Archive for May, 2007

Innovate to grow

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Business Link
on 23 May, 2007
in Management & Leadership and Strategy & Operations
. 0 Comments

The lifecycle of products and services dictates that decline is inevitable. No matter how well your sales are doing now, you always need to think about tomorrow. Either that or sit back and watch as competitors eat up your customers.

Because nothing stands still, you need to develop your products and services even if you don’t want to grow. But if you want to eclipse the competition and grow your business - innovation can be king.

But hang on a minute. According to the 2007 BusinessWeek-BCG annual survey of senior executives, just 46% of respondents said they were satisfied with their return on innovation spend.

The same BusinessWeek-BCG survey also named Apple, the US based computer and iPod maker, ‘the world’s most innovative company’ for the third year running. Apple’s R&D spend is significantly lower than its main competitors, but year after year it yields more return on innovation spend than anyone else.

A global innovation study by management consultancy firm Booz Allen concludes that “It’s the process, not the pocketbook. Superior results seem to be a function of the quality of an organisation’s innovation process - the bets it makes and how it pursues them - rather than either the absolute or relative magnitude of its innovation spending.”

So, are you content to spend big money on innovation? Or do you see innovation as something more unique that grows from process and quality of judgement? Considering such questions is important if you want to innovate to grow.

More info - Use innovation to grow your business

Or visit the Planning how to grow section of the Business Link website.

Ten key steps to successful exporting

Published
by
Business Link
on 23 May, 2007
in International Trade
. 1 Comment

Exporting goods and services to international markets presents many challenges and carries a fair share of risk. But exporting can deliver big benefits - including increased revenues, reduced reliance on domestic markets, or fast track growth.

In fact, there are many reasons why you may choose to export. You may decide:

  • There is international demand for your goods or services
  • There is scope for charging higher prices in international markets
  • You want to reduce your reliance on domestic markets
  • You want to grow or grow more quickly than you can solely in domestic markets
  • You have the expertise to exploit unsaturated or growing international markets
  • Competitive pressures in domestic markets force you to export to maintain profits
  • Foreign competitors enter your domestic market, forcing you to counteract
  • You want to launch an offensive into foreign markets before a competitor does
  • Your business has relatively low production/labour costs compared to foreign competitors
  • You have a strategic need, such as a desire to acquire technology, increased capacity or industry partners

So if you have good reasons to export… What are the next steps?

Assessing your export potential is crucial. Undertaking market research helps you identify and evaluate potential markets, encompassing an assessment of industry structure, likely levels of demand, the general competitive landscape and other factors such as whether you will need to develop your goods or services to adapt to foreign markets.

If your research suggests viable options, a carefully compiled export plan should be built defining precisely how you will enter your chosen markets.

To find out what’s next… Take a look at our Ten key steps to successful exporting

More info - View more resources on Exporting at the Business Link website

HR Focus - Workplace absence; Discrimination

Published
by
Business Link
on 23 May, 2007
in HR & People Development and Legislation & Regulations
. 0 Comments

Workplace absence rises; one in three employees exaggerate sickness

According to a CBI / AXA survey workers took an average of seven days off sick in 2006, amounting to 175 million days at a cost of £13.4bn. The research suggests the most important factor affecting absence is the size of an organisation. Findings show that employers with less than 50 staff had on average 4 days absence per employee compared with double that figure in companies with over 5,000 employees.

A further independent survey commissioned by business consultancy firm Croner finds that a third of employees admit to exaggerating their sickness to justify taking time off. Results show that 91 per cent of employers felt cold and flu was a suitable reason for sickness compared to 81% of employees. Croner’s research suggests a possible disparity between employer and employee about what is or is not a justified reason for sickness.

More info - Manage absence and sickness 

Regulation updates - Unlawful discrimination

Preventing unlawful discrimination on grounds of religion or belief in goods, facilities and services
From 30 April 2007, the law will require that you provide your normal service in a non-discriminatory way.

