March 26, 2010
Filed under: CBI — Alan @ 2:36 am
The CBI announced today that Britain’s struggling manufacturers are able to compensate for the lack of demand in the domestic market due to the fact that the export books are the strongest that they have been over the last 18 months.
The organization stated that overall the growth of output is slowly fading, which is making many start to doubt how strong the economy recovery will actually will be.
Over a quarter of firms report that they will increase their production within the next three months while a fifth of the firms plan to reduce their overall output. This creates a +5 balance of percentage points compared to February’s balance of +7.
Due to the fact that UK overseas good sales have strengthened due to the weak pound, the CBI reported that the order books were starting to look better with 22% of firms back at normal and only 40% stating they were below normal. This balance of -18 points is the best it has been since August of 2008.
Despite the good news, the total order books were still unchanged with over half of manufacturers in the UK reporting they are below normal and a small 14% reporting their order books at normal.
CBI chief economic adviser, Ian McCafferty, stated that the survey shows that the export orders from the UK are starting to gain momentum as the international demand is starting to grow. He added that demand at home however is still very low which may impair the manufacturing output growth for some time.
Filed under: Business Finance — Alan @ 2:30 am
The chancellor announced a new set of measures that will aid grassroots economy in the recovery effort that includes additional lending for SMEs that totals up to around £45 billion.
The funding will come from the state controlled banks Royal Bank of Scotland and Lloyds under the terms of setting a capital growth fund so that firms that are growing fast may eventually increase their worth up to around £500m.
Alistair Darling stated that the measures are central to the new budget plans and ultimately they would help the government better back the finances of the nation. Darling said that the country cannot afford to take growth for granted and need to start acting as a launch-pad to help businesses grow and succeed.
Darling pledged that it would award more contracts to SMEs by 15%, reduce business rates so that 345,000 SMEs will not have to pay, double the threshold for entrepreneur relief up to £2m, and make the annual investment allowance £100,000 which is double its previous rate.
Additionally, the government will support SMEs by creating an appeals process that SMEs can turn to if they feel they have been rejected for credit unfairly.
Small firms for the most part applauded the new announcement and proposals but there was some disapproval shown at the fact that the government will still move forward with the plan to increase the amount that firms need to contribute in towards national insurance. According to the Federation of Small Business, the increase in national insurance could cause redundancies that total around 57,000.
March 25, 2010
Filed under: Business Advice, Employees — admin @ 1:48 pm
Rachael Floyd
Ensuring successful overseas assignments for employees is no easy task. The potential pitfalls businesses face are many – not least in terms of health and welfare.
Businesses frequently have to contend with a variety of issues from full scale medical emergencies to employees that fail to adjust to the cultures of foreign climes.
A study conducted by PMI Global, a new service which offers an integrated package of insurance and healthcare support for employees abroad, recently highlighted the need for a greater duty of care amongst many employers that assign staff overseas.
The survey of UK-based HR professionals revealed that 48 per cent of companies fail to conduct full health assessments of the destinations they send staff to, while 44 per cent don’t organise vaccinations for their employees, where required. A further 20 per cent of companies that send employees abroad for prolonged periods fail to provide them with international health insurance.
According to Rachael Floyd, PMI Global’s Operations Director and registered nurse, good planning is everything and precautions taken at an early stage can, quite literally, save lives. She has revealed 10 things that will ensure your staff are fit for business before they jet off on overseas placements.
1. Check to see if health insurance is mandatory. Hefty bills can result from medical problems abroad and so adequate cover is vital. When sending staff abroad for more than six months, you should provide them with international health insurance – for some countries, particularly in the Middle East, it is mandatory. If an employee is being posted to Saudi Arabia or Abu Dhabi, for example, residency visas and work permits are dependent upon having appropriate health insurance.
2. Business travel insurance is no replacement for International PMI. For short business trips, business travel insurance will cover urgent medical treatment with the additional benefit of insuring personal possessions and including limited kidnap and ransom cover. Policies have a maximum number of days that individuals can travel under them each year. As with the EHIC – which covers emergency healthcare treatment – cover is restricted and it should not be viewed as a replacement for an international medical policy.
