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Tuesday, March 5, 2013

Live tax clinic for small business owners

Do you find it hard to get your head around tax? Join our experts between 1pm and 3pm on Thursday for some top tips
• Sign up here for details of upcoming live Q&As

Albert Einstein famously spoke of US tax returns, saying: "This is too difficult for a mathematician. It takes a philosopher." Have we, on the other side of the Atlantic, simplified this process in the past half a century?

Well, those SME owners who were just getting used to the system will soon get a letter from HMRC describing the biggest reform of business tax reporting in 70 years.

The introduction of RTI (Real Time Information) means that every time an employee is paid, the business owner will be required to send HMRC details of the payment and deductions, as opposed to including all the information in one annual report.

HMRC says businesses will save £300m in reduced administration costs when the system is up and running, plus there will be benefits from simpler reporting requirements and the abolition of the extensive annual tax return.

Unfortunately, research by Crunch Accounting showed last week that only one in every five small businesses is aware of and prepared for the introduction of the new system.

So, to help you and to examine other aspects of dealing with keeping up with your requirements to HMRC, we've decided to take a closer look at tax for small business in an online clinic. We're are running a series of live advice sessions to help equip you with professional expert opinions.

To get involved and receive personalised insight from our panellists, post your questions in advance via the comments section, and join us live on Thursday 14 February between 1pm and 3pm.

Here's this week's panel:

Daniel Mepham is a director at ClearSky Accounting

Daniel has worked in varied accountancy roles, dealing with small sole traders up to multi-million pound PLCs. At ClearSky he specialises in small limited companies.

Doug Beardon is a principal lecturer in taxation at LCA Business School London

Doug is also a partner in a professional firm of accountants and has more 30 years' experience in the field.

George Lovell is head of tax at DTE Business Advisers

George provides tax advice to a number of businesses and has more than 20 years' experience as a tax adviser.

Anita Monteith is the ICAEW Tax Faculty's technical manager

Anita is responsible for tax matters affecting small and medium sized businesses and continues to advise on practical tax matters as well as lecturing and contributing to industry journals.

Richard Brunton is in charge of tax compliance services at HBJ Gateley

Richard is also chair of the Scotland branch committee of the Chartered Institute of Taxation. He has dealt extensively with small and medium sized companies to help overcome a diverse range of tax issues.

Kevin Bunting is a tax partner for Lovewell Blake LLP

Kevin specialises in the owner-managed business market and provides advice on tax efficient extraction of profit, reducing taxable profit, utilisation of losses, employee incentives and addressing succession.

Caroline Hunt is a tax director at Crowe Clark Whitehill

Caroline specialises in intellectual property taxes, with a particular focus on research and development tax credits and the Patent Box. She previously ran her own accountancy business for 17 years.

Neil Pamplin is the corporate and international tax director at Grant Thornton

Neil advises on issues relating to UK taxes as well international structures and transactions and remuneration strategies and incentives.

Toby Ryland is a corporate tax partner at the chartered accountants HW Fisher & Company

Toby has more than 15 years' experience advising businesses and entrepreneurs on all aspects of tax - from corporation tax to PAYE

Edward Parker is a partner at Wellers Accountants

Edward is also a fellow of The Chartered Association of Certified Accountants and advises owner-managed businesses.

The opinions provided by the experts in this Q&A are for information purposes only. We do not accept responsibility for any advice given and cannot guarantee its accuracy. The opinions expressed by the experts are not intended to constitute legal or other professional advice, and should not be relied on, or treated as a substitute for specific advice relevant to particular circumstances.

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

Sirena Bergman

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Sunday, March 3, 2013

How small businesses can take advantage of online services

Are you making the most of internet resources? Kjetil Olsen of Elance Europe explains how small businesses can use the opportunities available to them

Despite the economic climate, aspiring entrepreneurs should be feeling cautiously optimistic. In 2012, the government announced new start-up loans for young entrepreneurs, a scheme that has since been extended, and numerous incubator schemes are making it easier for businesses to get started.

