Archive for September, 2009

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What Is The Cost of A Rebrand?

Wednesday, September 30th, 2009

As we have discussed in previous posts rebranding is expensive and potentially dangerous activity. That’s why at the point of company formation, you should invest the necessary time and resource into getting it right and creating a brand with longevity. However, what if your brand no longer cuts it in today’s aggressive market conditions? In today’s post we investigate why many businesses choose to rebrand and tomorrow we speak to a couple of leading entrepreneurs who have actually done it.

What makes a business rebrand?

We all remember the uproar that was caused by the rebranding of the Olympics logo. According to most people that was rebranding gone mad and it had damaging and far reaching consequences, not least for the advertising agency who commissioned the design!

Matthew Beaming, CEO of advertising agency Difference, comments “In a lot of cases, the brand is not the company’s main problem, it is usually the products they offer, their communication strategy or price point.”
According to Beaming if you are changing the brand of the business, you must have already exhausted all other options first. However, if you have done that, conducted market research and still believe that the fundamental reason your company is not growing is due to the negative or outdated connotations of your brand, rebranding is a great idea.

The first thing to do is look at how your business is currently perceived; what is your market positioning, what is your brand’s current values and personality? Also, look within your business and ask the people who work for you what they think. If you ensure the process of your rebrand is informed by your brands history,it is likely you will preserve its original equity.

Are you aware of the risks?

Rebranding comes at an extensive cost. Therefore your objectives must be clear to avoid confusing your existing consumer base and the benefits definitive to ensure shareholders are on board.

It is also vital you check the availability of your new brand name and execute the rebrand in a considered and strategic way; inform your staff well in advance and identify a date on which all corporate communication will change.

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Is Employee Dissatisfaction Having An Impact On Your Workforce

Tuesday, September 29th, 2009

One of the most important lessons many entrepreneurs learn far too late, is the fact that your company’s growth and success, is widely dictated by the people you employ.
Therefore, the findings of a recent report conducted by recruitment consultants, MG Consultancy – which revealed that almost 30% of all employees were dissatisfied with their current – should be extremely interesting, for those entrepreneurs who are looking to survive the recession by increasing the productivity of their company.

 According to the report, many employees feel overworked and undervalued as the result of redundancy cuts and pay rise freezes. This undoubtedly has an impact on productivity and staff turnover. The study reveals that 20% of the people asked have felt less satisfied in their job since the recession hit and almost 15% are considering a change in career rejection.

The survey revealed that, of the people asked, respondents working in retail, advertising and service sectors were the unhappy with their working life, while public sectors such as teaching and healthcare were thought to offer the most rewarding positions.
John Newbold, managing director of MG Consultancy comments: ‘ Employers are so concerned with redundancy and cash flow, that they have begun to ignore one of the most important areas of their business; their workforce. Ultimately, employee de-motivation and resentment will invariably have an impact on productivity and staff turnover. Ignore these two facts within your workforce could have disastrous consequences.”

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Banks Increase Lending To Fund Company Formation – But At What Cost

Monday, September 28th, 2009

Many business analysts, have stated that the main thing holding the UK’s economy back from full economic recovery, is the decline of available finance for small businesses. However, as the British Chamber of Commerce, has recently announced uplift in banking lending, you would expect the situation to vastly improve. According to financial service specialist Hudson Management, this is not the case.
The asset management company suggests that while business lending has increased in the last quarter, this has been offset by a portfolio of new bank charges for the SME sector. According to Hudson Management most banks will agree to provide finance for small businesses – allowing most to keep their overdrafts and credit cards – but on different terms.
For example many leading finance providers are suggesting that small business keep their overdrafts but convert them into loans which have a rate of interest and stricter terms of repayment.
Hudson Management’s CEO – Martin Smith comments: “Ever since the government rescued Britain’s leading banks from bankruptcy, there has been pressure on these nationalized institutions to provide finance to the small business owner. For the first time during the recession, we have seen evidence of them honoring their commitment, and there has been a marked increase in the number of small businesses receiving finance. “ 
‘However, this is not as positive as it may initially appear. While the banks have started lending again, they have done so at a premium. Indeed, not only are interest rates higher, they have also added a number of large service charges – from audit charges to account review fees – on to most business loans.”

