Recent items in the 'How-to articles' category

Free UK web site offer now live

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Example web site pageGetting British Business Online, the governmnent backed-scheme that offers UK small businesses a free web site, is now live.

Partners include Google, Enterprise UK and Paypal.

You get:

A free web address: Choose from any available ‘.co.uk’ domain name.

A free web site: You build your site using an easy Wizard-type tool provided by Google, which lets you upload your own words and images.

Try it now at www.gbbo.co.uk

Posted on Tuesday, March 9th, 2010
Under: Business tools, How-to articles, Internet, Offers | No Comments »

Raising funds for first business project

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Question iconJohn asks: My colleague and I were both made redundant last year, with 25 years experience as Engineering Recruitment Consultants in London. Over the years we have both either project-managed or hands-on built/extended residential property on at least six new builds/extension projects. We have now decided to establish a business based on this and enter the property refurbishment market full time.

We are both in our 50’s with substantial equity in our own properties but having problems raising money to purchase our first project.

Having been made redundant over 6 months ago, we are unable to show earnings, which is a requirement to draw on our equity. The banks will only lend if we come up with 40 per cent - which is not possible unless we can use the equity built up! 

Any ideas? We are considered extremely competent, professional and perfectionists but not to an extent that it would affect earning levels!


Robert replies:

It’s always difficult to win over lenders, even when it’s your own equity securing the loan. Have you considered moving to one of the growing number of ‘boutique banks’ such as Handelsbanken? They delegate decision making to branch manager level and so can work around the rules that are holding back your present lender.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

Maybe friends or family who know you, like you and trust you will invest or lend you money using your property equity as collateral?

When raising finance your starting point should be a good and robust business plan.  Although it may seem tedious to provide, it will stand you in good stead when financiers are summing up your business prospects.  A good template and advice is available from www.businesslink.gov.uk

Your first port of call could be friends and family who would invest in a Limited Company under the Enterprise Investment Scheme (EIS). Shares can be sold to investors and 20 per cent of the investment can be claimed back against any tax liability for the tax year or previous tax year.  Therefore an investment of say £10,000 will only cost the investor £8000. Shares should be held for 3 years and if you wish you can include a buy-back option after 3 years.

If the shares lose value the loss can be set against any income and also any capital gain on another venture can be deferred if reinvested into an EIS.  You have 3 years to defer the gain. Dividends are payable in the usual way. This scheme can make it ideal for the smaller investor.

Another source of finance is the Business Angel who would purchase shares, share in any dividends and have the advantage of not charging any interest.  If you link up with a Business Angel you could be eligible to have the funds matched by the Government under the Enterprise Capital Funds Scheme.

Business Angels can often make a decision quickly without the need for complex assessments and bring valuable experience to the table. A disadvantage is that it can take months to find and track down the right investor.  Business Angels do invest individually but typically as part of a syndicate. 

You can find a BA by contacting the BBAA Association at www.bbaa.org.  The BBAA have 24 Business Angel Networks and 30 professional advisory businesses.

The government operates the Capital For Enterprise Fund providing long term capital for Companies who can demonstrate that they have exhausted borrowing capacity.  However, my experience is that the cost of providing this capital together with management fees makes it prohibitive.  There are also very stringent requirements with regard to financial provision to include extensive profit and loss and cash flow forecasting spreadsheets. 

It is always worth contacting your local Business Link to get advice and it is likely they will be aware of any local form of finance.

Lastly, I wonder if you have considered forming a partnership with an established property developer on the basis that you provide the expertise and he provides the start-up capital.

Posted on Friday, March 5th, 2010
Under: Ask the experts, How-to articles | No Comments »

Stocks and Shares

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Question iconKim asks:Stocks and Shares - is there any help with start up in this area e.g. advice, training, mentoring, please?

 

 

Robert replies:

In my experience, the most successful start-up businesses are those that add value to the life or experience of others. Most products and services can be said to do this in some way or the other.

