Read These Eight Tips To Help You Decide If You Could Set Up A Shop Business

If you are thinking of starting a retail business you need to think about whether you have what it takes to set up a shop business and you need to take the right steps before you even think about opening your doors to your first customer.

Here are eight considerations for starting a retail business

1. First have you got what it takes? – Are you willing to work long hours? Are you resourceful and self-motivated? Do you have deep determination when the going gets tough? Do you like learning new skills? Do you like interacting with people? Are you practical and organised, with a creative streak? If you answered yes to each question you could have the right traits for starting a retails business.
2. If you are going to set up a shop business you need to decide what you are going to sell – and your decision should be based on choosing something you know about and are passionate about, after all it is going to be a massive part of your life.
3. In all new businesses it is a good idea to test out your concept – if you plan is to run a shop, first consider taking a market stall or having a stand in a trade show to test out your products, get some feedback and a feel for how you get on with your potential customers.
4. As with any new business, doing some up front planning is essential. You need to write a business plan setting out what you will be selling, to whom, for what price, what costs and what profits. To avoid losing money it is essential to do a detailed financial plan to check your business idea stacks up and to monitor progress.
5. To set up a shop business you need premises and a well-worn adage comes to mind ‘location, location, location’. You need lots of people of the right type passing by, which means a town centre location, or a location with good parking on a busy road. Make sure you are well matched to the local area e.g. if you are selling up-market products you need to be in a wealthy area alongside other up market shops.
6. Premises will be a big consideration – check the planning details to make sure you can legally set up a shop business on your chosen premises and don’t be tempted to take on a long lease that you cannot get out of within a reasonable notice period (i.e. three month). It is also bests to avoid spending on improvements unless you will be able to recoup your investment if things to not go as planned.
7. You will need an ownership structure to set up a shop business. The most common are sole proprietor/trader, private limited company or limited liability partnership. Many people start as sole traders and incorporate later on, however being sole trader carries more financial risks because you and your business are not separated. It is advisable to get some professional advice on the pros and cons of each option before you start trading.
8. Although you may plan to set up a shop business, you must not ignore the internet which is now of huge importance if you are starting a retail business, or any other business. You could make substantial additional income through online sales and even if you are not selling online you need a good website that can be found by people searching online.

I wish you all the best with developing your business plan for starting a retail business and in making a great success of it once you have set up your shop business.

The competition is currently running in the March and April editions of IPC’s prestigious monthly magazine, Country Homes & Interiors.

The lucky winners will benefit from the vast amount of expertise offered by Linda’s company, BusinessTalent. BusinessTalent has helped many local small and medium sized businesses reach new heights by creating effective business growth plans to maximise profits, improve resource management and grow client numbers.

Linda is part of a UK wide business advisor network – the UK Business Advisors – and has over 20 years’ experience in supporting organisations of all types and sizes in Greenwich, London, the South East, and throughout the UK. Her passion is to work with enterprising people, helping them to build and achieve their business ambitions.

Linda commented: ‘I am sponsoring this competition because it is a fantastic opportunity to give support to a startup or early stage business. Many of my family are involved in country businesses such as farming, holiday homes and beekeeping, so this is a great way to celebrate my country roots.’

Editor of Country Homes & Interiors Rhoda Parry said, ‘We loved Linda’s broad and expert knowledge of small business startups and the challenges that they face. Her prize of £6,000 worth of business advice will be a fantastic opportunity for our Country Business competition winner to create a viable enterprise from the word go.’

Linda will help to judge the competition in May and there will be a garden party for the winner and runners up in the summer. The closing date for entries is 30 April.

For more details on the competition details go to www.housetohome.co.uk/business

Funding Whitepaper by Pegasus Funding Resources - Details How To Fund Your Business

Small business finance has always been a challenge and within the current climate where banks are being very cautious about who they lend to it is even more of a challenge. The Funding White Paper by Pegasus Funding Resources on where to go for funding at different stages of business growth provides a really useful overview of your options.

Download the full  Funding Whitepaper by Pegasus Funding Resources

It includes a look at the stages of growth in a business, what your funding options are, the various types of funding available and provides some at a glance charts and tables to help you find your way around the funding maze.