3. Don’t rely on EHIC. In the European Economic Area (EEA) and Switzerland, the EHIC (the European Health Insurance Card) has a number of restrictions. It is not normally available if you are living in another country; it will only provide access to emergency, state-provided treatment and it doesn’t pay for emergency evacuation or repatriation. It can’t be viewed as a replacement for an international medical policy.
4. Seek professional advice: not all health policies are created equal. When arranging employee health insurance, don’t assume all international policies are the same – take expert advice. The flexibility of cover benefits, for example, is a key consideration. Maternity cover accounts for around 15 per cent of a premium and will be unnecessary for single male assignees. Excluding the USA from a worldwide policy meanwhile can halve premium costs.
5. Forewarned is forearmed when making a medical claim. In addition to the numerous financial considerations employees have to deal with, from setting up local bank accounts to arranging money transfers, they should also be aware of the medical insurance claims process. For out-patient treatment abroad, the employee will in most cases pay the bill and then claim it back from the medical insurer. Be sure to check what the insurers’ procedures are for outpatient claims are – how long will it be before the claim is paid back by the insurer, for example, does the claim require preauthorisation and will it be paid directly into the employee’s account? If a claim is paid by cheque, this can take 6 to 8 weeks to process abroad and employees should be mindful of this.
6. Ensure employees are fit to travel. A pre-travel health check can go a long way to ensuring employees remains fit and healthy while they’re abroad. A report on their state of health can enable staff to take control of their own wellbeing before they pick up their passport. Underlying medical conditions can be identified and addressed before travelling, with medical care received from doctors in a familiar healthcare system without language barriers. A pre-travel screening can also highlight any recommended working adjustments and reduce the risk of a secondment being cut short due to illness.
7. Don’t expose your business to the risk of an uninsured claim. Check the small print of your Employers’ Liability policy. Standard Employers’ Liability insurance does not normally cover staff working abroad for extended periods and country-specific policies may be required. In many countries it is a statutory requirement for an employer to have liability insurance to cover employees who are injured or contract a work-related illness. It is also advisable to conduct full health risk assessments on the destinations you send staff and fully brief them on the local issues before they set off.
8. Take steps to avoid preventable illnesses. An array of tropical diseases lie in wait for employees travelling abroad, from Cholera and Typhoid to Hepatitis and Yellow Fever. Vaccinations and anti-malarial drugs should be arranged where required but be mindful of the fact that many vaccines take several weeks to become effective. In the case of Yellow Fever, some countries in Asia require a mandatory International Certificate of Vaccination against the disease.
9. Healthy mind – healthy business: look after employees’ emotional wellbeing. Industry analysts suggest that up to 40 per cent of placements abroad fail due to psychological distress. Employees and their families often fail to adjust to foreign cultures, feel alienated or isolated but some simple steps can be taken to help ease the transition. Employee Assistance Programmes can offer employees access to confidential support, practical information and expert advice throughout Europe, Asia, Africa and North and South America. Studies show that for every £1 spent on an EAP, an organisation can recover anywhere between £3 and £20. For vital international placements, the return on investment may be even greater.
10. Protect your assets against extortion. Kidnapping of company employees is a very real risk and generates hundreds of millions a year in ransom payments for guerilla and criminal groups around the world. With UK government policy not to pay ransoms, employers should seriously consider Kidnap and Ransom insurance cover when sending staff to volatile regions particularly areas of Latin America, Asia and the Middle East. Security consultants are made available to protect your employee and provide practical help on the ground should a problem arise.
“Sending employees abroad can have a huge impact on their occupational development and help boost a business’s profile and standing oversees,” Rachael added.
“Moreover, it’s encouraging that, according to our research, a large number of UK companies are well equipped for sending employees abroad. However, for those that are not, the business and financial implications can be considerable.”
March 23, 2010
Filed under: Business Advice, Small business — admin @ 9:14 pm
Julie Meyer Online Dragon
Developing a new business can be a daunting prospect. As you work towards your goals independent guidance and support can be invaluable. As Britain’s small businesses look set to grow the UK economy in the next 12 months it is vital you are armed with the right knowledge to strengthen your business case. But whether you are a business which needs help cutting costs and managing resources or setting realistic objectives and exploring new areas – knowing where to turn can often be confusing.
