Business advice news | SGBA - Transforming businesses

Is the economy running out of road?

08/04/2015 By

With the approaching General Election due on May 7^th we are being presented with a blizzard of facts and figures to prove almost any point the politicians care to dream up. In fact in many cases the figures cited, frequently taken out of context, are often used to prove opposite sides of the same point.

However a recent report from the Chief Economist of RBS throws new light on the economy and begs the question is the economic growth we have been experiencing coming to an end? So what are the details?

Firstly the UK economy grew by 2.8% last year making our economy one of the fastest growing in the developed world. Inflation was down to 0.6% at the end of 2014 when we exclude oiland has since dropped 0%. Many economists fear that we will be experiencing deflation for the first time since 1948 holding out the prospect of slowing growth.

The ‘feel good’ factor seems to have kicked in during 2014 with business investment increasing by 7.5%. However despite this and the fact that GDP is up by 3.4% on pre-crisis levels, output per hour, a measure of productivity, is 1.7% below its old level. Why is this? Lack of productivity has long been an issue for the British economy and unless productivity improves quickly, 2014 will be seen as the peak of economic growth for some time.

Let us have your thoughts about how the economy is affecting you. If you are concerned about the productivity of your business and how to improve it talk to your local business advisor or call 0333 444 8522 (lo call number) to be connected to a productivity specialist.

Is failure to update your website harming your business?

26/03/2015 By

So many websites have the following messages:

“From all our team we wish you a Happy Christmas.”

“Come and visit us on stand H331 at ‘Pharmaworld Exhibition’, 17-19th November 2013 in London”

Does your website welcome visitors with these out of date messages? There are many out there that have similar. Not months but YEARS out of date.

So, what does this say about the way you manage your business? Perhaps you do not pay attention to detail, the very detail that differentiates between the ‘acceptable’ and the ‘excellent’.

For many, your website is your shop window. Would you expect to see Easter Eggs in a shop window in October, when the shop next door has haloween products?

The lack of attention is sadly widespread.

So, a simple message, keep all up to date. Make sure you review your website regularly.

Be professional.

And for those reading this, delete the following sentence as applicable.

Happy : Easter / Christmas / Halloween / Birthday

And dont forget to call in to our stand at Wembley, 30th July 1966.

Want an impartial review about how your online presence can affect your business? Call us on 0333 444 8522 or 0787 967 6435.

Do we need to reassess our Export Markets?

06/02/2015 By

Exports have always been a large part of SME activity.

There has been much said about our special relationship with EU countries. However, uncertainty with the Euro means that many are becoming nervous about this business. Together with the potential for an ‘IN / OUT’ referendum on the EU, there could be turbulent times ahead.

Of course Euro giants like Thales, Siemens, Santander, and Mercedes will still want to trade ‘tariff free’ with the UK in the event that a vote made an EU exit inevitable. So, perhaps the relationship that Norway and Switzerland has with Europe would be the model. Who knows?

In reality UK business has been guilty of letting certain special relationships slip when it comes to Exports. Let us take Canada and Australia for example. Both countries share the same language (in the main). They also share the Monarchy, our Royal Family. In the past we did some great business, but we appear to have taken our eye off the ball, and Asian companies have benefitted.

Back in the 1980’s, for every £1 in value we exported to the USA, we exported approximately 25p to Australia and similar for Canada. Today, it is less than 5p in comparison with the USA. Whilst we have clearly nurtured USA relationships, we are guilty of paying scant attention to our closest allies.

Asia has undergone great changes. Manufacturing is not as attractive as it was. So, perhaps now is a good time for Exporters to reassess where they sell to.

If you would like an informal talk about your export markets, aspirations and frustrations, then why not call us?

Call us on 0333 444 8522 or 0787 967 6435.

Planning a Social Media Campaign

02/02/2015 By

To many business owners, social media is something their kids do on their smart phones. Many do not really understand what social media is and also do not understand how it can be used in business. If you ask them why they don’t use social media they often fix you with a glazed look in their eyes and mutter something about it not being relevant or not having the time. However more recently social marketing has become one of the foundations of a successful marketing strategy.

For many people social media is just Twitter and Facebook. But in fact there are many more tools and channels and you need to make sure that the channels you choose are the right ones for your business and your customers. In order to do this effectively you need to incorporate social media planning into your overall strategic marketing plan.

This plan should answer the following questions:

Who are your customers?

Do they all engage in social media activities? Which ones?

Where are they?

Define which market segments they are in and decide on the characteristics of each target segment. What are the demographics. For instance if one particular market segment has an age profile of 16-25 the it could be Facebook and Pinterest that could be of value rather than LinkedIn and Twitter.

What are you trying to say?

Have you got a particular message? Are you launching a new product or service or do you have a special offer?

How are you going to get the message across?

