http://www.simplybusiness.co.uk/knowledge/features/ en Copyright 2008 Thu, 31 Jul 2008 10:25:53 +0000 http://www.sixapart.com/movabletype/ http://blogs.law.harvard.edu/tech/rss by Rosie Beasley 1. Identify unsatisfied customers before they leave Many companies don’t do anything about defecting customers until they announce their intention to leave. This leaves them with a reactive situation where they are forced to take drastic measures to get the customer to stay, and this is not always successful. The key here is to find out which customers are the most likely to go elsewhere and why. For example, many customers threaten to leave a phone provider in order to get an upgraded mobile model or a better call plan. This could be pre-empted if the phone provider were to check its data to see who is using their account less and which customers have older phone models, as these are the most likely people to leave. It it also worthwhile monitoring incoming communications from customers. Find out who has complained recently or given negative feedback, address the problems and get in touch with the customer to see how you can remedy the situation. If customers are taking the time to tell you they are unhappy, it probably means that they want you to something about it. Choose a tailored business insurance quotes from leading insurers - buy instantly! 2. Communicate with customers There are lots of business situations where a customer buys a service or product and then never hears from the company until the time comes to re-purchase or renew. Keeping your business at the front of mind and reminding the customers why they bought with you in the first place can only serve to encourage loyalty. However remember there is a fine line between effective communication and harassment! 3. Listen to the people on your front line Who knows your customers better than the staff who work on the front line. They deal with the customers daily, they know what they want and don’t want and they know who isn’t satisfied. Arrange regular meetings with your front line staff to allow them to air anything they feel may be an issue and to update your marketing team with details on customer behaviour and attitude. Doing so will enable you to make more informed business decisions based around the needs of your customers. Compare and buy low-cost business insurance quotes in an instant 4. Treat your most valuable customers like kings There is a reason that investment bankers have such large expense accounts – simply that the level of relationship they have with their clients is the only thing stopping them switching to another company. The customers that bring in the most revenue for you – whether loyal shoppers in your store or small businesses for whom you do the accounts – are the ones you should fix your efforts on in the first place. This may seem obvious but many businesses just assume that customers will stick around with no special treatment at all. Customers like to feel valued, especially when they are parting with significant amounts of cash for your products or services. Doing so doesn’t take much extra effort or expenditure – it involved something as simple as a having a phonecall to ‘catch up’. 5. Always be fair and honest A hotel was reviewed a number of times on travel website TripAdvisor.com. Many of the reviews gave the hotel top marks and positive comments. However, one comment from a returning customer was extremely negative. They said that having been pleased with the hotel once before they called up at the last minute to see if there were any rooms available. The hotel said they had one room which would cost £100 for the night. On arrival at the hotel, the reception staff tried to charge the guest £150 for the room. Despite admitting that they quoted £100 over the phone, the hotel staff said that the cost had gone up due to a high demand for rooms. Had the hotel stuck to its word, they would probably have had a loyal customer for life. But now it’s unlikely to have their custom again. Always treat repeat customers fairly, even if it results in being slightly unfair to newer customers. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/5_tips_for_retaining_and_devel.html http://www.simplybusiness.co.uk/knowledge/features/general_business/5_tips_for_retaining_and_devel.html General Business Thu, 31 Jul 2008 10:25:53 +0000 by Rosie Beasley The UK is heading for a recession according to many economic experts and small businesses may be worried about what the future holds. Recent research from BDO Stoy Hayward has revealed that, over the course of 2009, the number of business failures could reach a high not seen since 2002, the year the dot com bubble popped. Specifically, the organisation believes that business insolvency rates will increase by a total of 18 per cent. So what action should a business take to ensure its survival? Should operations be scaled back, or should entrepreneurs seek out new markets and opportunities? The answers to such questions really are dependent upon the circumstances of individual businesses, but there is one universal truth that applies to all. No matter what direction the economy takes, entrepreneurs must decide whether to take a risk by adapting and shaping their business to meet the reality of a recession or to play it safe and carry on as normal. Choose and buy business insurance online - it's quick, simple & impartial Should you stick? If your business is steady and achieving consistent levels of revenue you may not need to do much to adapt. Businesses that don’t rely on one big client for their main revenue and which have well balanced cash flow are well set to survive a recession. Now may not be the time to spend money trying new ideas. However, complacency is never the way to stay on top in the business world. If growth and innovation aren’t on the cards then businesses should look inwards at how they can look after and hold on to their existing clients. Client relationship management is key to success at the best of times and should be the highest priority in the worst times. Businesses and consumers are liable to shop around for the most cost-effective options when the belts have to be tightened, so it’s worth researching what your competitors are doing so that you don’t give your customers a reason to switch. Cash flow fluctuations should also be monitored closely. Even if your business is doing well, your clients’ businesses may not be. This can cause problems for your cash flow if they suddenly decide to start delaying payment of your invoices. Businesses can protect themselves against these problems with an invoice finance facility. While invoice finance is a form of lending, it is not the same sort of debt as a loan or overdraft. Money is advanced against a raised invoice and is repaid to the lender when the invoice is settled. Because a business is having their invoices paid upfront, it is better able to manage its finances. Should you twist? Any entrepreneur worth their salt will look around them in times of trouble for new opportunities. Many retailers are already adjusting their marketing to new customer trends – for example, supermarkets are encouraging customers to have a special meal at home rather than spending extra on a restaurant. And it’s not just retailers that can branch out into new areas. They key is to look at the things that people and businesses will spend money on in hard times and find a way to offer that product or service in a better way or for less money. Comparison websites are experiencing a boom because of this very reason. Customers are shopping around for cheaper deals rather than sticking with their existing suppliers out of habit. In fact more money than ever is being spent on the internet where the best deals are often to be found. If your business has a website, it should now be working a lot harder to pull in new business and is an excellent way to offer new products or services to your customers. Some types of business that are doing well in the face of the credit crunch are chocolate retailers, takeaway outlets, ebay and similar web-based retailers, computer games and DVD retailers and alternative finance companies, such as those that offer asset-based lending or invoice finance. If you do decide to go for a new opportunity, ensure that you’ve fully researched the demand for it and the costs of offering it before ploughing ahead. Some peace of mind in the chaos Many small businesses survived the last recession and the same will be true of this one. Something that can offer peace of mind, however, is knowing that your business is insured. Covers that have been developed specially for businesses include Business Interruption cover, Tools and stock cover and public liability cover. Knowing that your business isn’t at risk financially if an accident happens or if you are the victim of a theft will allow you to focus on the more important job of surviving and thriving during this economic downturn. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/stick_or_twist_the_great_reces.html http://www.simplybusiness.co.uk/knowledge/features/general_business/stick_or_twist_the_great_reces.html General Business Thu, 31 Jul 2008 10:06:22 +0000 Compare Buy-To-Let Mortgage and Landlord Insurance Quotes Instantly Online Here are some essential pointers: Looking after your property Simple maintenance can save you thousands of pounds, and carrying out regular repairs will help you avoid the need to spend on unnecessary costs in the future. It’s important to look after your buy to let property as if it was your own home. A key consideration when it comes to maintaining your property is to assess whether you should hire professional help to complete any maintenance or do it yourself. Weigh up the income you’d lose versus paying a professional to complete the job. And remember that management or maintenance costs can be offset against income from rent for tax purposes. You could start with an annual plan which will help you organize maintenance works effectively, allowing you to inform tenants about any upcoming work in advance. Simple issues like ensuring your drains and gutters are clear, or cleaning soap powder from the washing machine can help prevent flooding and avoid any unnecessary costs. Similarly, any gas and electricity appliances like your gas cooker or central heating should be professionally checked once a year by a Corgi registered gas or electricity engineer, who will issue a certificate to certify they are safe. Landlords should arrange this before allowing anyone into the property, as tenants are within their rights to ask for Corgi certificates. For more information about finding a Corgi registered engineer, log onto http://www.trustcorgi.com/Landlords.html Another important concern if your tenants are due to move out is to update the inventory ready for a replacement. Remember, the more detail you include the better as it will help avoid any disputes when the tenant moves out. Reviewing your insurance Although, there is no law to say that landlords must have insurance, it would be foolish not to take out a policy, especially as tenants are still likely to take legal action against their landlords if they feel their rights have been violated. As a landlord your policy will need to be specifically designed for letting and to cover several additional risks. The good news is that as more people are letting out properties, the insurance policies have developed to cover almost every conceivable eventuality; from the building itself, the contents, legal costs, loss of rent if tenant doesn’t pay to public and occupier liabilities. You can log onto www.simplybusiness.co.uk to compare and buy the best policy for you. Choose and buy low-cost landlord insurance in minutes Reviewing the tenancy agreement Your tenancy agreement should set out the arrangements for reviewing the rent of the property. Whether there is a stipulated clause for increasing rental rates in the contract which you want to put into effect, or the tenure term is due to finish and you want to review the rent, make sure to check out the local rent rates for similar properties to your own. This way you can ensure you are getting the maximum rent possible for your property without pricing your property out of the market. However, landlords should be aware that there is a proposed overhaul of the existing assortment of tenancies and licences, which are currently under review. The Law Commission is undertaking a project to modify and simplify the law on housing tenure via a simple system of secure and standard contracts. This is due to come out later in the year. Nevertheless, in the meantime, there is a formal procedure used to increase a tenant's rent and landlords must complete a notice for assured; assured shorthold and periodic tenancies. Officially entitled the ‘Landlord's Notice Proposing a New Rent Under an Assured Periodic Tenancy or Agricultural Occupancy’, this document can be obtained from law stationers or the Rent Assessment Panel. New legislation Don’t forget about the new legislation that the government introduced in 2007 that will affect how you manage your property moving forward. April 2007 saw the introduction of the Tenancy Deposit Scheme, which changes the way in which deposits are handled between landlords and their tenants. If you previously managed to escape this in the first quarter of 2007, remember that you will now only be able to take a deposit as long as it is protected by a Tenancy Deposit Scheme. For more information on the best scheme to go for visit http://www.direct.gov.uk/en/TenancyDeposit/index.html. If you need to prune your property portfolio you’ll now need to provide a Home Information Pack and Energy Performance Certificate which was extended to all properties from mid Dec 2007. The average cost of a pack is £300 to £350 and will provide key information ensuring the process becomes more certain, transparent and consumer-friendly. Furthermore, upon selling your property you will be in for a healthier tax break as the Labour government are proposing 18% tax on Capital Gains. Keeping your tenants happy Finally, it’s imperative to maintain a good relationship with your tenants, so make sure to get regular feedback from them. Should an issue arise with the property, fix the problem at your earliest convenience. By staying organized and keeping on top of all these matters, not only do you save yourself unnecessary headaches and a great deal of expenditure, but you ensure the best possible outcome for your investment. ]]> http://www.simplybusiness.co.uk/knowledge/features/landlord_general/is_your_buytolet_a_money_pit.html http://www.simplybusiness.co.uk/knowledge/features/landlord_general/is_your_buytolet_a_money_pit.html Landlord General Tue, 22 Jul 2008 16:42:11 +0000 by Gee Sahota Property has always been a popular and reliable method to achieve healthy financial returns for securing your future. And even though 2008 speculations point to an uncertain period and possible downturn, the buy-to-let market should still remain strong. Rental demand remained incredibly strong last year, with the same predicted for 2008. Buy-to-let literally means buying a property and letting it out in return for a sum of money. Historically, property has performed well as an investment opportunity. Every 10-15 years, property prices in the UK have doubled suggesting this trend is likely to continue. So whether in a rising or falling market, there is the prospect for an investor to achieve gains. For instance, in a rising market, the investor will realise that first time home buyers would be priced out of their affordability range, indicating that rental demand will be high. With the market in decline, a landlord would look at long term prospects, realising that if they pick up a cheap bargain it should at some point rise in price based on past trends. So what does it take to be a successful buy to let investor? Buying-to-let needs to be considered as a long term investment, and the type of portfolio you have will depend on whether you are in it for future appreciation (that you will get a good profit in the long term) or passive income (that you can supplement your earned income and enjoy more freedom from the hours you would normally work). For some, buy-to-lets can generate a full time income, and the task of managing more than one or two properties can become a job in itself. Although the outlook for house prices may change this year, generally speaking it has been harder to achieve higher rental yields while the market was at its peak. The high cost of mortgages has in many cases required some contribution from the landlord towards covering the mortgage. However, if you are in it for the long term and have picked out a prime location with good rental demand, you will benefit in the long run. Some basics to help you get started: Buy-to-let Mortgages Firstly, you need to find a buy-to-let mortgage. Typically the rates are higher than for a residential mortgage and due to the credit crunch, Loan to Value rates may be lower than in previous years. This means you’ll probably need to put down a 20% deposit, as most lenders limit the loan amount or loan to value (LTV) at 80%. Many lenders will offer mortgages based on the anticipated rental income, so you don’t need to be earning a large salary to jump on to the property wagon. Once you’re in motion, some lender schemes will allow you to release equity from one rental property to raise money for your next project. Location, location, location The key to maximising your rent potential is to research the area you wish to buy in, focusing on areas where rental demand is high and the property you purchase matches the type of tenant you are looking for. It’s important to keep a close eye on the market and liaise closely with the local letting agents to gauge how the market is performing in that area. Landlords Insurance One of the first things you should do after buying a property is obtain landlord insurance. There are specialist landlord policies available which cover almost every conceivable eventuality; from the building itself, the contents, emergency legal costs, loss of rent if tenant doesn’t pay and public and occupier liabilities. You can compare quotes with Simply Business and instantly buy the best policy for your needs. Decor and contents Once you have the keys to your property investment, you must make sure it is decorated to a good standard, using hard-wearing carpets, paint and furniture, and that you have considered the needs of your intended tenants, whether students, young professionals or a family. Property Management If you are considering managing the property yourself, run adverts online and in the local newspaper. Examine prospective tenants carefully and check references before contracts are given and signed. If taking a deposit from the tenant, landlords are legally obliged to place it in one of the three government-authorised tenancy deposit schemes which help resolve any potential disputes when the tenancy comes to an end. When considering