tag:www.simplybusiness.co.uk,2008:/knowledge/features//6 2008-05-01T11:25:06Z Movable Type 3.34 tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10349 2008-05-01T11:13:21Z 2008-05-01T11:25:06Z

While most small businesses take out insurance to cover them against losing assets and property, few realise that the asset that would have the most detrimental impact on the business if lost or destroyed is their digital data. Small business...

Rosie Beasley insurance to cover them against losing assets and property, few realise that the asset that would have the most detrimental impact on the business if lost or destroyed is their digital data. Small business IT support company zuuMedia suggests that 60% of businesses close within six months of losing their data. Given that a business is therefore at risk of folding should their data be lost, it is surprising that many SMEs assume that keeping data back-ups on the premises is sufficient fall back and that many more do not perform regular back-ups at all. Get business contents cover with your business insurance Digital data can be lost in a number of ways and so restoring it is not always as simple as loading up the back-up data onto the hard drive. Unexpected disasters such as power failures, power surges, fires, floods and also human errors can all destroy data permanently. In addition, the possibility of losing important or sensitive data is higher than ever, with the widespread use of laptops and portable data devices. Research from Office Answers shows that over a six-month period London taxis collected a total of 2,900 lost laptops, 62,000 mobile phones and 1,300 PDAs. The firm also notes that out of every ten laptops one gets stolen and 88 per cent of these are never found. The impact of either type of data loss will be profound. Even if sensitive data is backed up, its loss affects the reputation of the business and its staff and the security of its customers. Many businesses would find it difficult to operate without their data and potentially years of lost information. It is therefore vitally important that small businesses are aware of the risks and the consequences and that they take action sooner rather than later. All data should be backed up daily and kept off-site wherever possible, and the business should put into place a disaster recovery plan to ensure that it can keep going no matter what the circumstances it finds itself in. “Disaster recover is important, as is having a secondary back-up system that is off-site so you can restore the data”, says a representative from Small Business Computing. One of the core components of any disaster recovery strategy is assessing the risk and putting together the plan. According to the ‘Disaster Recovery Guide’, a business's disaster recovery plan is its most important component that may ultimately determine whether a business can survive after a data loss event. Moreover, disaster recovery plans should be understood by all employees so that action can be taken immediately when necessary. The key to an effective plan is to identify which critical business functions need to be restored and in what order. Employees responsible for each function should be fully trained as to their role in keeping the business up and running. Compare public liability insurance for small businesses "Hopefully, you will never have to use [the plan], but if you do, it can be the difference between the loss of your organization and its survival. It is therefore absolutely critical that it is workable - that it is of sufficient quality to guide you through the crisis. Shortcuts here are sheer folly," said the Disaster Recovery Guide. Off-site data back-up may seem like an expensive option for small businesses, however there are a growing number of suppliers that specialise in IT support services for small companies and individuals. It is simply a matter of finding a company whose service matches the needs and expectations of the business. zuuMedia for example, offers automated off-site back-up at small business rates, along with a number of other useful IT services including remote or onsite PC support. Even though off-site data back-up does a similar job to an insurance policy, a business should not forget about the actual insurance covers designed to help them recover from disasters. Business contents cover will help repair or replace office equipment including computers; there are specific covers for mobile equipment such as laptops and PDAs; and business interruption cover could help keep a business afloat if it finds itself unable to trade for a period of time. Small businesses can find out more about these insurance covers on the Simply Business website. Risk management and insurance intermediary firm, Willis, also offers a new range of products that protect against the recovery costs of data loss. The service is called CyPro and includes a number of features, such as financial assistance for companies in need of repairing a battered reputation. In summary, the small business should ignore the risks of losing data at their peril. Putting the right planning and protection in place will ensure that the business survives even if the worst were to happen. ]]> Get insurance for your small business now!]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10348 2008-05-01T10:50:51Z 2008-05-01T11:12:22Z

by Rosie Beasley Most of us have dreamt about leaving the boss behind and starting our own business, but for women only a few make it a reality. Are they wasting a golden opportunity? The answer is yes according to...

Rosie Beasley Rosie Beasley Most of us have dreamt about leaving the boss behind and starting our own business, but for women only a few make it a reality. Are they wasting a golden opportunity? The answer is yes according to the Chief Executive of the Small Business Service, Martin Wyn Griffith, who has found that one pound invested in developing a women’s enterprise provides a greater return on investment than a pound invested in developing a male owned enterprise. Top reasons for women wanting to start a business include having more flexibility to take care of family responsibilities and wanting a change of career. However the risk of having unstable income, a fear of failure and the difficulties of raising start-up cash prevent many from taking the plunge. Starting a business? Don't forget to buy insurance That’s why the government’s new business support facility – the Women’s Enterprise Taskforce – has been set up to offer support to women who want to start a business. There is now more help for women in business than ever before, and fewer reasons to prevent their entrepreneurial dreams becoming a reality. The Women’s Enterprise Taskforce Announced in February 2008 by Margaret Hodge, the minister of state for industry and the regions, the Women's Enterprise Task Force was created with the aim of channelling the entrepreneurial skills of women considering pursuing their own entrepreneurial activities. According to co-Chair, Pam Alexander, "our aim is to inspire and harness the talents and skills of potential women entrepreneurs and to do all we can to encourage them to prosper. "The benefits will be many and broad; firstly, realising the untapped potential of women's enterprise will make a dramatic and positive economic contribution to the UK's GVA." How can the taskforce help female entrepreneurs? According to the website, the taskforce will concentrate on these areas: • work with Regional Development Agencies to ensure women have access to high-quality, women-friendly support • lead joint action with banks to improve awareness of financing options for women entrepreneurs • improve the transition of women from benefit receipt to self-employment, • embed gender-disaggregated data-collection as a principle across Government and the regions, • raise and maintain the public profile of Women’s Enterprise in the media and with the public. Prowess Supporting the activities of 100,000 women every year, Prowess provides the tools necessary to access business support advice in their own area and also offer advice in a number of different areas, ranging from techniques for generating sufficient levels of capital, to providing advice on taking on the first employee. Key to the service they provide is a list of events and resources available in different areas of the country, along with networking facilities to help women connect with each other. Simple finance for new and growing businesses Other sources of help and advice There are many other websites offering support, information and advice for women in business. Some are regional, such as the Regional Women’s Enterprise Unit, and the Bedford University Centre for Women’s Enterprise and others cover the whole country, such as Women into the Network. Most of these organisations address the reasons that prevent women from starting a business, as well as advising them how to move forward with a business idea. Dilys Robinson, the principal research fellow at the Institute of Employment Studies (IES) believes that unless an individual's vocation is clear, it may be difficult for them to embark upon a business venture. She asserts that individuals without an established idea over the direction of their career will tend towards employment with a large organisation. However, according to figures released by the Female Entrepreneurship British Chambers of Commerce in 2004, there was an increase of 27% in the number of women who felt they had the skills to start a business. This number should have significantly increased today. Finding the funding For those women intent upon starting up their own business and in need of funding, Women into the Network notes the presence of a number of potential funding avenues, including information offered by the Bank of Scotland, Funding Information North East, government funding and the Business Enterprise Fund (BEF). The BEF helps businesses that have been turned down for finance by high street banks, and also helps those seeking finance from mainstream lenders. Taking the plunge With so many resources and support networks available for women, the way should be paved for many more to break away from full time employment or housewife status to make their mark on the business world. Having the wholehearted support of family and friends should also give female entrepreneurs the confidence to take the first steps towards business independence. ]]> Compare small business insurance quotes in minutes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10339 2008-04-29T11:22:43Z 2008-04-29T11:27:11Z

What is public liability insurance? This type of insurance would cover a business if a customer or member of the public was to suffer a loss or injury as a result of its business activities and if that person made...

