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Rock solid business foundation

Ernest Hoyle wanted to form a new company and become VAT-registered with the minimum of fuss. He runs a decorative stone flooring company and changed his focus recently from distribution to manufacturing.

‘The last time I formed a company, an accountant set me up and charged me a fortune,’ says Ernest, who is based in Colne, Lancashire. ‘He didn’t explain a thing and took many months over it. Several jobs were waiting because of the delay with the VAT registration, and there was a delay of three months on one payment as a result.’

Ernest’s business changed recently. He bought some machinery to produce flooring from natural stone chippings from a manufacturer in Belgium who was selling up because of illness. Ernest is now manufacturing and laying the product.

He calls it Rock Carpet. It’s a non-slip product with a porous structure that draws water and dirt away from the surface. Its stain-resistant finish cleans easily and keeps its shine with no waxing or buffing. There is a large range of colours and designs that business and residential customers can choose from.

‘ I had to change my business strategy, and this meant re-registering my company under a new name, and I needed to be VAT-registered for importing,’ says Ernest.

Insight # 1: ‘I looked on the Internet, where I found Duport. I thought their prices were very competitive. A guy called Derrick Phillips came back to me very quickly and was very helpful. Everything was explained to me.’

Ernest also recognised the value of his product name and wanted to prevent other people using it.

Insight # 2: ‘I was so pleased with the service Duport gave me that I decided I would also use them to help me trademark the name Rock Carpet.’

Insight # 3: ‘What I particularly liked about Duport was that they were very professional. Derrick Phillips has a manner that puts you totally at ease. And he always gets back to you, whereas with so many other people in business I have to chase them up.’

The prices were very reasonable, Ernest adds. ‘I was charged about £50 for the VAT work, and £90 for the company re-registration.’

Insight # 4: ‘Duport made it all very easy to understand.’

Ernest is setting up a team with an applicator, who lays the stone floors, and a salesman, who promotes the product. ‘I’m looking to expand the business by setting up agents nationwide, with a view to franchising in the future,’ he says. ‘I’m also interested in getting the product and the company better known via the Internet, and may seek Duport’s help with that too.’

Insight # 5: ‘I know that if I need any help in the, or if I have any other problems, I can go back to Duport. And if anybody mentions to me that they are thinking of setting up a company , I will recommend that they go to Duport.’

Contact details:
Rock Carpet Ltd, 32 Wordsworth Road, Colne, Lancashire BB8 9RH.
Tel: 01282 715 217
Email: hoyleernie@aol.co.uk

If you would like information on setting up a company or a website for your business, click here or contact Derrick Phillips on 0117 330 8910.

The easy way to create a business plan
that drives your business forward

The proof of a good business plan is steady profits. Moreover, any prospective lender will base their decision on your plan. So what does it take to produce a good one?

Unfortunately, most business people and department managers never prepare a proper business plan. Of those that do, most only do it for ‘special’ occasions, like starting the business, launching a new product or raising capital.

But a business plan should be much more than a document to impress outsiders! Used properly, it is a catalyst for creative thinking and hence a vital tool to help you develop a healthy business.

A survey by Shell LiveWire revealed that those businesses that undertook regular business planning had an average profit margin of 54%. For those that did not, the average was only 35%.
Why lenders turn people down
‘ A plan is also proof – or not – that you fully understand your business and are going into something with your eyes open,’ says bank manager Aled Morris. He turned down a request for a loan to buy a business for this reason.

The applicant in question had worked as a manager in a shop for two years and now wanted to buy out the owner. ‘It wasn’t simply that he had no business plan,’ adds Morris. ‘I wanted evidence that he had considered all the implications of running the business himself. He thought he could just take over and carry on as before, even though he had no experience of some vital aspects of running a business.’
Common mistakes
A common mistake when preparing a business plan is building a financial forecast from the top down. People start by saying how much they want to earn, add in the costs, then work out how much they must sell.

Instead you should be thinking: my research shows that the market is this big. If I can sell to 5% of it, I will make this much, and this is how I will persuade that 5% to buy from me.
Keep it simple
‘ A business plan also provides a structured framework to consider even the mundane areas and gauge their impact on your business,’ says Margaret Bowler of accountants Kidsons Impey.

‘However, some businesses become bogged down in vast plans that look at everything in minute detail. These documents end up being ignored because they are too daunting to read – assuming they ever get completed!’
The key to easy plans
The key is to make your plan short, clear and realistic so that you or your management team actually uses it. You can always put any details in an appendix for reference when needed. As to content, most banks offer good free guides to preparing a business plan; some even offer free software to make it easier.

