Archive for the ‘small business’ tag
Where has the relationship with your bank gone?
It seems that small businesses are still up against the banks when it comes to lending. With the recent news that Vince Cable is threatening banks with tax increases if they don’t improve lending to SME’s, will the situation really improve and how can you prepare yourself for the battle?
For the last couple of years, we’ve been speaking to SMEs to get an overview of the challenges they face when setting up in business and the pain points they face once they’re off the ground. We used the feedback to develop Sage One, an easy online accounting service for small businesses. We achieved this by travelling the length and breadth of the country to visit small business owners in their place of work as well as attending as many networking events as possible to speak to even more small businesses and their accountants. We set out from a product development point of view to establish how they manage their business accounts and their business in general, whether they have staff and how they pay them, how they manage the sales and purchase invoice process etc. It was great speaking to so many businesses and really getting a feel for what they wanted from their business software.
A common theme that transpired from our discussions with owner managers was that there was a perceived general lack of support from the banks. In fact, we found that small businesses are reluctant to use banks for lending and will often seek alternative sources of funding. This is worrying with the current economic climate and so many easy access, high interest, high risk lending companies appearing. The banks should be helping small businesses, not working against them.
Through the process of attending events, we also met a number of people employed by banks. They informed us that the process of lending money was changing from a local decision making process to a national one. Where has the relationship with your bank gone? At Sage we take pride in establishing a relationship with our customers and offer some of the best customer care because we recognise that at times like these going the extra mile will set you apart from your competitors. That’s why Sage One comes with free 24/7 telephone support to all our customers.
So what steps can you take to protect your business?
- Keep track of your cash flow; it’s really important to know how your business is performing, especially if you need to apply for a loan.
- Become familiar with the reports that future investors will want to see. A Profit and Loss report and a Balance sheet report will indicate how your business is performing and show the current value of your business. Using a service like Sage One Accounts will allow you to produce these reports without having an understanding of accounting or having to manually calculate the figures.
- Talk to your customers and find out what they want from your products and services. Can you augment your product line or add value by offering a bespoke service?
- Get paid on time! It seems obvious but chasing outstanding payments keeps your bank account healthy and your bank manager happy. Similarly, you don’t want to get on the wrong side of your suppliers so stick to any payment terms and keep your credit rating up.
We can’t predict how the banks will react to Vince Cable’s announcement but we can help you prepare for the battle!
Find out more about Sage One Accounts and register for a free 30 day trial.
Abby Goode, Sage One team
The return of Sage World
Sage World, our free event for start ups and small businesses, is back!
Ok, I’m not one to blow my own trumpet but…..“flawless,” “amazingly inspiring,” “excellent can’t wait for the next one!” is some of the feedback we received after the first ever Sage World last year. And we’re not just picking the best quotes, the stats back it up too, 93% of Sage World attendees loved it.
Still not convinced? Check out the guest blog The Best Business Event? from one of last year’s attendees Wildfire Digital Media. They loved it too and we didn’t even pay them to say so.
[End of trumpet blowing.]
What is Sage World?
Well, if you went last year you’ll know Sage World was a different kind of event, an immersive two day experience for the UK’s small businesses. Inspirational keynotes, practical hands on seminars and that priceless one to one time with our technical experts brought everything a small business needed to one place.
We’re in the process of finalising the programme for this year’s Sage World but we guarantee it’s going to be good and even better than last year.
When and where is it?
You’ll only have to wait a little longer for the next one as Sage World is back for another year, taking place at a fantastic new venue EventCity in Manchester on the 12th and 13th of October.
The best part?
It’s completely free and we’ll even throw in some lunch (not literally, that could get a bit messy).
How do I get a free ticket?
So, to make sure you don’t miss out, book your free place now at www.sageworld2011.co.uk
Nicole Matues, Sage World Team
The needs of small businesses
Keith Proudfoot, Regional Director of Institute of Chartered Accountants in England and Wales (ICAEW), will be speaking at next month’s free event for small businesses, Sage World. He’s taken time out to talk to the Sage Blog about the needs of small businesses.
Last week I attended a round table discussion with Dr Vince Cable. Among some talk about Local Economic Partnerships replacing the 10 Regional Development Agencies discussion turned to small business and their needs to drive the recovery.
Keith Proudfoot, Regional Director ICAEW
Dr Cable sees the SME sector as pivotal to the future of the UK. So it’s good news that his Department for Business Innovation and Skills (BIS) will do what they can, or what they can afford, to help smaller businesses.
The promise of less regulation has been heard before, but the most encouraging part was Dr Cable’s affirmation that he would use a combination of sticks and carrots to ensure that the banking sector lends to smaller businesses.
Of course a bank overdraft is just one way that a business sets itself up to do business and I shall be talking about alternatives in my session at the Sage World conference in Telford next month.
I will also be looking at ways to make your approach to banks more likely to succeed. While I can make no promises on turning sow’s ears into silk purses, I will be giving tips to make your approach to the bank be given proper consideration.