We have a WebTV show (see below) featuring Online Dragon Julie Meyer, Founder and Chief Executive of Ariadne Capital, who is passionate about backing new entrepreneurs. She will be offering smart advice on how to put a good idea into practise and put together a formal business plan, she can help individuals take stock of their current state of affairs and see areas where they can afford to grow.
So whether you are a budding entrepreneur who needs some help getting your ideas off the ground or an SME business owner who is struggling to get further financial backing, there is help out there once you know where to look for it.
The show coincided with the launch of Barclay’s “Take One Small Step” business idea competition; in which ten SMEs in each region will win a prize of £50,000 each to help their development and growth. Send your questions into Julie who will be offering her expert advice on how you can take advantage of new initiatives.
Also see visit www.takeonesmallstep.co.uk
March 19, 2010
Filed under: Business Finance — Alan @ 6:30 am
UK SMEs have developed a new spirit fighting to navigate through their upcoming prospects in 2010, as well as the overall state of the economy. However, some may fall into the lower tier of the SME economy in terms of customer service according to research released from Cisco.
The 2010 Cisco Customer Kings report looked at how small firms deal with their customers and found that out of the 1,000 businesses surveyed, 61% reported that they are optimistic about the coming year with another 77% expecting the economy to take an upswing this year.
However, even though the UK SME landscape has developed a DIY attitude, many are in danger of becoming split between modernized firms and customer centric firms that will go up against those that are not willing or ready to be flexible to the needs of their customers.
Overall, 57% reported that they had begun to focus in on their customer service in order to make it through the recession, but a stunning 43% stated that they had not looked into better customer service which means that they may soon start to reap the repercussions.
The large gap between businesses that are not consumer centric and those that are becomes more dangerous due to the fact that now customers are willing to look for new suppliers compared to last year.
Five other attributes of successful SME businesses were also outlined in the report as being customer focus, e-commerce, business model, social media usage, and technology.
Filed under: Business Finance — Alan @ 6:25 am
During a meeting held in Emirates place in Abu Dhabi, UAE Minister of Economy, HE Sultan Bin Saeed Al Mansouri, and British Minister of State for Trade, Investment, and Small Business Lord Davis developed an effective mechanism to help increase cooperation between SMEs and a system to exchange data and experiences between the Emirates and Britain.
The move comes as a result of the UAE-UK Joint Economic Committee that met in London last October.
Mansouri stated that the new mechanism will help enhanse the way that SMEs perform in the UAE and the Ministry of Economy plans to use the SMEs in order to help support and hold up the national economy.
Throughout the meeting both parties took a look at how bilateral trade can be increased up to 12b pounds by the year 2012 and identified which sectors can be improved. The main sectors that will be needed to reach the target include industry, renewable energy, SMEs, innovation, and finance.
In addition, Mansouri said that both countries hold many opportunities and that the meeting was very productive and a great way to discuss the best way to address challenges so that the two countries can start to invest in each other.
Lord Davis also agreed that the meeting was productive and was a valuable way to build business relationships between the UK and the Emirates if both groups agree to work towards their goals under the established timeframe.
This was the second meeting that was held between the new joint economic committee of the UAE-UK.
March 18, 2010
Filed under: Business Books — admin @ 12:53 pm
Many of the world’s greatest businesses are family owned, but with this comes the threat of family feuding, sibling rivalries and petty jealousies. Family Wars, by Grant Gordon and Nigel Nicholson, is the dramatic story of the feuds and bust-ups that have threatened some of the world’s greatest businesses. It takes you behind the scenes on a rollercoaster ride through the ups and downs of companies such as Guchi, Ford, Gallo, Guiness and Pathak, showing how infighting has threatened to bring about their downfall.
‘Some of the most lurid business feuds of the 20th Century and their (usually) sorry aftermath…fascinating’
The Observer
‘The virtue of Family Wars is that it entertains through schadenfreude’
Financial Times
‘Rather than throwing up their hands in despair, the authors have come up with some principles for – if not avoiding – dealing with conflict when it arises’
The Independent
Family Wars can be ordered from Amazon.co.uk – see banner below for more information.
