Of course there are downsides, such as the loss of a regular salary or benefits and other perks. And the most serious of these is how you would continue to earn money if something happened to you or your business.

It’s called business continuity planning and it’s a serious matter, especially for one man bands. Industry statistics suggest that 80% of businesses affected by a major incident close within 18 months.

And if you are the only person within your business, the risk is even greater for you. If you had a car accident and couldn’t work for four weeks, who would look after your clients? If you work from home and there’s a serious fire, you could lose your house and business in one go.

What could happen?

Here’s where you get to scare yourself with a brainstorm of all the things that could devastate your business. Be creative but realistic and stick to major themes rather than small details.

The biggest issue for one man bands is the loss of the person running the business. This could be in the short or long-term through illness or accident. The early death of the owner also needs to be planned for, so their next of kin knows what to do with the business (sell it or shut it down?). There are rules concerning dissolving limited companies (Companies House), and of course outstanding bills need to be paid.

If you lost your home or premises, where would you work? If all of your paperwork was destroyed in a fire, would you know essential details? Do you keep all of your business’s data on a single computer – and have you considered how you’d get the data back if something happened to it? If you do backup, is it automatically done daily offsite?

On a less disastrous scale, do you have a key employee or client that you rely heavily on? What happens if they go? Is there a piece of technology or equipment that generates most of your revenue, which could take six weeks to replace?

What are the immediate actions?

When you’ve finished your brainstorm, there will be some things that need immediate attention. Just realised your data isn’t being backed up? Then fix it immediately – you can get an online backup for just a few pounds a month.

It has to be a key priority to get these things done immediately. Anything which can damage your business but is easily dealt with should be got rid of as soon as possible.

What will you do?

Once the small items are fixed, what can you do about the big things?

Go through your brainstorm, work out a plan, and write everything down. Keep it as simple as possible, but don’t be tempted to skip writing it down. In the event of a crisis, you’ll appreciate the clarity of your thinking.

Think laterally to solve problems. One man bands can normally easily relocate premises, quickly get new computers, etc. But what about getting client work done while you’re in hospital. Could you form reciprocal partnerships with friendly competitors in other areas? Or identify a list of freelancers that could be contracted to execute the work in an emergency?

Make multiple copies of your plan and keep them safely in different locations. Schedule time in your diary at least once a quarter to review your plan, especially if your business is growing or changing.

Who will you tell?

Don’t keep your plan to yourself. Make sure you tell two or three relevant people about it, such as your partner and maybe even your  tax adviser/ accountant. Should something happen to you it will be a great weight off their minds to know you had planned ahead and left clear instructions about what to do with your business.

Your first steps from here

Hopefully you’ll now be fired up and ready to get going on your business continuity plan.

Use that momentum and get onto it within the next few days. Making plans like these are never fun, but having a business continuity plan could be the difference between saving and losing your business.

If you need help developing an effective business plan then get in contact in some area’s we may be able to provide you with Free start up business support which will include help and advice to completing a free business plan .

This article was written and authored by Phil Bell a very experienced and respected business advisor in his sector , one to one support and training direct from Phil can be requested via our contact us page .

Remember to come and join us on facebook

The cost of a staff party or other annual entertainment is allowed as a deduction for tax purposes. Also as long as the criteria below are followed, there will be no taxable benefit charged to employees:

• The event must be open to all employees at a particular location.
• The cost is only tax deductible for employees and their partners (which would include directors in the case of a company) but not sole traders and business partners in the case of unincorporated organisations.
• An annual Christmas party or other annual events offered to staff generally is not taxable on those attending provided that the average cost per head of the functions does not exceed £150 p.a. Partners and spouses of staff attending are included in the head count when computing the cost per head attending.
• All costs must be taken into account, including the costs of transport to and from the event or accommodation provided, and VAT. The total cost of the event is merely divided by the number attending to find the average cost. If the limit is exceeded then individual members of staff will be taxable on their average cost, plus the cost for any guests they were permitted to bring. No deduction will be allowed for the £150 exemption.
• VAT input tax can be recovered on staff entertaining expenditure. If staff partners/spouses are also invited to the event the input tax has to be apportioned, as the VAT applicable to non-staff is not recoverable. However, if non-staff attendees pay a reasonable contribution to the event, all the VAT can be reclaimed and of course output tax should be accounted for on the amount of the contribution.

