Business121 Small Business Newsletter #42

In this week's Business121:

1. Share option schemes - extra costs too high for small businesses
2. Ten Tips to design an effective questionnaire
3. Customer Service - Impact of Perception and Professionalism on Start-ups
4. Google Enterprise - Search tools for small companies
5. Employers warned not to be "too nice" to staff this summer
6. Don't lose out on inheritance tax planning advantages
7. Business Link Guide to writing a Business Plan
8. New publication aims to help businesses work out an exit strategy
9. 42.5 per cent of businesses now bank online
10. High-tech weaknesses highlighted

Share option schemes - extra costs too high for small businesses
About 7,000 small businesses run share option schemes for their staff. This means that over 100,000 staff will be well-rewarded if the business does well.

Workers who have share options under the Enterprise Management Incentive (EMI) pay just a fraction of the capital gains tax they would normally have to pay when they sell their shares, so it's an attractive proposition.

And businesses gain too. Companies running the schemes can claim corporation tax relief on the difference between the option price and the market price when the employee buys the shares.

Everyone's a winner! The business can incentivise employees, without having tho shell-out much-needed cash and can do so in a tax-efficient manner, and employees get to share in the success of the business.

But instead of encouraging and expanding such schemes, it seems that a new accounting requirement; FRS 20 - which is designed to police big plcs - will threaten them entirely.

FRS 20 stipulates that companies providing share option schemes must now include the value of the share options in their annual accounts. But the company's auditors aren't allowed to conduct the valuation - a separate accountant must be hired - and no doubt - paid handsomely to do so.

So with the added costs and administration involved, it looks as if share option schemes will no longer be a way for small businesses to reward their staff.

So, everyone loses out!

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Ten Tips to design an effective questionnaire
Questionnaires can be used to gather valuable information for your business. They can be used to help you to research new products, explore new markets, measure customer satisfaction or even to find out how your brand is perceived by your customers.

But whatever you're researching, you'll get better, more meaningful results if you follow these 10 tips for better questionnaires;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=67

Customer Service - Impact of Perception and Professionalism on Start-ups
By managing perceptions you can encourage your customers to keeping coming back, supporting the future development and growth of your business;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=68

Google Enterprise - Search tools for small companies
A brief overview of Google Enterprise, which aims to provide its search technology to the small and medium sized business environment;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=69

Employers warned not to be "too nice" to staff this summer
The hidden risk of discrimination claims in firms with family-friendly holiday policies. Includes 6 tips for employers;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=72

Don't lose out on inheritance tax planning advantages
A leading accountant is urging taxpayers to make sure that they understand and review their Inheritance Tax arrangements to ensure they are up to date with the new rules. Here are 8 tips on making sure you manage your IHT arrangements effectively;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=74

Business Link Guide to writing a Business Plan
Helen Cracknell, from Business Link, looks at how to write an effective business plan;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=73

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SMALL BUSINESS NEWS
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New publication aims to help businesses work out an exit strategy
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There are over 2 million private limited companies in the UK, but many business owners spend years learning how to run and grow a business, yet fail to plan how to sell up and exit. A new publication aims to help;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=70

42.5 per cent of businesses now bank online
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The British Bankers' Association has released its lates snapshot of the business banking market. During the last 12 months alone, over half a million small businesses opened new bank accounts and 42.5% now bank online;
http://www.bytestart.co.uk/cgi-bin/click.cgi?id=71

High-tech weaknesses highlighted
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Government efforts to support high-tech businesses are simply an exercise in "re-varnishing the policy deckchairs" rather than the "effective" policy-making needed to ensure the economy remains competitive, says a Cambridge University study;
http://snipurl.com/_Hi_Tech_failure

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

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