

When applying for UK small business grants remember that competition is stiff. The pool of funding is limited but the number of businesses vying for that funding is not. Do whatever you can (within acceptable limits and without over-projecting) to make your application stand out above the others. And definitely take a look at your business plan and update it accordingly. A business plan is an absolute requirement for any grant application. Also, get your grant application submitted as soon as possible.

Something else to consider when applying for UK small business grants is that your small business has to be able to match the amount of funding awarded by the grant. Many business owners don’t realize this.

The typical maximum amount of grant money distributed per award is 50% or less of the required project amount. By showing you’re able to generate the remaining funding, you’re showing a level of commitment on your behalf to the project’s success. This commitment is crucial for the success of any business venture. Your perseverance will pay off. Good luck!

David
Small Business Resource

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May 17, 2005

UK Small Business Finance

Are you looking for finance assistance for your UK small business? Don’t worry, you’re in good company. Most small businesses look to outside sources of finance at some point during their existence.

Whether it’s to launce a new product line, expand into a larger operations center, or to acquire commercial vehicles or other equipment necessary to remain in business and stay competitive, there likely are sources of UK small business finance ready and available to help. The British Banking Association maintains a list of approved UK Small Business Lenders and has set up a search page at Money Facts Online

Even if your UK small business has been denied finance by traditional lending institutions, there are other sources your small business can pursue. While securing the needed finance is a tedious and time-consuming task all by itself, properly managing the funding once it is made available can be equally daunting. Every business owner needs solid financial management skills or needs to seek out someone with these skills so crucial to the success or failure of any business.

What types of finance options are available to the UK small business?

Business loans are probably the most common form of business finance arrangement. As with any type of loan, however, the monies distributed must be repaid, with interest, over a period of time. Grants differ from loans in that they are an outright distribution of cash and do not need to be repaid. Grants are awarded to those businesses that can show the monies will ultimately be used in a manner that will further economic growth. Another aspect of grants is that they won’t cover 100% of a business’s financial needs. A business must be able to prove it has the ability to match the amount being awarded.

There are also several sources of EU funding available to help finance UK small business specializing in agriculture, the environment, transportation, education, technology, communication, and information technologies.

Venture capitalists are always on the look out for innovative businesses so if you’re a UK small business seeking finance assistance, don’t forget to investigate these sources. In addition to providing financial assistance, many venture capitalists also provide other types of assistance such as growth and management. Also check into regional venture capital funding, a source of funding provided to small and mid-sized businesses that demonstrate a clear potential for growth.

Getting paid on time is sometimes a significant finance-related problem many UK small business owners face which is why the Late Payment of Commercial Debt Act was passed in 1998. This law allows small businesses to collect interest on late payments. While it’s better for a business to be paid on time, the ability to collect interest does offer some financial consolation.

UK small business finance programs are available to businesses willing to locate in economically depressed areas. Why? Because it’s in everyone’s best interest to turn these types of areas around. The swing from depressed area to vibrancy often begins with one willing company.

If your UK small business needs finance assistance, you’ll be able to find it. You will, however, have to prove your business is worthy of such an investment first.

David
Small Business Resource

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May 16, 2005

UK small business forum is great for small business advice here’s why

Why join a UK small business forum? The answer is simple. There is a lot of gold to be mined when you visit a well-run UK small business forum.

A business forum is an Internet-based "community" where members share advice and provide a shoulder to cry on. For some small business owners, especially those who operate out of their homes, a UK small business forum may actually be the only contact they have with their business peers.

What is free small business advice worth?

There's a saying that "free advice is worth exactly what you pay for it", but there’s ample evidence which proves that this just isn't always true. Sure, there are crackpots everywhere and many of them try and come across as small business experts. The thing about any well-run small business forum is that they come with built-in "crackpot detectors". Let me explain...

The purpose of a UK small business forum is to bring together small business owners from around the UK. Many business types are represented in these forums and every member has a different level of expertise. Forum members post questions and receive answers from other members. As time goes by, the forum community builds up a sort of self-regulating membership where the "crackpots" are either forced out of the forum or, at the very least, become quite easy to detect. With a little bit of common sense you can easily filter the good advice from the bad.

It's not all questions and answers.

Many times other small business forum members will not be seeking advice, per se. They may have an interesting experience that they want to share with other members, or they may have breaking news, such as a credit card scam, that they want to warn other members about. Some of the bigger forums even organize business and social events that are held in the local communities. Events like these can be your lifeline to sanity if you're normally "all work and no play".

You are judged by your posts in a UK small business forum.

Treat your membership in a small business forum just like you would treat a host if you were a guest in their home. Don't start off by making posts that are self-appreciating. You don't want to come across as a braggart or a windbag. Introduce yourself by name; mention the name of your business and what you do. Then make a brief statement about what you hope to get from the business forum as well as what you hope to contribute to it. Watch the messages and if you have something intelligent to add, fire away. Just remember – you don’t want to be excluded from the forum because of bad forum etiquette!

David
small Business Resource

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May 8, 2005

Small Business Tax Ruling On Dividends

A Small company that's family-run that pays dividends to a director who does not fully participate in the business was up against the law last week and the outcome could have significant consequences both husband and wife.

The recent small business tax test case that was lost by Geoff and Diana Jones could cost family-run small businesses substantial sums in backdated tax.

The facts of the case: common corporate structure used by husband-and-wife businesses amounted to an "arrangement" under the so-called settlement provisions of the 1988 Taxes Act. Accordingly, income from dividends received by the non-earning or low-earning spouse had to be taxed at the same rate as the main earner's income.

Mr Justice Park, one of the High Court's most experienced tax judges, agreed with Inland Revenue's Special Commissioners previous decision that tax was properly claimed by the Revenue on dividends distributed to Diana Jones by Arctic Systems (a small IT business).

But the judge also gave extensive reasons for his decision. He said he believed fears that every small business tax case involving husband-and-wife companies would be affected by the "Artic Systems Case" were greatly exaggerated.

If a husband and wife team set up a joint company and ran it together, it did not follow from the Arctic judgement that the husband was necessarily going to be taxed on the wife's dividends.

Mr Justice Park pointed out that it was a feature of the Arctic situation that Mr Jones had provided funds for the "settlement" by working for the company in return for a salary that was below his true earning power.

It would be harder for the Revenue to establish that there was a "settlement" or "arrangement" in which the husband was the settlor, if he was being paid the true going rate for his work, the judge suggested.

The ruling was met with disappointment by the small business community.

"Small business owners will be extremely worried about the implications of this decision," said Andy Mowland, head of research at the Forum of Private Business.

"Business owners will now be looking over their shoulders to see if the Revenue are going to come and knock on their door"

"It must be remembered that a spouse often shares the risk but not the reward of the business," said Mr Mowlah.

"Is it really worth the Revenue pursuing such businesses for small sums of money and seeking to impose complex tax regime based on the uncertainties that surround settlements legislation?" he asked.

David
Small business Resource

Based on article in FT

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