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Archive for February 2011

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Many years ago I relocated a business. This went quite successfully - we didn’t let our customers down - but it came with a Union recognition claim! Something to do with forgetting to communicate with our employees!

Most serious small businesses will grow and so will come the time they run out of space. Key concerns include:

  • Fear that attention will diverted from the business
  • Disruption for staff
  • Uncertainty that the business will be able to sustain higher costs

So how to prevent these becoming reality:

  • Appoint a project manager - in a small business this may not be possible but it is essential that someone oversees every aspect of the move and is seen as reposible for it along with their day job
  • Start planning several months in advance
  • If possible stay local to minimise loss of staff and customers
  • Move during a weekend to reduce disruption
  • Ensure all data is backed up before the move
  • Involve staff in the dicision making wherever possible - COMMUNICATE
  • Have a contingency plan if something goes wrong or isn’t ready

If you need any further help contact us enquiries@emseff.co.uk  

The Taxman Cometh

The Taxman could be coming to an SME near you. Santa may have been, but the taxman might be coming as well.It is reported that HMRC believes that up to 40% of the 4.9M SME companies keeps poor records and thereby may have unpaid tax liabilities.HMRC says it intends to investigate up to 50,000 SMEs and heavily fine those caught out.Whoops – you can insure with your auditor for their investigation fees, BUT NOT for any fine

Happy New Year

Written by John Hill - Financial Specialist

Relief for Entrepeneurs

If you make a profit on a business asset which qualifies you for capital gains tax (CGT) entrepreneurs’ relief, you will only pay CGT at a rate of 10% subject to the new lifetime limit of £5 million of gains.

If on the other hand the asset does not qualify you are likely to pay CGT at 28%. Some difference!

Clearly any realistic planning moves which could ensure tax at 10% have got to be seriously considered. A number of ideas are now coming to the surface.

PAC - Productivity and Competativeness Framework

I have now qualified as a PAC analyst for the Sector Skills Councils. This is an offering to look at a business and determine areas where they might improve their Quality, Cost and Delivery (QCD). It is based on the 7 DTI measures of:

  1. Not Right First Time (NRFT) - internal and external
  2. Delivery Schedule Achievement - (OTIF)
  3. People Productivity
  4. Stock Turns
  5. Overall Equipment Effectiveness (OEE)
  6. Value Added per Person
  7. Floor Space Utilisation

Phil - Business Improvement Consultant

Burnout or Success

So you’ve had your brilliant idea and set up your business. Everyone knows the first year can be difficult and require a lot of time from the owner. But moving into the second year you’re still spending an inordinate amount of time on the business and as a result you have no life outside work!

This is not leading your business to success. A natural growth pattern requires you to develop an organisation for your business and recognise what you’re good at. If you’ve developed a strong organisation you can delegate the tasks that you’re not quite so good at. Further more you’ll be able to have some time off (plan it leaving precise instructions for circumstances that require contact with you) - success!

Now to the next stage of developing your success story.

BIT - a breakdown

 The NVQ qualification in Business Improvement Techniques is now under the new QCF (Qualifications and Credit Framework) and has become QBIT at Levels 2,3 and 4. The skills delivered in Business Improvement Techniques (BIT) are key LEAN tools which candidates learn and practice during their course. The businesses I work with find that these drive the individuals to find the hidden wastes and improve productivity. The subjects that can be covered are:

  • Health and Safety
  • Contributing to or leading effective teams
  • Applying workplace organisation techtiques (5’s)
  • Applying continuous improvement techniques (Kaizen)
  • Developing visual management systems
  • Carry out problem solving activities
  • Analysing and selecting parts for improvement
  • Creating standard operating procedures
  • Low Process analysis
  • Mistake proofing (Poka Yoke)
  • Set up reduction (SMED)
  • Applying Total Productive Maintenance (TPM)
  • Lead time analysis
  • Failure Mode and Effect analysis (FMEA)
  • Statistical Process Control (SPC)
  • Value Stream Mapping

Phil - Business Improvement Consultant

The Big Guys Might Be Using Your Cash

If you’re a small business you may not be surprised to hear that firms with 500 employees or more pay their invoices 35 days late were as firms with less than 100 staff pay 19 days late on average.

Large firms are improving their cash flow on the back of smaller suppliers – treating them as a source of free credit. Businesses are legally required to indicate in their annual accounts how long they take to pay bills but only 40% do so and there is no policing of this.

A similar big company trick is to change their terms of payment mid contract – the smaller firm has little choice but to accept. The danger is that the big guys may choose to stop trading with smaller enterprises – a lose lose.

The simple defence is get your invoices right including all necessary information and send it to the right person. This is better than threatening to charge interest which you’re entitled to do.

Written by Business Coach – Tony Brooks

Big Retailers May Not Exclude Small Businesses

A surprising statistic from one large retailer is that small firms supply ~20% of small children’s products they offer.

In addition it is believed that you don’t need to be in production. A good idea, a prototype and determination can be enough to get a chance of success. Large retailers believe small businesses bring innovation and freshness to their shelves. Furthermore they like to work with them and make them a success story.

There is a catch – don’t forget about safety standards. The big boys won’t thank you if they have a claim in fact they won’t touch you if you don’t comply with EN71 safety standard. Other tips are:

  • Know who to contact in an organisation
  • Learn the jargon of the buyer and do research on their range and prices.
  • Ensure you know your gross profit from your net profit and the cost price of your product
  • Be patient
  • Think hard if exclusivity is an option
  • Ensure you get paid (see other posting on this subject)

Resource That Brings Ideas and Costs Little

How many times have we heard the words “if only I had time I’d work on what would make a real difference to the business”. Provided this isn’t a winge or a figment of imagination and is a meaningful task then there is an answer and it won’t cost you much.

Work with academia!

Not a thought that springs to the minds of small businesses but there are bright graduates coming out of Universities and Colleges who have the feeling that anything is possible. So whether it’s introducing a person to work on the above task or help with developing a product or service check out the possibilities. It can be a win win! There’s more information at:

  • Knowledge Transfer Partnerships ktponline.org.uk
  • Eng. And physical Sciences Research Council epsrc.ac.uk
  • University College London ucl.ac.uk/advances
  • University of Leeds http://enterprise.leeds.ac.uk
  • Southampton University soton.ac.uk/business

A Spring Clean Helps You Stay Ahead of the Competition

One of the key things we do is help Companies change so as a result you’ll not be surprised at the title of this posting. An objection we hear a lot of is “but we’ve always done it like that” result alarm bells!Sometimes it is important to step back from your business to see the bigger picture. Stop and consider whether you need an overhaul. Ideas to spruce things up:

  • Get the whole firm involved
  • Make time to do admin jobs that are collecting dust
  • Create a proper database of you clients and update it regularly (consider a CRM system)
  • Assess running costs and set targets for reduction
  • Update your website
  • Do what you say you’ll do
  • Don’t forget people need sprucing up to
  • Set a date (6 months) to review the effect of changes

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