Rosie Beasley What is public liability insurance? This type of insurance would cover a business if a customer or member of the public was to suffer a loss or injury as a result of its business activities and if that person made a claim for compensation. The insurance would cover the compensation payment plus any legal expenses. Why is public liability cover a good thing for customers? Even when a business does everything right there is always the chance of an accident happening. With the right insurance cover, a business can operate knowing that should the worst happen, their customers’ property could be repaired, their possessions replaced and their medical costs paid for. What is covered in a public liability claim? Policies are usually tailored to the individual business however as a guide, the insurance covers a business’s legal liability to pay damages to members of the public for death and injury or damage to property or possessions, which has resulted from the business’s activities. For example, if you hired a roofing company to re-tile your roof but they didn’t use adequate weather protection, resulting in severe water damage, you could make a claim against them for compensation to pay for repairing the damage. Public Liability Insurance ensures that the company can meet the cost of the claim, along with any legal expenses. Make sure the business you hire has public liability insurance Any business that has visitors to its premises or involves work on client sites needs public liability insurance. You should ask to see a company’s insurance schedule and documentation before taking them on. Other types of insurance you may wish a business to have … Employers’ Liability Insurance – any business that employs 1 or more staff must take out Employers’ Liability Insurance by law. This cover is designed to protect the interests of employees in terms of illness or accident at work. Professional Indemnity Insurance – if you hire a professional, for example an accountant or project manager, to work for you or your business you may wish to check that they hold adequate Professional Indemnity Insurance. This enables a company to meet the cost of claims against them for any of the following: • Any negligent act, error or omission. • Implied Statutory Terms (e.g. Sale of Goods Act 1979, Sale of Goods and Services Act 1982 and other similar legislation as well as Common Law). • Unintentional Infringement of Intellectual Property Rights. • Loss of Documents/Data entrusted to the insured. • Unintentional libel, slander, defamation. • Unintentional breach of confidence, confidential duty or misuse of information. ]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10270 2008-04-15T15:55:24Z 2008-04-21T17:50:16Z

by Rosie Beasley Most landlords would agree that there are times when renting out buy-to-let properties can get very expensive. It’s not just the void periods, property charges, agents fees and landlord insurance costs that pile on the financial pressure,...

Rosie Beasley by Rosie Beasley Most landlords would agree that there are times when renting out buy-to-let properties can get very expensive. It’s not just the void periods, property charges, agents fees and landlord insurance costs that pile on the financial pressure, but also those annoying emergency situations which cannot be planned for. As a landlord myself I understand this better than anyone. In the last three months the gas hob in my buy-to-let flat broke, the boiler broke and the washing machine leaked and flooded the kitchen. If these incidents happened in my home I would probably take my time and shop around to find a tradesman offering his services for a fair price. I might even have fixed the problems over the course of a few months to spread the cost. Compare low-cost landlord insurance quotes But when renting out a property, your tenants are paying you to provide them with a home in fully working order, which means that you need to get problems like these sorted out quickly. And this usually means at extra cost, especially for emergency call-outs. For me, it means getting the managing agent to bring in a contractor at what I suspect is not the cheapest price, and which results in a considerable shortfall in my finances when I have to make the mortgage payment that month. As a landlord you cannot rely on your tenant to look after your property as if it is their home. Therefore you can expect a higher level of wear and tear on your appliances and fittings, which will result in emergency situations happening more regularly than in your own home. My home boiler broke down last year, but that was the only problem I’ve had with it in almost 6 years of living in my house. The boiler in my rental property was brand new two years ago but it’s broken down already. Get the new Emergency Assistance cover when you buy landlord insurance Thus far there has been little that landlords can do about these situations. Dealing with them is just a part of the job and resulting costs should really be factored into finances as a contingency plan. But there is a type of insurance cover that may be the answer to some of the key emergencies which give landlords a headache. Emergency Assistance Insurance is a low-cost add-on to a regular landlord insurance policy. Its purpose is to give buy-to-let owners peace of mind that in the event of an emergency situation which could render the property unsafe or insecure, cause damage to the property, cause unreasonable risk and/or discomfort to your tenant or cause unreasonable difficulties for you, the situation will be dealt with quickly and at no cost to you. The cover will provide someone to fix the problem as long as the cost to do so is the same as the cost of performing a temporary fix. Otherwise the cover is mainly for situations where the problem simply needs to be made safe until a professional can be called out for a permanent fix. Emergency situations covered by this insurance are those which arise as a result of: failure of the plumbing or drainage system; the failure or break-down of the electricity supply system; failure of or damage to the property’s security such as damage to windows and doors or the locks not working; the loss of keys to the property which cannot be replaced and which would prevent normal access; and failure or break down of the heating system. While this type of insurance only covers the situations which would cause real problems for you, your tenants and your property, it is usually these which are the most costly. Holding Emergency Assistance cover will therefore give you some peace of mind once you have checked which situations are not be covered when looking over the policy documents. It can often be worse to think you are covered when you aren’t than to not be covered at all! ]]> Compare and buy landlord insurance policies in minutes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10269 2008-04-15T15:48:13Z 2008-04-15T15:54:16Z

by Rosie Beasley For a small business to grow and thrive it needs to have a strong base to build from. This base is created first with the development of a comprehensive business plan, and then with good finances and...

