The Start Up Donut and Tax Donut were busy this afternoon Tweeting the main announcements from today's budget. But elsewhere in Twitterland, this is how Twitter reacted to announcements made in the Chancellor’s #Budget2014 speech...
What the Chancellor announced: Deficit forecast to be 6.6% of GDP this year, 5.5% in 2014-15, falling to 0.8% by 2017-18 with a surplus of 0.2% in 2018-19. UK GDP forecast to grow by 2.7% this year. Borrowing forecast to be £108bn this year and £95bn next year, leading to a surplus of almost £5bn in 2018-19.
What you said:
@mehdirhasan - Osborne mentions that the deficit is down by a third. But still almost double what he said it'd be back in 2010. #austerity #budget2014
@SkyNewsBreak - Chancellor George Osborne says "we are putting Britain right" and the economy is recovering faster than forecast #Budget2014
@RBSBusiness - #Budget2014 is about building a resilient economy and security for the British public
@FraserNelson - “We're getting on top of our debts” says Osborne. As if. Debt getting on top of us. #Budget2014 pic.twitter.com/xveVxJ5R9l
@jrfKathleen - 2.7% growth forecast from OBR for 2014 #budget2014 > wonder what BoE will do with interest rates, following Carney's strong hints?
@labourpress - Growth in 2014 still lower than OBR was forecasting in November 2010 (2.7% versus 2.8%) #Budget2014
What the Chancellor announced: Official forecasts for UK economic growth have been raised for the next two years but cut for later years. UK GDP forecast to grow by 2.7% this year, 2.3% next year, 2.6% in 2016 and 2017 and by 2.5% in 2018. Today it was announced that the unemployed figure fell by 63,000 to 2.33m in the three months to January 2014.
What you said:
@RichardJMurphy - Don't crow about jobs Osborne: most will be self-employed earning £11,000 or less #budget2014
@stuart_rock - Faster growth alone will not balance the books #Budget2014
@RigelAcctsTax - We'll be in surplus by 2018/19 - really??!! I'll be very impressed if that comes true #budget2014
@sophiehobson - Osborne's most shouted-at statement so far: "Rich are making the biggest contribution the reduction of the deficit" #Budget2014
@MichaelWhite - #Budget2014 "income inequality the lowest for 28 years " says GO. That cannot possibly be true in any meaningful sense
@lucianaberger - No action from Osborne to actually fix our broken energy market. He needs to #freezethatbill #budget2014
What the Chancellor announced: Corporation main and small business rates will be aligned at 20% from April 2015. New 30% tax relief for social enterprises. Doubling of the 100% Annual Investment Allowance (AIA) from £250,000 to £500,000 from the end of next month. Scheme also extended until 2015. R&D tax credits for small, loss-making businesses increased from 11% to 14.5%. No fuel duty rise in September. Personal allowance increased to £10,500 from April 2015; 1% increase in higher rate threshold in 2015 to £42,285. Class 2 NICs to be merged with self-assessment.
What you said:
@RichardJMurphy - It sounds as if there are some welcome moves on avoidance – but the devil will be in the detail #budget2014
@nickknocker1 - Class 2 NICs to move to Self Assessment. About time. #Budget2014
@JONATHAN_RILE - #Budget2014 #gtbudget Tax simplification well overdue. Recommendation from OTS accepted
@accountancyEdge - AIA goes up to £500k. Not many small businesses spend £250k a year, never mind double... #Budget2014
@langbennetts - Annual Investment Allowance of £250k no longer set to expire but increases to £500,000 – a massive help to small businesses #budget2014
@CBItweets - “Doubling & extension of Annual Investment Allowance will be shot in the arm for many mid-sized firms"
@JournoSpursEmma - Income tax threshold up to £10,500. Oooh. Fair play Osborne that's a good one #Budget2014
@GlobalAccWeb - PTA will rise to £10,500 = £800 less tax paid each year #Budget2014
@lexauto_SME - Good to hear the freeze on fuel duty will remain in place, which will help businesses manage their costs #Budget2014 #SMEbudget
@ICAEW - Personal allowances for taxpayers to be aligned at £10,500 from 2015. Tax simplification will make this good news better. ^Anita #Budget2014
@LibDemBen - £10,500 tax-free threshold from next year! #Budget2014 It wouldn't have happened without the @LibDems in Government” Hear Hear!
@ConnectedRoots - And there it is folks, what we hinted at a month ago, a 30% tax break for those who invest in Soc Ents. #Budget2014
What the Chancellor announced: Extension of grants available to businesses, to increase the number of apprenticeships by 100,000. Development of graduate-level apprenticeships.