Alongside these offline opportunities, the web is also ushering in a new range of opportunities to help small businesses access knowledge, tools and even personnel, all available at the touch of a button. The growing prevalence of user-friendly online services allows businesses to reduce overheads and maximise growth potential. Small tasks can be taken care of with free open-source software, and cloud-based premium services can be cheaper than their offline counterparts.

The difficulty with such an insurmountable number of online tools is knowing where to start. Which tools actually streamline efficiency rather than introducing added complications? Through my experience working in the technology and employment sectors and as European vice-president of Elance, a platform for online freelancing, I've spent a lot of time considering the usefulness of the internet and how it can benefit businesses. Here are my top tips:

Office space

Web-based office suites such as Google Documents allow businesses to make paperless collaborative working the norm. This enables employees from around the world to contribute to a shared spreadsheet and access documents created hundreds of miles away.

Combined with online storage providers, such as Dropbox, Google Drive or Box, sharing documents with colleagues, clients or customers is easier than ever. These services allow businesses to synchronise data and upload and retrieve files via the web. As soon as a file is uploaded, the latest version is available on all devices, including PCs, Macs and most mobile devices. This allows businesses to take the first steps towards having a global set-up, supporting genuine and effective remote working.

Staffing a team

Online employment platforms such as Elance allow businesses to hire talented temporary workers for a variety of tasks from translation and business writing to fixing code on your website. Hiring freelancers who work remotely is an easy way to reduce overheads and quickly increase your workforce in times of high demand. Hiring a cloud-based workforce cuts costs, allows you to react flexibly to times of high demand and opens the door for freelancers to global business operations.

Communications

Internet voice-over networks, which deliver voice communication over internet protocol networks, are a great way to keep phone bills to a minimum. Skype or, if you're on the move, Footalk, offer options for making free calls to anywhere in the world. Some services also offer free video-conferencing to add a visual element to a conference call, linking teams together, irrespective of location.

Some of these services also offer calls at reduced costs to mobile phone users who are not using the app, meaning that even external communication with clients or partners can be cost-effective.

Managing your brand's identity

A solid visual brand identity is vital for startups. In a crowded market, it's important that professionalism and user-friendliness allow your business to stand out from the crowd. Additionally, establishing a thought leadership position is more important than ever in the online age, and a blog can be a great way of showing potential customers you're ahead of the competition. Easy-to-use publishing platforms such as WordPress or Joomla allow you to add as many themes as you like and can be simply integrated into your website.

Sales and marketing online

Online press office services such as MyNewsDesk give any company a platform to host news announcements and demonstrate that your business is ahead of the curve. Social media is also a valuable tool to spread marketing messages to the masses. Facebook, LinkedIn and Twitter have been successful lead generation tools for many small businesses I've talked to.

It's worth remembering, though, that social media is a two-way process. No longer can companies be seen to be simply pushing out press releases; you have to engage with your audience and demonstrate knowledge in the industry.

Physical meetings are important too

The internet is a vast wealth of resource, but it's worth remembering that the digital route should only be one part of your business strategy. Building strong relationships through face-to-face meetings is invaluable and should remain a key part of building a network of suppliers and teams. Therefore, finding the right balance between the online and the offline strategy for your business is crucial.

Kjetil Olsen is the vice-president of Elance Europe

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

We'd love to hear your views and thoughts in the comments but please remember not to disclose personal identifiable details.

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Outsourcing for small businesses – Q&A roundup

Last week, a panel of experts shared their tips for SMEs looking to outsource work effectively. Here are some highlights

Ella Gascoigne is the founder of Startup PR

Why do everything yourself? If you have faith in your business and want to grow it then you should consider outsourcing from the off. If somebody else is better than you at something, then why not let them do it and concentrate on the things you are great at.