The recipe for success is to map where the business is now, where you want it to be and how you will get there, onto one page. It’s easy if you know how.
The simplest business plan in the world
Take a sheet of A4 paper and divide it into four boxes. In each box, in bullet form, outline the information below:

1. Where you stand now as far as any particular project is concerned in terms of, say, employees, customer profile, media profile, turnover, profit, employees and so on;

2. Where you want to be by a specific date;

3. What needs to be done to get you where you want to be, covering every aspect of your business, from hiring people and improving your PR profile to investing in technology or training;

4. The to-do lists based on these strategies: who will do what, by when?

A good plan with short- and long-term goals helps you aim for the bull’s-eye. If you know where it is, you have a chance of hitting it. Otherwise, you are just shooting in the dark.

How to deal with excuses for late payment


‘ The cheque’s in the post.’

Yeah, yeah, yeah. And you’re happy to sit there and hear that excuse next week!

I don’t think so.

If you want tips on how to deal with the most popular excuses for late payment, call GERLING NCM now for a copy of Getting Paid: a plan for better credit management.

It also gives an overview of how the credit management process works, what you should be doing at each stage of the process, and what external help you can get.

To get hold of a free copy, call 0800 21 21 31 now.


That sales call could cost YOU £5,000!

Businesses are being warned to ensure their consumer telemarketing activity is operating within the law. The warning is part of a national education and awareness campaign being launched by the Telephone Preference Service (TPS).

Recent research by the TPS showed that 44% of SMEs use telephone marketing.
Nearly 71%of SMEs undertaking consumer telemarketing were aware of the legal requirement under the Data Protection and Privacy Regulations to screen phone numbers they were using against the TPS register.

However, most companies did not know how to use the TPS, and were not aware of the services developed to help them ensure they were complying with the law.

With penalties including a fine of up to £5,000 for any breach of the regulations, the TPS has launched a campaign to raise awareness of the law.

The TPS has three services specifically tailored to the SME market:

• The TPS Online Interrogation Service, which allows numbers to be checked via the TPS website;
• TPS Callgard, a call barring service;
• The TPS Telepath service, which allows numbers to be checked via an automated telephone service.

For details call 020 7291 3320. www.tpsonline.org.uk


Chinos beat pinstripes

Soaring summer temperatures have highlighted the issue of how staff should dress for the office in the 21st century.

While some blue chip companies are reverting to a strict dress code, most staff prefer smart-casual, according to a new survey.

A total of 1,571 workers took part in the survey, which revealed:

• 51% said smart-casual wear should be standard;
• 19% said suits should be worn as standard;
• 19% said people should wear what they like;
• 8% said casual wear is best.

‘Over the last decade smart-casual wear has crept in and become acceptable as the new office uniform,’ said Joe Slavin, managing director of Monster.co.uk.

‘Initially, this new style raised many questions as to whether this impacted on a company’s productivity and professionalism, but for the majority of people it was thought to be a refreshing change from conservative suits.

‘This survey shows that employees would rather have some parameters as to what is acceptable work attire than have total freedom to wear what they like.

‘Gauging what is appropriate office wear is a problem and both employers and employees feel more comfortable when a standard smart-casual code is in place.’

Customer-facing staff should still look sharp and professional regardless of the weather. If we have an Indian summer and the thermometer soars again, smart, open-neck, short-sleeved shirts are much better than rolled-up shirt-sleeves and a soggy tie hanging at half-mast!

Above all, a golden rule to remember is to be well groomed and clean.


Pensions crackdown begins

A crackdown on companies not offering their staff access to a stakeholder pension scheme is now under way – and defaulting employers could face fines of up to £50,000.

The stakeholder pension scheme applies to all businesses employing more than five people, even if they are part-time.

The campaign by the Occupational Pensions Regulatory Authority (OPRA) is initially targeting companies in the North East, but will cover the whole of the UK over the next nine months.

Firms will receive a questionnaire, which they must complete and return.

Alan Lewis, a partner at employment experts George Davies Solicitors, says: ‘Even employers who already offer access to a stakeholder scheme, or who are exempt from the requirements, must complete the OPRA questionnaire and return it.

‘Businesses that don’t comply with the duty to designate a stakeholder scheme should seek advice immediately, before they face a huge fine.’

If you do not have a stakeholder pension scheme in place, organizing one is easy:

• Choose a scheme for your staff (employees may prefer to make their own arrangements, though). If you have a scheme in place, check it complies with the new legislation.
• Provide details to all your employees about it.
• Once the scheme is in place, you must collect employees’ contributions from their pay on behalf of the pension provider.

Note: there is currently no obligation for employers to contribute to the pension.

See www.stakeholder.opra.gov.uk for more details.

All company directors exposed to legal action

If you’re the director of a small firm, then you might want to check out a new insurance policy.

Zurich’s Executive Assurance protects both company directors and the business itself from liability claims that could cause either to be financially ruined.

‘In the past it was thought that directors were immune to the threat of legal action,’ said David Smith of Zurich.

‘However, the Companies Act (1989) makes it very clear that directors and other individuals can be held responsible for their actions whilst running a business.

‘As the trend in liability claims continues to grow, we thought it important to offer a product that caters for a variety of financial risks, and can be tailored for individual requirements.’

For more information, visit www.zurich.co.uk/commercial.