You have decided on the core message but the means needs to be developed. For instance it could be blog posts, videos, infographics, white papers or a myriad of other means. But the core message needs to be consistent and it should do what it ‘says on the tin.’ The clue is in the title, Social Media. Make sure your message is social and personable which helps in developing a brand personality.

What does success look like?

How are you going to know that your campaign was a success? Decide on what you want from your social media campaign. It may be ‘likes’ it may be increase in web traffic or indeed numbers of new customers. Whatever you decide to measure make sure that you review the results frequently and adjust the campaign accordingly.

To talk to someone about your social media plans contact SGBA, the Business Transformation Specialists at 07941 426807 or email us.

What can Small Busines do to help UK Balance of Payments?

21/01/2015 By

The UK Balance of Payments is a sorry story.

In short, we buy much more stuff from overseas than we sell overseas, and have done for many years.

Some items, such as raw materials, and highly specific components we have little choice other than to import. But other decisions we do have a choice. For example, deliberating whether to get an Audi or BMW as your next company car? Why not consider a Jaguar?

Simple purchasing decisions can make a difference, and the greater prosperity we create in our own market the better, and the more likely there is stability in terms of taxation.

Clearly International trade is very important. Both Imports and Exports have a vital part to play in our economy.

So, what can the export orientated small business do to help rebalance our imports/exports? If all exporters grew their overseas sales by 20% it would make a great difference. Very easily said, but often difficult to achieve.

Many companies sell their products through distributors. A sensible and potentially lucrative route for many companies.

I have spoken to many business owners who have said : “We operate overseas through distributors, but they dont do much”. I generally counter this with “Well, what is your strategy with your distributors?” The response is usually highly dismissive, in other words, they have no strategy for distributors.

So, where does the fault for lack of Distributor sales fall? Of course each case is different.

Simple Distributor programmes of reporting, educating, and generally communicating success stories can reap great rewards. All of a sudden the 20% growth in overseas sales can look very achievable.

If you feel your overseas distributors can deliver more to your sales turnover, but not sure where to go, give us a call for an informal chat. Let SGBA help bring some strategy and focus to your exports.

Call us on 0333 444 8522 or 0787 967 6435.

Why a patent may be more valuable than you think…..

02/12/2014 By

Patents for your innovation, very expensive to many small businesses.

“The problem with having a patent is that if I challenge a multinational in court for breaching my Intellectual Property, then it will cost me a bomb in legal fees. And of course ‘Big Co’ can afford more expensive lawyers than I can afford“.
It is a fairly common comment from Business Owners and Innovators. And of course it is even more expensive if you have cover in Europe, or World Wide.

Of course, Company owned patents are seen as assets when it comes to Company valuations, but this may not be easily reconcilable during day to day business.

The goalposts changed on 1st April 2013, and it is amazing how many innovators and small Business Owners do not know about the Patent Box. Whilst nothing changes regarding the ‘vulnerability of Big Co to try to bypass your patent’, matters have changed regarding the incentives for doing so.

Profits from items with a Patent are now subject to a lower rate of Corporation tax.

So, let us say that 50% of your profits are derived from items with Patent protection, then tax related to this is reduced to 10%. Prior to April 2013, all profits associated to Patents were subject to the higher Corporation Tax rate.

Of course you need to work out the sums in your financial projections to see if it is worthwhile.

If you need help with weighing up the pros and cons, call us, or drop us an e mail. Discretion guaranteed.

0333 444 8522
ian.thomas@sgba.co.uk
peter.johns@sgba.co.uk
bob.francis@sgba.co.uk

– See more at: http://ukba.co.uk/news/why-a-patent-may-be-more-valuable-than-you-think/#sthash.yL30sdC9.hg3onuCA.dpuf

How to Turn Website Visits into Sales

13/10/2014 By

Over 90% of online searches go through Google. Therefore the majority of websites are optimised for that search engine and it is a fact of life that Google change the algorithms they use for identifying which particular websites match the search criteria. Content has over the years become one of the most important elements for good optimisation. Many websites that you may visit are somewhat dormant. No new relevant content has been added in many years and as a result rankings in searches are not particularly high.

This is where content marketing comes in. Ensuring regular content or updates are added to your site will help to ensure better search engine positioning but importantly will offer your visitor a better experience and will encourage them to revisit in future. This in turn will help convert the casual visitor to a customer. But what sort of content is relevant? Well typically most people use things like Blogs or Social Media updates. These are simple to implement and provide a regular ‘change’ to the website which helps SEO. But increasingly video is being used which tends not only to increase the number of hits received (particularly using something like You Tube to host the video) but also improves engagement with the visitor. A good example can be found here

Research shows that consumers consider companies that use videos to be more trustworthy and creates a connection between the visitor and the company that words alone cannot do.