I particularly like the ’Pains and solutions’ table setting out the ‘pains’ and small business finance solutions for each pain. The pains include:

• Debtors paying late,
• Cannot fund new orders – a classic business growth pain
• Cannot pay VAT or PAYE
• General cash flow problems
• No cash to grow business
• Cannot buy new technology
• Loss of credit
• No funds f or start- up
• No funds for acquisitions
• Company in decline

The stages of growth are:

• Concept >> Start-up >>Growth >> Consolidation >> Acquisition >> Management Buy-out/Buy-in >> Decline >> Failure >> Phoenix

Small business finance optons at concept stage are FFF (friends, family and fools), so in other words it is very hard to fund a concept.

The next stage – the start-up stage – does not get much easier and Pegasus Funding Resources has a word of warning here:

One has to be very careful at this stage and costly mistakes can be made. Very often the entrepreneur is so keen to get going that expensive funding is accepted or they sell too many shares for too little money. This will have a significant impact on your ability to raise further rounds of investment without losing control or becoming so diluted that you lose interest.

To find out more about small business finance and your options for funding your business download the full report – A Funding Whitepaper by Pegasus Funding Resources.

– you have good intentions but it is not so easy to put those intentions into practice.

Yet it is not as hard as it might at first seem, there are several good service providers out there offering to undertake your business cost reduction activities for you. And I sure you would not argue with me that with prices soaring skyward it is important to get a good deal on everything you purchase to keep your costs down. But it seems that many businesses want to achieve cost reductions but don’t have the stomach for it or perhaps the time to devote to it.

KPMG, did a worldwide survey looking at all types and size of business and found that

Nine out of ten companies are potentially missing out on major opportunities to boost profits” through business cost reduction activities.

There are however some understandable and very human reasons why the best intentions don’t happen. For example, if you want to switch energy suppliers you have got to do it before your contact rolls over so it is easy to miss the opportunity and end up locked into an expensive contact for several more years.

To switch energy provider you need to know how and when you can terminate your contact and you need to make the right choice to achieve maximum business cost reduction benefits. Here are a few points to bear in mind:

• Unlike household utilities, businesses are not free to switch suppliers at any time;
• 95% of businesses are in a contract which lasts 1-5 years;
• Suppliers offer attractive ‘new customer’ rates and penalise loyal customers with uncompetitive rates;
• A current rule of thumb is that – if you are paying anything over 10p/unit for electricity or over 4p/unit for gas – it would be worth taking some form of action;
• If as a business customer you do not serve notice on your supplier you will be automatically rolled into a new contract typically on higher rates for another 1-2 years.

Business cost reduction service providers mostly do what they say and reduce your costs, but the amount you will pay for the service varies considerably. Some operate by taking a share of the costs saved so it is in their interest to find you a significantly cheaper deal and they will do the paperwork for you. Auditel franchisees operate on this model and offer a good service but I can’t help feeling that is would be more attractive if the cost reduction service were to charge you nothing for their service and this model does exits. One notable such company is Make It Cheaper their business cost reduction service is free and highly regarded.

In both types of approach you should be able to rely on your service provider to deal with the nitty gritty – as they say the devil is in the detail – and getting bogged down in the sometimes complex tariff and pricing structures is exactly why businesses don’t carry through their cost reduction plans.

Of course besides switching suppliers to get a better price there are lots of things you can do to reduce your consumption, by using less energy for example, which is good for your budget and good for the planet. For some ideas check out the Energy Saving Trust’s website.

There are also online business energy price comparison sites - Business Electricity Prices is one such site, but you still need to do the work yourself and they have a single focus, while a good cost reduction service will cover a broad range of services including gas, electricity, insurance, telecoms and merchant credit card facilities. See our Business Cost Reduction Services and work some magic in your company.

Business Networking on A Shoe String

London Networks brings you news of networking and skills development events that are absolutely free or almost free to attend -  read on and discover how to network on a shoe-string…

“The Green Deal – Risks and Rewards”

Thursday 15 March 2012, 5.30pm – 9pm
Presented by Greenwich University FLASH Project

Attending this networking event will help you understand the legal issues surrounding the increasingly discussed Green Deal agenda, using real life information from around the world.

Attendance is FREE, all businesses are welcome but places are limited - book now online: http://enterprise.gre.ac.uk/employer-services/flash/workshops/online-booking-form
Where: Hamilton House, University of Greenwich, 15 Park Vista, London, UK, SE10 9LZ. Find out more:  http://enterprise.gre.ac.uk/employer-services/flash/workshops
FLASH project details:  http://enterprise.gre.ac.uk/employer-services/flash

Networking For Entrepreneurs

4Business Networking Event in London (UK)
28th February, 6pm to 9pm

Relaxed and informal style where everyone is just encouraged to be themselves. You will have a great time, make some contacts and friends. No speakers, no frill, no formalities, no sales pitch – just PURE networking to meet others! This is going to be a regular monthly networking event. Every last Tuesday of each month.