Trivial seasonal gifts for employees

And a final note on gifts for employees. Employers may find the following Revenue concession useful – as detailed in the HMRC handbook:

“An employer may provide employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas. All of these gifts are considered to be trivial and as such are not taxable. For an employer with a large number of employees the total cost of providing a gift to each employee may be considerable, but where the gift to each employee is a trivial benefit, this principle applies regardless of the total cost to the employer and the number of employees concerned.”

One final caution regarding VAT and staff gifts. VAT is chargeable by the employer when an employee receives gifts totalling more than £50 in a year. Turkeys, however, are zero rated for VAT purposes! III

Hope you all have a wonderful Christmas and one of my personal favorite party locations at present time is The Indian Harvest in Crawshawbooth. Great staff , food and a wonderful decor , have a look if you get chance !

Remember you can contact The Local Explorer on our dedicated contact page or on facebook or twitter 

See you all soon !

Note that this information is correct at time produced , however no responsibility is taken from the author with this information and should be checked with your accountant or local tax office

However there are external factors that could affect how your business performs and even with the best staff and understanding what your customers want, there are things out there that if not correctly understood could have a positive or negative effect on your business…… it’s called competition! Before you start hissing and booing, let’s explore……

What is competition ?

When we say the word “competition” in the business sense what image does this conjure up?

Hopefully you will have a few idea’s , most business owners just see  direct competition, which is where a business is offering the same or similar products and services that appeals to the same target market as another business.  For example petrol stations, they have the same product that appeal to the same target market, the motorist.

When you thought about the competition did you think about indirect competition? Maybe not ….. indirect competition is out there and most businesses don’t seem to remember about it and the effects it could have on your own business. Indirect competition is where businesses sell services or products that are not the same as yours but appeal to the same target market and the consumer has to make a decision which to buy. An example of this could be a landscape gardener and a kitchen company, both business services are aimed at the home owner who have disposable income and are looking at home improvement.  They have different services but the appeal to their target market is the same.  While people had more disposable income before the recession this wasn’t as prevalent in the minds of business owners but as the recession started to bite and we still are feeling the effect, this is a huge area that should be incorporated in your business plan.

Task – pen & paper at the ready

Now we understand a little more about the types of competition out there go grab a pen and paper and write down your own “Direct Competition” and “Indirect Competition”.  After you have done that, what do you understand about those in your market place? If you choose to do this little exercise you will have a better understanding of the market place you are in and also what is out there.

This then raises a few issues as I am sure you have come across or inevitably will come across in the future, The Good, The Bad and The Mugly!

The Good

Competition in general is really good and healthy.  Competition gives the consumer a real choice, keeps the market fresh and you on your toes so that the end user gets great customer service, value for money and a nicer experience. In a lot of cases you may even have times when you can work with your competition; this will only come with trust and after understanding your market. Good competition strengthens relationships and provides a great playing field for businesses to flourish and gives back to the communities that we live in.

The Bad

Now we get down to the middle ground of competition, the bad , this sometimes crosses over to the mugly. It can been seen where a business that is in the same market as you trades on the same or similar name to your business. They try to latch on to the great name you have made and trading on the back of your successes. This is a concern for most businesses but the bad generally don’t last too long as they have legal complications and more than likely bad service . This could be a threat to your business as people may associate your business with theirs … be very aware of these and if needed take action.

The Mugly

Mugly ? is that a spelling mistake? Nope ! Ugly is far too beautiful word for these types of businesses so it’s the Mugly. In children’s books there is always the wicked witch or warlocks that just ooze evil, hatred and all that is wrong with the world. This is where you have bullying competition, the lowest of the low and I hope that in your business life you never have the misfortune of finding them. Few businesses do but when you have you will know about it.

However the Mugly actually can help your business flourish so if you ever have the mis- fortune of meeting them don’t worry just play smart.

