November 2006. More Start-ups opting for virtual offices.
Three quarters of new business feel they are likely to move their office location within their first six months of trading, a survey has revealed.
Research by Yac has found that because of their likelihood to relocate, most start-ups now prefer a ‘virtual working’ environment that does not tie them to one address.
What’s more, the study found that 85% of new entrepreneurs lack the funds to set up a permanent office and instead have turned to technology to launch their business.
The majority of virtual offices are located in the service sectors, who said they chose the option because it reduces their overheads and allows them to offer staff a more varied and flexible working environment.
“The nature of being a start-up business, and the long hours and investment this often requires, can be more conducive to a flexible way of working,” said Ian Osborne, chief executive of Yac.
“It’s clear that employees also value the ability to work from outside of the traditional office space, and recent research in the market has shown this to be a contributing factor in staff loyalty and motivation.”
Osborne added that the ability to work virtually also gives start-ups the opportunity to ‘scale up’ their business according to need, such as adding part-time staff or home workers based in multiple locations.
(http://www.startups.co.uk/More_start_ups_opting_for_virtual_offices.YU3rgzloP66y3A.html)
November 2006 Cash Flow The 'Top Concern' For Small Business.
Improving cash flow is the top priority for small businesses over the next year, it has been claimed.
A report by Bibby Financial Services states that 58% of small business owners were planning to devote more time to company finances and minimising the threats of bad debt and late payments.
“Getting customers to pay on time and making the most of early settlement discounts, vowing to improve cash flow management is one New Year’s resolution that they would be wise to keep,” said David Robertson, chief executive of Bibby.
However, a further third of business owners said they also intended to work fewer hours over the next year, and over half of those surveyed vowed to spend more time with family.
Skills training for staff featured much lower on the list of priorities this year, with a 10% reduction of the number of business owners planning to develop the skills of their workforces.
“Although many owners and managers have expressed good intentions to spend more time with their families and work shorter hours, it looks as if next year will be another very busy one from a business perspective and I suspect such noble gestures will be pushed aside as 2007 progresses,” added Robertson.
http://www.startups.co.uk/Cash_flow_the_top_concern_for_small_businesses.YfHLFcNoX8KDRw.html) See how our Financial Services can help.
November 2006 Small Businesses Owed £35.5bn
Small businesses in the UK are owed £35.5bn in debt, according to a new survey.
Research, conducted by Mamut, shows that a third of small firms are owed 10% of their turnover by debtors.
Smaller companies appear to fare far worse when it comes to chasing debt, as over half of businesses with less than 20 staff receive late payments, compared to only 29% of firms with between 20-50 employees.
“This makes small companies particularly vulnerable,” said Alan Moody, managing director of Mamut.
“It is companies with less than 20 employees that form the majority of the 750 businesses going bust in the UK daily.
“Often this will be down to the fact that these companies have no formal system in place to track and chase late payers.
“Small companies don’t have the resources of larger suppliers to withstand cash flow problems,” Moody continued.
Manufacturing firms fared the worst for dealing with debt and late payments, with almost one in five small manufacturing firms having 50-75% of late paying debtors making up their customer base.
In comparison only one in 20 small and medium sized businesses in the financial services sector had the same proportion of debtors, and one in 50 in the retail, distribution or transport sectors.
November 2006. Poor IT Skills Holding Smaller Firms Back.
Half of all small and medium-sized businesses are lacking the IT skills needed for them to compete effectively, according to a new report.
A deficiency in proper IT and communications knowledge is resulting in many smaller firms being unable to meet customer demands, according to a report written by the Centre for Future Studies.
Nearly 80% of owner-managers think their businesses have adequate IT skills, however many are ‘over-reliant on family and friends for IT advice’, according to the study.
The study concludes that a key problem is that many owner-managers are specialists in their industries, but are lacking in the IT skills to manage new technology and assess the IT competency of their staff.
The report said there was no trusted single source for small and medium-sized businesses to go to for professional advice, and technology skills were critical to a company’s growth and success.
“Consumer expectations are increasing as they experience a better level of service,” said Dr Frank Shaw, foresight director at the Centre for Future Studies.
“All of this is driving IT investment and SMEs need to deliver on service whilst also accommodating changing work patterns which meet their employees’ expectations.
“Innovation is the key if SMEs want to compete in today’s domestic and world markets,” Shaw added.
November 2006. Small firms paying for lack of responsiveness.
Small businesses could significantly increase their profits by delivering good customer service and responding to customer queries promptly, according to a new survey.
The report, commissioned by T-Mobile UK, reveals that small businesses have lost at least four customers each over the past 12 months, with each equating to a loss of profit of almost £5,000.
Over a third of respondents cited a lack of responsiveness to queries as the main contributor to poor customer service, which suggests that small businesses need to focus on communications with customers to avoid further losses, T-Mobile says.
The research suggests that, although nearly two thirds of small businesses invite customers to provide feedback on their services, only one in five provide staff with customer service training and only one in three respond immediately to complaints.
Derek Williamson, head of business marketing at T-Mobile UK, said: “Evidence suggests that larger competitors are much quicker to respond to customers and this is a significant threat for small firms.”
Although over half of respondents thought that small firms are the best at providing customer service, Williamson warns that speed of response needs to be addressed in order to remain competitive, and minimise the financial impact of customer losses.
http://www.startups.co.uk/Small_firms_paying_for_lack_of_responsiveness.YSvSUp4.html)
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