Preventing unlawful discrimination on grounds of sexual orientation in goods, facilities and services
From 30 April 2007, sexual orientation laws will require that you treat customers in a non-discriminatory way.

For information about upcoming regulation changes, including sector specific changes, visit the Regulation updates section of the Business Link website.

Online trends

Published
by
Business Link
on 23 May, 2007
in IT & eBusiness
. 0 Comments

Some online trends fade as quickly as they appear. Blogs, podcasts and social networks are here to stay - at least for the time being. So should businesses get involved?

Well it depends. Finding a ‘fit’ between your business and whatever trend takes your fancy is vital. Whilst you may feel innovative experimenting with new ideas, without clear value to you and your audience, what’s the point? Sometimes the skill is deciding what not to do - just because something is new and innovative doesn’t mean you should do it.

But as demonstrated in our review, companies that do find a ‘fit’ see big benefits - from looking innovative or trendy, right through to measurable returns like saving money or engaging more effectively with customers.

Download our review of blogs, podcasts and social networks

Occupational health - know the risks

Published
by
Business Link
on 23 May, 2007
in HR & People Development
. 0 Comments

The risk of work related ill health or injury exists in every workplace. That’s why all employers are required by law to carry out risk assessments and maintain regular checks to ensure compliance with health and safety requirements. 

To dispel the myth that ‘risk assessments must always be long and complex’ the Health & Safety Executive says: “Risk assessments should be fit for purpose and acted upon. OK, if you’re running an oil refinery you’re going to need a fair amount of paperwork. But for most, bullet points work very well indeed.”  

The Business Link guide Risk assessment - an overview summarises your legal obligations and how to meet them.

Of course, it’s not just about complying with the law. Demonstrating your duty of care by managing occupational health effectively will make your employees feel safer in their work. Preventing accidents and ill health could also save you money and improve efficiency.

If you are thinking ‘this doesn’t apply to my type of business’ or ‘the risks are low’ - think again. Here are just a few figures to change your mind:

  • The Health and Safety Executive estimates that in 2005/2006: 2 million people were suffering from an illness they believed was caused by current or past jobs; 523,000 of these cases were new in the last 12 months; and 30 million days were lost overall due to work-related ill health.
  • Affecting around 1 million people a year, Musculoskeletal disorders (MSDs) are the most common occupational illness in Great Britain. Upper Limb Disorder (often called RSI) can affect anyone using their upper arms to carry out their work - from computer users to assembly workers.
  • A recent study carried out by the Medical Research Institute of New Zealand found 34% of 62 people admitted to hospital with deep vein thrombosis (DVT) had spent long periods of time at their desks, compared with 21% who had recently made a long haul flight.

Such findings reinforce the fact that occupational illness affects lots of people across a wide range of industry sectors and job roles. Implementing a well-managed approach to occupational health (up to and beyond legal requirements) can help minimise the personal risks and business costs of occupational illness and injury. 

More info - Occupational health and welfare: an overview

More info - Ensure your employees are operating computers effectively

Or visit the People, health and welfare section of the Business Link website for a wide range of health, safety and occupational health related topics.

Failure rates for UK businesses

Published
by
Business Link
on 23 May, 2007
in Finance and Strategy & Operations
. 0 Comments

A study carried out by UHY Hacker Young reviewed over 150,000 business failures over the past year. We explore the reasons why these businesses failed and contemplate what this might mean for your business.

Distribution and courier companies fell top with a failure rate of 17.3 per cent - over three times the average failure rate of 5.2 per cent. Hospitality and catering, including restaurants and bars came second at 15.5 per cent. Meanwhile marketing, IT and financial services companies feature in the top ten, all falling above the average rate of failure.

Sectors with failure rates above average shared some common flaws. Issues with financial planning, poor market research, fierce competition or economic influences contributed to failure. In particular, an inability to brush off external forces such as economic shifts, tax hikes or stiff competition seem to be prevalent weaknesses.