The mugly are your competition that will try to put your business down, normally they have no ideas of their own, follow everything you do with a fine tooth comb. This is great for you because it means that they tell everyone about your businesses, even if it’s bad, people are curious animals and want to find things out for themselves, so although the mugly have slated you the people they talk to generally want to know more and will investigate for themselves.

A great example of this is when we launched our new website about a year ago , our Facebook wall was bombarded with downright evil comments and the attacks were happening minute by minute at the time this was a concern . However what actually happened was all our loyal clients and ones we never knew contact us and showed us their support , our web site got three times more hits than we had ever had before because people wanted to know who the Local Explorer UK was . We thanked the instigator of this,  they had done us a huge favour and from there we have gone from strength to strength with other muglies  doing the same . They have become our mini marketers all for free and they still don’t realise the positive effect they are having on our business .

We have many more examples of the Mugly , if your business has been put in this position don’t worry it actually is a huge compliment that you are seen as competition  and a threat , your business is worthy of its stature and you have something that little bit special! While the competition are focusing on your business it means that they aren’t focusing on their own , this is your chance to put your little different in to practice before they know what you have done ,they have lost contracts , clients and customers .  There is so much more I can say about how this can be positive to your business but I know that my own muglies read my blogs so don’t want to give too much away hahaha ( again this is a huge compliment love you all x )

Summing up

So completion is out there whether it be direct or indirect competition, personally I think it is good and the life blood of business, keeping you on your toes and giving consumers a real choice . Make sure you understand competition both as a threat and a strength within your business plan and you will be able to address any issues that arise .

Help is out there for you and your business; some free offered by the government  and liked minded people or through advice from  qualified & experienced individuals. Feel free to join our Facebook group Local Explorer Uk – Little Business Big Help . Sorry no Bad or Muglies allowed 

Until next time , stay gorgeous and hug a mugly , they need our love too x

We thought that with a rising number of business both old and new asking for our business support and expertise,  that the Local Explorer team would start our own business blog. Over the last year we have  seen much of our local and national competition copy our forward thinking business idea’s and claim them as their own ….. which to be quite frank I am honoured that they pay us so much attention.

Something that I always remember is a very intelligent business mentor told me when I was just 16. Alf said that when a customer walks through your shop door you have a 50/50 chance to sell to them and went on to say that your potential customer must have walked through your shop door for a reason.

A very simple idea isn’t it,  too simple in fact? Well that’s quite correct , but what happens when you don’t have a shop for your potential customers to walk through and you cannot greet each person with a warm welcome to your shop because you either work from home or an office or that customer phones you, so what can you do to win business and also show how great you and your business are  ?

It’s simple and starts with the idea “First impressions count” , yes these are common sense, but it always surprises me how many new and established business don’t do these very simple tips which could see a huge improvement on the customers satisfaction and their willingness to recommend you and your services.

Also remember, just because you may do this in your business, does everyone that interacts with customers follow the same rules ? That’s for you to find out, so with this in mind take a look below for our first tips .

5 Top tips for telephone calls :

1. Always answer with a warm welcome , your company name and your name

2. Always  ask and make a note of the personal name , business and / or enquiry

3. Always be up front and honest with the person on the phone , if you don’t know the answer then say that.

4. Always agree actions and time scales

5. Always ask where the person found out about your business

Now that was an easy 5 top tips , it does work and it  is effective , one of my huge bug bears is companies that just answer the phone “hello” or you get an answer phone that says “thank you for calling 077…….” It just makes me think if you cannot be bothered with this small aspect of your business what else have they missed or have I even got the right number ? You only get one chance at that all important first impression.

I remember most recently phoning a company 3 times each time the phone was just answered “hello” , I initially let this go as I was recommended to this business through a well-respected business client.  Each time I phoned I queried if I had called the right number, on my final call to this company I asked the un-interested person at the end of the phone if this was their business, expecting that they would say no …… unfortunately it was actually their business, needless to say I took my business elsewhere.

So in finishing,  if you follow these very simple 5 top tips you will be well on the way to wowing your potential customers and help your business to flourish.