Trading stocks and shares yourself is not a business. Trading for others is a business, but one that rightly is highly regulated. This is not the right forum to advise you on either.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:When first dipping your toes in the waters with stocks and shares it is helpful to join a local Investment Club who will advise you of what shares they feel are worthy of purchase. You will have the free advice of more experienced investors and a certain amount of mentoring. Members share magazines and literature, follow Company information and vote on Company shares to invest in. 

You might invest in a good book and I would recommend ‘Investing in Shares for Dummies’ - available from Amazon at £7.90.  You could employ the services of a Financial Advisor if you feel you don’t want to go it alone but if possible you should appoint someone recommended by a friend or colleague and preferably one whose advice is not commission linked.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

 

Posted on Friday, March 5th, 2010
Under: Ask the experts, How-to articles | No Comments »

Funding and expertise for manufacturing required

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Tony asks:I have patented a compact exercise machine at considerable cost that has enormous commercial potential but I need someone with the finances and expertise to have it manufactured in bulk and take this machine to market to see its full potential.  I have a working prototype to demonstrate its worthiness to any interested party. I would be happy to chat over the phone but prefer to speak face-to-face and give a demo for impact purposes.

 Robert replies:

I have a friend who develops, manufactures and markets electromechanical products. He might well be interested in this. Email me further details on robert@robertashton.co.uk

 Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

John replies:

When bringing a new product to market you firstly need to be clear about what its unique selling point is and whether you have the drive, time and energy to grow the business.  You need to assess what industry knowledge you and your management team have and that should encompass selling, marketing and financial acumen as well as knowledge about the product.  You need to plug any holes in the above before you even step over the threshold.  It is also advisable to have a business plan in place and a free template is available form www.businesslink.gov.uk.  When discussing your product with other Companies you need to have in place a good non-disclosure agreement.  As you have a firm patent in place I wonder if your best course would be to contact other Companies in the health and fitness sector.

 John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Posted on Friday, March 5th, 2010
Under: Ask the experts, How-to articles | No Comments »

What’s your view on Partnerships (LLPs) and Co-operatives?

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Russell asks:I and some colleagues are in the process of starting a business. We are at the very early stages and would like to know what the expert views are on Partnerships (with limited liability) and Co-operatives. We all want the same from the company and we all want to have an equal input. Which option out there affords the most democratic way of doing business?

Whilst there is a lot of advice out there it would be great to have an expert’s view. For example perceptions - I often think of co-operatives as a little backwards. This is only based upon my experience of growing up in a rural area where co-operatives tended to struggle for money and therefore “relied” on others in bad times. So can a co-operative be seen as “today” enough?

 

Robert replies:

There are two issues here for you to consider:

 

  1. leadership - as someone has to be the boss - even if elected to that role by equal partners in the venture
  2. legal structure - and choosing the right one

 

Make sure you’re not failing to grasp the leadership nettle by choosing one of you to lead. Rotate leadership annually if you like, but someone needs to have the final say - however democratic the process

As for legal structures - LLP might well be the best bet but take advice from an accountant.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth

 

Will replies:

Business is a game and all games have rules. Partnership or Co-op needs the same rules.

Things will go wrong and you will fall out!  Go through, at the start, what you are going to do when this happens.  I was in a partnership for 25+ years - believe me I know what I’m talking about.

 Will Kintish, Business networker, speaker and trainer, replies:

 
John replies:

Partnerships tend to be between small numbers of people and cooperatives often encompass larger numbers of generally local people with schemes tending to be more ‘community’ in nature.  Cooperatives therefore have the disadvantage that decision making is usually a longer process and there is more chance that there could be a conflict between member’s views. However there may be a larger pool from which to draw knowledge.  Whilst investors are less likely to withdraw finance at short notice there is also less incentive for investors to invest extra capital should the need arise.  Cooperatives also tend to limit the choice of external finance. There are however tax incentives, for example employee share schemes, although most small cooperatives would find these too expensive to run. 