on-going maintenance of the property, it’s a good idea to create a separate pot of cash to deal with potential costs of repairs and necessary checks. This will help you keep track of your outgoings for tax purposes. A yearly maintenance requirement is that you have a Corgi registered gas or electricity engineer provide you a safety certificate on all gas and electricity appliances. You could create an annual plan and budget which will help you organize maintenance works effectively, allowing you to inform tenants about any upcoming work. By joining the Landlords Association you can get lots of advice on many issues including legislation at www.rla.org.uk. If you don’t have the time to manage the property yourself, hire a letting agent. Letting agents offer different levels of service, from managing every aspect of the property to simply finding a tenant. It’s an option worth considering if your investment is far away from you or your job is quite demanding. They can ease the pressure created from letting and managing a property, taking on tasks such as drawing up the tenancy agreement, maintenance and dealing with the tenants for a fee of around 10 – 15% of the rental yield. And finally, if you have taken care of all of the above, the key to gaining the maximum rent potential for your property is to look after your tenants. If they are happy they will respect your property, stick around for longer and may refer other potential tenants upon checking out. Related articles: Resolve your buy-to-let property issues for a good year ahead In the battle for the UK's property market who will be left standing? Prepare your buy-to-let for a safe, warm winter ]]> http://www.simplybusiness.co.uk/knowledge/features/landlord_general/getting_started_in_buytolet.html http://www.simplybusiness.co.uk/knowledge/features/landlord_general/getting_started_in_buytolet.html Landlord General Landlords Insurance Tue, 22 Jul 2008 10:43:56 +0000 Written with help from Calculated Risks Limited (CRL) The answer is, not if a company’s management is committed to upholding a high standard in health and safety best practice, according to the Ministry of Justice. HSE figures show that a total of 241 deaths occurred at work during 2007, 77 of them in the construction industry. Around 415,000 people were also injured at work and a further 2.2 million suffered illness which they claimed was caused by or made worse by their work. Compare employers' liability insurance quotes These numbers show that companies are more vulnerable than ever to the consequences of employee accidents and illnesses. Employers’ liability insurance covers claims for many of these cases but where a death is involved the solution is not that simple. What is the Corporate Manslaughter Act? A breach of health and safety regulations leading to a fatality already results in a prosecution and usually a fine. However the introduction of the Corporate Manslaughter Act (named Corporate Homicide Act in Scotland) on 6th April now makes it much easier for both small and larger businesses to be prosecuted. The Act clarifies the criminal liabilities of companies including large organisations where serious failures in the management of health and safety result in a fatality. The legislation should make it easier to prosecute these organisations when their gross negligence results in death. Under the current proposals, organisations convicted of corporate manslaughter are likely to be fined between 2.5% and 10% of their annual turnover and subjected to a publicity and/or remedial order. Although the new offence is not part of health and safety law, it will introduce an important new element in the corporate management of health and safety. Prosecutions will be of the corporate body and not individuals, but the liability of Directors, board members or other individuals under health and safety law or civil law, will be unaffected. Both the corporate body itself and individuals can still be prosecuted for separate health and safety offences. Compare public liability insurance quotes in minutes The Act also largely removes the Crown immunity that applies to the existing common law corporate manslaughter offence, which means that government departments and bodies can now be held accountable when health and safety negligence occurs. What does this mean for the small business? Broadly, the new legislation ensures that there is no more corner cutting in relation to health and safety. An investigation is carried out looking at the management of health and safety practices throughout the company, specifically focusing on senior level decision makers. For smaller businesses this means there is nowhere to hide and no single person to pin the liability to. With businesses for which health and safety has not previously been a priority, time and money needs to be spent on ensuring that all employees can carry out their daily activities safely. This is the only way to avoid prosecution should the worst happen and an employee suffer a fatality at work. Risk management company, CRL (Calculated Risks Ltd), advises businesses to carry out regular risk assessments on all business activities and to keep the results and any positive actions taken on file for future reference. They also advise that: “senior managers [should be] prepared, by reviewing current health and safety management systems and by devising and instituting adequate and effective policies into overall corporate strategy. Particular emphasis should be paid on how senior management manage or organise their activities. “Employers should now be ensuring that risk assessments and health and safety procedures are not only up to date and in place throughout the work place, but that employees are aware of and fully understand Company requirements and policy.” Finding the right guidance and advice The CRL offers advice about the new legislation and on risk assessments for all types of business. If you don’t know where to start on an overhaul of your health and safety policy, visit the Calculated Risks Limited website. As a business owner, it is your responsibility to enforce your company policy. As CRL constantly points out to customers, authorities adopt the rule 'If it's not written down, it's not been said or done'. This is where company policy documents and risk assessments must be clear, concise and circulated; the important information should be recorded as read and understood by employees. Much of this information can be passed on in an 'induction session' or by starting this new financial year circulating your Company Health and Safety Policy and findings of any risk assessments you may have made. ]]> http://www.simplybusiness.co.uk/knowledge/features/insurance/will_the_corporate_manslaughte.html http://www.simplybusiness.co.uk/knowledge/features/insurance/will_the_corporate_manslaughte.html Insurance Mon, 14 Jul 2008 12:00:00 +0000 1. Increase your credibility with your customers and potential customers Having public liability insurance is often a part of the requirement for clients when they are looking for suppliers, whether in the building trade, consultancy or entertainment. Without it you could lose valuable work and your business will lose money. Having comprehensive insurance also reassures potential customers that your business is reputable and gives them one less thing to worry about in the hiring process. Compare tailored business insurance quotes in minutes 2. Avoid financial ruin Public Liability claims can be hugely expensive to cover. If a business had to pay the costs involved with an accident which resulted in a claim for compensation, it could possibly be liable to pay thousands – even hundreds of thousands of pounds. For a small business finding this sort of money would most likely be impossible and therefore closing the business may be the only option. Public Liability Insurance would in most cases cover the cost of the compensation payment, along with any related legal fees. 3. Protect your clients from harm and their property from damage Most businesses have contact with the general public in their daily activities. Whether this is simply through working in a clients’ home as a plumber or running an office where visitors come and go, your business has a duty to protect these people and their property as far as possible. Part of this duty is having the appropriate insurance to cover any accidents that happen to them through the fault of you or your business. When dealing with you they should feel secure in the knowledge that they can be appropriately compensated should they be seriously injured or their property damaged. That being said, this is more for your peace of mind than theirs, as no-one really expects the worst to happen to them or thinks about the insurance until they suddenly need to! 4. Accidents and mistakes are just waiting to happen Don’t assume that there won’t be accidents or mistakes just because you’ve followed all the appropriate health and safety measures. True, it is possible to run a business for many years without it impacting badly on someone else. But is this complacency worth the risk to your livelihood? Many people don’t think about taking out insurance until they actually need it. In business you can’t afford to take such a risk. Get public liability insurance quotes - tailored to your business 5. Don’t believe us? Read these recent cases … A contractor drives his cherry picking vehicle into a fellow contractor After driving his cherry picking vehicle from one site to another, the man who was guiding him