 A thaw on bank lending to businesses is being nullified by a raft of new stealth charges, claims Clifton Asset Management (CAM).
The financial services specialist suggests that lenders are trying to persuade small and medium-sized companies to convert their overdrafts into loans that have higher interest charges and more stringent repayment terms

Posted in Company Finance | 3 Comments »

Company Formation Needs To Make The Most Out Of Online

Sunday, September 27th, 2009

Figures by the IAB, reveal that online advertising spend now accounts for almost 30% of all advertising. Online shopping, social media and pay-per-click have all had an impact on the increasing number of companies advertising online.
However, according to a recent survey by online giants PayPal this is a trend that has failed to touch the majority of the SME sector as almost 50% of the small businesses do not have an online presence.  
Stephen Matthews, Chief researcher of the report, comments: ‘Online spend has helped a number of sectors – especially retail – survive the recession. Ultimately, any company that does not have an online brand platform is not only missing a potentially profitable revenue stream, they are also risking their brand.”
The survey involved over 500 hundred participants, all of whom were small business owners.

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BCC Reveal There Is Still A Way To Go

Saturday, September 26th, 2009

The UK may be on the path of economic recovery, however, the British Chamber of Commerce has stated that the economy still faces a number of challenges, before we can identify the credit crunch an over.
A report conducted by the body, revealed that  Britain’s Gross Domestic Product will drop by almost 5% in by the end of 2009 and that while 2010 will see this rate improving be 1% , any hope of returning to the levels recorded pre-recession is misguided.

 Matthew Magee, a leading economy strategist at the British Chamber of Commerce comments; “Though incremental growth is anticipated over the next two years, the rate at which the UK economy will expand will be slower than expected. However, it is vital that all businesses are poised to take advantage of any economic expansion.”

The findings of the BCC report is confirmed by the Institute of Small Businesses, who state that confidence among business owners has increased for the first time since the recession hit.

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SME’s and Company Formation Strengthened By The Recession

Friday, September 25th, 2009

In yesterday’s post, we revealed that company formation figures for September are up. Today, we look at a report commissioned by the Department for Business, Innovation and Skills, which not only confirms the company formation figures, but actually goes as far as to suggest that SME’s in the UK have used the recession to strength their businesses and will actually emerge from the economic downturn stronger than before.
The survey revealed that almost half of all the companies asked, felt that the recession has forced them into finding creative solutions to meet the challenges the credit crunch obviously initiates. The study revealed that almost 70% of those asked, believed that their companies would emerge from the recession stronger, as a result.
Since the recession hit, the media has been saturated with headlines articulating the ‘Demise of the SME’. However and yet the BIS survey revealed that all of the companies asked felt their size allowed them to execute necessary changes quickly.
Mark Williams, promotions director of Asda comments: ‘When the credit crunch hit, it was obvious that it was going to present a number of challenges to the SME sector. Successful business, took the time to be innovative and develop strategies that would help them grow. That entrepreneurialism is what is at the heart of every successful company.”

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Improving Your Sales Team Part One

Wednesday, September 23rd, 2009

Good sales people are the cornerstone of most successful companies. Therefore, from the point of company formation it is important that the sales people representing your company are trained well. In this series of posts, we give you our twenty top trips on how to improve your sales team
The truth of the matter is, that even if the most successful sales team experience bad times. The most important thing  all business owner/managers need to understand is that no matter what has caused the rut – whether it is a consequence of the recession or bad simply down to performance – there is always something you can to do to motivate your team:
1. Explain the importance of talking to the right person
According to Mike Hudson, founder of JWH, “The most important part of any sales strategy, it to ensure that you are talking to the person who has the power to make decisions. A lot of salespeople tend to position their contact lower down the corporate hierarchy, as they feel the call will be easier.”

According to Hudson, they couldn’t be more wrong; “The decision maker is much more likely to listen to your proposition as they have the authority to close the deal.”
2. Pay Attention to Detail
The number one rule of any sales pitch is to check and check again. Nothing will put a potential client off more, than slopping spelling, inaccuracy or poor grammar. It undermines your brand integrity and makes prospects think that you will adopt the same laid back approach when dealing with their company.
3. Listen, Listen, Listen.
According to Hudson, “ Salespeople tend to think the more they talk, the less time a potential client will have to say no, get swept up in their patter and close the deal. They couldn’t be more wrong. What all salespeople should do from the initial point of contact, is listen to what a client wants, establishing how they can provide a solution and explaining how they can deliver it.”

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Company Formation The Importance of Suppliers

Wednesday, September 23rd, 2009

As we have commented on a number of occasions on this blog, what your company looks like at the point of launch, will probably be very different from what you originally thought at the point of company formation. In this post, we catch up with Laura Andrews – CEO of recent company formation Beautifully Organic – as she learns that the site she has tirelessly worked on for four months, may not be as great as she originally thought.
“Uh-oh – the site need to be completely redesigned.” 
This is not the best news to receive a couple of weeks away from launch, when you have invested a lot of time and considerable resource into a predominately online business. So as you can imagine, I was not best pleased when our new web designer – and recent partner in the company – delivered this bombshell.
When I first formed the company, I had a working knowledge of online marketing, but not the technical aspects of getting a site online and making sure it performed and functioned well as an e-commerce platform.  Therefore, I completely trusted the designers I was working with. Now that the relationship has dissolved and I have taken on a new media company – the CEO of which is the non-executive director of my business – a number of technical flaws have been identified and they have suggested that rather than fix the original system, it would be better to completely redesign it.
However, it is not commercially viable to delay the launch of the site further ,due to all the promotional activity we have planned in the run up to the launch. Also, while the site maybe have a number of flaws on a management and technical level, from a user’s perspective – as the focus groups I have held confirmed – the content and user ability of the original site is great.