Why should you come?

• Come to get the connections you need to move your business to the next level.
• To connect with investors.
• Get and share great ideas.
• Simply have fun with great like-minded entrepreneurs.

Please feel free to invite your friends, colleagues and business partners to the event and tell those who you think might be interested by simply forwarding this information to them. All sectors of business welcome.

Please note – there is a nominal £5 charge for the event – payable in cash at the door to cover the
cost of the venue. Please register on our website for the event: http://www.4bnetworking.com/registration
Venue: Apres London Cocktail Bar & Late Lounge, Address: APRES LONDON, 31 DUKE ST, MARYLEBONE, LONDON, W1U 1LG

Business Brains Trust

Wednesday 29th February 2012, 8:30am to 10:00am
With UK Business Advisors and Metro Bank 

You are invited by Metro Bank to attend our breakfast Business Brains Trust, a joint event between Metro Bank and London Group Business Advisors – on Leap Year Day, 29th February, 2012 from 8:30am to 10:00am

The Business Brains Trust includes presentations from London based business owners and a panel of experts from the London Group Business Advisors.

• See what successes and challenges other business owners face
• Hear from experts on their tips for the best ways to tackle challenges presented
• Make your own contribution to the discussion and get your questions answered
• Hear more about Metro Bank – the first High Street Bank to open in over 100 years
• Enjoy some breakfast whilst networking with other like-minded local companies

Attendance is free – please email david.burton-sampson@metrobank.plc.uk by Monday 20th February, 2012 to confirm your place. Takes place at: Metro Bank Earls Court, 247 – 249 Cromwell Road, London SW5 9GA

Give Your Business An MOT – Free Seminar

Tuesday 28th February 2012, 6pm to 8.30pm
Presented by Fisher Meredith 

Topics include:

• Business Plans
• Business Structures
• Financials
• Managing Debt

Venue: Fisher Meredith, 405 Kennington Road, London SE11 4PT

The Nuts and Bolts of Networking

Wednesday 18 January 10.30am – 12.30pm
Workshop presented by Amber Raney-Kincade

Networking is strong way to build your business, and with a methodical approach, you can do so much more than simply increase your collection of business cards.

This seminar is designed for those looking to:

• Begin or refresh their networking skills
• Get more from their calendar of events
• Seize opportunities that may be invisible at first glance

Admission Free
Opportunity for Networking
Westminster Reference Library,
Wednesday 18 January 10.30am – 12.30pm
To book your place, bip@westminster.gov.uk
Or telephone 020 7641 5250

Plan Your Own Success

Wednesday 18th January 6.30pm to 8.00pm
Workshop presented by Linda Eziquiel 

Wednesday 18 January, 5:30pm to 8:30pm, Paddington Library
Admission free – click to read more & book

Entertaining Accounting

Tuesday 17 January, 6.15pm – 7.45pm:
Workshop presented by Ivan Favennec

Does your mind switch off at the thought of your accounts? If the answer is yes then come along to an accounting seminar with a difference.

Ivan is a financial engineering expert who explains accounting in a fascinating and accessible way.

Regardless of the nature of your business, Ivan will help you get to grips with the language of finance. With his unique approach he will also introduce you to some of the tricks of the trade

Admission Free
Opportunity for Networking.
Pimlico Library, Tuesday 17 January 6.15pm – 7.45pm
To book your place, email: pimlicolibrary@westminster.gov.uk
Or telephone 020 7641 1856.

London Networks – read more here

We are delighted to invite you to the following business event at
Paddington Library on Wednesday 18 January, 6.30pm – 8.00pm:

Plan Your Own Success Workshop: An Introduction to Business Planning

presented by Linda Eziquiel of BusinessTalent

How ambitious are you?

Ambitious enough to spend some time planning your own success?

This workshop covers the critical elements of business planning, including:

• Why you need a business plan
• How to go about developing your plan
• Techniques for creating a realistic financial plan

The workshop is exercise based so, if you have a business or a business idea you will have the opportunity talk about your business or business idea with fellow workshop members (but you don’t have to have an idea to attend).

