Jonathan Jay runs NABO – an alliance of business owners across the UK – which is the only national business support organisation that’s free to join.

Business owners can join NABO for free at www.businessowners.org.uk.

Jonathan is passionate about helping business owners succeed and hates seeing them make stupid mistakes.

“Not having a marketing plan for your business is planning to fail,” Jonathan said.

“Every business, no matter what size it is, must have a set of clear goals and a marketing strategy to achieve it.

“Please don’t think I’m talking here about putting together a 12 page Word document that sits on your computer or on a shelf and never gets looked at.

“The best marketing plans I have ever seen take up no more than one page. But they help to keep the business focused on what it needs to do to grow: which markets it is in, what media it uses to communicate with clients, and what the marketing messages are.

“Planning your marketing doesn’t have to be a difficult process, but does need some careful thinking.”

NABO is an organisation dedicated to helping business owners grow their business is celebrating signing up its 35,000th member.

Charter members get a free 12 page newsletter posted to them every month, plus a heavily subsidised one day marketing, internet and business live seminar.

Jonathan launched NABO to help more business owners succeed with less hassle.

“Running your own business doesn’t have to mean more hours for less money,” he added.

“The key is to focus on the things that really matter, which for most businesses is improving their sales and marketing quickly so they get more clients.”

NABO supplies free information to its members every month on how their can improve their sales and marketing.

Its monthly Business Success newsletter also features case studies of members who have made a considerable difference to their business using NABO advice.

Business owners can join NABO for free at www.businessowners.org.uk.

The FSB is pleased that the Treasury has listened to concerns about hiking Capital Gains Tax to 50 per cent, and has chosen instead to increase it to 28 per cent for those on the highest incomes. The FSB welcomes moves to increase the Entrepreneurs Relief threshold to £5 million from £2 million. This relief was called for by the FSB under the previous administration.

The move to reduce the Small Companies Tax Rate to 20 per cent is welcomed and will help over 850,000 small firms. The FSB is also delighted that the Government will extend the Enterprise Finance Guarantee which was introduced following calls from the FSB and helps many small businesses who face difficulty in accessing credit.

The FSB welcomes the proposals to exempt new businesses from NICs but believes that this should also be extended to existing businesses, which have the capacity to employ people. This useful scheme should also be made UK-wide.

Moves to increase personal allowances by £1,000 are also welcomed as it will help to reduce the pressure on businesses from wage demands and give employees more cash in their pockets.

Government plans to hike VAT to 20 per cent from 17.5 per cent will hurt small businesses in the high street. However, we are pleased that there is some time to go before the increase takes place and it is interesting to note that common sense has prevailed with the increase coming into play on 4 January 2011 and not on New Year’s Day.

For many small businesses insurance on many items is a must and the proposal to increase Insurance Premium Tax (IPT) from five to six per cent is a tax on responsible business and should be reversed.

The FSB was pleased to see that its campaign to save many businesses in the tourist sector has reaped results with the Chancellors announcement that tax breaks for Furnished Holiday Lettings will continue.

While the Chancellor referred to stability in fuel prices, the FSB is concerned that proposals for a fair fuel stabilizer to control erratic movements in the price of fuel were not announced today.

John Walker, National Chairman, Federation of Small Businesses, said:

“The measures announced in the Emergency Budget will go a long way to reducing the deficit and will please the 93 per cent of FSB members who called for a clear plan on tackling the country’s debt.

“The increase in VAT to 20 per cent will however, hurt small firms who will have to pass the increase on to their customers, unlike big business which can absorb the cost.

“We welcome moves to give a national insurance holiday to start-up firms, but are concerned that with 70 per cent of firms operating below capacity, those businesses already trading will not be helped. We need to see a full reversal of NICs increases to fully offset the ‘tax on jobs’ which the previous administration initiated.”

www.dwpub.com/smallbusiness features the first in a new podcast series entitled ‘How to market your business on a shoestring’, plus whitepapers and case studies. It aims to help budget-conscious small businesses begin or improve their PR and marketing activity with free tips and advice.

The podcast series discusses themes such as marketing your business, how to maintain an online presence and how to market yourself. In the first instalment, ex-journalist Daryl Willcox, founder and Chairman of Daryl Willcox Publishing advises listeners on targeted marketing. He discusses web presence and social media strategies, as well as outlining the principles behind effective email marketing.

“We’ve created an online resource that will help small companies improve their marketing methods with a view to helping them encourage new business,” said Daryl Willcox. “The site is about showing small businesses with limited budgets effective ways to promote themselves.”