Limited Liability Partnerships (LLP) can be registered simply at Companies House for a fee of £20. LLPs offer limited liability for partners to protect assets.  Therefore the main advantage is that the legal entity (the LLP), rather than individuals, is responsible for any debt that may arise.  With any partnership it is essential to have a Deed of Partnership as this will help to avoid any misunderstandings or disputes.  This would set out the amount of capital, how partners will share profits or losses and any salaries.  Also how much time each partner would devote to the business, who does what management task and which things would need a collective agreement. This agreement should also cover how any new partners can be appointed and what happens if a partner leaves or dies.   In short my own feeling is that a Limited Liability Partnership would tend to be a tighter framework from which to run the business.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Posted on Friday, March 5th, 2010
Under: Ask the experts, How-to articles | No Comments »

Learn how to get your business in the news in London

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Monday 9th November 2009
Time: 14:00 - 19:30
Venue: Business and IP Centre, The British Library, 96 Euston Road, London NW1 2DB

Have you got news for us?

The British Library is putting on a practical and interactive workshop to unlock the world of the media to new and small businesses.

Daily Express Small Business columnist Maisha Frost and Enterprise PR Specialist Louise Third of Integra Communications Ltd have joined forces to create a highly practical and interactive workshop for the British Library Business & IP Centre.

Get the insider’s key to unlocking the world of the media.

Delegates will be shown how to work with the media to achieve optimal coverage, learning how to identify what is “news” for their business, gaining the techniques needed to write an effective press release, and cultivating their selling skills to convince an editor to run their story

Next Workshops:

Monday 9th November 2009
Monday 8th March 2010

Prices:
2009:   £85 (+vat) per person, includes buffet and workshop materials

2010:   £95 (+vat) per person, includes buffet and workshop materials

Click on the link to book your place www.integracommunications.co.uk/mediaworkshop  
 

Posted on Tuesday, November 3rd, 2009
Under: Events, How-to articles, London | No Comments »

Q: New business idea with no competition, how can I find investors?

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Question iconJackson asks: I have researched a business idea and got an outline plan for a totally new business with no competition at all and with a mass of potential. However, to go forward I need full financial backing up to £120,000. As I was bankrupted last year due to personal reasons what do you think my chances of finding a investor or partner would be - and where would I go to find one? 

The plan would take six months to put into place and 90 per cent of the funds is for equipment, which if the business were to fail could be resold to recuperate money. 

 

Robert Ashton replies:  Let me be honest here. Few investors will support a business idea that has no competition - to them it will suggest there’s no demand. Secondly, they’ll expect you to make a significant personal financial commitment. If you’re bankrupt you can’t do that. Lastly, you say that the risk is minimised because the equipment would have a resale value if the business failed. Failure should not be an option.
 
My advice is to get someone in the marketplace already to hire you to develop the concept within their firm, with a bonus in place for you when you a) prove it works and b) are discharged from bankruptcy:

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

 

Steve Carroll replies:Finding a partner/investor should still be possible. Your business proposition will need, however, to be well-positioned and reflected in a robust business plan. This should cover the usual areas plus a comprehensive analysis of business risk and appropriate risk management strategies.  

It should also incorporate an investor exit strategy, and realistic forecast trading accounts and balance sheets for one, three and five years into the future.
 

 Steve Carroll is MD and Lead Consultant of his own company, CarrleyTM Business Consulting Ltd.Steve has worked in international, corporate and consumer banking, and spent ten years running business support initiatives in the public sector.

 

 
Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.
 

Posted on Friday, July 10th, 2009
Under: Ask the experts, How-to articles | No Comments »

Q: Is there any advice and funding aimed specifically at women over 50?

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Question iconMapangie50 asks:
Is there any advice and funding aimed specifically at women over 50 who want to become self employed? I will only receive contributions-based Job Seekers Allowance for another four weeks, and the Jobentre advises that they can’t give any advice apart from access to their job search programmes.

I trained in 2008 as a hypnotherapist and psychotherapist but I am finding it difficult to set up in business by myself

Dick Stroud replies:
To the best of my knowledge there is no funding aimed specifically at either women or men who are over 5o years old. There may be special grants available to assist with training but not to help fund your business. From what you have said it sounds like the only funding you will have is your final four weeks of Jobseekers Allowance, your savings and any income you can generate from other part-time work.

The question you have to answer is will this be sufficient to fund your business during its start-up phase? Will you have enough money to pay for the initial start-up costs and to fund you whilst you build a client base?

