the businessextra blog

Homeworkers for small businesses?

2006-05-11T12:27:00.000+01:00

Savvy business managers should always be looking at methods of streamlining and improving their business so that it operates in the most efficient and productive of ways. And with some UK workers participating in the National Work From Home Day (May 5th 2006) it might be a good time to remind small business leaders of the potential benefits of their staff working from home on a part or full-time basis.

Homeworking can provide benefits both for employers and their employees. Employees could start to thrive as a result of homeworking for a number of reasons.

Firstly, it is believed that British employees spend the equivalent of 47 days travelling to work each year, more than any other country in Europe and that commuters could save some 19 days a year even by working from home only on a part-time basis.

Commuting to and from work everyday, particularly as a result of privatisation which has partly contributed to rail and tickets soaring throughout the country, is (judging by many people's glum demeanour on the tube in the morning) a grind. And, according to the IT Foundation, the average train commuter could save £12 a day, with the typical rail user spending £2 on coffee and snacks on their way to the office and a further £5 on lunch.

Improving the work-life balance of staff could be an invaluable bonus for employers, freeing them up to work more effectively and allowing them to display a greater passion for their role. It could also create more flexibility for employers with regard to their payroll. Many women feel obliged to give up their jobs to look after children when they decide to have a family, for instance. Creating a more flexible working approach would enable many small businesses to prevent themselves from letting talented workers slip through their fingers.

Many of the advantages of homeworking to employers are fairly clear. Perhaps the most important financial boost a small or medium-sized enterprise (SME) would be conferred with is the reduction of accommodation costs on a day-to-day basis. Clearly, for businesses working to tight financial margins, such a move would be a significant boost.

There might also be a boost to a business's coffers by reducing the amount of sick leave employees take, perhaps caused by stress or financial strain, another convincing reason to implement a homeworking strategy for a business.

Female SME owners

2006-05-08T12:10:00.000+01:00

The female only final of current BBC TV programme The Apprentice shows that women certainly have what it takes to cut it in the sometimes cutthroat world of business. Sales manager Ruth Badger, 28 and telecommunications assistant Michelle Dewsbury have been whittled down from a hotly contested group vying to be Sir Alan Sugar's apprentice in the conclusion of the series next week.

Ms Badger has shown a wide range of entrepreneurial skills during the 12 week show, demonstrating sales expertise, teamwork, communication skills as well as a savvy and calm attitude in dealing with the notoriously fiery dialogue that conversations with Sir Alan entail on the show. Ms Dewsbury on the other hand, who has adopted a more softly softly approach, had already started up a business of her own. Both ladies have clearly demonstrated that the traditional stereotype of the work place being a male-centric place has been categorically wiped away.

And a recent US survey would seem to concur with the increasing trend of female success in the workplace as demonstrated by the reality TV business programme.

Research for Exit Strategies of Women and Men Business Owners, conducted by the Centre for Women's Business Research, finds that in a variety of ways, women are showing greater business nous than men.

When selling a business, the survey shows that women are much more likely to be concerned about the future of their businesses and the well-being of the employees, a personality facet fictionally evoked by David Brent in The Office TV series. Swayed by the prospect of his promotion, Brent is prepared to ditch a number of his employees to get ahead.

It also shows that women business owners are more than twice as likely to take into account the buyer's identity, personality and background when selling up, as well as being more concerned about the buyer's plans for the business and plans for current employees.

Susan Sweetser, second vice president at MassMutual, says that the study demonstrates "that today's women business owners know how to start, grow and exit their businesses".

However a survey carried out last year by the Federation of Small Businesses revealed that less than a fifth of businesses currently operating were owned by women and many of these had not been running for a particularly long time.

Many more women are clearly aware of business opportunities available to them, as the example of achieving women in The Apprentice demonstrates, but it appears that there is a disparity between female talent and those exercising it.

Those that are worried about the prospect of combining a career alongside the desire to start a family should not worry. Many female entrepreneurs have been able to successfully able to balance the demands of the home and workplace.

Young women in particular should also be aware of the opportunities available to them to progress on the career ladder. Educational institutions are eager to develop female talent, with Bath University having run the Women in Enterprise scheme since October 2004, a project which is encouraging women to start up their own companies from scratch.

The statistics clearly show that females demonstrably have the talent – so they are advised to go out and prove it!