Whitepapers provide step-by-step advice on DIY PR, how to write press releases and go about contacting members of the media with news.

Launched in 1997, Daryl Willcox Publishing’s services include online press release wires SourceWire and Response Source, the Response Source Journalist Enquires System and the FeaturesExec media database. They’re used by over 2,500 companies.   

 JUNE 2010
——————————————————-
Friday June 04 – Tuesday June 08
Cricket: 2^nd Test England v Bangladesh, Old Trafford

Saturday June 05
Derby Day, Epsom

Sunday June 06
London to Brighton Classic Car Run

Friday June 11 – Sunday July 11
World Cup Finals, South Africa

Saturday June 12
World Cup: England v USA

Saturday June 12
Queen’s Birthday: Trooping The Colour

Tuesday June 15 – Saturday June 19
Royal Ascot

Wednesday June 16 – Sunday June 27
Edinburgh International Film festival

Friday June 18
World Cup: England v Algeria

Sunday June 20
UK: Fathers’ Day

Monday June 21 – Sunday July 04
Wimbledon Tennis Championships

Wednesday June 23
World Cup: England v Slovenia

Wednesday June 23 – Sunday June 27
Glastonbury Music Festival

Thursday June 24 – Sunday June 27
Royal Highland Show

Wednesday June 30 – Sunday July 04
Henley Royal Regatta

——————————————————-
JULY 2010
——————————————————-
Saturday July 03 – Sunday July 25
Cycling: Tour De France

Sunday July 11
F1 British Grand Prix, Silverstone

Sunday July 11
Football: World Cup Final, South Africa

Thursday July 15 – Sunday July 18
Golf: The Open, St Andrews

Monday July 26 – Sunday August 01
European Athletics Championships, Barcelona

Thursday July 29 – Monday August 02
Cricket: England v Pakistan 1^st Test, Trent BridgeFriday August 06 – Tuesday August 10
Cricket: England v Pakistan 2^nd Test, EdgbastonFriday August 06 – Saturday August 28
Edinburgh Tattoo

————————————————————-
AUGUST 2010
————————————————————-

Saturday August 07 – Sunday August 08
London Triathlon

Tuesday August 12
Glorious Twelfth: Start of Shooting Season

Wednesday August 11 – Friday September 10
Islamic Festival of Ramadan

Thursday August 12 – Sunday August 15
US PGA Championships, Wisconsin

Tuesday August 17 – Friday August 20
Horse Racing: Ebor Festival, York

Thursday August 18 – Sunday August 22
Cricket: England v Pakistan 3^rd Test, Oval

Friday August 19 – Sunday August 22
British Transplant Games, Bath

Thursday August 26 – Monday August 30
Cricket: England v Pakistan 4^th Test, Lords

Saturday August 28
Challenge Cup Final, Wembley

Sunday August 29 – Monday August 20
Notting Hill Carnival

Monday August 30
Summer Bank Holiday

Monday August 30 – Sunday September 12
Tennis: US Open, Flushing MeadowSaturday September 04 – Sunday November 07
Blackpool Illuminations

——————————————————–
SEPTEMBER 2010
——————————————————–

Thursday September 09 – Saturday September 11
Plaid Cymru Conference, AberystwythFriday September 10 – Sunday September 19
Commonwealth Conference, Kenya

Saturday September 18 – Wednesday September 22
Liberal Democrats Party Conference, Liverpool

Wednesday September 22
BBC Last Night of the Proms

Sunday September 26 – Thursday September 30
Labour Party Conference, Manchester

———————————————————
OCTOBER 2010
———————————————————
Saturday October 02 – Sunday October 17
Paris Motor Show

Sunday October 03 – Thursday October 14
Commonwealth Games, Delhi

Monday October 04 – Thursday October 07
Conservative Party Conference, Birmingham

Saturday October 23
Launch of UK Poppy Appeal

Sunday October 31
UK: Halloween

Sunday October 31
2am: UK End of BST: Clocks Back 1 Hour

——————————————————-
NOVEMBER 2010
——————————————————-
Friday November 05
Guy Fawkes Night

Sunday November 07
London To Brighton Veteran Car Run

Thursday November 11
Armistice Day

Sunday November 14
Remembrance Sunday Cenotaph ServiceThursday November 25 – Monday November 29
Cricket: Australia v England 1^st Test, Brisbane

Tuesday November 30
St Andrew’s Day

——————————————————-
DECEMBER 2010
——————————————————-
Friday December 03 – Tuesday December 07
Cricket: Australia v England 2^nd Test, Adelaide

Friday December 10
Nobel Peace PrizeThursday December 16 – Monday December 20
Cricket: Australia v England  3^rd Test, PerthSunday December 26 – Thursday December 30
Cricket: Australia v England 4^th Test, Melbourne

In a survey of over 1,400 FSB members, only 18 per cent of businesses have applied for new credit, with 50 per cent of these successful in their application. As the state owned banks have been given new lending targets by the Government the survey also revealed that just over a third of businesses (36%) had their application refused with 12 per cent yet to find out the bank’s decision.

