Business121 Small Business Newsletter #25

In this week's Business121:

1. How successful small businesses grow
2. Book-Keeping for Beginners
3. Why Business Planning is not just for Start-Ups
4. Pensions A-Day: 10 key facts you need to know
5. New Business Start Up Guides Updated
6. Stick to what you know - a recipe for SME success?
7. Endemol seeks small businesses for makeover TV series
8. Teach young entrepreneurs to run
9. Growing problems with employment law hit small firms

* Or read this issue online: http://snipurl.com/_121_issues *

How successful small businesses grow
------------------------------------
The respected Cranfield School of Management released the results of some very interesting research this week. They studied the nature of innovation in 108 small and medium-sized companies, and their findings could help all of us to build a successful growing business.

The traditional view of small businesses is that they are successful because of their agility and flexibility. A small business is more nimble than a bigger counterpart and can also be run in a more entrepreneurial fashion.

However, the research indicates that the real driving forces behind successful small businesses are not what we've traditionally believed them to be.

Cranfield found that the most successful, ambitious SMEs are those that achieved growth by selling more of their existing products or services to their existing market.

Gerard Burke, a Director of the Business Growth and Development Programme at Cranfield summed it up well when he said, "Our research shows that successful SMEs tend to focus on continually improving their products, services and processes – often in response to customer feedback or demand – not on launching new products or venturing into new markets. This ‘incremental’ innovation, often popularised by the term ‘sticking to the knitting’ appears to be part of the recipe for success for SMEs, rather than attempts at radical innovation."

As businesses, we're always being told to innovate. We're encouraged to do this by developing new products and to strike out to find new geographic markets for our goods. But the Cranfield research tells us that this is the wrong type of innovation for small businesses.

Successful small businesses tend to concentrate on 'incremental innovation' - constantly focussing on improving their products or services and the processes behind the creation and selling of their goods.

The small, but constant improvements to their products and the way they sell them are driven by a deep understanding of the market they operate in, and in response to customer demands. This process of continual improvement has a steady and real effect on the long-term performance of the business.

Instead of trying to make giant strides forward, successful small businesses focus on making frequent small steps. So the next time you're looking to make a big leap forward, take some time to see whether you'd be better off taking small steps to get there.

************************** Advertisement ************************
BOOK-KEEPING AND PAYROLL MADE EASY!
.................................................................
If you'd like help organising the financial side of your business,
then look no further than DO$H Cashbook and DO$H Payroll. Our
programs will save you time and offer exceptional value for money.

DO$H Cashbook enables you to record all payments and receipts,
and if you’re VAT-registered will easily calculate any payments
due. Recommended by Lloyds TSB to all new business customers.
http://snipurl.com/_DOSH_Cashbook

DO$H Payroll is fully HMRC accredited and costs from only £126
for up to 5 employees including 12-months Technical Support.
Why not start a free trial; http://snipurl.com/DOSH_Free_trial

*****************************************************************

Book-Keeping for Beginners
------------------------------------
All businesses need to keep records of their financial transactions for several practical reasons. You need to know how your business is performing - possibly to show outside investors how the business is progressing - and you're required by law to keep many details for up to 6 years. Another benefit of keeping good financial records is that it will help you to save money on accountancy fees. Here's an excellent overview of Book-Keeping for beginners;
http://snipurl.com/_Book_Keeping_basics

Why Business Planning is not just for Start-Ups
------------------------------------
One of the greatest misconceptions about business planning is that a business plan is useful only for start-ups.

This article shows you how business planning is being used by an increasing number of companies as a means to manage growth better, to ensure new ideas have been assessed for commercial viability, and to value a business when the time comes to sell.
http://snipurl.com/_Business_Planning

Pensions A-Day: 10 key facts you need to know
------------------------------------
With A-day rapidly approaching, here are 10 key facts that you need to know about the changes that A-Day will bring to pensions.
http://snipurl.com/_ADay_Pension_change

New Business Start Up Guides Updated
------------------------------------
We have updated our 7-part Guide to 'Starting Up in Business'. From the business planning stage, to promoting your small business on Google. Ideal if you, or someone you know is currently in the throes of launching a new venture.
http://snipurl.com/_Guide_to_StartingUp

************************** Advertisement ************************
THE GOOGLE ADWORDS HANDBOOK - SPECIAL OFFER UNTIL APRIL 9
.................................................................
Andrew Goodman's "The Google AdWords Handbook" is THE guide to
AdWords. If you're currently using, or thinking of starting an
Adwords campaign, the handbook will show you;

* Little-known methods of "beating" the AdWords system
* The best ways to lower your cost-per-click
* Proven tactics to boost your return on investment (ROI)
* How to find cheap keyword inventory, and much much more.

Order the handbook before April 9 and you'll also get a range of
bonuses, including a copy of "Winning Results with Google
AdWords". All details here; http://snipurl.com/_Adwords_Handbook
*****************************************************************

===================
SMALL BUSINESS NEWS
===================

Stick to what you know - a recipe for SME success?
------------------------------------
As highlighted above, pioneering research into the nature of innovation in small and medium sized enterprises has revealed that ambitious, smaller enterprises are more likely to focus on incremental innovation, rather than radical developments.
http://snipurl.com/SticktoWhatYouKnow

Endemol seeks small businesses for makeover TV series
------------------------------------
Small to medium sized businesses are being sought by Endemol UK to take part in an exciting new business makeover series, due to start filming in the summer.
http://snipurl.com/_business_makeover

Teach young entrepreneurs to run
------------------------------------
Young people have enormous potential to lead the way in business ownership and while the recent GEM UK figures are undoubtedly encouraging, more young people could launch their own ventures and fulfill their dreams if they were taught the right skills.
http://snipurl.com/teach_young_to_run

Growing problems with employment law hit small firms
------------------------------------
New figures from the FSB show that employers are finding it increasingly hard to deal with employment legislation.
http://snipurl.com/_employment_laws

** For the latest Small Business News, visit http://snipurl.com/Bytestart_News **

===========
CLASSIFIEDS
===========

THINKING OF GETTING A NEW WEBSITE in 2006?
.................................................................
Then don't go ahead without speaking with us first. At Blue-Egg
eCommerce we're dedicated to producing websites specifically for
small business, and we're happy give a 10% discount to
Business121 readers. Check us out at: http://snipurl.com/Blue_Egg

HELPING EVERY SMALL BUSINESS TO GET THE BEST BRANDED DEALS
.................................................................
Through LogBuy all small businesses can club together to get the
best 'branded' deals at the best price. There's no cost to join,
no annual membership fee and no commitment to purchase anything.
Sign up today at: http://snipurl.com/_LogBuy_Home

SEE YOUR AD HERE
.................................................................
Business121 is read by over 12,000 small business owners every
week. Advertise in our newsletter from just £45+vat per issue.
Please email Classified@Business121.co.uk for details
.................................................................

(c) Business121.co.uk 2006