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How much work satisfaction do you get?
April 25, 2013
Research published recently suggests the average working adult in the UK is “59% happy in their current job role”. Researchers commissioned by Surbiton High School asked 2,000 employees to rate their level of contentment at work in 11 key areas, “from pay and company perks to relationships with colleagues and management”.
According to the study, workers are generally satisfied with their holiday allowance and relationship with colleagues, giving ratings of seven out of ten for both. Perks received four out of ten, the lowest score, with employees believing they should be entitled to mobile phones, laptops and even private health care.
Respondents were unhappy about their promotion prospects, which were rated just five out of 10. They gave a more encouraging six out of ten each for level of pay, relationship with the boss, work load, working hours, working environment, social life, size of team and hierarchy.
14% claimed they would be happier if they were allowed regular tea breaks, while 34% appreciated being able to manage their own workload. One in three said they liked the feeling of being able to make a difference, while 22% wanted to be able to talk to people every day. An easy commute was also important to 35% of people, while 18% said they would appreciate yearly bonuses.
When it comes to profession, teachers were happiest at work (presumably the poll took place before Education Secretary Michael Gove called for pupils to work longer days and have fewer holidays), with the “satisfaction they gained from working with children far outweighing the negatives”. Secretaries were second happiest group at work, followed in order by engineers, accountants, drivers, shop assistants, caterers, trades people, lawyers and those working in customer care.
Career dissatisfaction continues to be a key reason why people continue to give up their jobs to start their own business, with numbers continuing to rise. According to Enterprise Nation, there was a 10% increase in new businesses in 2012 (484,224) when compared to 2011 (440,600).
Why it makes perfect business sense to be green
April 22, 2013
Rising energy prices, huge disposal costs and fuel taxes add to the cost of running a business – and the regulations controlling pollution and waste are getting tighter.
Saving energy, reducing waste and improving resource efficiency are the key drivers that will improve your business performance, reduce your overheads and increase profits.
Regulators, investors, insurers, customers and local communities all have a stake in what businesses do and how they operate.
Reasons for going green
- Savings from the efficient use of energy and raw materials — getting more from the same or less materials and energy consumption and from minimising waste, which reduces carriage and disposal costs.
- Improved market share — a better environmental profile can generate an increased market share. The growth in green consumerism since the 1980s has meant that consumers are more likely to purchase products and services that are considered less harmful to the environment.
- Enhanced investment opportunities — investment institutions take environmental considerations into account when deciding which companies to invest in. For example, the FTSE4Good Index now tracks companies with a proven ethical, social and environmental record, which further encourages ‘responsible investment’.
- Reduced insurance premiums — insurance companies look at risks from potential pollution and set business premiums accordingly. They are more likely to look favourably on businesses that demonstrate effective environmental risk management. There are now specialist environmental insurance policies available to address environmental risk.
- Environmental taxes — designed to encourage businesses to improve their environmental performance and resource management and minimise impacts. Examples include Landfill tax, aggregate tax, climate change levy, carbon reduction commitment and emissions trading schemes. In some schemes the money raised in taxes is paid back to businesses in the form of reduced employer’s insurance contributions.
- Financial incentives – designed to encourage businesses to invest in low-energy technologies. Examples include Feed in Tariff, Renewable Heat Incentive, enhanced capital allowances, etc.
- Environmental regulations – European and UK legislation and environmental regulations have increased substantially in recent years. The Environment Agency and other regulators consider environmental management systems (EMS) as a good indicator of an organisation’s responsible approach to their environmental liabilities and risks.
Green up your products and services and you will also increase your market share, reduce your overhead, minimise unit costs of production and improve your business reputation.
John Barwise is a chartered environmentalist and registered environmental auditor, as well as chair of Cumbria Green Business Forum.
The importance of finance when starting up
April 18, 2013
All businesses are different, whether it is size, sector, location, or speciality – there is always an element that sets one apart from the other.
But there is one thing that is common to every business in every country and sector around the world – finance. It determines the income coming in and the expenditure going out, inputs and outputs, the size of an organisation, and more importantly if it will be financially successful and sustainable.
Before making the decision to branch out and step into the unknown, it’s important to understand the role the finance functions play in the world of business. It forms the basis of effective business management and will ultimately affect the bottom line.
Five Top Tips
1 Be realistic
Many businesses that succeed don’t make a profit for the first couple of years. If you are hoping to get rich quick, you may need to think again.
2 Expand your knowledge
Consider a short course on the fundamentals of finance. Training will be one of the best investments you’ll make and you’ll find yourself using your new skills and knowledge on a daily basis.
3 Be aware
Tax legislation changes at a never-ending pace and it’s important for new businesses to keep up. For example, the new reporting system for PAYE (RTI) introduced in April this year will affect the way employers submit tax information. These are the types of issues you’ll need to be aware of.
4 Have a plan
Implement an accounting system and make sure it works. The law requires all businesses to have proper accounting records. By doing this you’ll manage your business better and help stimulate business growth. Startups that don’t do this put themselves at a serious disadvantage.
5 Talk to an expert
Train up and read as much as you can but at the end of the day – don’t be afraid to ask for help from a professional accountant.
Tom Kelman has been director of finance and corporate resources at AAT (Association of Accounting Technicians) since July 2005. He has worked in finance for more than 28 years, covering both accountancy practice and industry and commerce.