Don't jump into a contract: When you decide to outsource you need to ask a lot of questions to check; not only they can do what you want them to do but also that your personalities and ways of working are complimentary. If you are the kind of person who needs daily updates, then you are not going to work well with somebody who gives you a monthly update.

You also need to be clear exactly what you expect and also ask them what they can offer. Take a PR agency for example – don't be afraid to ask them to see proof of results, testimonials, lists of contacts that they have strong contacts with.

Aylish Jarvie is the community manager at PeoplePerHour

You could benefit from starting early: Many SMEs would probably benefit from outsourcing from the moment they start their business. Business owners are expected to have multiple skill sets and juggle many tasks on a daily basis. It's just not realistic to think they'll be expert at every single one. Whether it's accounts, branding or marketing, you probably won't want to hire an employee straight away for these tasks, so it makes sense to use freelancers, leaving the business owners to concentrate on other parts of their business such as winning new clients.

Katherine Ogilvie is a consultant at the Fountain Partnership

Outsource for a reason: Outsourcing can be considered at an early stage if it helps increase productivity. At the Fountain Partnership our focus has always been on ROI [return on investment] for our clients, so if we're working on a big project that involves a lot of copywriting it can often make sense to outsource some work to make sure the copy being produced is fresh and engaging. It can be a great time-saving option for startups who want to offer clients more. It also can give them the opportunity to work with bigger clients and still give their projects the attention they deserve.

Kirsten Glaze is head of virtual operations at the virtual PA company Time Etc

It can be hard to let go but worth it: For any business owner it can be emotional to let go of a process or task that has been previously cherished. However, it can also be very satisfying working with someone who can offer their own expertise and skill set.

Neil Murray is the founder of Sussd.it

Use word of mouth to find the right people: When deciding who to outsource to, I would start by asking around your network and contacts and discovering if others have outsourced, and if they have who they would recommend. By asking in your network and industry first then it is likely that the outsourcing company will have relevant experience in your area as well as being trusted in it.

Sometimes it's worth training your own staff: It all depends on the organisation's individual circumstances, and the function in question. There are of course negatives as well as positives to outsourcing, and these all need to be weighed up before deciding whether to invest in outsourcing or hiring a member of internal staff instead.

Bill Little is the European director for freelancer.co.uk

Be aware of your possibilities: Many SMEs don't know that they can outsource, or that a job that they are struggling to do themselves can be done competently by an expert freelancer. The best approach would be to think about what you need help with, such as a smart database to improve efficiency, or an e-commerce site, or even just have a look over an outsourcing site and see what other jobs are being posted by SMEs to get some ideas.

Be clear on your brief: However, as you start working with a freelancer and see the project developing, you may want to redevelop aspects of the job, so it is good to ensure the freelancer understands the need to be flexible. Outsourcing websites offer a system of milestone payments where you can pay the freelancer as different parts of the job are completed, ensuring you have full control over the outcome. Outsourcing websites also provide live reviews and examples of previous work the freelancer has undertaken, providing you with the confidence that you are hiring someone with a proven track record.

Louis Fairfax is managing director of CUB

Dealing with a budget: I don't believe there is an easy formula in terms of what you should prioritise. There has to be some level of judgement in terms of what feels like the most logical or beneficial area that just cannot be covered easily by internal sources. In terms of a budget, outsourcing should be more cost effective but sometimes the ROI can be over a long period of time. There is also still a lot of funding for small and growing businesses out there, you just have to look in the right places.

Martyn Hart is the chairman of the National Outsourcing Association

Outsourcing is not a religion: You should think about it along with all the other things, but usually there is a business driver, something you can't get done yourself, or it's taking too much of your time and not contributing to your business. I've found that some SMEs don't have time to think about core and non-core skills, but rather outsourcing is often triggered by an event, maybe winning a big order. That makes them think about how they are going to do things.

