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SMEs And The Price Rise Conundrum: Metro Bank Offers Guidance For Small Businesses

Hernaldo Turrillo — Mon, 22 Aug 2022 19:29:09 +0000

Everyone is being affected by rising costs and there is no sign of a slowdown. For small business owners, the conundrum is real: how to manage growing expenses without losing customer loyalty?

SMEs And The Price Rise Conundrum: Metro Bank Offers Guidance For Small Businesses

Every business will be different and there is no one-size-fits-all solution, but there may be some things you can do to lighten the load. Ian Walters, Managing Director – Distribution, at Metro Bank, offers tips on handling cost increases.
1. Be transparent: People may be expecting prices to rise; it won’t be a surprise to many customers. Communicate on social media channels; write on a blackboard in-store; personalise point of sale, but be really clear and transparent about the changes you are making and why you have to make them.

2. Be honest and trade on loyalty: Loyalty is bred through the relationships you’ve created, so nurture the trust that comes with it. Be honest about the challenges you are facing and try to counter with a loyalty bonus if possible.

3. Quality: Be careful not to compromise your USPs by cutting costs in the wrong places. For example, depending on the type of business, you might be able to consider creating smaller products at the same standard, rather than compromising on quality. Maintaining expectations of service and standards will reap rewards.

4. Seek help: Do not lie awake worrying. There is help and guidance available. We also have business managers available in our stores and customer service staff available seven days a week; so, don’t lie there fretting at 3 am. Come into the store and see your local business manager for a chat.

Ian Walters commented:

“At Metro Bank, we specialise in nurturing small businesses and providing tailored support. We recognise this is a time when flexibility is needed to help our customers navigate the current climate. Straight-talking, easy banking has never been more important. Dedicated Local Business Managers are on hand within our communities to help our customers wherever they can.”

About Metro Bank

Metro Bank services 2.6 million customer accounts and is celebrated for its exceptional customer experience. It is the highest-rated high street bank for overall service quality and the best bank for service in-store for personal customers, in the Competition and Market Authority’s Service Quality Survey in August 2022.

This year it has been awarded “Best Mortgage Provider of the Year” in 2022 MoneyAge Mortgage Awards, “Best Business Credit Card” in 2022 Moneynet Personal Finance Awards and “Best Current Account for Overseas Use” by Forbes 2022. It was “Banking Brand of The Year” at the Moneynet Personal Finance Awards 2021 and received the Gold Award in the Armed Forces Covenant’s Employer Recognition Scheme 2021.

Hernaldo Turrillo

Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.

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African Tech Start-Up Funding ‘Will Double’ By 2025

Hernaldo Turrillo — Wed, 15 Jun 2022 04:23:58 +0000

• More than half of African business leaders expect tech funding to surge as foreign investment and internet connectivity expands

• Nearly half expect Africa to be a tech superpower within 10 years

African business leaders are forecasting a surge in spending on tech start-ups as foreign direct investment and improved internet connectivity help establish the continent as a tech superpower, new research* for blockchain-based mobile network operator World Mobile shows.

More than half (54%) of African senior executives expect spending on tech start-ups on the continent will more than double by 2025 to $10 billion or over compared with the $4.9 billion raised last year**. Around one in six (16%) believe more than $15 billion will be raised.

The study with African business leaders from companies with total annual revenues of more than $6.75 billion identified foreign direct investment and improving internet connectivity as the key drivers for the expansion.

Around three-quarters (75%) believe the investment will come from Western countries while 66% believe China will be a major source of investment. Nearly six out of 10 (57%) believe dramatic improvements in internet connectivity will be the main support for expansion as it drives education, healthcare, and business.

The research among senior executives at companies with average annual revenues of $70 million based in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria, and South Africa found nearly half (45%) believe Africa will be a tech superpower within 10 years.

They point to the development of Africa’s tech ecosystem – nearly 90% of those interviewed expect it to grow by at least half its current size in the next three years with 15% expecting it to double in size during that period.

That in turn will expand Africa’s role in supplying technology to the rest of the world – around 60% of executives expect that to grow in the next five years with one in 10 predicting dramatic expansion.

Micky Watkins, CEO of World Mobile said: “Africa is seen as ripe for economic expansion by its own business leaders and technology will play a vital role in delivering the development.

“The potential is huge as currently Africa only accounts for 0.2% of the global money invested in technology start-ups so there is the capacity for growth and huge interest from Western and Chinese foreign direct investment.

“Much of it hinges however on improving internet connectivity and particularly in areas which are hard to reach and ignored by traditional companies. We are committed to playing our part in supporting the development of technology businesses throughout the continent.”

World Mobile is helping to revolutionise internet connectivity in sub-Saharan Africa and is already working with the government in Zanzibar where it is launching a unique hybrid mobile network delivering connectivity supported by low-altitude platform balloons.

Its blockchain-based network vastly reduces capital expenditure and cuts prices compared to traditional telecom operators and World Mobile is expanding in Tanzania and Kenya, as well as other territories underserviced by traditional mobile operators.

Its balloons will be the first to officially launch in Africa for commercial use, offering a more cost-effective way to provide digital connection to people and is the first step in its mission to help bring nearly four billion people online before 2030 in line with the UN and World Bank’s SDGs.

The World Mobile approach is more sustainable, in environmental, social and governance terms. Environmental impacts are mitigated using solar-powered nodes, second-life batteries, and energy-efficient technology. World Mobile creates a positive societal impact through the application of its circular economy model – a “sharing economy” where locals share in the ownership and rewards of the network. Governance is maintained by the secure underlying blockchain technology, which means that user data privacy is guaranteed and not commercially applied as it is by other mobile operators.

