Business121 Small Business Newsletter #85

In this week's Business121:

1. Stick to the Knitting
2. Companies Act 2006 - Update
3. Blogging - How the rules have changed in PR
4. Charging interest in contractual relationships
5. eBay - the new Business Channel
6. Small firms could be stung for £1bn if 'Arctic Systems' tax battle is lost
7. Companies 'break laws of online shopping'
8. MOOFing - how mobile working will affect small businesses
9. Is Alan Sugar's style out of step with modern business

Stick to the Knitting
This month's Better Business magazine has an excellent article that explains very well, why small businesses should avoid the temptation to diversify too early - or to use a more familiar phrase why they should 'stick to the knitting'.

In the late 1990's Credo - the centre for developing SMEs at Cranfield University interviewed hundreds of smaller firms about their primary market and customer focus. The survey was repeated last year and the answers correlated with the financial performance of the businesses.

In both instances, the same pattern emerged. The highest performing smaller firms tend, overwhelmingly, to grow by selling more of the same types of products or services to their existing customers and others who are like them.

By concentrating on a single niche, a small business can focus its limited marketing and sales resources on a very well-defined target market. This builds into a deep knowledge and understanding of these customers, which over time becomes a distinct competitive advantage over your competitors.

Other articles in the June issue of Better Business include; How to be inspirational, How to make your website really sticky, How small businesses can take advantage of outsourcing, How to conduct the perfect interview, and revealing interviews with Martin Webb, entrepreneur and presenter of Channel 4's Risking it All, and Julian Metcalf on how he has built the Pret a Manger brand without spending a penny on advertising.

Business121 readers can subscribe to Better Business magazine at a discounted rate here

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Companies Act 2006 - Update
The Companies Act is one of the biggest legal reforms ever to face businesses, involving eight years of consultation. Some of the components of the Companies Act have already become law, although much of the legislation won't come into force until October 2008. Here's an update on what businesses should have done already and what areas will need to be reviewed in the coming year.

Blogging - How the rules have changed in PR
In the old days, PR was very simple. When businesses wanted to communicate to their customers via the media, they worked out which publications they wanted to appear in and employed PR agencies to write press releases, talk to journalists and set up briefings and interviews. Then came the world wide web and blogging - changing the traditional rules of PR. Here are the first steps for dealing with this new world of communications.

Charging interest in contractual relationships
Can you imagine walking into a bank and taking a loan without having agreed a rate of interest? Of course not, the scenario is ridiculous. Yet thousands of businesses effectively enter into loan agreements every day without agreeing a rate of interest.There is really no excuse for not having a contractual basis for claiming interest, on late payment for example. Here's the low-down on what you can legitimately charge.

eBay - the new Business Channel
Everyone has heard of eBay. You may have traded on it and if you haven’t, you’ll probably know someone who has. For most of us, eBay is seen as a sort of online car boot sale and you may never have contemplated looking at it as an extra channel for your business. Here's how eBay could add value to many small businesses.

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SMALL BUSINESS NEWS
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Small firms could be stung for £1bn if 'Arctic Systems' tax battle is lost
Tens of thousands of small businesses could face a combined tax bill of £1 billion if the Law Lords rule in favour of the Treasury in its long-running battle against a small business owned by a married couple, reports the Times.

Companies 'break laws of online shopping'
More than a quarter of businesses trading online have little understanding of their customers rights, a study by the Office of Fair Trading has found. More than a fifth of all firms trading online did not provide an email address as required by the regulations so that customers could easily contact the business if something was wrong.

MOOFing - how mobile working will affect small businesses
The business case for a more mobile work-force is pretty clear. UK workers put in some of the longest hours out of the G7 countries yet are some of the least productive. Our dogged adherence to a 9-to-5 culture is no longer paying dividends. So can MOOFing or, to give it its full title, Mobile Out of OFfice provide a practical answer to small businesses?

Is Alan Sugar's style out of step with modern business
James Harding, the Times Business Editor argues that Sir Alan Sugar’s confrontational style is out of step with modern business.

** For the latest Small Business News, visit http://www.Bytestart.co.uk **

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