If the answer is no, then it would be best not to start your business at this time since you risk putting yourself into debt and the business failing because your run out of cast.

My advice would be to delay starting your business until you have a clear plan for how you will generate customers and you know you have the funds to get through the first six months of trading.

Ideally, it would be best to spend time working for somebody else who has a hypnotherapist and psychotherapist practice so that you get a real feel of what it is like working in this field. I do appreciate that this might be difficult.

I am sorry to sound negative but I have seen too many start-up businesses fail because of lack of sufficient funding. Good Luck!

Dick Stroud founded and expanded his own marketing consultancy company 20plus30, focusing on 50-Plus consumers. His latest book is The 50-Plus Market.

 

 

Robert Ashton replies:
A lot depends on how long you’ve been ‘put of work’ and why. You may qualify for support under one of the Government’s ‘getting people back to work schemes’. Places to ask: www.nfea.com find your local enterprise agency and ask them. PRIME of course can also help. Check out http://www.delni.gov.uk/index/finding-employment-finding-staff/fe-fs-help-to-find-employment/pathways.htm
 
Finally, remember that most of your work will come from recommendation - get out there networking in groups populated by people who best match your preferred client profile:
 
Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

 

PRIME adds:

These three organisations specialise in helping women get into business. They may have other relevant advice or know of other sources of funding.

Prowess Ltd     = www.prowess.org.uk
Women in Rural Enterprises   = www.wireuk.org
Everywomen     = www.everywoman.org

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Posted on Friday, July 10th, 2009
Under: Ask the experts, How-to articles | No Comments »

Selling your business - checklist for due diligence

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Clipart from aperfectworld.orgHere’s a list of some common questions you are likely to be asked when the time comes to sell your business. You really need to start considering these questions long before the sales process starts - sometimes years in advance, so you have fixed the problems as far as possible. That way the sale will go more smoothly.

Selling a business is similar to selling a house or car, with the buyer (or professionals acting for the buyer) trying to uncover any serious problems - but also hunting for weaknesses that could lower the price. This process is called due diligence.

The seller meanwhile has to spend a lot of time answering what are sometimes tedious questions - but at the same time this is an opportunity to confirm what the business is worth.

For small businesses the buyer may decide not to hire professionals to do due diligence on their behalf, but may do it themselves. Though this may make the process much more informal, you should still take it very seriously.

There are more notes about how to approach due diligence below the list.

Top questions to expect

1. Why do you want to sell the business?

Retirement, ill-health, even boredom are all common replies, as is the desire to raise money for a new business venture or to buy property. This question may also be an indirect way of asking whether the business is in any difficulty - see question 3 below.

2. What are your own plans after the sale?

If you wish to retain a role in the business - as consultant, employee or part-owner say, this needs to be thoroughly clarified, written down and agreed.

They may also be checking whether there is any chance of you competing with them in the future. If this become an issue it may be worth negotiating an explicit no-compete clause that meets both sides’ needs.

3. What difficulties does the business face?

This is one of those open-ended killer questions. Preparing a SWOT analysis beforehand may help suggests topics you’d be comfortable talking about. Your aim is to be honest without reducing the price to an unwarranted extent. You are under no obligation to provide free consultancy advice to the next owner, but you should reveal material facts. If there are serious issues confronting your business - particularly ones affecting its future viability, discuss what you have to reveal with a suitably qualified professional advisor.

4. What exactly is included in the sale?

This question may come up several times so it is best to give a fully comprehensive answer from the outset. The buyer may seek clarification as they look over your premises or become aware of different aspects of your operation. For example, if you are a designer, what about the intellectual property in past designs? What about the use of your name?

5. Can I see the books?

This means you have to have the accounts in a fit state to show. They need to go back at least three years.

6. Are these the same accounts you’ve shown Her Majesty’s Revenue & Customs?

Let’s hope the answer is yes!

7. Have you any charts or simple figures that summarise how the business is performing at a glance?

The buyer is likely to be interested in things that give an immediate idea of the health of the business without having to wade through the accounts, such as the trend in sales or net profit. Presenting them clearly is useful as part of your sales pitch, but remember they become part of the sales documentation and must be true.