There are however numerous pitfalls to this approach and there are some key questions that you need to consider:

DIY or professional? Modern video equipment and smart phones with simple editing software means that many people can and do develop their own videos cost effectively. However professional video makers while more expensive provide a higher standard of product suitable for all platforms enhancing the brand image
How long? Attention spans are getting shorter particularly if your customer base comprises mostly of the under 30’s. If you can get your message across in 2-3 minutes that would appear to be optimum. However do not be afraid to produce a longer video if you are telling a story and do not be afraid to make it humorous if it calls for it.
Be yourself. Do not create a ‘persona’ that does not reflect the brand or company
Like all marketing, planning is essential. Storyboard what you want to say and the points you need to get across. Develop a script, find the right locations that will enhance and not detract from the message. And finally remember do not be afraid of making errors or ‘fluffing’ lines; they can be edited after using simple software readily available (iMovies for instance)

If you want to find out more or want to discuss Content Marketing please contact us by email or call Bob Francis at 07941 426807

Ambitious companies that export see profits increase in first year

24/09/2014 By

The UK is a trading nation. For centuries we have been importing and exporting goods to countries across the world. It is what helped build the Navy into the largest sea going force the world has seen to help protect the sea lanes to the colonies. Therefore international trade and exports should not pose too many problems for businesses these days.

Interestingly though a survey from the British Chambers of Commerce show that exporting is not something that is done by many SMEs. Most businesses have ambitions to grow domestically (over 90% or those surveyed) but this falls to 43% that have ambitions to grow internationally.

Another interesting statistic is that 55% of current exporters report that there was a positive impact on their profit within 12 months of entering new international markets. This explodes the myth that you cannot be profitable if you export or that it takes too long to recover costs of setting up export markets. Many of the companies that do not export state that increased funding would encourage them to export.

Fear of the unknown is often stated as a barrier to exporting and not understanding local traditions and ways of doing business can be a barrier. But there are many support services for SMEs who wish to export or are thinking how to go about it. Organisations such as BCC, UKTI and others can provide practical advice support and sometimes business connections. UKTI for instance works with UK Embassy trade commissioners to not only research particular markets but also set up meetings with suitable contacts for companies looking for customers and distributors in the overseas country.

SGBA has experts that have set up overseas agent and distribution networks and have spent much of their career in exports. We can support SMEs in their search for suitable markets and help them develop export plans. For an obligation free discussion on how you can develop export capability contact us or call us on 07941426807

Improved Telecommunications Saves Money, Improves Customer Service

17/09/2014 By

Merging fixed line and mobile communications can save money and improve flexible working. However many SMEs (80% according to research carried out by Olive Communications) have failed to link together their fixed and mobile communications. The same research points out that 72% of those that have gone through the process have experienced cost savings, 51% improved business continuity, 39% customer service and 27% have reported and they are able to implement flexible working.

merging fixed line and mobile communications saves money, improves flexible working

In the modern business world, the work anywhere culture is becoming increasingly important. Having access to all the company’s communications and IT systems and support from wherever you are allows business to be done anywhere which improves both flexibility as well as productivity.

SGBA are business transformation specialists and we can help you improve your productivity and help you to grow your business. To find out how we have helped other SMEs transform their business contact us or phone 07941 426807.

Social Media Creates New Opportunities for SMEs

10/09/2014 By

Many people use social media of all types to create brand awareness and drive traffic to their website. But it can also create new opportunities for customer retention and innovation management

Social Media influences purchase decisions as much as advertising
Social Media facilitates interactive dialogue with customers in turn influencing the development of products and brands

Studies have shown that people spend about 25% of their online time to social networks Through these networks other customers’ recommendations and feedback influence the way they think about brands and products and therefore affect their purchase decisions. Social media has for some time now provided new ways of communicating with business partners be they suppliers or customers or indeed employees. This in turn means that companies are increasingly using social media to innovate and as a sales as well as a marketing tool.

Creating a dialogue with users and potential users of your products and services provides a valuable and instant response to questions on what your customers like and dislike about your product or service and indeed what they think about your business. Feedback through social media gives early indication of what customers would like to purchase and using the same tools companies can gain customer feedback on new products at the early stage of development.

Social media channels can then be used to sell to the potential customer base citing feedback from the test group used earlier. These ambassadors for the company can help influence purchasing decisions across the board.

The use of social media however should not be an ad hoc activity that is the task of a middle manager to squeeze into their daily/ weekly/monthly routine. Like all similar activity it should form part of the strategy of any business. It affects more than just the sales or the marketing department; it affects innovation and product development; it can have an effect on almost every part of the business and therefore must have its foundations in the strategic goals of the company.

If you want to discuss how SGBA has helped their clients use social media to grow their business or you want to discuss a strategic approach to communication with you customers call us on 07941 426807 or email us

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