I’m looking forward to meeting as many of you as possible at the Sage World conference and hope you will find my presentation useful. I know I will enjoy hearing the other presentations and find out a little more about Telford: the home town of my daughter’s boyfriend – it’s a small world!
Keith Proudfoot
Register free for Sage World at www.sageworld2010.co.uk
Business is a numbers game
Sage World is back again in 2011. This year we’ll be in Manchester’s EventCity on the 12th and 13th of October. To register for your free ticket visit www.sageworld2011.co.uk
Marketing Specialist, Geoff Ramm, talks to the Sage Blog about why Sage World adds up to an event not to be missed.
They say business is a numbers game, so here goes;
Geoff Ramm
On the 8th and 9th of September 2010 over 1,500 businesses will descend into The International Centre, Telford. The investment £0.
In just 48 hours 15 professional speakers will share their own ideas, techniques and vast knowledge to help transform your business, take it to the next level and maybe help you to stay, 1,2 or even 3 steps ahead of the competition.
By my own calculations all you have to do is take a minimum of 1 idea from us in those 2 days and you will walk away 30 ideas richer.
Now let’s think for a minute of the potential of networking with 1,500 entrepreneurs, companies and organisations who will be there. You will also have your very own Spotme tool to help you to network with exactly the right people you want to connect with!
As for me….. my ‘Now That’s What I Call Marketing’ – Volume 1 & 2 keynotes will be packed with great cost effective ideas to help you gain more customers, retain more customers and yes I will also reveal how using powerful numbers will help you to stay ahead of the competition!
Warning there will be great prizes to be won too.
Look forward to meeting you at the 2 day conference.
Geoff Ramm, International Marketing Speaker, Marketer & Author
Register free for Sage World at www.sageworld2010.co.uk
SMEs are losing out due to tax complexity
The tax situation for small and medium sized enterprises (SMEs) has increasingly become a focus for debate in this election (For small businesses the choice on tax is not straightforward). Putting the spotlight on this issue is good news for small businesses, as research amongst our own customer base suggests that many find the complexity of the tax system frustrating. The overwhelming majority (72%) of UK SMEs we surveyed, also indicated that the complexity of HMRC rules is a barrier to start-ups.
We surveyed 2,000 of our SME customers in March 2010, from our 800,000 strong UK customer base. Insights from the Sage Omnibus, enables Sage to highlight the challenges facing UK firms and provides a barometer for British business.
The survey discovered that seventy-seven per cent of businesses felt that the current tax system is preventing them from taking advantage of tax benefits and breaks. Furthermore, sixty per cent of SMEs polled did not know what breaks they may be eligible for.
Our research shows that there is a lot of confusion amongst the UK business community about the current tax system. At times of economic uncertainty, knowing what tax benefits and breaks your firm is entitled to can make the difference between success and failure. My advice to all businesses would be to seek professional advice from an accountant to inform them of any breaks that they may be entitled to.
Interestingly, more small businesses would choose to make the current tax system simpler (34.5%) over freezing VAT at its current rate of 17.5% (25.9%), highlighting the extent of their frustration. When asked what single change they would like the government to implement, SMEs indicated that they would also like to see the planned 50p income tax for top earners (5.8%)scrapped.
Jayne Archbold, Managing Director of the Accountants’ Division
The UK’s most exciting small companies
Day release to London
Well, it was an exciting start to the week yesterday for a few of us from Sage in Newcastle, as we took a trip to London to attend The Pitch Grand Final 2009. Organised by Sift Media and the brain child of Dan Martin, it’s been a search to find the UK’s most exciting and innovative small companies.
So, who are the most exciting small companies?
The final of The Pitch
Businesses that were successful in 6 regional heats were given the opportunity to ‘Pitch’ their business to a well known panel including Apprentice winner Tim Campbell and self made millionaire Charlie Mullins of Pimlico Plumbers. After an excellent pitch, the overall winner and congratulations went to Anthony Lau of Cyclehoop who walked away with a prize of £50,000 worth of business goods and services. His Cyclehoop is a simple but highly effective invention that has opened up a potentially huge market in the UK alone.
The wider effect
Although the day was ultimately to find a winner, I was just as impressed by everyone that attended and the fact that great events like this are around for us all to support the start up community who will ultimately shape the future of UK businesses. We were demonstrating our free Sage Planning for Business and our simple accountancy software Sage Invoicing but in all honesty we got as much out of just hearing about what people were doing and planning – an inspiration to us all and great customer interaction!
Inspiration for us all
So on a day full of inspiring stories all round it was fantastic to see such enthusiasm out there from businesses ready and willing to start off on a new business journey… especially given the current effects of a recession. Ultimately it’s people, enthusiasm and support like this that will help to move us out of recession.
So, who do you think are the UK’s most exciting small companies?
Written by Geoff Phillips, Marketing Manager