Outsource to the right people: They should understand the market you are in, it shouldn't be a company or agency so big that you are just lost in the noise, but it should be big enough to give you traction. Make sure you find the rates acceptable (payment by results is often preferred), and find a service that gives you control at a management level, without having to micromanage.

Get the legalities right: To draw up a contract you really need a lawyer. If it's a large contract then your business case would have already included costs for legal support. But for small contracts you don't need a big city firm, your local solicitors can help. Before you engage them try to agree on what it is you want to do with your potential supplier. If you can get this as a list of bullet points, that will help your lawyer, save their time (and your money) and maybe you would be able to split the costs if you both use the same firm. Although I hesitate with this last tip, because really its always best to have your own advice or lawyer as you never know what lies ahead.

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

Sirena Bergman

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Friday, March 1, 2013

Live Q&A: Online retail for small businesses

Join our live chat at 1pm on Thursday for expert tips on internet selling for small businesses
• Sign up here for details of upcoming live Q&As

Whether I'm looking to replace a winter coat which is falling apart, buy that book I've been meaning to read for months, or do a standard weekly food shop, Google is my first port of call. The fact that you type in what you want and it can be on its way to you within minutes is something which most of us take for granted.

In fact, according to the Organisation for Economic Co-operation and Development (OECD), the UK is the biggest online shopping nation in the developed world, as 60% of us resort to the internet when there's something we need to buy.

With this consumer trend on the rise, it's no surprise that 2013 is predicted to bring in even higher sales for online retailers. But despite optimistic forecasts, the online shopping market is becoming more and more competitive, so how can your small business stand out from the crowd?

Whether you trade exclusively online or this is a way of driving customers into your store, there are a number of things to consider, from making sure your website can take payments securely, to having a good delivery method, optimising your design and making the most of your resources.

To advise on all these aspects of online retail, we've compiled a panel of experts on answer all of your questions and share their tips and expertise. Join us on Thursday 28 February between 1pm and 3pm for a live Q&A and post your question in the comments section below.

Here is this week's panel:

Phil Dorrell is the director of Retail Remedy, a retail consultancy which advises SMEs in the industry on how to grow their business by increasing sales.

Jon Buchan is the CEO of Render Positive, a digital marketing agency. He is also an entrepreneur, having started his own business at age 17.

Martin Woods is SEO manager at Blueclaw, an ecommerce site development agency, which advises SMEs on SEO (search engine optimisation), PPC (pay per click) marketing and social media.

Aaron Gilboe is projects director at Last Exit, a digital design agency. Aaron has worked with a number of big retailers to help them increase online sales.

Neil Murray is the founder of Sussd.it, a company which provides a freelance sales agent to startups and SMEs. Neil has experience in selling and marketing new products.

Chris Barling is the founder of SellerDeck, an e-commerce software provider. He is also the author of three books about online trading for SMEs.

Nish Kukadia is the co-founder of the designer flash sale website SecretSales. Nish set up the website six years ago, and has grown the business exponentially since then.

Alan Beesley is the director of Thrive Vitamins, an SME currently trading online. Alan had 20 years' retail experience in sales and consultancy before starting his business last year.

David Roebuck is the sales director at Direct Blinds, a small family business founded more than 40 years ago which now sells its products exclusively online.

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

Sirena Bergman

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Poll: is your small business benefiting from Valentine's Day?

Does Valentine's Day bring in the extra customers or is it just business as usual

Emily Wight

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What do small businesses need to know if they are exporting to new markets?

We asked five small business owners trading abroad what they had to come up against when exporting, and how they overcame these barriers

Adam Unsworth is the sales director at Plastic Card Services Ltd

An agent can help: Finding the right exporting agent can alleviate a lot of concerns regarding language, local business etiquette or laws. It also helps increase customer confidence and provide reassurance they have a contact close by, which in turn can assist with day-to-day communications.

Think about currency and exchange rates: Fluctuating exchange rates can also be an issue: any business trading internationally is at risk of reduced profits if it does not pre-plan for possible swings in exchange rates. Changes in currency can price you out of the local market. The most sensible method of reducing risk is to forward fix the value of the order with the bank for an agreed period.