For businesses with existing finance, the survey also showed that 16 per cent had seen an increase in the cost over the last two months. Of these, 44 per cent saw between a two and three per cent rise, but more worryingly 12 per cent saw interest rates hiked anywhere between 10 and 14 per cent, at a time when the base interest rate is at an all time low. Only one per cent of respondents had seen the cost decrease.

The FSB has been critical for some time now, of the banks and their lending criteria and believes that the introduction of the Small Business Credit Adjudicator announced in the Budget will help to ensure small firms are given a fair deal and a right of appeal against decisions made by big banks.

John Walker, National Chairman of the Federation of Small Businesses said:

“Trust needs to be restored between banks, bank managers and business as credit conditions remain tight for small firms. We hope the next government – of whatever hue – will look at the best way to address the issues in the banking system to ensure that the UK has the necessary financing structures to support further economic recovery.”

“Small businesses continue to bear the brunt of the financial crisis and are being penalised with extortionately high interest rates. At any time, not least when the economy is on such a fragile path out of recession, a 10 to 14 per cent increase in costs is highly unreasonable.”

March 2010

24th March Practical PR For South East Womens Business Service in association with the Athena Network and 1066 Enterprise

April 2010

21st April Antonia is speaking to the West London Businessmums’ Networking Lunch Times and ticket to be announced shortly

26th April Antonia is visiting Networking Mummies Dorset to run two Masterclasses and answer questions over lunch

May 2010

12th May Get great Mumpreneur Tips, Harrow when Antonia Chitty speaks to Excelsya.

28th May Q and A with Mums the Boss Leicestershire

June 2010

27^thJune Brighton Baby Expo Brighton Racecourse & Conference Centre 10am-4.30pm

September 2010

18th September The Mumpreneur Conference

October 2010

5th October The Business Mums Conference Brighton

1. Start for the right reasons
2. Good Management
3. Sufficient Capital
4. Location, Location, Location
5. Sufficient Planning
6. Sustainable growth and expansion
7. Have web presence

Their research shows you need to be successful in many areas to be a successful entrepreneur. However, there is one common area of failure, Insolvency Helpline UK states on their website: “50% of all failures are caused by cash flow problems”.

When starting a business many competing priorities need to be dealt with and Brad Rosser previously right hand man from Virgin’s Sir Richard Branson suggest in his presentations:

• Pay a little bit more if it means you can spread-out payments
• Spend the cash on items that bring in cash and not the back-office

Step 1 of managing your cash flow is to use common sense to reduce cash payments upfront. Even commercially successful businesses can go under if cash is not managed properly: 

“During a statutory audit I discovered that the bank balance was depleted, although the accounts suggested otherwise. Then many unprocessed invoices were found. Blissfully unaware seminar organisers were overspending, running down the cash and not making any money. The fast growing business was virtually bankrupt rather than beating forecasts. Indeed you can choke a successful business by growing too fast and not managing your cash flow.”

Ask a Chartered Accountant about maintaining your cash flow and he will explain you need to have a good set of accounts and that includes knowing your outstanding invoices/costs. That is step 2 to manage your cash flow.

The 3rd and most important step in addition to common sense and good accounts is to prepare a forward looking cash flow. Out of your projected cash flow you can determine if you need to look for financing or if you can manage it from your own cash flow. The best part is that by “playing around” with assumptions you can optimise your financing and therefore your profit. Three simple steps to manage your current and future cash flow and you are much more likely to succeed when starting a business as a result.

The study, conducted by commercial credit referencing agency Graydon UK and business support organisation the Forum of Private Business (FPB), questioned over 750 UK businesses on their individual experiences of financial and credit management during the last six months of 2009, as well as their expectations for 2010. 

The results reveal that inhospitable bank lending conditions prompted 28 per cent of business owners to turn to friends, relatives and company directors to secure funding for their business, with a further eight per cent of businesses seeking financial support through directors’ personal credit cards. According to the study, 40 per cent of those looking for credit during the second half of 2009 were unsuccessful in accessing finance, with 52 per cent refused business loans and 38 per cent refused extensions on their overdraft facility. 