You will find out why business planning is important and the essential elements of a business plan. The workshop includes a Business Success Workbook to take away so you can put your learning into action.

What will you gain?

• Knowledge of why good planning is critical and how to go about it
• An understanding of the emotional Selling Points that will give you sales
• Methods for mapping your ideal customers or clients
• Ideas on how to reach your target customers or clients
• Information on how to create a realistic financial growth plan for your business
• A Business Success Workbook – to create a simple business plan for a small business.

Admission Free
Opportunity for Networking

Paddington Library, Wednesday 18 January 6.30pm – 8.00pm
To book your place, email: paddingtonlibrary@westminster.gov.uk or telephone 020 7641 4496

Francis Djin
Business Information Point
Paddington Library
Porchester Road
London W2 5DU
Tel: 020 7641 4496
Email: paddingtonlibrary@westminster.gov.uk

Find us: http://www.westminster.gov.uk/services/libraries/findalibrary/paddington/
For Business: Westminster Libraries Business Information Points
Is your Business in Westminster? Check out Business in Westminster for information and advice.
Events & Networking – just email us to be added to our mailing list.

The Research and Development Tax Credits scheme was designed by the now renamed government Department of Technology and Industry (DTI) to provide a Corporation Tax incentive to companies using science or technology to create innovative products, services or processes. 

The current rate as it applies to Small and Medium Enetrprises (SMEs) enables companies to treat qualifying R&D expenditure at 200% of its value for the purpose of calculating their Corporation Tax.  This rate is effective from 1st april 2011. For large companies the current rate is 130% so the big purpose is to encourage SMEs to innovate. 

In our posts we will talk about R&D Tax only as it applies to SMEs.  If your company is not paying tax you can surrender future losses and receive the Research and Development Tax Credits in the form of a cash payment – or you can carry forward the loss to be offset against future profits.  The financial benefit to your company is likely to be 21% of the qualifying spend, that is if the qualifying spend has the effect of reducing the profit figure on which your tax is calculated.  If there are no profits i.e. you made a loss, the tax credit is calculated at 14% of qualifying spend.

Your minimum annual qualifying R&D spend must be in excess of £10,000 and claims must be made within two years of the financial year end to which they relate.  Where the credit is received as a cash payment your claim is limited to the amount of total PAYE/NI due by your company for the qualifying period – this rule may change soon (see below).  Surprisingly, where R&D has been capitalised more than two years ago, then written of to the P&L account some time later, the costs can qualify in the year they are written off.   

Good new on Research and Development Tax Credits

We have been led to believe that the rule about the Research and Development Tax Credits not exceeding the total PAYE/NI due for the qualifying period will be removed from April 2012 and that the rate of treatment of qualifying expenditure will increase to 225% from that same date.

See all R&D Questions and Answers here

Contact Us With Your Questions on Research and Development Tax Credits
Terry.Toms@hcba.co.uk
Mobile: 07957 143432

The government announced 11 new Enterprise Zones as part of their ‘Plan for Growth’.

This announcement follows the 11 Enterprise Zones already announced, located in several of the country’s largest cities, such as Newcastle, Birmingham, Manchester and Merseyside. The location of Zones in the Black Country, Tees Valley and the North East have also been agreed bringing the total to 22 Enterprise Zones across the country.

The initial call was for a second wave of ten new Enterprise Zones but due to the ‘strength of the applications from Local Enterprise Partnerships’ the Government has agreed to increase this invitation to 11.’

The second wave of Enterprise Zones will be located in:

• Humber Estuary Renewable Energy Super Cluster
• Daresbury Science Campus in Warrington
• Newquay AeroHub in Cornwall
• The Solent Enterprise Zone at Daedalus Airfield in Gosport
• MIRA Technology Park in Hinckley Leicestershire
• Rotherwas Enterprise Zone in Hereford
• Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow
• Science Vale UK in Oxfordshire
• Northampton Waterside
• Alconbury Airfield, near Huntingdon in Cambridgeshire, and
• Great Yarmouth in Norfolk, and Lowestoft in Suffolk.

The eleven new Enterprise Zones are aimed at boosting growth and creating 30,000 new jobs by 2015.

The enterprise zones are expected to attract hundreds of new start up forms simplified planning rules, super-fast broadband and over £150 million tax breaks for new businesses over the next 4 years.