Commenting on the findings, Business Link adviser Peter Weeks said “Building a robust business capable of shrugging off the unexpected is vital for long term survival. Keep a tight grip on your finances, and work on ways to stay competitive”.

More info - Common mistakes and how to avoid them

Business Link Workshops

Following a highly successful pilot programme, Business Link is running a series of finance workshops aimed at owner/managers of established small and medium sized enterprises.

Click here for more information

Regulation update - Consumer Credit Act 2006

Published
by
Business Link
on 23 May, 2007
in Legislation & Regulations
. 0 Comments

The Consumer Credit Act 2006 affects a wide range of businesses - from money lenders and debt collectors to companies where credit is secondary to their main business activity (such as car dealers or retailers).

Under the new rules, businesses must follow proper procedures when dealing with consumer credit related complaints. If they don’t, customers have the right to refer unresolved disputes to the Financial Ombudsman Service.

The newly introduced ‘unfair relationships’ test provides a single standard of conduct to consumer credit licensed businesses. Talking about the new rules, the Office of Fair Trading said “The Act will enable borrowers to challenge credit agreements in court on the grounds that the relationship between the parties is unfair.”

To foster improved communication between lender and borrower, the law introduces new requirements for keeping customers adequately informed on the state of their credit accounts. Information including annual statements, arrears notices and information on fees and charges must be sent to customers. Lenders must also include additional information in default notices and give notice before applying post-judgement interest.

The Act also gives the Office of Fair Trading greater powers to investigate cases of misconduct, and the ability to issues sanctions, including fines of up to £50,000 or the suspension of licenses for breach of the rules.

Business Link Business Adviser Peter Weeks says “The Office of Fair Trading is looking to weed out rogue businesses, and customers now have greater rights to resolution through the Financial Ombudsman. If you want to maintain your consumer credit status, find out more about the changes and implement procedures as soon as possible”.

In detail - More information on the Consumer Credit Act 2006

More info - Does my business need consumer credit licensing?

Information about upcoming regulation changes - including regulations affecting specific sectors - can be found at the Regulation updates section on the Business Link website.

How to get customers: Word-of-mouth

Published
by
Business Link
on 23 May, 2007
in Sales & Marketing
. 0 Comments

The latest advertising boom in the US is word-of-mouth marketing. Companies send products to everyday people, anything from mobile phones to shampoo. These individuals (called agents or ambassadors) can keep the products but may have to provide feedback about their experiences. Importantly, individuals are free to say what they choose about products to friends and family - inviting good or bad feedback maintains credibility and avoids undermining the inherent value of word-of-mouth.

Of course word-of-mouth is nothing new. People have always talked favourably to friends about products and services they like, or shouted about ones they don’t. Recent interest in word-of-mouth marketing may be explained by widespread use of the Internet, which has empowered people to share experiences more easily. For some, it’s become second nature to research the opinions of others online before purchase, so companies must try to ensure people are talking positively about their product or service.

Online or off, word-of-mouth marketing is applicable to many businesses selling products, and services too. The premise is the same - let’s get people talking, about us.

Word of Mouth is considered a ‘raw and genuine’ approach that can reach audiences that may be apathetic towards existing advertising methods. There’s always a risk this approach may be perceived as ’sneaky’, so time will tell if the phenomenon takes hold in the UK. But with an estimated 47% of the Fortune 500 companies in the US adopting Word-of-mouth programmes in 2007, and specialist word-of-mouth marketing agencies opening in the UK this year, it seems likely more companies will begin experimenting with ideas of their own.

More info - Advertising, the basics

More info - Sales and Marketing, the basics

Business Link Workshops

Following a highly successful pilot programme, Business Link is running a series of marketing workshops aimed at owner/managers of established small and medium sized enterprises.

Click here for more information