Rosie Beasley by Rosie Beasley For a small business to grow and thrive it needs to have a strong base to build from. This base is created first with the development of a comprehensive business plan, and then with good finances and a watertight business insurance policy. What will your business plan do for you? Most entrepreneurs put together a business plan of some kind when they start out, but only a really good plan will be constantly used throughout the first years of running a business and will be continually evolving to match the needs and projections of the business in the future. Without a business plan how will you know where you want your business to be and how you are going to get there? This is essentially what a good plan will do for you – it keeps you on course when times get tough. The cash flow part of your plan will ensure that you know where you stand financially at any given time; the marketing part of the plan will help you to keep an eye on your end game and also on your competitors; and the mission statement part will remind you why you started the business in the first place Business plans can also help you to secure the finance you need to get started, or if you are already up and running they can be useful for getting extra funding or the interest of investors. Does your insurance give you complete cover? Business insurance is a very broad term and many self-employed professionals and tradespeople don’t feel it applies to them. When striking out on their own many people don’t realise that they need specialist insurance or what types of cover are available. And the policy which you buy during your start-up period may not be enough to cover all your needs once you’ve been going for a while. Most business owners are aware that public liability insurance is important, but they may not be fully aware of the exclusions on the policy they buy, meaning that they might not be covered at a time when they most need it. Employers 'liability insurance is a legal requirement for any business that employs one or more people, whether on a full-time, part-time or casual basis. Lots of small businesses either don’t have enough cover or don’t have cover at all, which could earn them a serious fine. It could also mean financial ruin for a business if an employee wins a large compensation claim against it for an injury or illness that occurred during their employment. Other useful types of insurance are: professional indemnity, which covers a business from negligence or bad advice; stock cover; tools and equipment cover; cash cover; legal expenses; business related contents cover & commercial vehicle cover. Every year when you renew your insurance policy, check to make sure you are covered for all the relevant areas of your business activity. Will your business finances go the distance? Your cash flow forecast plan helps you keep an eye on your finances, but in order for your business to grow you need a stable financial base. Some businesses get this from their sales revenue, however many others need to borrow money in order to make things happen. Where you borrow money from and the type of lending facility it is can have a serious impact on your business. Banks are the obvious choice for borrowing business funds, however they are not necessarily the most stable as evidenced from the current credit crisis. Lending facilities from banks are also subject to interest rate rises and potential recall of the debt. If your funding comes from an investor, make sure their own finances and motives are sound. If they are only looking for a short term investment but you are planning long-term, you could find yourself short of finance when they buy themselves out. Asset-based lending can often be the most stable finance option in the early years of a business. An example of this is invoice finance, where a lender will advance money to a business based on their outstanding invoices. Because the debt is secured against the invoice and the invoice is due to be paid by a client, the debt will usually be repaid in a matter of months. Not only is this a more secure form of lending than taking a loan but it can also help stabilise cash flow because the business knows exactly when they will receive payments. ]]> Compare cash flow finance quotes in minutes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10268 2008-04-15T15:39:04Z 2008-04-15T15:46:41Z

by Rosie Beasley Small businesses have tight budgets and the marketing section of the business plan often gets shelved due to a lack of business finance. However the internet offers the business owner a fast and cheap way to connect...

Rosie Beasley by Rosie Beasley Small businesses have tight budgets and the marketing section of the business plan often gets shelved due to a lack of business finance. However the internet offers the business owner a fast and cheap way to connect with millions of potential customers. Here are a few ideas to get started … PR services If executed correctly, a public relations campaign can equal free marketing. Most small businesses think PR is just about sending press releases to newspapers and magazines but really it is about building relationships with the press and media with the view that they will quote you in their articles, publish your news stories or feature your products. The internet presents a new way for businesses to action PR campaigns. There are many sites which offer information and advice on putting together a plan and writing effective press releases, and many services are springing up which will shoot your press releases directly into the mailboxes of researchers and journalists who are looking for news from your industry. These services are chargeable but are still generally cheaper than advertising, as long as your news release is good enough quality to make an impact. Try a website such as www.responsesource.com to get started. Create a Website In this day and age every business should have a website, regardless of size or industry. It is very quick to get a website up and running, and there are a plethora of companies that offer website solutions for a reasonable price. Companies such as www.moonfruit.com or www.homestead.com give you the simple tools to build and maintain a website for a small monthly fee. When creating your site remember that even if it will not be used for e-commerce, its purpose should still be to generate sales for your business. Some businesses set up a website and then forget to give their address and contact details! Getting found on the web Once you have a website you need to put constant work into promoting it on the internet so that your customers can find you. Search engines are the single most important source of traffic for your site, therefore you need to try and get your website listed in the search results. Search Engine Optimisation: Optimising your website to rank highly in search engine listings can be complicated but do not immediately turn to an expensive agency to do it for you as there are certain rules you can follow that will get you started. For example, when you build your website, ensure that the links between pages are text rather than images, so that they can be followed easily by the search engine’s indexing programs. There are free SEO tips to be found all over the internet at sites such as www.stonetemple.com. You should also aim to generate links to your site from other quality websites, for example your clients or suppliers’ sites, as this is the most effective way of giving you credibility with the search engines. Content: the more relevant content put up on your website, the more likely it is that those pages will be picked up in search engines. Content can be anything which is relevant to your business such as product guides, articles, reviews, directories etc. Updating your content regularly will also benefit your customers and encourage them to make return visits. Directories: as well as search engines, internet users also look for businesses in directories. The most well known example is Yell.com, however there are now more industry specific and community-based ones springing up such as beerintheevening.com for pubs or squaremeal.co.uk for restaurants. Some of these sites will list your business for free and charge only for an enhanced listing. Local councils also run tourist and information websites where you can list your business for a minimal fee – these sites are ideal if your sales come mainly from customers living in or visiting your area. Social networking: piggybacking off the success of facebook and myspace, there are now social networking sites for businesses springing up all over the internet. Recent offerings include linkedin.com, unltdworld.com, bview.co.uk, and a1businessforums.co.uk. Paid search: despite the much stronger competition and resulting higher prices, paying for ads on search engines is still the fastest and most cost-effective way to get your business seen on the web and to start generating traffic for your site. Google Adwords will get your advertisement up on its search results pages the same day, however it is constantly evolving the ranking criteria so close monitoring is vital. In addition to the price you bid at, your ranking is also currently determined by the relevancy of the ad wording to your landing page content and the relevancy of the ad wording to your keywords. Similar paid search advertisements are also available on msn, miva and Yahoo. Easy e-commerce Setting up a good online shop can be expensive, but if you want to extend your business to offering online sales there are other options. Ebay for example, allows you to set up your own branded retail space on their site for a reasonable fee. Email Compared with advertising online, email marketing is a low-cost option. The first step is to build a database of contacts through your website and other marketing activity, perhaps by offering a monthly newsletter or special offers by email. An email service such as cheetahmail.com or jangomail.com will give you the software and support you need to send out bulk emails in html and text formats from as little as £15 per thousand depending on the level of service and volume of emails. Analytics Analysis of your web traffic is perhaps the most important part of managing your website. With a good web analysis software you can track not only how much traffic is visiting your site but also which pages they look at, which links they click on, which pages they leave the site from, where they have come in from (ie. search engine or link from another site) and how many positive actions have been taken (such as a sale or enquiry). All this information helps you to improve and hone your site to suit the needs of your customers and to get the most sales. There are some free website analysis packages available. Google Analytics is the most comprehensive free software – to get started it simply requires placing some code in your web pages. ewebcounter.com is another company that offers free web stats to small businesses and not-for-profit organisations. Simply Business does not recommend or endorse any of the websites and companies given in this article. ]]> Compare small business insurance quotes in minutes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10267 2008-04-15T15:04:17Z 2008-04-15T15:28:18Z

by Rosie Beasley The cost to the British economy of residential fires is around £7.03bn in total, with around £2.5bn of that attributable to the consequences of fire. The average cost to a landlord of a fire in a rental...

