The recession has posed many challenges to the small business and company formation sector; declining consumer spends, increasing business costs and aggressive competitor price cutting to name but a few. A recent report revealed that as a response to these challenges many small business are planning to invest in technological change to make the way they do business more efficient and cost effective.
The report found that over half of all the business asked had planned to integrate some form of technological change, into their growth strategies for 2010.
Some 40 per cent of companies have commented that most investment will be in technology that can give their employees a more flexible work environment, for example networked computers, video and video and tele-conferencing.
Tom Wilson, chief executive of JWT, comments: ‘I am not surprised by the report’s findings; the recession has taught us that we need to work smarter if we are to keep up with competitors. That means moving away from traditional ways of working and embracing new technologies and modern practices.”
Archive for August, 2009
SME’s Investing In Technology To Grow In A Recession
Monday, August 31st, 2009Has Small Business Benefitted From The Recession?
Sunday, August 30th, 2009It is a widely acknowledged fact that running a small business is costly and bureaucratic. However, a recent report carried out by independent watch dog More Than Business has revealed that running a small company is not as costly as it was last year and that the company formation sector is set to benefit.
According to the findings of the report, most small businesses are benefiting from reduced labour, supplier, advertising, premises, and rate costs. All of which have made running a small business in the UK a lot more cost effective.
However, this is relative to a decrease in consumer spend over 2009, however if – as a recent report from the ICAEW suggests – we are on the road to economic recovery , the future does indeed look bright for small businesses and recent company formations.
The Importance Of Communication In Sales
Thursday, August 27th, 2009One of the most important aspects of sales, is to take a dynamic approach. In the current economic context, market conditions are changing frequently and not do only do you sales team need to be aware of the changes, their sales pitch must be informed by them. In this post, we look at how to get the most out of your sales team by communicating with them.
- Review Targets
‘In our sector ‘, says Martin Wallwork, CEO of holiday4u.net, ‘ the market is constantly changing due to seasonality and competitor activity, therefore, it would be ridiculous for me to keep the same targets for our sales guys throughout the year”
In general, targets are there to focus and motivate your sales team. Set them to high and they will have the direct opposite effect. However, set them to low and you will end up paying out a fortune in commission and damaging your profit margins. “In our company” comments Wallwork, “we have a meeting at the beginning of each month, to set targets informed by what both I and the sales team think are achievable.”
- Take the Time to Talk
Like any employee, salespeople need to feel appreciated and recognised for their performance and hard work – especially in the current economic context where deals are tough to get and morale is low.
Also, if you do want to reward one of your team do it in person and preferably in front of the whole department. Not only will this increase the motivation of the individual in question, it will also energise the rest of your team.
- Listen to Your Team
We have mentioned on a number of occasions, the importance of providing platforms for your customers to give their feedback on your product or service, from the point of company formation. However, it is also important that it works the other way and you get feedback from your sales people about you customers.
Not only will this help inform future sales and marketing activity, it will also provide you with an insight on how each sales person approaches their job differently and from that you can establish how best to incentivise them.
Making Sales a Priority From Company Formation
Wednesday, August 26th, 2009The single most important thing you can do to maximise your sales activity from the point of company formation, is to commit to making it your number one priority.
While this may seem obvious, you would be surprised by the number of business owners who get so entrenched in the detail of operating a company and clever marketing activity, that they loose sight of what will actually lead to growth.
In the second part in our series on how to improve your sales team, we look at how to change your sales team’s mindset:
- Focus on deliverables
Most sales people are goal orientated people. Therefore, it is important you give them definite targets and that they have a comprehensive understanding of where they are against these targets at any time in the month. This can be as simple as a board in the office or it could mean weekly meeting to discuss progress and plans.
- Create a Buzz
It is important that you energise your sales team. The sales department should not be structured like other areas of your company, there should be an audible buzz in the air. This helps maintain a positivity that translates to any new prospect.
- Provide Incentives
Sales people have been trained to recognise the symbiotic relationship between good performance and personal reward. It is important to motivate your sales people and make sure that they are all aware that good performance will be recognised, publicly celebrated and personally rewarded.
Top Tips On How To Market From Comapny Formation
Monday, August 24th, 2009Starting the company formation process is a notoriously stressful time. As a consequence, many important elements of getting your business off to the best possible start are overlooked. Therefore, before you begin any promotional activity, it is important you take some time out to establish objectives, budgets and most importantly, strategy.
While there is no definitive rule on how you should plan how you are going to market your business, it is a good idea to establish where you would like your company to be in three years time in comparison to where you think it would be if you did not execute a marketing strategy.
Marketing consultant James Pollock suggests integrating a marketing strategy into your business plan from the moment you decide to form your company. He comments; “Ultimately, when you form your company it is likely that you will engage in some marketing activity, even if the budget is not vast. Planning it from the moment of incorporation will allow you to establish where you are now and how you want any form of marketing activity to help you get to where you want to be.”
Before you begin planning your strategy, have a look at our tips below. Keep in mind that planning and scheduling will help you be consistent in your marketing approach and, ultimately, help you reach your goals.
-Establish clear objectives
-Define you target customer and identify their demographic profile
-Decide on your brand identity and key messages
-Research what marketing platforms you want to use
-Establish a budget
-Decide how you are going to measure results
Marketing is a vital part of any successful business, if you don’t decide to utilise it and gain a share of voice, it is most likely that your competitors will.
Monday, 24 August 2009 11:04:08 (GMT Daylight Time, UTC+01:00)
Digital Driving Retail Growth
Sunday, August 23rd, 2009A report conducted by online retail giant ASIS revealed that the digital sector is driving retail growth as non-store revenue is up by almost 30% from last year.