Be aware of having to wait for payments: The number of debtor days that can be expected from exporting with a new country should always form part of the new market assessment. We've previously discounted countries because of major disparities between our requirements for efficient payments, and the expectations of the local economy.

Geraldine Abrahams is the director of TWM Productions, which launched its first infant development product, Tummy With Mummy, just over a year ago and now sells it around the world

Shop around: We discovered quickly that it's difficult to get low transportation rates that larger companies can negotiate because we can't promise the same volumes and frequency that they can. The cost of transporting goods can vary widely, and it makes sense to shop around for the cheapest freight deals.

Misunderstandings can happen: We discovered that business transactions can be thwarted by misunderstandings about different types of shipment. Our first shipment to the Middle East was accidentally logged as ex-works (instead of free on board) by the buyer, so we had to pay for the products to get to the ship.

Think carefully about quality control checks: In one situation, we initially had trusted the internal quality control check at the overseas factory where we were sending a shipment, but on advice, we had an independent check carried out which failed. We would almost definitely have lost a valued customer if that shipment had been exported.

Janan Leo is the founder of Cocorose London

You might have to chase clients for payments: Minimising risk when exporting can prove expensive as clients are more difficult to chase up. Will your new clients be willing to pay a deposit?

Will there be extra costs involved? You may have to consider import duty and taxes your client will face and the extent to which that makes you competitive. We've found that in the USA, stores would rather draw on stock from local warehouses than deal with the red tape of importing. To overcome this we offer delivered duty paid prices.

Find good partners: The key to trading in new markets is research and identifying the most appropriate partners. We look for sales agents and distributors we can work with, who understand the brand, our values and are passionate about helping us develop.

David Williams is the chief executive of Taylor Bins

You need to consider more than just the product itself: A business may have a fantastic product but if it doesn't have the processes in place from a financial, logistical and compliance perspective, then it's unlikely to succeed. Similarly, businesses can be so close to their products that they fail to take an objective view when it comes to how suitable their product is for the target market. You should constantly be questioning your product's relevance in these markets.

It's better to have in-depth knowledge of fewer markets: Don't try to take on too much at the beginning. Rather than adopting a far and wide approach, limit the number of markets to maximize your available resource. This will enable you to gain a greater understanding of a few markets as opposed to learning a little about a lot.

Matt Roberts is the co-founder of Bean2Bed

We had to adapt: Due to the size and weight of our products (we use a high-end foam filling in our mattresses as opposed to polystyrene balls), finding the right courier partner was important. Price was important to us as we didn't want it to be a barrier for our customers abroad. In order to export our beanbags, we had to create a new box size and ensure that our products were vacuum packed efficiently.

Modern technology can help you communicate: Communicating with customers can also be a challenge, but using modern technology such as Skype and translating software we're able to get around this.

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

Emily Wight

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Setting out good terms and conditions for your small business

For many entrepreneurs this task may not be their first priority, but getting it right is crucial to ensuring a healthy cashflow

When you are in the early days of starting up your business, there's a neverending list of tasks to complete. Sorting out the terms and conditions of trade is not at the top of the list. Getting your product market ready, finding customers and marketing your product take priority in the startup process.

Neglecting this less sexy part of your business, however, could impact your cashflow through delayed payments and having to pay for materials before taking payments.

In a worst-case scenario, you could end up spending lots of money and wasting time on debt collections.

Late payment is a fact of life for small businesses, as customers often give lower priority to bills from small firms. With the right terms in place, however, you can ensure that you get paid first. Get your terms right and there's no excuse for slow payments.

Protect your business

Plainly, if you don't specify terms and conditions you put yourself at risk of uncertainty and misunderstandings – it's vital to establish the actual arrangement between the two parties involved in any deal. You need to cover yourself, so clients or partners have no opportunity to go back on their word.