Rosie Beasley by Rosie Beasley The cost to the British economy of residential fires is around £7.03bn in total, with around £2.5bn of that attributable to the consequences of fire. The average cost to a landlord of a fire in a rental property could be exponential. It may start with the re-building or re-decoration of the property but could end with a large compensation payment to a tenant if the fire was proven to be the landlord’s fault. Taking out comprehensive landlord insurance is the only way to ensure that a fire in your rental property doesn’t turn into a financial catastrophe. There are covers available that could help you re-build the property (Buildings Insurance), re-furnish the property (Contents Insurance), house your tenants while the property is uninhabitable (Loss of rent), cover any void periods (Tenant Default), cover compensation payouts for injury to tenants or your legal costs if claiming damages from them (Public Liability). Choose from a range of landlord insurance quotes in minutes In short, a good landlord insurance policy will stop your investment going up in smoke. However while being insured is important, taking measures to prevent a fire happening in the first place should be a landlord’s first concern. There are downloadable guides available from the government, which you and your tenants should read. They will help you be more aware of how fires can start and how they can be prevented: Fire Safety in the Home Fire Safety for students in rented properties Being aware of the main cause of a fire can help you take steps to prevent it. These are the top 6 causes of fire in the home: 1. Accidents while cooking 2. Electrical equipment or wiring 3. Arson 4. Candles 5. Smoking and matches 6. Heating appliances/equipment and domestic fires Accidents while cooking The top three causes of fires from cooking are the grill pan catching fire, a pan of fat or oil catching fire and leaving something too close to the hob, which then catches fire. Obviously you cannot keep an eye on your tenants while they are cooking, so it is important to supply them with the materials to stop a kitchen fire from spreading. You could post up instructions near the stove for putting out different types of fire, and point out the location and instructions for any devices such as a fire blanket or fire extinguisher that you might have installed. When installing kitchen appliances, you might wish to have an electric hob and oven rather than gas, as it makes it more difficult for an item left near the stove to catch fire. Compare and buy landlord insurance policies in minutes Electrical fires Ensure that any electrical wiring you’ve had done on the property comes with a warranty and have all electrical devices professionally checked annually. You cannot stop tenants from using their own electrical equipment however it may be worth providing enough electrical sockets in the bedrooms and living area so that extension cables don’t become overloaded. Candles Many landlords state in the tenancy agreement that use of candles in bedrooms and living areas is forbidden. While it is difficult to check that tenants are adhering to this rule, if there was a fire and it was proven to have been started by a candle you would at least have some case for claiming damages from the tenant. Smoking Again, many landlords specify non-smoking tenants when renting out their property and put this in the tenancy agreement, however this doesn’t account for the behaviour of visitors or for the tenant sticking to the rules. Heating appliances It is the landlord’s responsibility to check that all heating appliances are electrically sound and that any open fires are regularly chimney-swept and have adequate safety guards. Boilers should be checked annually by a Corgi-registered gas-fitter. Use of Smoke Alarms and other preventative measures Just 80% of households had a working smoke alarm in 2004. Landlords would be wise to fit a smoke alarm in every room of a rental property if it is large, and in the main communal area and hallway if small. Make sure your tenant is with you when you test it, and show them how to test it themselves. Your smoke alarms should be listed on your inventory as in working order and as having new batteries (if battery powered). Soft furnishings combined with smokers or candles can be a lethal combination. Be aware that all your furniture must be non-flammable or fire resistant and comply with the Fire and Furnishings Regulation 1993 Act. Many new-build properties these days have windows that don’t open all the way. If the windows in your rental don’t make for easy escape routes in case of fire, ensure that your tenants know the best way to leave the building. If your windows do open all the way and your property is an apartment on the first floor or higher, it may be worth investing in some kind of rope or extendable ladder. For more guidelines on health and safety measures in rental properties visit: http://www.london-fire.gov.uk/fire_safety/in_your_home/landlords.asp ]]> Compare a range of landlord insurance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10146 2008-03-17T15:09:19Z 2008-03-18T11:10:21Z

by Rosie Beasley “Today I also want to do more to support Small and Medium Enterprises now and in the longer term. 13 million people work in Small and Medium Enterprises. And there are over 750,000 more firms than in...

Rosie Beasley by Rosie Beasley “Today I also want to do more to support Small and Medium Enterprises now and in the longer term. 13 million people work in Small and Medium Enterprises. And there are over 750,000 more firms than in 1997. I believe we can help support them grow their businesses, creating new jobs and opportunities.” This was the word from Alastair Darling in his first Budget announcement as Chancellor. Yet despite the proposed investment of millions towards “simplifying” tax and administration, enabling better access to finance and encouraging enterprise, it is uncertain whether the majority of small businesses will actually see any benefit. Instead, more impact will be felt from the increases in tax and duty, some of which – National Insurance increases, for example - were not highlighted in the Commons speech. With its heavy focus on environmental taxes the government has alienated those businesses which rely on transportation to operate. Although the expected fuel duty increase has been postponed until October, this will make little difference to businesses which are already facing increased running costs from high petrol prices and now from emissions related tax. Tony Barker, owner of joinery business Tony Barker Ltd, said: “Tax on 4x4 [is a concern]. No account has been paid to how this will affect farmers and business owners who need these vehicles. The fuel duty is being raised in October with scant regard to how businesses are being affected by high fuel costs.” As well as increasing the day-to-day running costs of the business, Mr Barker suggests that it will end up being harder to maintain a competitive edge against larger businesses which can more easily absorb any higher taxes. He said: “Quotations for work evolving in the near future are falling foul of increased costs and it is difficult to move ahead in business.” In addition to fuel and emissions taxes, small businesses will also face an increase in corporation tax from 2009, which will take the rate up to 22%. The Budget announcement glossed over this and focused on the reduction of main corporation tax to 28%. Overall there is a general feeling amongst small business owners that the government is not doing enough to support them. Mr Barker gives the following example from his own experience: “CIS tax rules are classing the high ratio of material prices to low site work labour costs as errors [but] when investigated and it is proved that off site costs are high and on site costs are low by proportion, the error disappears but a penalty is still charged. This happens even when no further tax is due. The emphasis is on claiming penalties.” The upshot for the Labour government is that they will now have an uphill struggle to gain the support of the small business owner when election time comes around in 2009. For the small business owner, the struggle to keep their business alive has already begun. ]]> Compare small business finance solutions]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10140 2008-03-17T14:14:17Z 2008-03-17T14:25:16Z

by Gee Sahota Whether you own one buy-to-let property or have an impressive portfolio of rental properties to your name, protecting your investment with the right landlord insurance should be a priority. But how do you get the cover you...