Ten things big businesses envy in smaller businesses
April 17, 2013
Big businesses often bemoan their own lack of essential vitality and wonder what they could take away from smaller, more entrepreneurial business and incorporate into their own culture.
At first thought, the shopping list is negligible. After all, who would want all the hassle and grief of being an inconsequential price-taker without all the trappings of the corporate world? However, on second thoughts, there are a number of attributes that the bigger business is positively jealous of.
- Passion and belief in the product.
- Excitement.
- Flexibility and ability to change direction, at the drop of a hat!
- Responsiveness.
- Speed of decision-making.
- Communication, no silos; simple lines of accountability and control.
- Commitment.
- Closeness to customers and suppliers.
- A feeling of being able to make a difference; in control of your own destiny.
- Clear focus.
The reason that small businesses exist is to satisfy a dream or fill a gap or an opportunity that others cannot see.
Most of these attributes should also exist in the larger organisation. They just seem to get beaten out of people as control, stability, safety and security become more important in what can only be described as the corporate mindset.
Robert Craven runs The Directors’ Centre, which helps owners to grow their businesses. He is the author of business bestseller Kick-Start Your Business and his latest book is Grow Your Service Firm.
Must-read PR advice for start-ups
April 15, 2013
Here’s something to think about if you hire somebody to look after your start-up’s PR: is it just plain boring?
In many cases, PR agencies will write any old story to tick boxes for their clients and generate arbitrary press coverage. And while general publicity doesn’t do any harm, it often doesn’t have a measurable impact on a start-up’s business performance.
PR activity that’s exciting, opinionated and valuable to other people will always yield future success and new business leads.
PR start-ups should avoid
Before we discuss the type of PR activity start-ups should undertake, it’s worth going over a few classic PR activities start-ups should avoid:
- Digital PR Asking for new followers and ‘likes’ on social media. It’s not a successful tactic to gain popularity on platforms such as Facebook and Twitter. In fact, it’s often counter-intuitive and not very exciting to read on a news feed.
- Traditional PR Press releases about irrelevant events. Newly installed coffee machines and the hiring of a new part-time receptionist is not effective PR. These sorts of stories do nothing to encourage people to find out more about your business.
- Trade PR Paying for “colour separations”. Here’s a secret. Trade PR is dominated by something colour separations, which means that as long as the publication gets paid by the PR agency or client, they’ll publish any press release they’re given. This results in industry magazines full of promotional copy that nobody reads. Not very good value for money.
PR start-ups should embrace
Start-ups need their PR to have personality and value to put their name on the map and win new business. Here are three examples of PR activity that deliver fantastic results:
- Digital PR Maintaining an exciting blog about your business. This is one of the most effective ways to increase website traffic and website conversions, but it does take a lot of work over a period of time. Quality copywriting, good sharing practices and persistence deliver the goods.
- Traditional PR Press releases about new business wins. Journalists love a good business success story. If your start-up has just landed its first major contract – shout about it. Stories like this provide genuine evidence that the business is doing well. Some good photography can really spice up a press cutting, too. Much better than an advertorial.
- Trade PR Holding trade press events. PR agencies really earn their fee when they build relationships with influential journalists. A great way of doing this is to host a product launch or industry lunch and invite some industry hacks along. It’s a fantastic way of getting to know the people who could do wonders for your start-up in the future.
Lucas Coe is founder of PR99, a PR service for start-ups and small businesses.
How to maximise your turnover
April 10, 2013
Most business people have one aim when they launch a company – generate enough turnover to produce a profitable business. No matter which path they choose to achieve this, they will need to grasp the basics of their business in order to maximise their sales effort.
If you are preparing to set up a business, first do the following:
Define your proposition
Before approaching anyone else with your business idea you need to fully understand your business proposition. This sounds obvious; it’s your idea, after all. However, if you can’t verbally and succinctly convey your offering (in what is often called the elevator pitch), how can you communicate it to potential customers? It happens again and again. Entrepreneurs have great ideas, but wordy websites and offerings that are overly complicated and difficult to understand turn potential customers off.
Recognise the value
You know what you’re selling - now you need to consider why you’re selling it. What value does your product or service add that no other business does? Start by listing your differentiators and then think about how you can best explain your “value-add” to your prospects.
Identify your market
Your business may be amazing to you, but you’re not the customers. You must identify your position in the market and consider the size of your prospective customer base. This will help you to assess the potential and viability of your offering. You need to be realistic. If your plan shows you signing up more than 10% of your target demographic in the first year, you are likely being overly optimistic. If your plan depends on this to be viable, it’s not too late for you to go back to defining the proposition and start again in order to identify your market.
Route to market
Now you have the basics in place, begin thinking about your route to market. How will you communicate the values of your offering to the prospective customers you have identified? You can do this in a number of ways, depending on the type of product or service you’re selling. If you’re retailing products, you can open a shop in a location with a good concentration of prospective customers passing your shop front. If you intend to sell products online, you will need to develop a marketing plan to drive prospects to your site. Whatever you decide, make sure to do your research before committing any money.
Make sales
It’s time to make some sales and build your turnover. None of this messaging and communication will be worth anything if it doesn’t lead to converted sales, so be determined in your pursuit of leads and execute your sales well.
A word of warning – maximising turnover is not always best for your business. You need to ensure that your sales are profitable and convert to cash quickly. However, if you get the above basics right, you will be in the best position to succeed.
Clive Kahn is CEO of CardSave, supplier of card payment services to small businesses in the UK.
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