 
Therefore, I have made the important decision to continue with the scheduled launch date. The work on the re-design will begin now, but we will  launch that version in the New Year. Not only will this strategy ensure that all the promotional activity I had planned is not a complete waste of money and time, it will also provide us with the opportunity to ask our customers what they think could add value to the ‘user experience’ on the site.
This is a set back and I would advise all entrepreneurs considering company formation to take the time to thoroughly investigate the suppliers you intend to work with, before committing to anything. Or –like me – you will pay for it later.

Laura.

Posted in The Diary of A Company Formation | No Comments »

What Is The Right Recessionary Message

Tuesday, September 22nd, 2009

In our previous posts, we have established that the credit crunch offers the company formation and SME sector numerous opportunities. But what impact has the recession had on the sort of marketing campaigns businesses are running? Aggressive discounts and sales have become the way forward for many brands, but is this sort of promotion the right strategic fit for your brand ?In this post we take a look the importance of getting the message right.

Right place, right time, right price
In an economic downturn, a business’ objectives are different .Well planned and effective marketing strategies will evolve and react to these changes. Many small businesses switch their growth strategy for a survival plan. Staff security, cash flow, and debtors are prioritised over long term planning and as the market continue on its descent, customers will become increasingly intolerant of shallow gimmicks and spend their hard earned cash on familiar brands with integrity. Though, as we have already established, this context of conservatism and decreased consumer spending poses a number of challenges to the advertising industry, it also offers small businesses the chance to develop stronger relationships with their existing consumer base and enter into a dialogue with new customers.

“Gone are the days of a faceless brand” says Charlie Richards, CEO of Marketing Consultants Richards Results. “In a climate dictated by insecurity, consumers are looking for brands who communicate to them creatively and with an integrity that is in keeping with these harsh economic times.”

“The broadcast market is grossly over populated with aggressive discounts and obnoxious ‘one day only’ ‘everything must go’ promotions. Don’t be tempted to throw away your brand integrity and join them.”

Though there are bargains available in broadcast media make sure you don’t abandon the brand identity you have worked so hard to build. Treat it like any other marketing activity, look at the audience you want to attract and ensure your campaign ticks all the right boxes. Regardless of how good a deal or what the communication medium is, the question in your mind should remain the same; “What will my ROI be.”

Accountability

Ultimately, what Richards concludes is this; though the culture of consumerism may have changed, your marketing objectives should not. Though the advertising market is saturated with bargains and, as a result, mediums many SME’S could not previously afford , are now within their reach, it is important that business owners assess if the medium is right for their brand.

 
Return on investment has always been a buzz word for marketers; however in times of recession, when consumers are spending less and less, there is even more pressure to ensure that each marketing campaign directly leads to sales.

Posted in Recession | 1 Comment »

Working Mother’s Can Help Company Formation

Tuesday, September 22nd, 2009

A recent article, published in The Sunday Times, suggested that many women in the workplace felt that experienced a ‘glass ceiling’ in their careers, as a result of prolonged periods of leave due to maternity. However, a survey of over 2,000 women, conducted by website workingmums.co.uk suggests that if bosses embraced the concept of flexible working, many women would be less likely to extend their maternity leave entitlement.
 Of all the respondents asked, over 80% of women stated that, flexible hours were one of their main priorities when considering taking on a position. This figure is in stark contrast to the 30% of women who felt extending the amount of time they had on maternity leave, was their most important priority.
The results of the report revealed that great steps have been made in terms of the support women felt they received from their employees- with over 65% of women stating that their bosses were very supportive of their maternity – however, 35% of the women asked still felt that their bosses had been unsupportive.
The fact that the number of mothers working in full time roles, has fallen by 15% from last year , while the number of mothers working in part time position has risen, suggests that many women feel they have to take on less challenging and more flexible roles after they have children.
If business owners, embrace the concept of flexible working, they could end up with a happy and more productive workforce.

Tuesday, 22 September 2009 12:28:10 (GMT Daylight Time, UTC+01:00)

Posted in Company Formation News | 3 Comments »

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