through the dark street inadvertently found himself trapped when the vehicle was being parked and it ran over his leg, breaking it in two places. As a contractor, the driver was required to have his own public liability insurance, and as such the injured party was able to claim damages covering: PSLA (pain, suffering and loss of amenity) of £15,000; Loss of earnings to £8,000; Care to trial of £1,500; Medical expenses of £7,000; Claimant costs of £8,500 and his own costs of £7,000. A joiner punctures a water pipe and causes extensive damage to a development A joiner was contracted to install all the joinery in 26 of the flats in a housing development. When the cold water system was tested the piping was found to have been punctured, which caused extensive water damage to some of the flats. Although not completely aware that he had caused the damage himself, he found himself liable for the damage and had to claim on his insurance for covering the cost of the repair work and his own related costs, amounting to £35,000. Repairs to shopping centre sprinkler system result in claims from several parties Two employees from a company contracted to refurbish the sprinkler system at a large shopping centre neglected to cap off the end of part of some pipework, which resulted in a flood once the water was switched back on. Water damage was caused in the centre premises to the stock of several shops. The sprinkler maintenance company had insurance to a limit of £5m, which more than covered them for the resulting claims of around £25,000. ]]> http://www.simplybusiness.co.uk/knowledge/features/insurance/business_insurance/public_liability/5_good_reasons_to_take_out_pub.html http://www.simplybusiness.co.uk/knowledge/features/insurance/business_insurance/public_liability/5_good_reasons_to_take_out_pub.html Public Liability Thu, 26 Jun 2008 11:27:17 +0000 by Rosie Beasley God supposedly built the world in seven days, so why not do the same with a business? Of course we know that the timescale is a bit unrealistic, but it would be fun to see if it can be done! You would naturally have to do some serious planning in advance, know your business idea inside out and then you’d really just end up with just the bare bones anyway. But at least you’d be off and running. So here it is – go on, challenge yourself! Day one – Market Research Your first step should concentrate on research to see just how viable your idea is. If you don’t pull through day one with flying colours, go back to the drawing board and start again next week. If your business idea is really going to work, it is important to find out what other people think about it, particularly the people whom you would like to buy your product or service. Firstly, examine your potential market – ask what are they buying now; what needs do they have? You should also look at what the competition is doing – think about how your idea fits with what is already out there in the market. Next, you need to find out what people think. Identify your target market – decide what age group they are, which gender - are they mothers, fathers, business people, businesses, etc? Then put some information together and get out there and ask. Go up to people in the street, gather a group together at a local café, ask friends and family, phone up businesses. Remember to take any criticism constructively – all feedback is useful – and don’t be too precious about your idea. Just because you are passionate about it doesn’t mean it’s a sure fire winner. By the end of day one you should have an idea about whether your business is worth pursuing. If it is not, file it in the round filing cabinet and start again. Day two - Business Plan Every business needs a solid and comprehensive business plan. Aside from it being a necessity in order to secure certain types of funding, a business plan once complete will act as a guide throughout the first years of running your business. Visit Business Link for a template and complete guide to the contents. Your plan should include a detailed description of your business idea, the business’s objectives, its target market, financial forecasts, cash flow forecasts, marketing and sales plans and overall strategy as a minimum. This is not a document to treat lightly - the success or failure of your business may well be dependent upon the comprehensiveness of this document. "Clarity on these issues is particularly important if you're looking for finance or investment. The process of building your plan will also focus your mind on how your new business will need to operate to give it the best chance of success," said the Business Link website. Day three - Finances/funding When thinking about setting up your business you should have already had some idea about how you would fund it. Certainly creating a business plan serves to crystallise and cement your financial strategy, however actually securing the funding is another story altogether. You need to have start-up funding to get your business off the ground, and then you also need to know what types of finance you will use to keep your business going. Your business plan should tell you how much start-up funding you need, so the next stage is to find it. Many entrepreneurs these days decide against applying for a bank loan, preferring instead to find the money themselves. This is partly because business loans from banks are very difficult to secure in the planning stages and partly due to the credit crunch which is seeing all financial institutions tighten their belts and their lending criteria. Consider these options for start-up finance and get them moving today: • Your own savings • Borrowing from family • Investment from friends or associates • Grants and start-up funding (see Business Link for more info) • Credit cards • Apply for a bank loan • Apply for an overdraft on your business bank account • Re-mortgaging or selling your property (with spousal permission!) • Selling other assets – e.g. your car Once your business is up and running it is important to keep your cash flow stable and your funding options open. Investigate these finance sources: • Investors / business angels • Invoice finance (used widely by businesses that offer credit terms to clients) • Asset finance • Bank overdraft • Grants and government funding Day four - Product development Your initial business idea is unlikely to be exactly the same one that you launch your business with. It will have evolved based on the research you’ve done and further ideas that have come up during the planning process. Today is the day to develop and finalise your product or service. If it is a product you are planning to sell, think about how you will get it produced, what packaging you will use, any improvements or modifications that could be made, any safety regulations that product must adhere to and ultimately how it might develop and expand in the future. If your business is offering a service, think about the method of providing the service to customers, how to demonstrate the service to prospective customers, what exactly will be offered, who will provide it, how could it be improved and how could it evolve in the future. Day five - Sales and marketing Now that you have your final business offering and you know how you will finance it, the next stage is to tell people about it so you can start making money! In your business plan you should have included a sales strategy. Sales is vitally important in making any business work but it must go hand in hand with marketing activities. Marketing will get you the leads and sales will bring in the cash. How this works depends on the type of business you are starting. There are cheaper methods of marketing that you could work on first, such as listing your company with the various online directories. Yell.com is the most well known and you can get a listing in their printed book too. Creating a website is a must in this day and age and can be done in a day, although considerable thought should go into what exactly you expect to get from it. For example you might be able to generate direct sales or if not then the purpose may be to get customers to call you up. If you stick to a simple design to begin with (you can brand it fully later) and two or three key pages (home page, contact us & product page) then you can get up and running very quickly. The fastest way to send visitors to your site is to sign up for paid ads on a search engine, such as Google AdWords, which can get your ad visible on the same day. Marketing can be a slow burner so don’t expect to see results instantly. However, it is possible to kick off your marketing campaign and get started on those all-important sales calls in one day. "Getting your sales and marketing right is crucial to the success of your business. Creating a marketing strategy will help you identify potential customers and target them with appropriate products or services," said Business Link. Day six – Premises, equipment & assets Your business needs a base, and it also needs tools and/or equipment. This is where some of that lovely start-up capital comes into play. Unless you’re launching a shop, surgery, restaurant, bar or hotel you can probably start out from home. You’ll need somewhere private and preferably separate from your living space to work. So if you don’t have an office or spare bedroom you’ll have to get creative. Ask your friends and family if they have any spare space you could use, or buy a weather-proof garden shed! Most business owners need a computer as it is essential for