Key performance indicators relevant to your own particular line of work that might not be in the accounts are also relevant - for example the occupancy rate for a hotel or care home, or the breakdown of sales by product line over time.

8. Are there any big debts?

They’ll be looking particularly for overdue debts from customers that might need to be written off, but also the level of debt your business typically carries.

Strictly speaking in accounting terms debts are your current liabilities, which includes things like any lease or service agreements you are committed to. These can affect the sale price if they are hefty items.

Outstanding debtors (unpaid invoices on the sales ledger) are classed as assets. What the buyer will be checking is whether they are really assets, or likely to turn into unpaid bad debts that have to be written off.

9. Are you up to date with your own payments?

For key items such as rent, loan repayments, income tax, VAT if you are registered, corporation tax if the business is a limited company, PAYE if your business has employees.

10. Have you any employees and how are they paid?

The answer needs to include full-time, temp and unpaid staff. The buyer may also be checking there are no illegal or off-the-books payments.

11. Are you involved in any legal disputes?

For example, with suppliers, trading standards or the tax authorities - or former partners or staff.

12. Are there any major items of expenditure due soon?

The buyer is on the lookout for things like the renewal of key equipment, major maintenance or a lease expiring. Though a good answer to this question is generally no, because you have taken care of such things while preparing the business for sale, there is one pitfall to beware of.

If you spend heavily in the run up to the sale, there’s a risk the buyer may not value what you’ve done because they have other plans. This is another instance where there is a strong similarity between selling a business and selling a house - new garden decking won’t lift the value if the new purchaser wants to rip it out and use the space for a pond. So keep the focus on essential items for the core business you think all buyers will be interested in.

For other items honestly stating what needs renewal and accepting that this may lower the price may be cheaper for you than renewing it yourself and still having to accept a lower price - because the buyer turns out to have other taste or plans.

13. How did you arrive at the asking price for your business?

Ultimately your business is worth what someone is willing to pay for it, so how you have arrived at your valuation is strictly speaking completely irrelevant. You need to decide whether it is in your interests to talk about it.

Sometimes it is, if going through the assets, goodwill, future earnings potential and so on will whet their appetite and encourage them to pay more.

But on other occasions this discussion just invites them to negotiate you down on each element. In this case a better tactic might be to decline going into detail about your own thought processes. Just assert that that’s the price at which you are willing to sell.

Your other answers, particularly to questions 1 and 3, may be relevant to what line you can plausibly take.

14. What element of goodwill is build into the asking price?

This is another way of asking you to justify the price. If you choose to answer you would need to say firstly what the business is worth without goodwill (that is with just the value of tangible assets and order book). Then you’d need to give some reason to back up the extra value that goodwill (in other words intangible things like a good reputation and happy customers) adds to your business.

With some businesses everyone will accept that goodwill is a key part of the business being sold, so you would devote attention to it in your pitch. This might be the case for businesses where trust, repeat business or word-of-mouth recommendation is very important, for example private exam tuition, health spas, restaurants. With others it’s either hard to quantify or irrelevant because customers have little choice, like a tee-shirt concession at a music festival.

15. Have you got any happy customers who can supply testimonials?

You may have some you use for sales purposes that are already public. Think carefully before revealing more. You need to protect you customer list in case the sale doesn’t go through, as it may be one of you most valuable assets. On the other hand, the buyer needs to evaluate the quality of your customer list. They may also need reassurance that your business has a good reputation. So some give and take is necessary.

Another factor to bear in mind is the reactions of the customers themselves. If they get wind of a possible sale it may unsettle them and cause them to go elsewhere.

Why due diligence matters

Whatever it is called, answering a lot of questions is an essential part of selling a business. Both sides are likely to need many things clarified before they feel comfortable about going ahead.

It’s a good idea to keep copies of the answers you give. Confirm verbal answers immediately by letter or email. This is because if a dispute arises later - for example the purchaser attemps to get part of their money back because of a problem they claim you hid from them, you will be able to prove that they bought the business fully aware of the facts.