Keeping popping back to get updates and remember to like us on facebook and follow us on twitter , if you have any questions please feel free to ask , we love hearing your feedback too.

Hope you enjoyed the first blog and as a special thank you click here for a FREE £30 Google adwords voucher, see you again soon and remember to bookmark us too

You have a great business idea and want to turn it into a real up and running business, but there could be a barrier for you to overcome, Finance! It could be either start-up capital or money for that essential piece of equipment and you need to find a solution before your business can open its doors. This blog is to help you understand what is out there to help you achieve you dreams and aspirations of setting up in business.

Every day I am asked if there is any funding out there and this is coming from an increasing number of clients that have recently been made redundant or have decided to turn their skills into a business. If that sounds like you keep reading ……….

MOST IMPORTANT – Know your costs, if you don’t these this could be the end before you have even started. Understanding your finances is a must along with a good business plan and cash flow this will really help you focus on your business. Get in touch if you need a helping hand on our Facebook or twitter pages, we’d love to hear from you.

Right so you have the idea, you understand your costs, business plan and the skills to back you up what you do. It’s your business so it’s time to take it by the horns and explorer what’s out there …….

Friends & Family

Quite often to start a business people call on the help and support from friends and family. However this option should not be taken lightly , if you do decided to take up this option to give your business a kick start with the money borrowed from friends and family then you need to treat this as you would a bank loan. Regular and set amounts of payment, this could start in a few months when you have started to get your business established.

Bear in mind that if your business fails you run the risk of losing your friends money and possibly their friendship to boot. Have a clear understanding of your market and make sure you take on advice.

Overdraft vs. Business Loan

Many people get confused on which option to take; either loan or overdraft?

You first have to consider how long you require the money for before you can repay it. If you show in your business plan that you only need short term Revolving lending i.e. 1-12 months then a business overdraft is more likely the option for you.

A business loan is more for long term borrowing; anything that you think will take long to pay off than 1 year. Depending on, which provider you go to and the legal status of your business fees may apply.

Also consider with most bank loans the bank will require you to have also put your own personal capital into your new business venture the percentage depends from provider to provider. the general rule of thumb would be ; 30% your investment and 70% loan , so what that means if you need £10,000 to start your business the bank would expect you to have put a minimum of £3000 to this . However in some instances this percentage may vary dramatically. Both a business loan or overdraft is normally subject to status and a credit check will be carried out.

If you are concerned about your credit report that you may like to get a copy from either Experian or Equifax. These reports normally cost about £2 and give you a great insight into your credit history.

Grant Funding

You may have heard people talking about grants to start up your own business. Well in some instances there maybe help out, your first call to research this in your own area would be to Business Link or normally the business development officer in your local council will be able to guide you.

Don’t pin your hopes on a grant to start your business in many cases there are little or no grant incentives available.

Princes Trust

The prince’s trust has Funding Awards this varies depending on region or country . These awards are split between two categories which are development awards and community cash awards. The Princes Trust awards are aimed at providing a support programme for unemployed young people aged between 18-30.

Visit The Princes Trust

Business Angles

Business owners often report that company finance of £10,000 to £250,000 can be very difficult to obtain – even from traditional sources such as banks and venture capitalists. Banks generally require security and most venture capital firms are not interested in financing such small amounts. In these circumstances, companies often have to turn to “Business Angels”.

Business angels are wealthy, entrepreneurial individuals who provide capital in return for a proportion of the company equity. They take a high personal risk in the expectation of owning part of a growing and successful business. There is associated terms and conditions that must be met before you can even be considered to apply for funding through a business angle. more….

Visit British Business Angel Association

North West Regional Development Agency (NWDA)

Yes the NWDA is going as of March 2012 due to the new government and their shake up, however in the meantime if you have been turned down by your bank and funders then this may be for you. The NWDA support is offered as a solution to drive businesses forward. For more information and to see if you qualify click here.

