Newsletter #160 - Enterprise Finance Guarantee Scheme criticised, Cost-cutting tips, Expanding overseas, Invoice finance, What is a limited company?, How to sell to the big retailers...
In this week's Business121:
1. Enterprise Finance Guarantee Scheme criticised
2. Don't slash and burn in the drive for cost savings
3. Could foreign markets bring recession relief?
4. Businesses urged to consider invoice finance as credit harder to find
5. How to decide if IT contracting is the life for you
6. Business guide to purchasing IT hardware
7. What is a limited company?
8. How to sell to the big retailers
Small Business News
9. HMRC gives 60,000 companies more time to pay tax under BPSS scheme
10. New HMRC video tax guides for start-up businesses
11. VAT refund deadline looms - firms urged to submit their claims
12. Retailers step up opposition to business rate rise
Enterprise Finance Guarantee Scheme criticised
You may recall the Government fanfare that accompanied the recent launch of the Enterprise Finance Guarantee Scheme. If you believed the hype the scheme would give small businesses - who have been unable to access finance in the current lending conditions - access to bank loans.
However, in recent weeks the scheme has been widely criticised by a whole range of business groups for being completely ineffective.
The Business Secretary, Peter Mandelson attempted to defend the EFG scheme this week, saying that 400 loans had already been offered and that £1million per day had been lent under the scheme since it launched last month.
However the British Bankers' Association pointed out that bank lending dropped by £159million in the last quarter of 2008, and that at current rates it would take over 6 months for the EFG to make up this shortfall alone.
Mandelson might think that making 400 loans in a month is a success but figures from the FPB have revealed that a staggering 400,000 small businesses will need to renew or increase their lending before the end of March. That really does put the Government's efforts in context!
You can read more about the criticisms and the shortfalls of the Enterprise Finance Guarantee Scheme.
Get a free copy of Better Business magazine
On a more positive note, and in case you missed last week's issue, there's a free copy of Better Business magazine for every reader.
Better Business is written specifically for small business owners and is usually available by subscription only. But we've teamed up with the publishers and arranged for a free sample copy for every reader.
Just click on the link to claim your free copy of Better Business magazine, which is packed full of tips and inspiration.
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Don't slash and burn in the drive for cost savings
When times are good, businesses are tempted to extravagance, hiring staff, moving into new premises and diversifying product ranges. But when things get tough, you must seek more efficient ways of doing things.
Many companies react to hard times by cutting advertising and marketing budgets, but this can be a mistake. It is better to review your processes, focus on core markets, and avoid wasting time and money on unprofitable areas.
Could foreign markets bring recession relief?
Understandably, for many small businesses, marketing your products and services in foreign markets can seem like an impossible task. However, expanding beyond your domestic market is a challenge that should be embraced rather than feared.
With the right knowledge, reaching out to new markets should be straightforward and problem-free. Here's what you need to focus on if you want to successfully launch into foreign markets.
Businesses urged to consider invoice finance as credit harder to find
New research suggests that over 500,000 small business owners are asking friends and family for finance rather than the banks. As late payment continues to be rife, small companies are urged to consider invoice finance to help maintain a healthy cash flow to see out the downturn.
How to decide if IT contracting is the life for you
Before you take the plunge into the IT contracting world, you should consider carefully what you new life will involve and if your personality is suited to life as an IT contractor.
Business guide to purchasing IT hardware
What you should bear in mind when purchasing IT hardware for your business - from working out your budget, keeping up to date, how to finance any purchases and how to dispose of old IT hardware.
What is a limited company?
There are around 1.15 million limited companies operating in the UK currently, compared to around 2.8m sole traders and 500,000 partnerships. But what is a limited company? How does a limited company works? What does it mean for you as a business owner? And how does a limited company differ from the sole trader structure. Here are all the answers.
How to sell to the big retailers
If your new business makes a product that you want to sell to the general
public, then one of the most important factors in your future success will
be great distribution. Without a bucket of money to throw at promotion, one of the quickest ways to sell your product is to get it listed by big retailers. Getting them to stock your product will be tough, but follow these tips and you'll improve your chances.
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SMALL BUSINESS NEWS
HMRC gives 60,000 companies more time to pay tax under BPSS scheme
Over 60,000 companies have agreed 'time to pay' tax arrangements with HMRC since the Business Payment Support Service was launched late last year. The number of companies using the scheme has trebled in the past month.
New HMRC video tax guides for start-up businesses
HMRC has released a series of online video guides to help small companies and start-ups with the complexities of the UK's tax system. The guides cover important tax topics - such as VAT, Corporation Tax and PAYE.
VAT refund deadline looms - firms urged to submit their claims
Companies have until the end of March to send in VAT refund claims to HMRC for the period from 1973 to 1997.
Retailers step up opposition to business rate rise
Top retailers Sir Philip Green and Ian Cheshire have attacked the Government's controversial plan to increase business rates by 5pc in April as "shocking" and "completely inappropriate", the Telegraph reports.
** For the latest Small Business News, visit http://www.Bytestart.co.uk **
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(c) Business121.co.uk 2009
Posted February 26, 2009