Filed under: Business Tools, IT — admin @ 9:22 am
Small office, Home office (SoHo) businesses are proving resilient and adaptable enough to weather the economic storm – and thrive. In the UK, there are approximately 3 million SoHos and SMEs, many working with overseas businesses, customers and suppliers. Vonage UK believes VoIP technology and in particular unlimited call plans, tick all the right boxes for these businesses.
Vonage suggeste that “part of Britain’s economic recovery will be driven by SoHos and SMEs, and they need to communicate effectively through portable landlines, with capped costs and unlimited calls. We see it as a phone line with no boundaries.”
Until now, however, there has been one major financial consideration for these innovative businesses: communicating with their customers, particularly if those customers are overseas. This is where Vonage UK, one of the UK’s leading providers of VoIP technology is helping.
“For small businesses international trade, cost effectiveness and flexibility are the keys to success and growth,” says Vonage UK’s Managing Director Vincent Potier. “Switching from a traditional landline-based technology over to Internet telephony to make unlimited calls to your international customers is a major cost benefit,” he adds.
Vonage UK has quickly established itself as a major player in the new wave of internet-based telecommunications, concentrating on flexibility and cost effectiveness, as well as outstanding customer service. “Business is changing, the ‘global SoHo’ network where small businesses work with each other around the world is becoming increasingly significant in the business world and Vonage UK is providing the communications solution to make working with customers and partners easier.”.
The flexibility of Vonage UK’s call plans means that distance is no longer a factor in call costs. Many of the packages offer unlimited calls between Vonage to Vonage set-ups, allowing a business operator in London to call its satellite office in Spain, for example, as easily as making a local call. The portability and ease of use of VoIP VoIP revolutionises communication within networks of remote workers and clients, opening up the possibility of working anytime, anywhere and with anyone across the globe – the idea of completely flexible working is now a reality.
But the innovations don’t stop there. Vonage also enables small businesses to have ‘virtual phone numbers’, which have local dialling codes specific to a particular country. This means a client can call a US number and get through to the business’s UK number without paying international calling charges. Vonage believes this will enable small businesses to deliver better service to their customers abroad and position themselves as companies with a global presence.
Website: www.vonage.co.uk.
March 16, 2010
Filed under: Business Advice, General — admin @ 12:30 pm
How green is yoru office? This subject is being put under the spotlight by green office design experts Morgan Lovell in a series of podcasts – which reveal that 45 per cent of UK carbon emissions are coming from our offices, as well as homes and public buildings.
The podcast is part of a series being produced bi-monthly by Morgan Lovell, where listeners can hear about the latest trends, technology and people in the world of sustainable office design.
This first episode includes an interview with Paul King of the UK Green Building Council, who gives some amazing facts about the carbon emissions of buildings. A tour of a sustainable workplace and insight from the public at large about the environmental credentials of their workplace are also featured.
To download the latest episode, log on to www.morganlovell.com/podcasts.
March 14, 2010
Filed under: Recruitment — Alan @ 3:35 am
New taxes may prevent over half of all small businesses from hiring more employees according to research from a new ICM Research survey and the Federation of Small Businesses.
The survey, which was conducted in January, showed small businesses have the want to grow in numbers but will need the correct conditions in order to get in the position where hiring new employees can be a consideration.
The survey also revealed that 64% of southeast businesses reported that taxes have negatively impacted their growth which is a view that was reiterated in the North with 60% agreeing to the impact of taxes and 59% agreeing in the London area. The overall average for the UK is around 58%.
The FSB is taking action by asking the government to stall national insurance contributions due to concern that the surge in employment that occurred during the holidays may soon end.
National chairman of the FSB, John Wright, stated that the employment figures from January saw many people able to return to work but due to the damage from the recession the figures after this period are expected to be much lower.
The FSB is urging the government to consider offering a rebate on national insurance for small businesses that have less than 50 staff members if they agree to take on new employees over the course of this year and next.
Wright continued to say that the UK economy needs some type of boost that will open up new jobs for people especially those who are under the age of 25 in order to start to recover from the fallout. The UK economy has seen a major increase in the use of job search engines, particularly those under the age of 25 that are currently out of employment.
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