Rosie Beasley by Gee Sahota Whether you own one buy-to-let property or have an impressive portfolio of rental properties to your name, protecting your investment with the right landlord insurance should be a priority. But how do you get the cover you need and save money at the same time? Landlords must buy specialist insurance for buy-to-let properties - regular home insurance for residential properties will not cover you when your property is being used to make an income through letting. Fortunately for the modern landlord, there are a variety of covers designed specifically for rental properties – and several websites that can help you make light work of comparing policies and prices. Keep your property priorities in mind When looking for an insurance policy, have in mind your requirements for the type of property you own. Every landlord has different priorities and so it is important to find cover with a reputable insurance company that offers cost-effective insurance and which can efficiently deal with any claims. When you know you have the right cover, you’ll have peace of mind in that if anything upsets the running of your property, whether it’s a fire, flood damage or defaulting tenants, you won’t lose out on your investment. Shop around for the best deals In order to find the right landlord insurance and save money, it is important to compare policies from several different insurance companies. The most convenient way to do this is to visit a comparison site where you can not only view the costs of the available policies but also view the documentation. Simply Business, for example, not only lets you compare live quotes but you can view the policy documents and buy your chosen cover online in just minutes. Their UK based contact centre staff can also talk you through the quotes to help you make the most informed decision. When looking at different covers and the cost of policies, it helps to know what factors will affect your landlord insurance. Some of the major factors that are taken into consideration when calculating your premiums include: • The location of the property (postcode) • The cost of re-building the property • The type of tenants in the property • A history of claims • The age of the property • The type of property (flat, detached, terraced etc) Here are some top tips to get the best quotes for your landlord insurance cover: Make sure you state the correct Buildings Sum To ensure you are paying the correct premium, make sure that the ‘Buildings Sum Insured’ amount you state on the form reflects an accurate cost for the rebuilding of your property if it is completely destroyed. This is not the same thing as the market value of your property – the re-build cost is generally lower. Remember, the higher the re-build cost the higher your premiums will be. The best way to find out is to get a professional survey of the property, or if you haven’t had one recently visit the Association of British Insurers who will assist you in calculating the correct figure. One policy to cover them all Whether you have one property or ten, you should be able to buy one policy which covers them all. This is convenient as you have just one common renewal date and it can save you money without compromising on the level cover you will receive. If you currently have a different policy for your each of your properties, you can start the policy with the next one which comes up for renewal and then simply add further properties to the policy as and when their insurance becomes due for renewal. Try to get tenants with a professional occupation Professional tenants in full time employment can make you some remarkable savings on your landlord insurance premiums as you will have a wider choice of insurers to choose from. If your property is let to an individual on income support, an asylum seeker, a student, or if your property is let to a Housing Association or Local Council it may affect your choice of insurer and therefore increase your premiums. If the property is to remain unoccupied for any length of time this may also affect your policy. Make sure your property is adequately protected Did you know that it’s possible to save up to 10% on your premium if you have an alarm fitted into your property? Although it sounds like common sense, you’d be surprised at the number of people who overlook adding security to their rental properties. You should also be vigilant about other measures such as security of general access points, and the quality of window and door locks. Other factors The price of your landlord insurance may also be affected by other factors such as the type of property. For example, if you own a flat on a leasehold basis you may not need to pay buildings insurance as this is sometimes covered by the freeholder. Some other properties are regarded as higher risk, such as bed-sits. Landlords should also watch out for exclusions in the policy. Purchasing cheaper insurance can sometimes mean that you are not covered for all the eventualities you require. A service such as Simply Business will allow you to view the policy documents for each quote, which clearly state whether there are exclusions you should know about. In summary, to save money and also get the right cover for your buy-to-let, it is important to have as much accurate information about your property as possible and to shop around for the best quotes. ]]> Compare low-cost landlord insurance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10139 2008-03-17T11:59:13Z 2008-03-17T14:12:35Z

by Gee Sahota There appears to be little doubt that global warming has played a significant role in changing the face of our weather. But while some buy-to-let investors’ rental properties will not be affected by the weather, for others...

Rosie Beasley by Gee Sahota There appears to be little doubt that global warming has played a significant role in changing the face of our weather. But while some buy-to-let investors’ rental properties will not be affected by the weather, for others it is a serious concern, especially when their property is located in a flood risk area. It is estimated that at least 5 million people in the UK live in flood risk areas, having to deal with the unexpected and often devastating problems a flood can bring to their property and lives. Vulnerable regions include the West and South West of UK, which have suffered considerably in recent years. From Abergavenny in South Wales to Tonbridge in Kent, many homes were flooded from last summer’s mammoth rainfall, whilst hundreds more were at risk. According to the Environment Agency, at present 2.3 million homes and 185,000 businesses are at risk of flooding in England and Wales representing property, land and assets to the value of £200bn. This means that around 10% of houses in England are at risk of flooding. The devastating floods of 2000 caused damage to 10,000 properties and the total cost to insurers was nearly £1bn. With storms and resulting floods a growing problem in the UK, it makes commercial sense for a landlord not to purchase a property in a high risk area. However, if the pros outweigh the cons as far as an investment is concerned, it is then highly important that your landlord insurance covers you in the eventuality of excessive water damage to your property. Often this cover is difficult to find and the premiums can be expensive. There are varying levels of flood risk and so you should check whether your property is located in a medium to low risk area. If it is, then finding insurance shouldn’t be as much of a problem. However, homes situated in a flood plain area can represent a major or even unacceptable risk for the insurance companies to take on and so finding flood plain landlord insurance can be an uphill struggle. However, it's not all bad news. In reality few homeowners in high risk areas are ever left without insurance altogether, although they usually have to negotiate special terms with insurance companies to access cover. Insurance companies these days are more aware of the problem and have more accurate data at their fingertips. The Environmental Agency has been able to formulate a flood risk map for England and Wales, allowing insurance companies to pinpoint with greater accuracy the flood risks attached to individual properties in the UK. It gives an overall assessment of the risks to homes from swollen rivers and coastal areas prone to flooding. It was this data that enabled 100,000 homes in the UK to have their ‘at risk’ status removed, and there's no question that these properties now enjoy much cheaper home insurance because of this. If you are considering investing in a buy to let property and are concerned about it’s location you can visit www.environment-agency.gov.uk to assess the risk of flooding from rivers and seas to your prospective purchase. The information can also be obtained from the Agency’s 24 hour Floodline service on 0845 9881188. Even if your property faces some risk, not all properties in these areas will flood. If you already have a buy to let property or are considering buying a property in a Flood Risk area, here are some tips about how to get the best price on insurance: Compare quotes with a lot of different insurance companies and speak directly to them or to a broker to find out where they stand on insuring flood risk properties. You can make your property less risky to insure by taking some measures to protect the property, even if it has never flooded in the past. For example you can buy personal flood water defence systems that protect doors and openings to your home. If you do buy these, make sure they have the BSi kitemark accreditation. Other proactive things you can do include installing non-return valves on drains and covers for air-bricks and looking into different types of water barrier for your property’s boundaries. Also, check any future plans for flood defences in the location of your property. It could be that measures are in hand to reduce the risk of flood to homes in that area. Although this won't guarantee 100% protection it will reduce the risk of flooding considerably and could help to reduce home insurance premiums. In the event of water damage to your property, be aware that mould may be present which can present a health risk to your tenants. Even if the flood water has drained away it is not immediately safe for anyone to move back into the property. Taking out insurance to cover Loss of Rent may provide a back-up plan if the worst happens, helping you to accommodate your tenants and cover costs during the claims and repair process. When considering the purchase of a property investment in a flood risk area, look out for signs of flooding: there will most likely be obvious water damage in some parts of the building plus potentially sewage back up, plumbing issues, overflows from inks and bathtubs, paint that has stripped off the walls and damp. These issues could also have been caused by a major rainfall, which should raise a warning flag. The bottom line is that a property investor should be aware of all the pitfalls involved with owning a property in a flood-risk area, and make a carefully considered decision based on the availability and comprehensiveness of insurance as well as the on flood history of the property itself. ]]> Compare low-cost landlord insurance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10138 2008-03-17T11:42:17Z 2008-03-17T11:55:43Z