accounting, administration and a plethora of other tasks. You may also need a printer, scanner, fax machine, photocopier, telephone, broadband internet connection and stationery. Remember what is suitable for home use may not be right for running a business so ask advice wherever possible. If you’re a tradesman, tools can be expensive but are obviously necessary in order to do your job. Don’t skimp and buy bad quality items as these will not last as long and you’ll end up spending more money replacing or fixing them. Day seven - Peace of mind You should have now covered all the basics of setting up a business. There is just one more important task that will give you peace of mind – business insurance. Even home-based businesses need insurance and there are tailored solutions for every kind of industry and specialism. You may need to consider Public Liability Insurance, Professional Indemnity Insurance, Employers' Liability Insurance, Business Contents Insurance, Tools & Equipment Cover and Commercial Vehicle Insurance. If you’re working from home your domestic insurance may need to be altered. Get in touch with your home insurer to find out more. But don’t worry - it’s easy to find the right insurance for your business. Just compare quotes with Simply Business and then buy your chosen policy online or by phone. There’s no fuss, no complicated paperwork and you can get covered in a matter of minutes. Now you can start your business with the ultimate peace of mind. Because even God rested on the seventh day. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/how_to_build_a_business_in_sev.html http://www.simplybusiness.co.uk/knowledge/features/general_business/how_to_build_a_business_in_sev.html General Business Thu, 26 Jun 2008 10:51:17 +0000 by Adfero The credit crunch has injected a shot of caution into the buy-to-let market. Where previously properties were geared to maximise the use of capital, it now makes sense for landlords to keep equity in the property so that better rates can be secured on re-mortgage. Buy-to-let mortgages have traditionally been given based on a loan-to-value of around 85% and the potential rental income being 125% of the mortgage payment. However in the current climate it is wise to have other interests that the bank could take into account when considering a re-mortgage application. Need a buy-to-let mortgage? Get a quick quote now! And while it may not immediately appear to be the best solution, a regular savings strategy could put you in a stronger position. Proof of owning a general savings account or an individual savings account (ISA) could indicate to your mortgage lender that you are not only able to cover your mortgage payments, but are also prepared for the possibility of negative equity. Make your money work There are a number of different savings options to choose from. The Newcastle Building Society believes that it is essential that consumers save in a way that makes their finances work "as hard as possible". They also note that saving with a building society is a safe choice, with the added benefit of offering competitive investment returns. "The main savings concern consumers should have at present is ensuring that their money is working as hard as possible for them, especially in uncertain economic times," said Steve Urwin, senior marketing executive at the Newcastle Building Society. "The lending and funding position of a building society is markedly different to that of banks." According to Mr Urwin, mutual building societies tend to secure funding from customers rather than wholesale funding markets. Consider the options There are a number of different savings products available from an large number of providers. One of the most popular ways of saving is to set up an Individual Savings Account or ISA. ISAs tend to offer higher rates of interest and returns are also exempt from any tax charges. There are two types of ISA and you can open one of each per financial year. A Cash ISA allows for an annual savings limit of £3,600 and a Stocks and Shares ISA has the same limit for customers who also have a Cash ISA or a limit of £7,200 for those with without. In the UK a financial year runs from April 6th to April 5th. Most Cash ISAs act like regular savings accounts, where you can take money out whenever you like. Therefore they can be the perfect vehicles for saving any spare rent. Regular savings accounts can also be helpful, especially if they are flexible regarding money transfers. However the interest is not tax free, therefore many people have a combination of both ISA and savings account. Protect your investment - compare landlord insurance quotes now Avoid the ostrich approach Above all, no matter what the strategy for saving cash, avoid the approach of the ostrich and do not do the financial equivalent of sticking ones head in the sand. It is easy to leave preparations for a re-mortgage until the last minute, hoping that the market will improve. However the current property market trend looks set to continue, therefore it makes sense to take action now. Leaving spare cash in a low interest current account or saving it at home is counter-productive according to Newcastle Building Society. They warn that, in addition to the "obvious" dangers associated with leaving funds at home, not making money work within a high interest account will actually make it lose value given the effects of inflation. "The biggest thing for savers to remember is that cash on its own does not earn any interest. Therefore, the effects of inflation will erode the relative value of cash over a period of time," said Mr Urwin. And so, the best course of action is to prepare as far ahead as possible and start saving now. If unsure it may be worth speaking to a financial adviser. Before it’s too late, make sure that any expected or unexpected mortgage payment increases are budgeted. It always pays to be ready for the worst case scenario by giving yourself a bit more peace of mind. ]]> http://www.simplybusiness.co.uk/knowledge/features/finance/mortgages/buytolet_mortgages/worried_about_remortgaging_you.html http://www.simplybusiness.co.uk/knowledge/features/finance/mortgages/buytolet_mortgages/worried_about_remortgaging_you.html Buy-to-let Mortgages Thu, 26 Jun 2008 10:44:35 +0000 by Adfero It is now just over a year on from the introduction of the UK's tenancy deposit protection scheme on April 6th 2007. Has the scheme been beneficial to both landlords and tenants or has it created unnecessary confusion and stress? It is worth looking back at the scheme's performance over the last year to see whether it has been successful in its objectives and how, if at all, it has affected landlords. What is Tenancy Deposit Protection? Created to protect tenant deposits in relation to rent up to an annual total of £25,000, the tenancy deposit protection scheme covers properties in England and Wales that are rented out under assured shorthold tenancy agreements. The scheme was introduced to enable tenants to secure the return of their deposit, and to ensure that any dispute over the entitlement of it can be resolved as easily as possible. It was hoped that the scheme would encourage both parties to develop clear and mutually agreeable terms at the time of signing an agreement. Is your buy-to-let insured? Get low-cost landlord insurance quotes here Directgov said of the project: "The schemes allow tenants to get all or part of their deposit back when they are entitled to it and encourage tenants and landlords to make a clear agreement from the start on the condition of the property." The types of scheme available - insurance-based and custodial According to Directgov, under the terms of an insurance-based scheme, the tenant not only pays the deposit directly to their own landlord but this deposit is then kept by the landlord on the basis that a premium is paid to an insurer. Under the terms of a custodial arrangement, the tenant still makes a direct payment of the deposit to the landlord but the landlord does not retain the deposit; instead, the sum of money is transferred for payment into a custodial scheme. However, there are elements of both schemes which are the same. For example, within 14 days of a deposit being received, it is a requirement that contact details of the selected scheme are provided to the tenant. Information relating to any deposit-related disputes will also be provided, along with contact details for either the landlord or letting agent and information that outlines exactly what the deposit is for. The two schemes have different procedures for bringing the tenancy agreement to an end. Under the terms of the insurance-based scheme, if compliance cannot be obtained from the landlord in the event of a dispute, the insurance element can ensure the return of a deposit to the tenant, as long as the return is legitimate and they are entitled to it. Under the custodial scheme, in the event of a dispute over the deposit the sum of money is retained by the scheme until the matter is resolved. What are the implications? According to Directgov, under the terms of the scheme, if a tenant’s deposit is not protected, then the deposit amount, multiplied by a factor of three, will need to be refunded to the tenant. However the real implications may lie in the application of the schemes themselves. Tenant deposits should only be refunded only when there is a legitimate entitlement to a return - if entitlement does not exist, it is surely reasonable to assume that a landlord will not be unfairly affected. However in cases