On the whole the retail sector grew by almost 2% from June to July this year Jane Stevens, brand manager of ASIS comments: “The uplift in online sales can be attributed to a number of factors; people aren’t going out as much and therefore spend more time in front of their computer screens, the perception of the internet as a cheap alternative to the high street and mainly the accelerating trend of online discounting.”
Matthew Roberts, director of research at ASIS concedes; “There has been a definite cultural shift in consumer spending. Consumers are increasingly going online to research products and purchase. We are expecting that trend to accelerate further by 2010.” In other sectors, home improvement retailers have reported a growth in consumer spend as more people are choosing to DIY over moving house due to a lack of mortgage availability.
New Company Formation Owners Confident About 2010
Saturday, August 22nd, 2009According to a recent survey conducted by the Institute of Small Businesses, most small business owners are looking forward to better market conditions in 2010.
Almost 75% of the 1,000 small business owners asked, revealed that they are feeling a lot more positive about the future of the UK’s economy. The survey reflected a mood optimism and confidence among small company owners, with 48% revealing that they are increasing their marketing budgets to support their plan to expand their current profits. Of all of the people asked 30% claim that they feel more confident in the future success of their company while only 10% pf respondents claim to be as worried about the economy as they were in 2009.
Chris Baker, MD of Baker recruitment, comments: ‘At the beginning of 2009, we were extremely worried about the future of the company; we cut back on advertising, expenses and feared employee redundancy. While the first quarter was undoubtedly challenging and we saw a reduction in overall profit, we have noticed a marked increase in profit over the last quarter and we are optimistic that we can get back to our plans for growth in 2010.” While economic recovery still feels like a distant dream, it seems we are definitely on a more positive path
How To Convert A Customer To A Brand Ambassador
Friday, August 21st, 2009Yesterday, in the Companies Made Simple office, I overhead a colleague discussing Apple’s hero product – the i phone. Said colleague was such an evangelical brand ambassador, that she went as far as to state; “The i phone will completely change your life.” Not only did this get me thinking about the role a consumer plays in creating your company’s image, but also how important it is to ensure that your brand is a part of collective consumer conversation from the point of company formation.
We’ve heard it on hundreds of occasions – design and create an amazing product and your customers will talk passionately about it across a number of platforms. While this is the case for the i-phone, for many small businesses the theory falls short.
Unfortunately, most of your consumers aren’t discussing their experience of your brand on various blogs and social networks, they are passive, quietly buying your product, keeping their opinions to themselves and not playing any part in constructing your brands image or reputation.
Have a look at our top three tips on how you can change this;
1. Think about why your customer buys your product.
What differentiates your brand from all the others? What unique features does it have that excites them?
2. Tell them you care about what they think.
This is a mistake many small businesses make, they assume that if their customers have something to say they will find a way of doing it, this is simply not the case. Conduct a customer survey asking what they feel about your brand and how it can be improved – offer a prize draw and tell them about how you are going act on the results.
3. Provide platforms for your customers to talk to you.
Embrace social media; create a blog with links to your Twitter and Facebook page and don’t just use the platforms for promotion. use them as a way of having a conversation with your customers.
From Feasibility To Formation
Thursday, August 20th, 2009In yesterday’s post, we looked at the importance of conducting research prior to the point of company formation. We reviewed various methods of gaining consumer and market insight and showed how, if conducted correctly, these methods wouldn’t require a huge budget. In today’s post we look at the next stage of market research; feasibility study.
If the first stage of research into your business concept, revealed positive results, the next step is to conduct a feasibility study. This study can take many forms; it could be a formal document which you will present to prospective investors or it could take the form of a ‘working document’ in which you devise a number of questions which will help you decide how to progress your idea.
Regardless of which form your study takes, there are a couple of issues every feasibility study should address:
1. Your proposition: How is you product or service different to what is already available? What is your route to market?
2. How will your company be managed? Will you manage the day to day operations of your company or will you employ someone to oversee?
3. Your Customer: What is their demographic profile? Who are they currently buying from? What is their existing spend? What other consumers could you target? What sort of advertising will they respond to and how much will it cost to gain a share of voice?
4. Who are you up against? Identify your competitors, how is your proposition different and better? How do they currently advertise and communicate with their consumers? What mistakes have they made? What are their plans for future growth?
5. The financials: How much will it cost to get your company up and running? How do you plan to finance your company?
The Importance of Ressearch Before Company Formation
Wednesday, August 19th, 2009It is a well know fact, that many recently formed companies go into administration within the first two years of company formation. This is a consequence of many factors – poor planning, badly managed cash flow, economic conditions – however, one of the main reasons many newly formed companies fail is due to poor market research. It could be that consumer demand is simply not there or an existing company already offers a similar proposition to yours, either way, costly mistakes can be avoided if you take a moment to consider and research your idea before you try and implement them.
Not only will researching your product or service highlight any challenges or flaws in your original idea, this process will also help you identify ways in which your business concept can be improved and help you define elements it is currently missing. Ultimately, these efforts will provide you with all the information you need to give your company every possible chance of success.
While large corporations dedicate a huge amount of resource into market research before launching a new product or service, there are still cost effective ways any recent company formation can get a solid idea of the market and any barriers to entry. Begin with these simple steps:
1. Use the resources already available to you. If you are forming your own company, the chances are you will already have a level of experience in your chosen sector and that you know people who also do. Ask them what they think of your idea, the challenges they think you may face and how you may improve.
2. Look at your potential customers. Research who you think will buy your product or service. When considering a new product launch, the hugely successful drinks company Innocent, decided to the ignore traditional and complex market research methods. Instead, they simply went where they thought their potential customers may be and asked them for their opinion
3. How do you feel? Starting your own company is a lot of hard work and requires absolute passion and confidence in your proposition. If you don’t have that initially, then you should take a fresh look at your business idea and try to understand why not.