Graydon UK believes that this move towards individual financing may have contributed to the growing number of personal insolvencies reported by the Insolvency Service in the third quarter of 2009, which contrasted notably with an unexpected fall in corporate insolvencies of almost 5 per cent within this same period. 

Martin William, Managing Director of Graydon UK, commented: “With over a third of small business owners taking on personal risk to stay afloat, official corporate insolvency figures may have been masked by growing numbers of individuals putting their own finances on the chopping block, instead of those of their business. The release on Friday 5th February of insolvency statistics for the fourth quarter of 2009 should shed more light on the extent to which corporate failures have indeed been cushioned by personal insolvencies.”

The FPB’s Chief Executive, Phil Orford, commented: “The continuing credit drought means more entrepreneurs are being forced to seek alternative sources of finance – including family, friends and personal loans. The latest insolvency figures show that this level of personal risk is unsustainable. The danger is that the UK will become increasingly uncompetitive as fewer people are encouraged to start their own businesses.” 

Graydon UK and the FPB’s research also found that businesses are anticipating another difficult year ahead, with almost a fifth (19 per cent) expecting access to finance to be the main obstacle to their business during 2010.

According to the study, SMEs will require an average of £113,731 in additional funding during 2010, with the bulk of this (60 per cent) expected to come from the banks, and 16 per cent to be provided by relatives and friends. Just seven per cent of this additional funding is expected to come from Government grants, while it is thought that six per cent will come from the supply chain.

Martin Williams added: “SMEs are continuing to rely on banks for the bulk of their funding but should bear in mind that bank lending conditions are likely to remain unfavourable for at least the first quarter of 2010.”

“However SMEs should, however, remember that the refusal of a loan need not be the final decision. If refused credit, businesses must demand answers from their bank as to why they failed to secure funding, as this will open the door for them to return with a revised business plan and more detailed financial information. Alternatively, a good credit score can directly impact on a business’s ability to secure credit, both from banks as well as the supply chain.”

The FPB’s Phil Orford, concluded: “While we can accept that more small businesses should be willing to hand over better quality financial information in order to boost their credit rating and their chances of securing finance, banks must also play their part by assessing lending risk more openly and accurately.”

The report found that local Government is likely to pay one in four invoices late, and central Government and Government agencies make one in three payments late. This is despite putting a Prompt Payment Code in place and central Government promising to pay within 10 days at the start of the recession in 2008. 

But what can you do about it? Check out the Better Payment  website which has some excellent templates for letters to chase up late payments and lots of advice to help you use legislation to get your money on time.

More from the survey

Small businesses have faced a challenging year, with over half (52%) of those surveyed reporting that profits had fallen in 2009. As the recession took hold all businesses felt the pinch, however it is the small business community which bears the brunt of this practice and are leaned on by big businesses which continue to pay late. The survey shows UK central Government (31%), Government agencies (30%), EU institutions (30%), NHS (29%) and local authorities (25%) all put the pressure on too, despite promises to the contrary. Thirty four per cent of payments from the private sector are late according to the survey.

Frustratingly, many businesses have had to resort to using their own long and short-term finance. The survey shows that 41 per cent dipped into personal savings and 43 per cent used their overdrafts last year. Twenty one per cent used a personal credit card. This may be an indication of self-reliance as they encountered a banking sector which refused to lend. While large firms have sufficient reserves to cope with late payments, a small business relies on payment within the agreed timescale to ensure it has a steady cash-flow. 

The FSB is now urging Government to take the lead in tacking this problem by implementing a ‘Social Clause’ in national and local Government contracts. This relies on the Government stepping up its game, paying swiftly and then giving a guarantee that when the Government pays the lead contractor quickly, this is passed down the supply chain to all sub-contractors – with penalties attached for persistent non-compliance.

John Wright, National Chairman of the Federation of Small Businesses, said: 

“It is shocking that after the Government put the Prompt Payment Code in place so many businesses are still being paid late. The public sector needs to take the lead in more than word alone and set an example that paying late isn’t acceptable, as this problem persists in the private sector.

“Small businesses rely on receiving payments within the timescale agreed to maintain cash-flow to ensure the business can run on a day-to-day basis. This is why the FSB is calling for the introduction of a ‘Social Clause’ in all Government contracts.

“However, this clause must have teeth, and any business found to persistently breach the terms should be fined and be warned they may lose contracts in the future. This will give small businesses confidence and go far to change the poor record of behaviour on this issue.

“Late payment is not a new issue, but it has been a particular problem in the past year and it is more important than ever that this worrying practice is brought to an end.”