Alongside the new Zones, the Government is also announcing today that it will make enhanced capital allowances available for plant and machinery investment to a limited number of Enterprise Zones in Assisted Areas, including the Tees Valley and North East. With effect from 2012, companies setting up in these areas will be eligible to claim enhanced first year allowances for plant and machinery, giving them an upfront cash flow benefit.

Business Secretary, Vince Cable, said:

“Enterprise Zones are creating an environment for businesses to grow in places with the most potential. Those the government is announcing today, on top of those already approved, show the range of ambitious plans in place across the country.

“Local Enterprise Partnerships have worked closely with businesses in their communities to put forward a range of high-quality proposals. The successful bids they will now take forward are going to help inject new growth into their economies.

“Across England, these Zones will generate new jobs, investment in areas that can benefit, and develop high-tech products that will secure long-term sustainable prosperity.”

For more information click here: http://nds.coi.gov.uk/content/detail.aspxNewsAreaId=2&ReleaseID=420820&SubjectId=2

Business plans for small business are very important to achieving success and there is quite a lot of material out there to help you including some free business plan downloads. Read on and I will give you some tips and links to resources to help you get started in writing your business plan and in developing your growth strategies in business.

All growth strategies in business, whether for start-ups or for established businesses, really do need a plan. If you are running a small business without a business plan it is like walking around in the dark without a touch. You may eventually get where you want to go but you will probably stumble around and take longer to get there, you may even get hurt along the way and you could end up somewhere you didn’t want to go.

The good news is that business plans for small business are not rocket science and the sooner you start looking at yours the sooner you will be able to shed light on the things that might be bothering you right now. Plus there are some free business plan download templates that can help you write your plan.

All growth strategies in business need to be built on firm foundations – the foundations of a good plan can be distilled into four pillars:

• Marketing & Sales
• Operations
• Resources
• Finance

When looking at business plans for small business I tend to suggest that you condense these down to three:

1.  Marketing & Sales
2.  Operations & Resources
3.  Finance

then add

4.  A Summary of Your Business, Track Record, Products/Services
5.  Your Monitoring Dashboard

Your Dashboard lists what you will keep an eye on to make sure you are staying on target.

This is what I call your Five Page Business Plan.

Free Business Plan Downloads

If you are starting up in business, or already running a small business that is not living up to your expectations you will definitely benefit from our free business plan download – The Five Page Business Plan Workbook.

For some businesses a five page plan is enough, for others you may want to do a lot more – here is a link to Business Link’s Free Business Plan Download.

Growth strategies in business sometimes need to be backed up by a more comprehensive business plan, especially if you want to raise additional funding for your business and need to do some more in-depth planning. There is a range of good software programs for doing business plans for small business, usually available for a modest price. The market leader is arguably Business Plan Pro, which has recently been updated.

I wish you every success with developing your growth strategies in business and in planning and delivering your business success.

I and my fellow UK Business Advisors (UKBA) believe that Time to Pay has been a major help to small businesses, and we are concerned that its withdrawal will threaten the survival of many small businesses, just at the time that the economy is looking to them to help pull the country out of the slump.

Time to Pay is a government initiative by HM Revenue and Customs (HMRC) that enables businesses to spread tax payments over several stages. It has been particularly helpful to small business with smoothing out quarterly VAT payments. Three small payments are much easier to manage than one large one.

However the latest HMRC stats show that the Revenue are only granting Time to Pay at a third of the level in 2009. This is because they have made it clear that they will not allow repeat applications. HMRC have now announced that they will no longer publish statistics on this important safety net, further threatening the survival of this scheme.

The recent poor performance figures from HMRC appear to reflect considerable disruption within their ranks. The recent announcement that they would no longer publish figures for those seeking time to pay is another effort at cost reduction. However, the government’s dislike of Key Performance Indicators seems to throw the baby out with the bath water. It may cost a little to produce them, but they are an important benchmark to measure performance improvements and deterioration, from which further actions can be made.

Chris Scanlon at UK Business Advisors commented “The loss of this particular piece of information in the economic jigsaw is a cause for concern. The UK Business Advisors thoroughly endorse the publication of Key Performance Indicators to measure performance and thereby trigger appropriate actions”. He went on to say “More importantly we need to keep Time to Pay in place as a way of helping business through these very turbulent economic times”.

Chris Scanlon is a business advisor within TVBA, the Thames Valley region of the UKBA network. For full details visit the UKBA website www.ukba.co.uk