A business is like a well-oiled machine. It has many parts which work together to create something special. Some of these parts are large and obvious, while others are small and unobtrusive. Often it is the obvious aspects of a...

Rosie Beasley A business is like a well-oiled machine. It has many parts which work together to create something special. Some of these parts are large and obvious, while others are small and unobtrusive. Often it is the obvious aspects of a business that are taken care of first, but think – would your business survive if some of your smaller assets were lost, destroyed or stolen? Public liability insurance is one of the first forms of protection that businesses look for. And quite rightly, as a big compensation claim from a member of the public could financially cripple a small business – potentially to the point where it can no longer operate. Public liability gives you peace of mind that no matter what type of activities your business is involved with, as long as you’ve done your best to ensure proper practices and health and safety regulations are followed, you’ll be covered. Professional indemnity insurance is another obvious cover. It protects you from yourself! Or more specifically, it protects your business from negligence by you or your staff in dealings with clients – dealings which definitely would be considered large cogs in your business wheel. PI cover might not protect your business’s reputation but it could certainly help keep the business afloat by covering compensation payments and legal expenses. Another big issue is with making sure your workplace is secure. If you work from a home office, you should have taken out special insurance in addition to your residential buildings and contents cover. If you own your own office or warehouse space then buildings insurance is vitally important. Likewise if you work out of a vehicle, you need to get commercial vehicle cover. These big issues are very important, and it would be unwise to run your business without them. What is less certain, however, is whether you could continue working without some of your smaller business assets. Take your electrical office equipment for example. Buying a full set at a good specification isn’t cheap, and depending on the type of business you own it can equate to quite a lot of machinery including printers, scanners, software, audio equipment, fax machines, photocopiers as well as your computer and monitor. If it was stolen or damaged, it would be costly to repair and no doubt it would set your business activities back considerably. If you are a skilled tradesman, the tools you use every day can be even more costly and vital. If any key items broke down or were damaged they would be expensive to replace and it might take a long time to order more from the manufacturer. Tradesman’s tools are also easy targets for thieves – especially when they are stored in signature white vans or garden sheds! Without these small but important tools a tradesman would be out of business. Shop owners would also be out of business for days if thieves broke in and stole stock, cash or damaged fixtures and fittings. If the shop needed a complete re-fit it might take weeks and would be very costly. These small things can easily be overlooked in favour of the big issues when considering which business insurance covers to buy. This is especially the case when including them on the insurance policy would mean extra expense. However the protection of tools, equipment, stock and business contents is equally as important to the welfare of a business as public liability, employer’s liability and buildings cover. Adding this extra insurance to your business cover may seem daunting, but actually it can work out to be lower-cost when all the covers you need are incorporated into one policy. Simply Business offers a range of industry-tailored, all-in-one policies from leading insurers, providing an unrivalled choice of price and cover to owners of almost every type of business. ]]> Compare tailored business insurance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10137 2008-03-17T11:17:45Z 2008-03-17T11:35:57Z

When you first start up a business, your workspace isn’t the first thing on your mind. More important issues are buying the necessary tools and equipment, putting in place the right processes and then going out and getting customers. But...

Rosie Beasley When you first start up a business, your workspace isn’t the first thing on your mind. More important issues are buying the necessary tools and equipment, putting in place the right processes and then going out and getting customers. But once things are up and running, you can then concentrate on your physical environment as well as what happens within it. For some people this environment is a desk in their home; others will have a workshop or warehouse. It might be a shop, restaurant or pub – or if you are mobile, your workspace might be your car or van. For tradesmen it is likely to be a construction site or a client’s home. Either way there will come a time when in order for you to work most efficiently, your workspace will need an upgrade. New computer equipment, tools, furniture and even paint are expensive and require a sizable cash injection. Likewise, if you are planning to rent office space you will not only need a deposit but regular money coming into the business to cover daily and monthly overheads. Therefore the problem lies with finding the finance, especially if the revenue you are earning often comes in late from clients who have delayed on paying their invoices. What about an overdraft? So, what about taking a business overdraft? Well, this can be a good solution in the short term but it is an easy way to dig your business into debt. Overdrafts are an unstable form of finance for businesses due to the fact that the bank can recall the debt at any time, or reduce your limit after reviewing your business finances. If your workspace overhaul would include purchasing of new equipment you should beware of funding this with an overdraft. Because of the repayable on demand aspect of this type of loan, it should only be used for working capital. Or a more stable type of finance? If your business is profitable but you just don’t have access to ready cash due to cash flow issues, the answer to funding your workspace improvements could be invoice finance. Invoice finance is a form of lending, but unlike a standard business loan, the cash advanced to you is secured against money your business has already earned and is owed. Invoice finance providers see your outstanding invoices as assets, against which they will lend money because they understand it will be paid back within a relatively short period. Taking out an invoice finance facility primarily helps you stabilise your incoming revenue, so that you can plan for spend on overheads, and any large sums that need to be paid out – for example on upgrading your tools, equipment or premises. Factoring or Invoice Discounting? There are two options to consider: Factoring and Invoice Discounting. With both options, the lender will advance a percentage of the value of a business’s outstanding invoices – up to 95% - sometimes within hours of the invoices being issued. The cost of the facility lies in the service fee and on interest charged on the advanced cash. When the client pays the invoice, the outstanding balance is settled and the debt cleared. Many smaller businesses choose Factoring because in addition to getting their invoices paid on time, the provider can also take on the management of their sales ledger. The removal of such a time-consuming part of running the business can be a blessing for business owners who would rather concentrate on building relationships with their clients than pestering them for payment. Invoice discounting works in a very similar way to factoring except that the business maintains control over the sales ledger. This makes it a more attractive option for larger businesses which often use the additional finance to fund investments and buy-outs. Factor your finance into your business forecasts Other forms of finance include business credit cards, loans and commercial mortgages if you wish to buy your own premises. However, the amount of the repayments and the length of the loan could be crippling to a business if not accounted for in cash flow forecasts and the business plan. Don’t forget to include any expenditure on workspace and equipment upgrades in your business plan, and add any regular payments to your cash flow forecast. In doing so you will be able to avoid any nasty surprises down the line. Then, all that’s left is to settle back in your new office chair, with your feet up on your new desk and a cup of tea in your new mug. And then workout how to use your shiny new high-tech equipment! ]]> Compare small business finance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.10133 2008-03-17T10:49:16Z 2008-03-17T11:14:59Z