Small businesses can profit from VoIP

2006-05-05T11:08:00.000+01:00

A new report has shed light on how valuable Voice over Internet Protocol (VoIP) could be in helping small businesses save money and work more efficiently. Research carried out by internet telephony firm Inclarity shows that small businesses in the UK could be wasting as much as £1 billion every year by failing to move from traditional telecoms methods to new and improved methods.

At the moment, just 12 per cent of small businesses take advantage of VoIP, but those that are savvy enough to do so are witnessing a 23 per cent fall in money spent on telecoms. The failure of businesses to open their eyes to the possibilities of VoIP generally lies with managers of small businesses who are unaware of the technology. Some 76 per cent of managers admit that they have little to no understanding of how VoIP functions.

Paul Anthony Beaumont, chief operating officer of Inclarity, said: "SMEs can't possibly be equipped to drive more efficient operations without fully understanding the technology options available to them. It would be like cutting bread with a spoon.

"It's up to service providers to educate the market as to the benefits of VoIP, for the good of the UK economy."

The principal advantage of using VoIP as opposed to traditional telephone methods is quite simply the cost. This is accentuated by the fact that the cost of broadband is falling all the time, meaning small businesses will find it easier to jump on the VoIP bandwagon.

But aside from basic cost, there is so much more the technology has to offer. For companies that use a Virtual Private Network (VPN) it allows employees to make free calls to other employees in other offices, or on the road when coupled with a wireless LAN. Perhaps the greatest savings can be made on international calls.

VoIP can also be used like call centre technology to improve customer service. A click-to-talk button on a particular page of your website that allows a user to talk to someone to help them is one benefit. For the organisation, an incoming call over VoIP can prompt a series of useful pop-ups. Furthermore, as VoIP takes up less bandwith than normal telephone lines it also makes your company operations more efficient.

Mr Beaumont summed up: "Not only does it cut company communications overheads, but VoIP also enables staff to work flexibly through remote working and use more effective voicemail and presence options."

SMEs urged to protect against IT risks

2006-04-28T14:38:00.000+01:00

It would appear that IT security is becoming an increasingly important issue for small and medium-sized enterprises (SMEs) across the country.

Earlier this month AMI-Partners predicted that SME expenditure on IT would amount to more than £18 billion next year, with spending on security having grown by 20 per cent in 2005.

Ed Blake, head of e-security at VAR Real Solutions, told IT Week: "We have seen a lot of spending on security, with email and web security being the most important and I expect security to continue to go well."

There is a range of security threats which SMEs may encounter. These include unauthorised access from both internal and external users, and computer viruses which can alter the way in which systems function.

SMEs are also reported to have been subjected to frauds and illegal scams, partly due to the increased use of the internet and also because of improvements made to fraud technology.

This week, SMEs have been urged to pay particular attention to a range of issues relating to the implementation and protection of their IT systems by an official government service providing advice and information for new and small businesses.

This follows research released today by the Businesslink website which shows that more than a third of SMEs either do not have or are unsure about their level of IT protection.

Businesslink's calculations also reveal that almost half (47 per cent) of SME managers believe that they will be at risk of a security breach in the next year – with almost two-thirds believing that the threat will come from electronic viruses, reports the Online Recruitment website.

The Businesslink site contains a guide which provides detailed information about IT issues including the importance of effective security to a business, the security threats posed to IT systems as well as methods to counter security threats.

Get insured to prevent vandals bringing you down

2006-04-27T11:06:00.000+01:00

With the idea of creating a Bill Gates-style empire or a Richard Branson-like corporation, it can be easy for SMEs to neglect the basics in their pursuit of being bigger, better and financially bulkier than their competitors.

However, this can be many small businesses' undoing, with the need to protect against malicious damage or litigation emerging from a troublesome incident the downfall of many an SME.

This is the opinion of Zurich Financial Services, a company that has highlighted the problem of anti-social behaviour for SMEs - especially those that aren't covered by the relevant protection.

"Anti-social behaviour takes many forms and perpetrators of this behaviour - be they individuals within a business or the public at large pose a real threat to small businesses," said Zurich's UK Commercial Business small business manager, David Nichols.

"Malicious damage cover for instance can protect a business against costly repairs for often-repeated acts of vandalism. However, it's also important that businesses understand the potential impact of any litigation brought against them by employees subjected to any such behaviour."