What you said:
@enforbusiness - Extend grants for smaller businesses to support 100,000 more apprentices #Budget2014
@CNKatieBarker - Doubled the number of apprenticeships – new degree level apprenticeships too. Maybe Osborne read my article on apprentices?! #Budget2014
@john_hocking - Increase in apprenticeships need to make sure these lead to skilled jobs #yorkreacts #budget2014
@The_FPB - #Budget2014 extension to AGE grants for apprenticeships, a key FPB ask for this year's Budget. Thanks!
@Alex_Kitching - FTSE only marginally down post #Budget2014
@CBItweets - Cridland: “The Budget will put wind in the sails of business investment, especially for manufacturers." #Budget2014
@IoD_press - Announcements on export finance and cut in Air Passenger Duty very welcome for UK exporters #budget2014
@FT - UK #Budget2014: Osborne is tinkering at the margins
@emmaljones - Not much good for majority of small business who are micro enterprises .. the doers & makers
The Chancellor, George Osborne, delivered his Budget Statement today. The recent decidedly spring-like weather reflects the brightening economic picture — the Office for National Statistics recently announced that UK GDP grew by 0.7% in the final quarter of 2013 and 1.8% in 2013. But should we worry that forecasts predict another cold snap?
Certainly, the optimistic outlook isn’t shared by all. The Bank of England remains cautious about the recovery, voting unanimously to hold the base rate at 0.5%. Minutes from their meeting state, "There were initial signs that the anticipated broadening from household to business spending might have already begun. Even so, there remained some way to go to ensure that the recovery was both balanced and sustainable."
With this mixed picture, The Chancellor undoubtedly had a challenge on his hands to convince businesses and the public alike that the corner has been turned. So what were his main headline announcements?
Personal, yes. Political, certainly. Business focused? Not that I noticed.
Like much of the country, we’ve been glued to the Budget today wondering if there’ll be any surprises from George Osborne. As publishers of the Donut websites, we’re always particularly interested in what the Budget means for small businesses.
Mostly, the Budget came across as being a feel-good one, with an eye to individuals. The saver, the pensioner, the tax payer all have cause to feel uplifted by the Budget. Those pension pots that have hitherto been locked behind measly annuity schemes, unless you want to pay punitive tax levels to draw them down, suddenly seem within shiny reach at only a basic level of tax.
Those people, and no, I’m not one of them, with a spare £15,000 per year to squirrel away will now be able to put it all into tax efficient ISAs. The personal tax allowance increase actually puts more real cash into a lot of pockets. Families could breathe a little more easily with transferable tax benefits and childcare allowances. Companies with up to £500,000 to invest in developing their business could also do well.
The continuing help for first-time buyers and the promised increase in housing stock is good news for associated companies including removals firms (who also benefit from reduced fuel duty), the construction industry and conveyancers.
So much for individuals and big businesses. But most micro-businesses and start-ups, who were singled out for attention in last year’s Autumn Statement, would still be straining to hear themselves mentioned.
Arguably, any Budget that makes people feel more optimistic and actually changes the amount of cash they have to spend, from tax cuts or accessible pension pots, will boost the recovering economy. And that, in turn, is good news for small businesses. It also, of course, won’t do any political harm to the Coalition.
Personally, I thought the tweet from Norman Smith, chief political correspondent at the BBC News Channel, summed it up nicely: "Booze, Bingo, Business and Savers. That's your #Budget2014 Folks."
In the past 20 years, methods of communication have increased significantly. Technology is continually developing new ways of contacting friends, family, those we work with, suppliers, customers and others.
With the advent of email, Skype, Hangouts, IMing and Facetime, businesses are spoilt for choice when it comes to contacting customers and others, and often overlook the power of the humble phone call. So what advantages does using a telephone offer?
While email and instant messages are often sent while the sender is multi-tasking, telephoning someone requires taking time out of your day to stop and make the call. This shows more care, demonstrates more attention and better customer service.
Messages can be conveyed more quickly over the phone than exchanging numerous messages by other means over the course of a day. When an immediate answer is required, a phone call is the best way.
The meaning or urgency of a subject can get lost when conveyed by written words, because some things are just more effectively communicated by phone.
It’s often difficult to keep up to date with all new communication methods and ‘who is familiar with what’. Instead of having the difficult conversation about ‘who’s using what’, you can make life simpler by picking up the phone.
Using technology can often involve technical difficulties. Effective internet communication, using programmes such as Skype and Facetime, require a reliable internet connection, non-faulty equipment and technological know-how. Things can and do go wrong.