"If there is nothing in writing there is no proof," says Joanna Tall, commercial lawyer and the founder of Off To See My Lawyer. "Equally, if the terms are in writing, it is evidence you can produce before a court if you need to."

Emma Jones, the founder of Enterprise Nation and co-founder of small business campaign StartUp Britain agrees. "Essentially, having terms and conditions protects you as a business," she says. "Terms and conditions certainly have an important role to play when it comes to two parties (customer/supplier, joint venture partners) understanding their duties, rights, roles and responsibilities."

What to include

According to Tall, well-drafted terms should act like a manual or recipe book for doing business and having absolute clarity on what should happen in a given situation. "They should set out what the agreed terms are between parties and more importantly what happens if things go wrong or one party wants to leave or is unable to continue," she explains. "Terms and conditions can also save a lot of money by addressing all issues at the outset. This in turn avoids disputes later on about what might or might not have been agreed."

The exact elements to include depends on the individual business but you should consider including:

• A clear definition of what products or services will be provided

• Setting out the payment terms – when is payment due

• Any guarantees or warranties offered

• Timelines for delivery and any queries

• Specifying what happens if either party doesn't deliver or pay or wants to end the relationship

• The term of the agreement and what notice is required to get out of it

• Which law shall govern the contract

Some things must be included on invoices. "There is a legal requirement for invoices to set out the business name and address as a minimum," says Tall. "Additionally, if they are a limited company they must set out the company name; the company number; where it is registered; the registered office address, which may be different to your actual trading or correspondence address; and if you wish, all the names of the directors — not just some of them. If the business is registered for VAT, it must state the VAT number.

There is no legal requirement to include terms and conditions on invoices though many people put their terms on the back of them.

When things aren't clear

Failing to specify terms could have a serious impact on your cashflow, according to Tall: "You may end up in a situation where the customer thinks they will pay at the end of the project and you think you are being paid at the beginning or in stages, so you could end up having to pay for materials and staff before you have received the money from the customer," she says.

"Equally, if you do not specify so in your terms, you have no right to charge interest for late payment, so again you will be out of pocket if a customer pays late."

One size doesn't fit all

Tall says it's important to make sure your terms are specifically written for your business – you can't assume another business will have the same needs as yours. Crucially, she says, don't think you can wing it. "Consult a lawyer and avoid the temptation to copy someone else's terms as their business is different and they may not have consulted a lawyer themselves," she says.

In her startups Jones has both used lawyers and written terms herself. "This of course depends on the particular project," she says. "But a site I reference a good deal is clickdocs, where you can download basic contracts, templates, agreements and terms and conditions. If the situation requires something more specialist or sophisticated, it's worth seeking advice from a lawyer," she adds.

Jones doesn't think entrepreneurs pay as much attention to this area as they ought to. "But I understand this as there is a lot to do when starting and growing a business, so the detailed business of terms and conditions may drop to the end of the to-do list," she says. "I would advise startups to display terms and conditions on their website and agree terms on payment; both receiving funds from customers and paying funds to suppliers. With these main and standard terms and conditions covered, you hopefully won't have to spend too much more time on this particular task."

Top tips for setting out your terms and conditions

• Draw up a list of the key commercial terms that you are offering your customers

• Think of all the scenarios of what could possibly go wrong and then set out what you would do in each case.

• Imagine the most awkward customer possible in doing this exercise

• Put yourself in the shoes of your customers and make sure the language is at their level and user friendly. Hiding everything on one page in the smallest font possible will not endear you to your customers

• Don't forget about the terms of trade – this should be something that you revisit and update, as and when required.

• When in doubt, seek help. Ask for advice from your mentor, a professional or fellow business owners.

This content is brought to you by Guardian Professional. To receive more like this you can become a member of the Small Business Network here.

We'd love to hear your views and thoughts in the comments but please remember not to disclose personal identifiable details.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.