During due diligence it is important not to misrepresent the facts, as that could come back to hurt you later. Indeed the advantage of “full and fair disclosure”, if it is well documented, is that it can protect the seller in later disputes. Once a problem has been disclosed the buyer cannot use it to complain or seek compensation after the sale has gone through.

The importance of confidentiality

The one big difference between selling a business and selling a house or car is that confidentiality is much more important in the business case. There are many more people with a stake in the outcome, and customers, suppliers and staff can all be seriously alarmed if you reveal your plans too soon.

You should have an exit strategy for you business, but exactly when you reveal it to others is a critical part of a successful sale. So it is normal practice to keep discussions with potential buyers and their representatives quiet until the deal has been finalised, and to agree with them how it is made public.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

Posted on Wednesday, July 8th, 2009
Under: Exit planning, How-to articles | No Comments »

Q: Are there any tax incentives to run a business from home?

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Question iconGill from Wigan asks: Are there any tax incentives to run a business from home?

 

 

Answer symbolEmma Jones replies:
Hi Gill

There are many incentives to run a business from home! If you’re already doing so, you’ll be feeling the benefits of low overheads and no commute. But yes, on top of that and in answer to your question, there are some tax benefits too. The biggest one is related to the expenses you can claim when running your business from home. The simplest way to carry out the calculation is to add up the annual costs (as applicable) of:

  • Gas / electric / solid fuel
  • Council Tax
  • Contents / buildings insurance
  • Water rates

Next, simply count up the number of principal rooms in the house (kitchen, reception rooms, bedrooms, bathroom etc). If there are seven, and one is used for half business, half personal (eg spare bedroom / office) then half of one seventh of these expenses are allowed and can be claimed against your tax bill. You can also claim for the business element of telephone bills and business travel.

Other planning you can do, is issue a number of shares to your spouse or partner so they are able to receive part of a dividend paid for the year, and you can claim their personal allowance.  Also, did you know that paying your children to work in the business is a way to reduce tax? As long as your children are over 13 and perform appropriate tasks within the business for a sensible salary, there is nothing to stop you paying them for work done to reduce your business tax liability.

We have many features on this topic at www.enterprisenation.com so I hope you’ll visit to take a look. It would be well worth your time - and will cut your tax bill!

Emma Jones is founder of Enterprise Nation the home business website, and author of Spare Room Start Up - how to start a business from home.

John Lamb replies:

Answer symbol

I have a home office and there are no tax incentives to encourage people to work from home; rather the opposite. Local authorities don’t want people carrying out businesses from residential properties that might disturb the neighbours or cost them lucrative business rates. However, you can claim a proportion of your home heating, lighting, maintenance and rent or mortgage against business expenses (your accountant will work that out for you).

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.

Vishvas Kanji replies:

Answer symbol

There are no special tax incentives of running a business from home. However, expenses incurred wholly and exclusively for the purposes of the business should be deductible in calculating the taxable profits of the business - either as revenue expenses (for example, heating, telephone, lighting) or under the capital allowances system (for example, in respect of computers, furniture and other qualifying plant and equipment). In many instances, the “wholly and exclusively” rule may not be satisfied and the local inspector may agree to an apportionment on a just and reasonable basis for the purposes of determining the amount of tax relief available.

One trap to be careful of is the restriction which could apply to the principal private residence exemption. The exemption is available under the capital gains tax regime in respect of gains arising from the disposal of a principal private residence - the gain normally is free of tax. However, if any part of the house is used exclusively for business purposes, then the capital gains tax exemption may be limited. So ensure that no space is used exclusively for the purposes of the business, and substantive private use is made of the space from which the business is run.

Vishvas Kanji is a Tax Consultant for Mishcon de Reya Solicitors. You can find out more about his services here.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Posted on Friday, May 15th, 2009
Under: Ask the experts, Front page, How-to articles | No Comments »

Q: I would love to start up my own little business in horticulture or gardening. Where can I get the best possible training?

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Elizabeth from Doncaster asks:

Question symbolI would love to start up my own little business in horticulture and/or gardening. Where can I get the best possible training?