For some business types, for example retailers, manufacturers or office-based companies, there will come a time when it makes sense to consider giving up renting premises and buying your own. The current property price dips are also being reflected to...

Rosie Beasley For some business types, for example retailers, manufacturers or office-based companies, there will come a time when it makes sense to consider giving up renting premises and buying your own. The current property price dips are also being reflected to some degree in the cost of commercial property so this year could be the time to take the initiative. So how do you get started? This is a quick, general guide to buying a commercial property, which should always be followed up with professional advice. What is a commercial mortgage? A commercial mortgage is not dissimilar to a residential mortgage, however the lending criteria will be based on your business finances rather than your personal income. Commercial mortgages run for between 5 and 25 years, the length of which usually determines the interest rate you will pay. Most lenders will expect to receive 20%-30% of the asking price as a down-payment, so you may need to look into other finance options, such as factoring or loans if you are short on capital. If possible, it is a good idea to form a separate business entity before purchase so that you can lease the building to your operating company once the property completes. This separate entity should arrange for a non-recourse mortgage for the purchase of the property by your operating company. Doing so would go some way towards protecting your operating business if it defaults on the mortgage. It is advisable to consult your accountant or tax advisor on this subject. There are pros and cons to buying a commercial property: Advantages: • Your mortgage repayment is likely to be similar to a rental payment on the same property • You aren't exposed to any hefty rent increases • You may be able to sub-let any free space, although you will almost certainly require permission from your lender to do so • Interest payments on a commercial mortgage are tax-deductible and any gain in value of the property will increase your capital • It improves cash flow management as the mortgage payments can be pre-set • Retail properties sometimes come with residential apartments or office space on the floor(s) above. This could be rented out, or you could sell your residential property and move into your commercial property. Disadvantages: • Unlike renting, you'll need to come up with a substantial deposit - this is money that might otherwise be used for more important business purposes. • If you own premises you may find it harder to relocate your business, because selling business premises is not always easy. If you rent, you may be able to negotiate to end your rental agreement, or to find another organisation to take over your tenancy. • If you have a variable rate mortgage, you are exposed to increases in interest rates. • Owning a property means you'll be solely responsible for things such as maintenance, fixtures and fittings, buildings insurance, decoration and security. • Any loss on the value of the property will decrease your capital. Simply Business can provide quotes for commercial mortgages, as well as landlord's insurance and small business insurance. ]]> Find commercial mortgages online]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.9788 2008-02-18T15:51:29Z 2008-02-19T16:21:15Z

By Rosie Beasley Winter 2007/2008 recorded bumpy sales figures for the retail industry as a whole. Most recently, reports are showing that sales are up for January 2008 by 2.6 percent, however some experts predict that the upturn won’t last....

Rosie Beasley By Rosie Beasley Winter 2007/2008 recorded bumpy sales figures for the retail industry as a whole. Most recently, reports are showing that sales are up for January 2008 by 2.6 percent, however some experts predict that the upturn won’t last. Yet independent retailers will not necessarily be influenced by what is happening across the industry – what most concerns the local clothing, book and convenience store owner is how their own sales are performing. Fortunately there are proven ways to increase profits, which shops can implement quickly and easily. Some convenience stores have reported increases of 10% just from using a combination of these methods. Planograms Many manufacturers, suppliers and brands offer detailed marketing documents called planograms to help retailers maximise sales. These are documents containing information designed to encourage you buy and help you sell-on their products, so they can be quite biased. However, if used in conjunction with your own experiences and customer knowledge, they can be a valuable tool for improving the way you order and for presenting your products in-store. Planograms generally contain useful information such as the most popular variations of a certain product and the best selling brands within that product group. For example, they might give you the market share figures of their instant sauces by type (Chinese, Indian, Italian) and by brand (Sharwoods, Chicken Tonight, Lloyd Grossman). The planogram will tell you what you should stock and which sizes/weights work best for your shop size; recommend merchandising tactics like how much space you should allocate to each product; offer insights into the type of customers that buy the products and their motivation for buying; and offer ideal store layouts based on this information. Using the information within the planogram can really help a shop to identify which are the best products to stock from each category and to improve store layouts and merchandising. Stock fluidity It is easy to fall into the trap of buying the same brands all the time and offering customers the same choices, but regular performance reviews of your stock can make a big difference to your sales. For example if you know a certain product is selling well, you could introduce a wider choice of brand or type within that category to see how customers respond. Monitoring performance of stock also enables you to identify when to discontinue a line, and in doing so you can trial other items. You could also find out from your customers whether there is anything they would like to buy from you which you don’t currently stock. The ability to offer more choice is what may ultimately differentiate you from the competition and keep your customers coming back. Non-food seasonal lines These days there are many opportunities to sell non-food seasonal lines, and the number seems to be growing each year. Valentines Day has just passed, Mother’s Day is around the corner, quickly followed by Easter, Father’s Day, then summer, back-to-school, Halloween, Guy Fawkes Night, and all too soon it is Christmas again. Depending on the type of shop you own and its location, you can also benefit from ethnic holidays such as Eid, Divali & Chinese New Year. Due to the fact that margins are bigger on non-food lines compared with other products, these opportunities are too good to be passed over. Items such as cards, teddy bears, picnic sets and Halloween accessories are all good sellers and any excess can be used again the next year. Customer Service The importance of customer service for an independent store cannot be emphasised enough. Welcoming a customer as they enter the shop – by name where possible – and offering service beyond the normal call of duty will keep customers returning for years to come. Cheerful and polite staff will make a customer’s experience in your store better and therefore they may come more often and spend more money when they do. People use local shops for two reasons: convenience and community. As natural creatures of habit, we like to go to the same shops and will mostly buy the same things. Therefore it’s common sense to want to shop in places where we are recognised by staff and feel valued. Community participation Increasing your customer base can be a big challenge, which is why for independent shops it is important to get involved with the local community in order to be recognised and to stand out from the competition. Sponsoring a local event, a kid’s sports team or helping out your local school are all ways to promote your business positively within the community. If you are a convenience store you could try to promote healthy eating in the schools or perhaps hold a BBQ in cahoots with your local pub. Doing these sorts of activities is also good PR and local papers are usually happy to cover stories about businesspeople who are actively contributing to the community. Increase basket spend Finally, the simplest way you can increase your overall profit is to aim for a higher basket spend – effectively encouraging your customers to buy more items or more expensive items than they would do normally. An effective way to do this (which you’ll notice does not happen in most small independent shops) is to train your staff to actively sell rather than waiting behind the counter for the customer to check out. Even if you just ask staff to point out price promotions or new products to customers, you’ll see a difference. Without this extra encouragement your customers will simply buy what they always come in to buy. Another way to get customers to buy more is to place related stock items together. For example, alongside instant sauces you should display pasta, rice and any other relevant accompaniments. This sounds obvious, but so many shops don’t do it because it would involve a re-arrangement of the store layout. Your aim for each customer should be to get them to buy at least one item in addition to their standard basket. Shop around for your business rates and insurance Business rates are continually rising and eating away at the profits of independent shops, but just by shopping around you’ll see that there are cheaper rates available. The same goes for shop insurance – as well as trusted providers there are also a number of other insurance companies who can offer savings on comprehensive policies. The key is to find a good way to compare actual quotes from all providers. Price comparison sites are springing up all over the internet at the moment, but the best ones are those that offer real policies for you to compare and then buy instantly. Using them means that the price you are quoted is the price you actually pay. Companies such as Simply Business can often even beat their own online quotes after speaking with a customer reveals some extra piece of information about their business that was not given on the form. Running a successful independent shop is all about focusing on the customer. By paying attention to what they spend their money on, and doing as much as possible to make their experience with your business a fruitful and pleasant one, you are laying solid groundwork for increasing your profits. ]]> Compare low-cost shop insurance quotes]]> tag:www.simplybusiness.co.uk,2008:/knowledge/features//6.9787 2008-02-18T15:32:47Z 2008-02-19T16:21:17Z