where neither the landlord nor the tenant is willing to give up their claim, the landlord may be the one to eventually lose out. This is because in most cases a landlord will take money from a deposit to cover damages created by the tenant. While the money is held in the scheme waiting for the issues to be resolved, the landlord is losing out. Geoff Wood, a landlord writing on the landlord law blog, takes a cautionary standpoint on the matter and says that the schemes represent a lot of work for landlords. "Each has different paperwork and it is a minefield. Don't expect tenants to get their deposits back within ten days - the government's original, worthy objective - because we still want to see utility bills are paid," said Mr Wood. Whether or not landlords across the board are losing out under the scheme is not entirely clear, although it does appear that there are aspects which are not wholly satisfactory. However, while the aims of the scheme are commendable enough, it is just not necessarily the case that the solution really fits the scale of the problem. ]]> http://www.simplybusiness.co.uk/knowledge/features/insurance/landlords_insurance/tenancy_deposit_protection_is.html http://www.simplybusiness.co.uk/knowledge/features/insurance/landlords_insurance/tenancy_deposit_protection_is.html Landlord General Landlords Insurance Thu, 26 Jun 2008 10:37:43 +0000 by Adfero People the world over love heroes and aspiring entrepreneurs are no exception. There is nothing more inspiring than the tale of someone who has come from a humble background rising to the top of their game and making their first venture a roaring success. The great news for us is that the world of business is full of such examples, such as Nintendo, which grew from very humble origins – the company actually started life as a manufacturer of playing cards! Or even Nokia, which started out as firm specialising in wood pulp. During their early days they have even had a go at producing Wellington boots! Compare quotes and buy tailored business insurance online There are of course more local and well known heroes that a budding entrepreneur should draw inspiration from, two of which are Sir Richard Branson and Sir Alan Sugar. Sir Richard Branson Born in 1950, Sir Richard started his first entrepreneurial activities at Stowe School in Buckinghamshire where, according to richard-branson.com, at the age of 16 he created a magazine called Student. One year later he went even further, establishing a student advisory centre. While Sir Richard's academic performance was affected by dyslexia and a number of earlier ventures did not prove to be a success, this did not hold him back. In 1970, the entrepreneur established his first venture into the world of selling music by mail order and followed that two years later by launching a chain of music retail outlets known as Virgin Records. He moved into the music recording industry the same year. "In 1972, a recording studio was built in Oxfordshire where the first Virgin artist, Mike Oldfield, recorded 'Tubular Bells', later released in 1973," said richard-branson.com. "The first album of Virgin Records went on to sell more than five million copies. At the age of 27, Richard signed The Sex Pistols to the Virgin Records label after the group was turned down by every label in Great Britain." And Virgin Atlantic Airways, one of Sir Richard's most visible successes, has risen from its creation in 1984 to become the UK's second biggest international airline for long-haul routes. Fighting for years against a system biased towards existing airline companies, Virgin now runs flights to destinations including the US, Caribbean, Africa and Asia. It would have been the easy road for Virgin Atlantic to give up the fight but Sir Richard’s determination helped them stay the course. Sir Richard gives the outward impression of being a fun-loving, likable entrepreneur, however the success of his companies reveals the hard-nosed, driven business man beneath. The mixture of these qualities has served him well throughout his career. Easy business finance - now more cash flow worries! Find out more ... Sir Alan Sugar Born in 1947 in the East End of London, Sir Alan grew up as the son of a tailor and did not continue in full-time education past the age of 16. His first job upon leaving school was for the UK's Ministry of Education where he worked as a statistician. Now an accomplished businessman and multi-millionaire, Sir Alan's entrepreneurial teeth were actually cut during his first business venture as the seller of electrical products and car aerials - his premises, a van. Despite these humble beginnings, Sir Alan was to establish Amstrad in 1968 at the age of 21. Initially created to sell electrical products, Amstrad became synonymous with the first era of the home personal computer, producing its first machine - the Amstrad CPC 464 - for release in 1984. "Sugar is a key player in the business and media world and one of the UK's most successful entrepreneurs, which was recognised in 2000 when he was knighted for services to industry," said Meera Dattani, in a report by Virgin Media. After selling his business for a reported £125 million in 2007, Sir Alan is arguably now better known for his appearances on the BBC reality television programme, the Apprentice. The work of these two men shows that, despite humble origins or early setbacks, it is possible to grow a business into something big. Essentially, both Sir Alan and Sir Richard show that entrepreneurial dreams of making it big can become a reality with hard work and determination. However, their work over the years also shows that to be a success, it is necessary to possess certain personality traits such as grit, determination, and a will to succeed. They also have a knack of spotting the next big thing. And while not all entrepreneurs will run a business that survives the long term, and others may not grow to become multi-millionaires, it is not out of the question. But it does require lots of hard work and some serious business acumen. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/heroes_of_enterprise.html http://www.simplybusiness.co.uk/knowledge/features/general_business/heroes_of_enterprise.html General Business Thu, 26 Jun 2008 10:32:36 +0000 1. Presentations and public speaking A great many people dread the prospect of having to make a presentation at work or of making a speech in front of a group of people. Part of this reluctance – ok, fear – may be to do with our presentation experiences at school. Reading out an essay or speaking a foreign language in front of a room full of belligerent peers was never going to warm you to the skill of public speaking, but if it hadn’t been an ordeal most of us would undoubtedly have learned from it and would be better at our jobs today! 2. Foreign languages The English have never been comfortable with speaking other languages, however this puts us at a distinct disadvantage in many business situations. The business world is becoming ever more international and especially for entrepreneurs and small business owners, the ability to communicate with suppliers and clients based in other countries is invaluable. Do we wish we hadn’t given up German to do woodwork? You bet we do! 3. Networking A business professional’s ability to connect with strangers in forced social situations is directly related to their experiences in the playground at school. This is the environment where we first learn to read people’s reactions to our advances, including the all-important body language. Unfortunately the human pack instinct usually prevents us from reaching out to strangers and never was that more true than when we were at school. If only we’d made more effort to enjoy the company of the visiting sports team instead of huddling together and sniggering at their accents or uniforms, we would all be better networkers in our adult lives. 4. Humanities Subjects such as history and geography don’t immediately seem to have much relevance in the business world, but really it is through them that we gain our first understanding of the wider world. History taught us about the politics and cultural influences that shape each country and the way it does business with the world. Learning about wars may have seemed dull and irrelevant in school but as adults we now realise how significant an impact a war can have on the world economy. Geography is equally important – not the volcanoes and tectonic plates that make up our physical world but rather the human geography that teaches us about the way people interact with the world and with each other. Important and useful lessons about industrialisation, town planning, migration and immigration, urban regeneration and the environment were learned and promptly dismissed, but that knowledge would now serve many of us better in our working lives. There has been much made in the press of the lack of business knowledge and skills that our schools offer to children. While finding the resources to offer business studies at school to all pupils would be difficult, perhaps the solution is first to begin applying the subjects learned in class directly to real world business situations. Certainly, if our generation had been more enthused by the entrepreneurial applications and money-making potential of what we were learning then we may have paid a lot more attention at school! ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/4_business_skills_you_would_ha.html http://www.simplybusiness.co.uk/knowledge/features/general_business/4_business_skills_you_would_ha.html General Business Thu, 26 Jun 2008 10:26:36 +0000 By Adfero The world of business may often appear to be very much a man's domain, yet there are countless examples of successful businesswomen out there. It is simply often the case that they aren't quite as visible as their male counterparts. And while the First Women Awards is certainly going a long way towards adjusting the beam of the spotlight, there are many businesswomen out there who could learn from those who have already made it. What did it take for them to go from female entrepreneurs to business superwomen? Compare tailored insurance quotes for your business Working from home For any woman thinking of setting themselves up in business, advice site Every Woman recommends that they get used to the thought and reality of what working from home will mean. They advise that as a less structured setting like that of a home office will feel very different when compared with an office environment - particularly in comparison with larger organisations. It is important to develop a routine that still makes the distinction between being at work and being at home in order to keep motivation levels up. Importantly, Every Woman recommends that while it may be an attractive proposition to 'go to work' in pyjamas, it will feel better to get up and dressed in attire that would not be out of place in a more corporate environment. "It's incredibly important to discipline yourself. On a beautiful day, it's so easy to dawdle hanging out the washing. But you have to be organised so that you're not tempted to muddle up the household chores and the office work. Be disciplined and deal with domestic issues at the end or the beginning of the day," said Cath Collins of Cath Collins Ltd in an interview with Every Woman. Learn how to delegate The skill of delegating tasks is one of the keys to reducing stress levels and improving time management. However, the act of delegation should be approached with the idea of making staff fully responsible for certain areas of the business rather than considering it to be simply a matter of reducing stress levels by passing on work. Emma Harrison of A4e Ltd, in an interview with Every Woman, said: "Planning is a great stress-buster. People ask how I manage to do so much. The night before, I look at my diary and make a list of everything I have to do the next day. I then look down my 'to do' list and look for things that I can delegate." Choose and buy public liability insurance in minutes Communicate, communicate, communicate While we are often reminded that it is good to talk, Every Woman believes it to be a vital component of business success. The organisation asserts that everyone absorbs information in a different way. Research conducted in the 1970s showed that if people do not receive information in a manner they consider preferable, they actually stop paying attention. Therefore it really does pay to enhance those communication skills and learn how to talk to clients and employees in their own language. "The ability to communicate your vision and goals to the entire workforce is a great way of motivating individuals. If you visualise your dream - or even try to feel it - this gives you a real energy and helps others to be enthusiastic about what you're doing," said Perween Warsi of S & A Foods, in a report by Every Woman. These are all vital ingredients for making a business a success. Business really is about much more than getting all of the practical details in order, such as business plans and finances. It is the human elements that need to be considered as high priorities, especially as this is where many women’s strengths lie. It is reassuring that there is a growing recognition for women in the business community and the forthcoming First Woman Awards on June 11th will no doubt act as a showcase for female entrepreneurial talent that will inspire more women to follow in their footsteps. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/become_a_business_superwoman.html http://www.simplybusiness.co.uk/knowledge/features/general_business/become_a_business_superwoman.html General Business Mon, 09 Jun 2008 15:23:41 +0000 By Adfero Launched in the UK in 2005, the Apprentice is a reality television programme where candidates compete to become the apprentice of businessman Sir Alan Sugar. But while the average viewer may delight in the competitive and often ridiculous aspects of the show, does the programme actually offer anything useful for those of us in business? What lessons that can be learned by the victories and failures of the candidates? Is the Apprentice counterproductive? While many people enjoy watching the show, there are those who do not think it is positive from an entrepreneurial perspective. Indeed, a recent report has highlighted the negative effects of the programme in terms of its ability to influence the success or failure of a business. Choose and buy low-cost insurance for any business online Based on research by the University of Leicestershire, the report found that wannabe entrepreneurs who have incredibly high levels of self-confidence (as do the candidates on the show), find that their businesses end up failing precisely because of the fact that they rate themselves so highly. The study found that excessive levels of confidence are a factor when businesses fail during their tender early years. The theory is that these over-confident fledgling business tycoons quickly find themselves knee-deep within markets that have no room to support a new competitor. "Our results showed that when success depended on skill, over-confidence tended to cause excess entry into a market place," said Dr Briony Pulford, one of the researchers involved in the study. "Market-entry decisions tend to be over-optimistic, with the inevitable result that new business start-ups tend to exceed market capacity, and many new businesses fail within a few years." The show has also failed to win favour with the Federation of Small Businesses. In a report in The Scotsman Andy Wilcox, the organisation's Scottish policy convener, complained that the programme exists only as a simulation of a real business environment and cannot accurately reproduce the exertion and determination shown by many small business owners. A business lesson or a bit of fun? Some would argue that The Apprentice offers both. While the business tasks are clearly contrived and heavily weighted towards playing on the weaknesses or strengths of certain candidates, a discerning viewer can learn some lessons at least by watching them get it wrong. For starters it is interesting to watch the team dynamics from a managerial point of view. By the very nature of the programme, none of the candidates are team players and they are all out to win as individuals, which undermines the very idea of working as a team. So from the viewer’s point of view we get to see how strong characters interact with each other and it gets us thinking about how we would go about managing them to bring out their best. Solve your cash flow problems - get Factoring quotes today! The role of the project manager is also interesting. The delegation of tasks and the allocation of sub-teams tells us a lot about the manager’s thought processes and priorities. Watching the candidates in this situation could give a unique insight into how some employees may really feel about working with certain types of people or having to undertake certain tasks. This is particularly true of those tasks on which the employees do not feel 100% confident about doing well. We may become more considerate managers as a result. We’ve all sat on the sofa watching the show and thinking we could do a much better job in the weekly tasks. And in fact, those of us who watch it and re-think the tasks by our own design are actually learning as we go. We can certainly pick up on how certain things should be done and how they should not be done. Sometimes it takes the errors of someone else to see the errors of our own methods and to find the impetus to make the necessary changes. Ultimately, what each viewer gains from a TV show like The Apprentice is very different. Some people will feel glad that they are not out there in a cut-throat business world each day, and others will feel inspired to go out there and start a business. There can be no doubt that this and other shows about business, such as Dragons’ Den, are the drivers for a boom in business start-ups, whether for better or worse. But perhaps the trick is to not take it all too seriously. After all, television is television and its ability to represent reality can only go so far, especially when there are ratings to consider. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/could_you_hone_your_business_s.html http://www.simplybusiness.co.uk/knowledge/features/general_business/could_you_hone_your_business_s.html General Business Fri, 06 Jun 2008 14:58:08 +0000 Given the downward trend of the housing market and the banks rescinding their low-rate mortgage products, it would reasonable to assume that buy-to-let investments are giving more than a few landlords a headache at the moment. Added to the everyday issues a landlord must deal with, such as bad tenants, property maintenance and void periods it might just turn into a full blown migraine! Mortgage payment problems Demand for rental property may currently be strong as first time buyers wait for house prices to drop before deciding to buy, however many landlords will be facing a hike in their mortgage payments as they come to the end of their fixed rate deals. This is especially the case with those properties that are highly geared across the portfolio. Don't forget to take out landlord insurance! Get quotes now Although interest rates are currently set at five per cent, the banks are showing no signs of adjusting their own rates on mortgage products to match. As a result some landlords may find it more difficult than before to cover the cost of their monthly repayments. In such circumstances however, it is important that such repayments are met or at least the problem recognised and dealt with. The Council of Mortgage Lenders (CML) has stressed the importance of getting in touch with the mortgage lender before any difficulties get out of hand. There are some solutions, however. Raising the rent for existing tenants approaching renewal of their tenancy agreement could cover a shortfall, although landlords should look at the local rental market to ensure that any rise is in line with the area. You could potentially justify an increase by providing new appliances or furniture. If you have a portfolio of properties the answer may be to sell one of them which has some capital, and distribute the proceeds throughout the other properties, thereby reducing the mortgages. The new rate of Capital Gains Tax would enable a landlord to sell up with much lower tax losses. The state of the housing market House prices are on a slow but steady decline, which may cause landlords some sleepless nights. However those who are in the property investment game for the long-haul should not feel too worried. The trends over the years show that the market always bounces back eventually. Paul Holmes of First Rung feels that the country may take longer to recover from this economical crisis. He believes that a full recovery could take as long as 15 years and that property prices might fall as much as 30% more over the next five. Find buy-to-let mortgage rates in minutes Undesirable tenants Everyone hopes that a visitor to their home will treat it with the same love and respect that they would show it. Sadly this does not generally apply with tenants who are less house-proud because they know they will only be staying for a limited amount of time. There are of course good tenants as well as bad, but it is the bad ones that landlords fear. Those that will make you wish you'd never given them the keys to the door. There are solutions old and new to this age-old problem. It’s best not to start with a heavy handed approach – if the tenant hasn’t paid his rent for a month or two you shouldn’t send a hit man straight round to claim it back. The first thing to do is to communicate with the tenant. The problem might be an innocent mistake or due to unforeseen circumstances. Keeping the lines of communication open is considered to be one of the most important aspects of the landlord-tenant relationship. If the tenant is refusing to pay, has damaged your property, or is refusing to leave there are legal routes to taking action. Check out Landlord Zone for more information. In most areas of business there is now more transparency, especially online. This stems largely from the reviewing trend which allows one customer to read the opinions of another on a certain product or service. Property rentals are no different. A new service is now available for landlords and tenants to review each other. BadTenants.co.uk names and shames and in the future could be the first port of call for all landlords who are looking for tenants. The site warns that "you will need to update your tenancy agreement that notifies [the tenants] that they may feature on this website if they violate your agreement. Please do not display tenants who have not been notified of this clause". However any good tenants should not be worried by this – in fact a good review could help them rent a property in the future. There are also certain types of landlord insurance that protect you from some of the problems caused by tenants such as contents insurance and tenant default cover. So, if your buy-to-let property is giving you a migraine, the best painkiller is found by taking action, making some preparation and face the difficulties head-on. ]]> http://www.simplybusiness.co.uk/knowledge/features/landlord_general/is_your_buytolet_giving_you_a.html http://www.simplybusiness.co.uk/knowledge/features/landlord_general/is_your_buytolet_giving_you_a.html Buy-to-let Mortgages Landlord General Fri, 06 Jun 2008 14:49:40 +0000 by Adfero A good accountant is essential to running a successful business. They will be by your side during the good times and the bad; advising you, supporting you, reminding you and saving you from yourself. Of course you pay for the privelege but it's worth the expense because in short, your accountant will be your business best friend (BBF). It is therefore important to find the right one who is a good fit with you and your organisation. Business owners have a vast array of tasks to keep on top of such as payroll, tax returns and accounts, which involve knowledge of VAT, corporation tax, income tax and national insurance. These things are time consuming and can be easy to push aside but they are all areas that an accountant can take care of. Attempting to do them yourself could result in serious consequences if anything went wrong. Choose and buy business insurance online in minutes "Organising your tax and reporting responsibilities may be one of the less exciting parts of business life, but it's not a good idea to delay paying your tax bill or submitting tax returns or other essential company records," said Business Link. "It can lead to hefty financial - or even criminal - penalties if you're late." So what are the penalties? Given that there are a number of different penalties that can be imposed, according to the exact nature of the offence, it is perhaps better that the scope is limited to a few core areas, including some of the effects of negligence. Firstly, in respect of failings relating to the return of income tax self-assessment forms, if a submission deadline is missed, then - according to Business Link - this automatically results in the generation of a penalty fee of £100, which extends to a further penalty fee of another £100 if the deadline is again missed after six months. However, it is worth bearing in mind that if HM Revenue & Customs are not of the opinion that £100 fines are a sufficient enough prod, daily fines of £60 can also be imposed. In case there is some confusion, the submission deadline usually appears on the front of the self-assessment form. Self-assessment documents for corporation tax are also important forms that can land any entrepreneur in trouble if they are not completed and returned on time - and again, it is important to follow the statutory filing date. Should a return be submitted up to a total of three months late, then a flat-rate penalty fee of £100 is imposed. However, higher penalties can also be levied depending upon the circumstances. Professional Indemnity Insurance - get quotes from a range of providers Limited companies must submit their accounts to Companies House annually. Failure to do so can result in a penalty ranging between £100 and £1000 for a private company up to £5,000 for a public company. Directors may also be prosecuted for failure to return on time and could be fined up to £5,000 and receive a criminal record How can an accountant help? While it may be perfectly feasible for a business to take care of at least some of these things, the work that an accountant can deal with can be too much for an entrepreneur - or even a small to medium-sized enterprise. Even if you have the necessary skills in-house to do much of the work it may be worth outsourcing in order to ensure that everything is done properly and on-time. Accountants can also be excellent resources for advice on all kinds of business issues. When you hire an accountant you should meet with them at least once every couple of months to ensure that communication lines are open and to make the most of their services. Locating a skilled accountant Once it has been decided that an accountant would be a useful addition to the business, the next task is to find one with recognised professional qualifications in their field. Business Link advises sourcing accountants from either personal recommendations or through the use of professional associations in the field of accountancy, such as the Institute of Chartered Accountants in England and Wales, or the Chartered Institute of Management Accountants. They also recommend drawing up a shortlist of potential accountants well in advance of when you will need them. After all, they need to get to know your business and its needs before any heavy work can be done. "It's best to start looking for an accountant well before you need to use one. If possible, don't leave such an important decision to the last minute," according to Business Link. In conclusion, it is important to spend a little time and care in appointing an accountant, as they really are a vital addition to any entrepreneur's armoury for success, irrespective of the amount of work they take on. A good accountant should be the best of friends with your business in order to give it their best work. ]]> http://www.simplybusiness.co.uk/knowledge/features/general_business/why_your_accountant_is_your_bb.html http://www.simplybusiness.co.uk/knowledge/features/general_business/why_your_accountant_is_your_bb.html General Business Fri, 06 Jun 2008 14:30:28 +0000