Similar to how letters carry more authority, because of the traditional nature of a phone call, it generally holds more weight than an email or an instant message. If you want to communicate an official message, deliver it with your voice.
Sometimes being able to see the person to whom you’re speaking is useful, but more often it’s a hindrance and one extra thing to worry about. Facial expressions can give things away and it can make working from home a little more difficult.
Not long ago, making landline calls to overseas numbers was extremely expensive. However, that no longer needs to be the case, you can make cheap calls to hundreds of other countries for a reasonable price.
Blog supplied by Ruth Barton on behalf of Call Happy, provider of cheap calls to Uganda and worldwide.
When you’re starting a business from scratch, there’s so much to learn. As the owner, you’re the person who ultimately needs to make a call on your investments, whether that’s product, people, technology, finance, sales, marketing or many other things. So, when it comes to marketing, what are the fundamentals you need to know to make sound decisions to support your growth?
Marketing helps you sell your products or services. Really effective marketing does this in a sustainable way. Businesses that nail this early on almost without exception outperform those who take a more tactical approach. If you lack basic knowledge of marketing, the following six pointers should keep you on track strategically.
Effective marketing is about taking someone on a journey from hearing about you to buying from you, and from there, to buying more and telling the world about you. As the business owner, taking the time to understand how your buyers do this will always be a good investment.
Looking at the buying decision from their perspective, ask what they want and need to know, how much time they devote to finding out and whom they ask along the way. If you’re able to picture this, you’re much better equipped to assess whether your marketing tools and techniques will help these people decide to buy from you.
The ‘sales funnel’ image is meant to show the decreasing number of people at each stage in the buying decision, which makes it funnel-shaped. It does not actually behave like a funnel; pouring more into the top is rarely the best sustainable approach for your business.
It can be enormously helpful to replace this picture with one of a bucket (your products and services and how they are delivered), your funnels (those things that support turning interest into sales), and taps (things that grab people’s attention and get them interested in what you do). When you have this picture in mind, you have a much better handle on what a marketing operation really looks like… Yes, it’s a bit messy – and it leaks!
With this new mental image, you can quickly see why it makes more sense to start at the bottom and work up, because each element builds on the last. So many businesses, particularly start-ups, find themselves running expensive marketing taps into a leaky bucket. You don’t have money to waste – so don’t.
If you can think about each marketing tool or technique in broad terms as related to the bucket, funnels or taps, you’ll be able to quickly assess whether you need it and what function it serves. So, when an ad sales guy, SEO guru or whoever else calls you with an ‘unbeatable deal on awareness-driving activity’, you can ask yourself if you need another tap, and if there are funnels and a bucket for each tap you switch on.
With all this in mind, the next piece of mental gymnastics is to flip the image horizontally… over time. Over what time frame does the buyer move from hearing about you to becoming a loyal customer? This becomes the shortest possible timeframe in which to see profitable payback on marketing investment, and if you’re measuring things sooner, you might end up stopping an activity that would have paid off handsomely in the long term.
Once you have these fundamentals firmly in mind and you can map your market and your business against it in broad terms, you’ll be much better placed to get the experts you need to put in place an end-to-end marketing operation for your business. But you’ll have enough knowledge to be able to follow and be an integral part of what they are doing.
Many SMEs are currently looking to upgrade their point of sale (PoS) systems. They were probably obsolete three or more years ago, but in the downturn, many had no choice but to keep them working, regardless of the high cost of maintenance and support. Now, it is clear that old PoS systems can no longer operate in a multi-channel world.
They can't identify the customer (other than through an old-style loyalty card), take delayed orders, process click-and-collect orders, book online orders, give access to online catalogues or process returns for goods bought online.
The replacement options are often very expensive if the business is looking to replace like with like – big hardware and proprietary software with more of the same. A cheaper and just as effective option, particularly for smaller business, is to use a mobile device such as an iPad and power it using relatively inexpensive applications that only charge for what is actually used.
Already in the US, major retailers say they will never build another fixed-till point, choosing to go mobile on a network in every store.
The joy of a mobile solution is that because all the apps and data are in the cloud, the business owner can access them through their smart phone and effectively run all sorts of regular tasks without ever having to be on site.
These mobile solutions also enable the retailer to connect directly to their customers through their own smart devices, to share data, orders, messages, voucher redemption, video – a host of content that both parties need to share.
Blog supplied by Oscar Heron, digital manager at apphardware.com, a one-stop webstore for business apps and hardware specifically aimed at SMEs.