Dick Stroud replies:

Answer symbolIt is not clear if the training you require is about horticulture/gardening or how to establish a small business. I will give you some advice about the latter.

Firstly, there seems to be a great deal of advice available on the Web. From a few minutes searching I found a site that was packed with information called start a gardening business.

There looks to be an excellent book called : ‘Starting Your Own Gardening Business: An Insider Guide to setting yourself up as a professional gardener.’ This is available from Amazon for under £4.00.

I would suggest that you look at the resources available from your local Business Link. You can find these by going to www.businesslink.gov.uk and putting in your postcode. The national Business Link site contains lots of advice guides about all types of start-up business issues. Look at them here.

I am sure you will also find there will be courses run at your local colleges about starting a business. The man who does my gardening has more work that he can handle so there is undoubtedly a demand for gardening services!

Good luck.

Dick Stroud founded and expanded his own marketing consultancy company 20plus30, focusing on 50-Plus consumers. His latest book is The 50-Plus Market.

Robert Ashton replies:

Answer symbol

Contact your local agricultural college and ask their advice. Also consider working part time for someone already in the business you’re planning and then learning from them.

Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Posted on Friday, May 15th, 2009
Under: Ask the experts, How-to articles | No Comments »

Preparing your business for swine flu outbreak

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Click to see full-size Matt cartoon at Telegraph - caption: Christopher Robin and Pooh decided to have piglet put downExpect the fear of a pandemic and measures taken to combat it to have an impact well in advance of the disease itself, if or when it arrives.

Most of the advice so far seems to be aimed at large businesses, but many of the principles still apply. Have everyone’s mobile phone numbers to hand, backup computer and web data properly in case services go down. Observe enhanced hygiene practices. Think through the implications of things like restrictions on travel, the closure of venues and the unavailability of key services and staff.

Time for preparation not panic (PDF) - thorough discussion of possible impact from insurance broking giant and risk management specialist Willis.

Gartner business continuity blog Frequent updates but from a very American perspective

Basic facts about influenza pandemics - PDF briefing from European Centre for Disease Control (ECDC)

Personal protective measures - PDF briefing from ECDC goes into more detail than most

Map showing swine flu in EuropeLatest on outbreak from European Centre for Disease Control

Posted on Tuesday, May 5th, 2009
Under: Business news, Front page, How-to articles | No Comments »

Q: How can I get a loan or help with funding with a not too good credit record?

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Sue Jones from Leeds asks:

Question symbolI am unemployed and receiving jobseekers allowance. I have so far spent approximately £3000 on my new business. I cannot go any further because I need funding to run my business for the first couple of months. How can I get a loan or help with funding with a not too good credit record? I have a business bank account set up ready and waiting.

Nicola Dickins replies:

Answer symbolThe Government have launched a new website: www.realhelpnow.gov.uk/ where you can download the help available for businesses in your area. Take a look at the Real Help for Women section, on page 25. It details new incentives for women on jobseekers allowance who have set up their own business, and includes funding for the first few months.

Also have a look at www.capitalforenterprise.gov.uk/portfolio.html as you may be able to apply for equity against a loan from the Aspire Fund.

Have a look at www.businesslink.gov.uk/realhelp there is an Enterprise Finance Guarantee that can help you obtain a loan.

Nicola Dickins is the founder and Managing Director of Make it Happen Consultancy Ltd.

Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Posted on Thursday, April 9th, 2009
Under: Ask the experts, How-to articles | No Comments »

Q: What is the best form of marketing with a low budget?

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Rob Goddenough from Crawley asks:

Question symbol

I am a gutter cleaner. What is the best form of marketing with a low budget? I have thought about leaflet distribution and local newspaper advertising. Are these the best methods to use?

 
Robert Tull replies:

Answer symbolThere is an old saying that half of advertising money is wasted. The problem is identifying which half.

Most small businesses do not identify a separate marketing budget in their business plan, but it’s very useful to do so. As soon as you get a new business phone number, you will be contacted by numerous newspaper, magazines or directories trying to sell you into their next ad feature. Surprise surprise, you will be told that it’s ideal for your business, but hurry as space is scarce and the decision must be made now for that special deal.