Many banks and building societies offer the SME owner advice when selecting insurance cover for their business. The research that it is suggested the owner undertakes into the company they are thinking of using as an insurer can prove vital should the SME need to claim, with advice from other users of the company and the knowledge of how they act over claims ensuring a smooth process.

And in the case of anti-social behaviour, a claim appears to be an ever more likely occurrence. According to Zurich research, approximately 40 per cent of small business owners said that they felt the threat of abuse or physical assault was greater than five years ago.

In total, the Zurich survey revealed that over half (54 per cent) of small businesses interviewed said that they had been the victim of abuse or threatening behaviour while at work or on related business.

Furthermore, when such abuse or threatening behaviour is directed at employees of the small business, the owner and SME can find themselves subject to a litigation case.

Liability protection should not be taken for granted for just that reason. As with most products, the cheapest is generally not the best, with cheap liability cover having a very low limit. HSBC has said that some cases take as long as ten years to complete, so it is worth having sufficient cover to pay for even the most extreme of situations.

How SMEs further protect themselves from the problems of anti-social behaviour is a difficult area. However, Zurich offers some practical ideas beyond the purchase of sufficient malicious damage and liability cover.

Grilles, roller bars and CCTV are all physical prevention techniques as is the concept of removing any vandalism or graffiti immediately to reduce the risk of being seen as an easy target. Zurich also encourages SMEs to carry out a formal risk assessment to find out potential weaknesses or pitfalls regarding security.

Above all, it is important to remember that although focusing on liability and malicious damage cover may not be the most exciting aspect of the entrepreneurial world, it is through solid foundations that your SME can thrive to become bigger, stronger and more successful.

Health and Safety for small Businesses

2006-04-26T11:20:00.000+01:00

A recent survey has suggested that small businesses revealed that government regulations and paperwork were the factors most hindering their growth last year.

In 2005, almost a fifth (19 per cent) of all respondents who participated in the Natwest SERTeam/SBRT Quarterly Survey of Small Business in Britain cited red tape as the greatest barrier restricting their potential.

The results indicate the changing nature of the issues which keep small business owners awake at night. The survey shows, for instance, that in the late 80s and early 90s, interest rates and the economy were regarded as the key challenge for small businesses as a recession hit small businesses in the UK hard.

Whether they like them or not though, there are a number of legal requirements specifically in the area of health and safety which should be adhered to. Small business owners who turn a blind eye to legislation that they believe is oppressive will be rueing their casual approach if they ending up having to meet expensive costs due to employee illness or injury.

The Health and Safety Executive has compiled a number of free leaflets, such as An Introduction to Health and Safety: Health and Safety in Small Businesses, which provides important guidelines for small businesses as to correct procedure in this area.

Just some of the factors which the Health and Safety Executive advises employers to do to ensure that they have a coherent health and safety policy include providing first-aid facilities, drawing up a health and safety policy statement as well as making sure that the working environment meets requirements relating to areas such as ventilation, office temperature and lighting.

Some of the other aspects which you may like to consider include writing out a health and safety policy if there are five or more employees in your company, providing training on the subject in the workplace and providing good access to posters and leaflets which will inform your colleagues further on key issues.

Much legislation has recently come into effect regarding health and safety in the workplace, an example of regulations small business owners would be advised to take heed of to avoid further hassle.

From April 6th of this year, the Control of Noises at Work Regulations came into force, replacing the existing regulations set up in 1989. The regulation requires employers to assess risks to their employees from noise at work and take action to reduce the noise exposure that produces those risks.

Clearly, many small businesses will not be producing excessive noise but the example shows that by following the regulation set out, many employers will be able to enhance the working environment and life of their employees.

This could have a beneficial effect on employees' productivity, their motivation levels and their desire to be a valued member of the business, factors which are all likely to increase a business owners' profitability.

First Things First

2006-04-24T16:44:00.000+01:00

Welcome to the businessextra blog. The aim of this blog is to share content and articles relevant to those thinking of starting a business, who are budding entrepreneurs, those who are self employed and those in new or small businesses.

We hope you find this a useful source of information and an opportunity to share knowledge, we welcome your comments and look forward to the development of this blogging experiment.

Some of the content we will post will be in the form of articles, others will be news and i'm sure that it will creatively develop and evolve over time.

thanks,

John
on behalf of the businessextra team