Visit NWDA

The above has hopefully opened your eyes to sources of business funding, it’s your business so if you are at this stage of business;

Understand which options are most viable for you;

Do some do further research;

Use the above as a guide only

Majority funders will require a complete business plan and cash flow projection to achieve funding. Keep up to date with business news and give face book a like, if you get stuck or have any questions feel free to ask us a question via the contact us page on this website or our social media channels , Facebook , YouTube, twitter ,LinkedIn .

“Like LocalExplorerUK” “Share LocalExplorerUK” “Mention #LocalExplorerUK”

The best part about my job is meeting new people and helping their dreams become reality . Each week I will meet people that are in business , some just need help and friendly advice on setting up ,while other benefit for more specific advice like generate more enquiries and sales , training and more .

All the time I am asked about promotion and marketing. For both new and the more established businesses this can be a daunting task , made more difficult by the thousands of sales call that come through asking “Can I speak to the business owner”. So what works and what should just be shelved ?

Before you even start to think about sending thousands of leaflets outs and signing up for every call that comes through take a little while to sit down and research what is out there and how your chosen advertising may help your business. The most important part of marketing and promotion is in the planning …… sorry guys time to brush down that business plan and start planning , only once you understand what is the best marketing for your business and what you want to gain from it will you be ready to even think about handing cash over to anyone. If you need a hand with the research and planning or have a question get in touch .

Hopefully after a little research or advice you will now have understood what you want to achieve by your new marketing plan , whether it be , brand awareness, sales , enquires , more followers or likes ,maybe to fill an event let’s see what is out there for you .

1. leaflets –

2. Major post directory

3. Local Directories

4. Mail Shots / E-shots

5. Online Directories

6. Websites

7. Social Media

8. Sign Writing

9. Business Cards

10. Sponsored ads

Yes there are more but we would be here all day and each one has pro’s and con’s depending on what business you are in and what you want to achieve from your marketing . Done correctly you will reap the rewards , done wrong and not only could you lose money but you may also lose customers. Remember “ Each time you speak with a customer or client you either enhance or diminish your brand” So let’s think carefully about advertising .

Now thinking about the above list , I bet you have used at least 3 or more of the advertising options at some point ? But can you explain how each one work for your business and why ?

Most business answer “No” to this , and their answer is normally “someone told me it would work” or “the sales person promised me x” , Now that’s a big gamble just because someone told you it might work .

What I have found most businesses have more of a splatter gun effect on marketing , where they aim at everyone hoping that someone will buy. Again this is ok to get you some further brand awareness however is a costly approach for small businesses who normally want to get as much out of advertising as possible . Understanding who your target market is and what appeals to them is far more effective to generate sales and enquires . Prior to a client coming to us for business advice his company had sent out 30,000 leaflets , now that’s a massive amount ! How many call do you think he got enquiring about his service ? 5? , 10? , 50?, 100? , 1000?

Well if you take out the 5 sales calls offering him the earth a massive NIL is what he got and was just mithered with sales calls. After we sat down with the client , understood his business and found out what he wanted for his marketing our business and design team created a new marketing plan.

After a successful sales stand at bowlers and newly designed business cards and leaflets has shown a positive increase in sales and enquires , all this for far less that his original 30,000 leaflets . The 6 points that worked here were :

1. 1. Understanding both the clients and the end consumers’ needs and wants
2. 2. Research
3. 3. Planning
4. 4. Understanding that its quality not quantity that counts
5. 5. Working within a budget
6. 6. Review marketing strategy pro’s /Con’s

Each of these points is as important as the last and you should always review , don’t just do something because it’s easy and if you have a pushy sales person that is hard selling and not for leaving until you buy – Ask them to leave , it’s your business , your hard earned money , you need someone to work for your business not just take them money !

Business isn’t easy , however it can and is enjoyable . I am very luck to choose to work with the greatest business in the northwest , you too can choose who you work with J

Thank you for letting me share this with you and remember………

“Your business is exciting , unique and maybe even revolutionary , but how many people know about your business and what you can offer them? Explorer your business opportunities with the Local Explorer and our qualified team call 01706 21 69 07 for a free consultation or email feedback@thelocalexplorer.co.uk.”

Come and share you views at www.FB.com/localexploreruk