It’s very easy to say yes to a persuasive salesperson and if you say yes too many times you will have spent your yearly budget in the first few months of your year.

So plan out a Marketing budget over a 12-month period as you need regular marketing of some kind every month, and it makes it easier to have a reason to say No to the next good offer on the phone.

Try different things until you find the ones that work best for you. Whatever media you use, you should try and monitor what works, so make a point of asking your customers or enquirers where they saw your name /advert /and why they contacted you.

The best marketing of all is word-of-mouth recommendation. Get into the habit (it’s not easy for some people) of asking your customers to recommend you to their friends and family.

If you are in a business-to-business service industry, leave leaflets or business cards with your existing customers. You never know when new possible customersmight need some emergency help.

So leaflets are a good idea. Putting them through letterboxes is also good as you are in control of which areas you are targeting. Some newsagents will allow them into their delivered papers at a small cost (cheaper than having inserts added by the publisher at source). The same newsagent also may also have a notice board for you to pin a leaflet or business card to at a small weekly rate.

Also consider joining a networking club or attending a business breakfast meeting - and give leaflets or business cards to all attendees. Many will allow you to talk about your business and promote your services, for a small fee, so practice a short speech in front of a mirror, so you gain confidence in delivering a 60-second advert for your business.

Contact other service industries in your local area and create a small circle of useful contacts who will promote your service to their customers. In return you will do likewise, so pick ones ou would be happy to recommend. Many homeowners are looking for reliable tradespeople to use when the unexpected happens.

Find out how much it costs to join The Chamber of Commerce in your area, or the Federation of Small Business. These are both ways of widening your contacts and finding out about events attend to promote your business. It will cost to join so weigh up the benefits before deciding whether joining is worth it.

Have a look at the Business Link website for more hints and tips for all areas of your business. Consider going on any free workshops that may be available in your area, to gain new skills and ideas - and make business contacts.

Finally visit your local bookshop or library and have a browse through the latest books on marketing and advertising. You will almost certainly find some simple tips and new ideas that are worth trying.

Robert Tull leads the team of Enterprise Awareness Managers at Business Link in the East of England,

 

Nicola Dickins replies:

Answer symbolContact your local free paper (editorial dept) and tell them you’re a local business and you would like to write an article about your business. They are really interested in local business success stories at the moment. You may want to do a competition where you offer the winner free gutter cleaning.

 

Nicola Dickins is the founder and Managing Director of Make it Happen Consultancy Ltd.

John Lamb replies:

Answer symbol
I would say word of mouth and very local marketing would be best for your type of business. Hand out as many business cards and flyers as possible and make yourself visible with a bold sign on your vehicle and perhaps a sign board you can put up when you are working. Advertise in newsagents, parish magazines and local newsletters.

John Lamb is the editor of Ability magazine, a campaigning publication for people who have difficulty using IT.
Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.

About Ask the Experts

PRIME has assembled a team of business experts who have generously volunteered to answer your questions for free. You can read more about them here, or Ask your own question.

Posted on Thursday, April 9th, 2009
Under: Ask the experts, Front page, How-to articles | 1 Comment »

New edition of Working for YOURSELF guide

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Working for yourself guide coverPRIME has updated its popular free
Working for YOURSELF guide, which explains sales, marketing and preparing a business plan in a practical way for people setting up their first business.

You can download it as a PDF immediately here, while we are getting this new paper version printed.

We do still have some paper copies of the previous edition, so if you like email us your details and we’ll post you a free copy. The main differences between the new and old versions are changed contact details - the basic text remains the same.

The guide concentrates on the subjects many people tell us they are least confident with - sales, marketing and putting a viable plan together. It doesn’t cover everything, but at only 40 pages long it’s quick to read and inspiring.

Contents
1. Customers and selling to them
2. Negotiating
3. Marketing
4. Setting prices
5. Business model, business plan
6. Checking with reality
7. Sources of support
Business glossary

If you are downloading the PDF to print out on your own printer, the square format should come out OK on standard A4 paper as it’s the same width.

Posted on Tuesday, March 31st, 2009
Under: Books, Front page, How-to articles, PRIME guides | No Comments »

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