By Martyn Cornell 2006: Fort Wayne, Indiana. A fast food restaurant is sued for negligence by a woman who was shot in an argument with another customer as they waited to be served. The attacker was jailed for 40 years...

Rosie Beasley By Martyn Cornell 2006: Fort Wayne, Indiana. A fast food restaurant is sued for negligence by a woman who was shot in an argument with another customer as they waited to be served. The attacker was jailed for 40 years for attempted murder, but a court in Indiana then ruled that the customer had the right to sue the Taco Bell restaurant where the shooting took place, on the grounds that "proprietors owe a duty to their business invitees to use reasonable care to protect them from injury caused by other patrons and guests." Hopefully the restaurant's public liability insurance paid for the lawyers to fight the case on its behalf, and cover any damages. But while it is unlikely that a British restaurant would find itself with the same nightmare, the court ruling underlines a principle that is just as important in the UK as the USA. Business owners, including restaurateurs, have to be proactive in protecting their customers, and they must be covered by the right restaurant insurance to protect themselves. Protect your business with the right insurance The restaurant insurance policy normally includes as a minimum, public liability insurance and employer’s liability insurance, but restaurant owners may also want to cover stock, equipment and cash on the premises. If you own the premises, it is possible to incorporate buildings and contents insurance into the same policy. Train staff to avoid a crisis Staff training is, of course, a crucial part of any business's efforts to reduce the chances of harm to its customers. So too, is having the right health and safety procedures in place. Fortunately for restaurant owners there are plenty of sources of help and advice around, from local authorities to government agencies. Pauline Turvey, Head of Commercial Environmental Health at the London Borough of Richmond upon Thames, suggests that the local authority website should be the first call for any restaurateur looking for advice and training in areas such as hygiene, food safety management, allergies, traceability and other issues. Environmental health officers will come along to any restaurant and advise on kitchen and restaurant layouts, food safety regimes and so on, she says. Richmond, like many other local authorities, offers Food Safety in Catering training courses which can be taken on site. Visit their website for further details. Your reputation will precede you - food safety is king The borough, along with many others, also takes part in a scheme called "Scores on the Doors", where the results of environmental health officers' inspections of restaurant premises are posted up on the web. Awards can range from five stars: "excellent: very high standards of food safety management", to no stars: "very poor: little or no appreciation of food safety. Major effort required". The idea is to give customers confidence, as well as keep restaurants on their toes. Also, if anything does go wrong, a series of good "Scores on the Doors" results will help show that a restaurant has been doing all it can to keep its customers safe from food poisoning and other potential risks. Local authority websites will also point restaurants in the direction of the Food Safety Agency (FSA) and the Health and Safety Executive (HSE). The FSA has a mass of information for restaurateurs on its website, including advice for people looking to start up a restaurant and a complete food safety management pack. The pack contains information on everything from staff training, hygiene, safe food storage, cooking safety and allergies to stock control, record keeping and reducing food wastage. Watch out for allergies Food allergies are an increasing concern for restaurateurs and caterers, with an increase in instances of, for example, someone becoming seriously ill or dying in a restaurant because they went into anaphylactic shock after eating a lemon cheesecake that was made with peanuts in the base. The Anaphylaxis Campaign has a website with advice for restaurateurs about food allergies, and a list of the commonest foods that can cause allergic reactions, from prawns and nuts to celery, fish and milk. It also gives the alarming news that in the UK about ten people die every year from an allergic reaction to food and many more end up in hospital, and that "in most cases, the food that causes the reaction is from a restaurant or takeaway". The HSE website has a special section devoted to health and safety in the catering and hospitality industries, with a checklist for restaurant staff to help ensure customer safety. Advice includes: • Be aware that customers (particularly children) may move suddenly or move their chair back just as their meal is being served. • If space is tight when serving, ask the customer politely if they can move to one side. • If silver-serving, make sure hot surfaces do not touch customers. • Watch out for handbags, briefcases and coats lying on the floor. • Know what action to take if dealing with any customer who is drunk or aggressive. Incorporating all the available advice into running a restaurant safely does not, of course, remove the need to have liability insurance in place. But it does mean that you're less likely to have to call on the insurance company for a claim. If a restaurateur can show all the safety measures that have been taken when they apply for a restaurant insurance quote, they could even find they get their insurance premiums at a cheaper price… ]]> compare low-cost restaurant insurance quotes]]>