Hernaldo Turrillo

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Surviving To Thriving: The Digital Transformation Of SMBs

Hernaldo Turrillo — Tue, 28 Sep 2021 10:40:29 +0000

UK technology consultancy states small to medium-sized businesses (SMBs) must have the right technologies and frameworks in place to succeed.

As a result of the pandemic, SMBs are investing increasingly more time and money in their digital transformation efforts. While some implemented digital capabilities for the first time as a matter of survival, others accelerated their journey to cloud adoption in order to remain nimble in light of ongoing disruption.

As businesses look to adjust to the rapidly changing environment, Tech Amigos Director -Architecture Roddy Herries reveals these circumstances can offer small and mid-size companies opportunities to win business – if they can find the right strategy for it.

“Larger businesses typically benefit by having more time and resources to invest in their digital transformation projects. Over time, these businesses gain more experience, they develop greater maturity in understanding their requirements and their teams grow more competent in delivering and operating cloud-native solutions and microservice architectures.

“SMBs need to become smarter and more realistic concerning digital adoption by following a well-trodden path where possible, implementing proven and tested patterns. The transformation journey should be focused and based on well-defined objectives, but also must be adaptable to the changing priorities that may arise during the course of the initiative”.

Cloud solutions provide significant benefits to companies of all sizes, however, a recent study conducted by IBM highlights that less than 10 per cent of organisations believe their existing IT infrastructure is fully prepared to address the proliferation of cloud computing, mobile devices, social media, and data analytics.

Roddy also highlights – “The decision to invest in cloud as part of your digital transformation should be driven by business needs and challenges at hand, although it seems increasingly hard for businesses to stay competitive without embracing cloud technologies. In almost all cases, the adoption of cloud technology enables your digital transformation to move at a faster pace with minimal capital expenditure compared to traditional on-premises strategies.
“In addition, cloud adoption together with great automation offers operational efficiencies and reduction of OPEX costs, freeing up cash for investment in activities that matter to the business and its customers. Digital transformation is not optional anymore for SMBs to remain competitive and cloud adoption is the cornerstone for any such transformation.

“IT infrastructure only becomes agile with automation. Automation unlocks many benefits and is a key investment that will repay you multiple times over through improved security, reduced time-to-market of new features, improved quality, enablement of innovation and reduced operational cost savings. An agile infrastructure setup with automation supports the “fail-fast, fail-often” approach to iterative experimentation and that’s fuel to the fire of continuously delivering new, high-quality software to your customers”.

Roddy concluded: “Digital transformation projects require a mosaic of skills. Getting the right skills and high-level talent together to deliver success is hard for all organisations, regardless of size. Tech Amigos can lead or augment your digital transformation project and we can help you up-skill and train your own team.

“SMBs can benefit from our collaborative approach as it allows us to identify and add value where it is most needed by the client. We offer reliable and secure patterns for CI/CD tooling and deploying to cloud environments, enabling faster delivery of SMBs digital transformation projects.”

Hernaldo Turrillo

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SMEs At The Centre Of UK’s Fastest Economic Growth Since WWII

Hernaldo Turrillo — Wed, 28 Apr 2021 15:41:28 +0000

Chris Biggs, Partner at consultancy and accounting disruptor Theta Global Advisors, discusses why SMEs are at the heart of the fastest UK economic growth in decades.

UK economic growth forecast is full of optimism

Huge growth in consumer confidence, new business generation rates, and hiring plans leave small businesses integral as economy flourishes

. 19% of UK workers who work at a small business have won previously inaccessible, large clients and grown as a business through Covid (3,687,000)

. Two thirds (66%) of Brits say that their trust in small businesses and service providers has grown during the pandemic (29,607,000)

Today, EY Item Club have announced upgraded economic forecasts for the UK following a stronger start to 2021 than expected, predicting the fastest growth the nation has seen since WWII. Throughout the pandemic, small businesses have had to be agile, adapting to working from home, the need for flexible working, and taking advantage of the opportunities the pandemic and our increasingly digital age have presented. The success of small businesses as a result of this, along with their position employing three fifths of the UK’s workforce and a growth rate three times that of any other business type pre-pandemic positions them as integral to this rapid growth we have seen thus far.

Small businesses play a crucial role

This confidence in and on the part of small businesses and firms is further supported by research from Theta Global Advisors, a consultancy and accounting disruptor showing small business success during Covid-19. Research from Theta shows that small businesses that were nimble enough to adapt throughout lockdown saw tangible success, with 19% of small businesses having won previously inaccessible large clients and growing exponentially as a result.

Furthermore, consumer confidence in small businesses and service providers has increased dramatically, and more than a fifth (22%) of decision makers in this sphere are now looking to hire more employees and consultants this year to keep up with and continue the business growth trajectory they have seen since the pandemic began. Thus, despite the initial setbacks we saw at the beginning of the pandemic, we can see not only that SMEs are confident as we go forward, but how they have excelled during Covid-19. Their success has resulted in both consumer confidence and industry confidence, providing for the UK’s economic recovery at a rate far beyond economist expectations, rivalling the success the UK saw as we came out of WWII.

Key stats:

· 66% of Brits say that their trust in small businesses and service providers has grown during the pandemic (29,607,000)

· More than a fifth (22%) of decision makers are looking to hire more employees or consultants this year in order to grow (2,561,000)

· 19% of UK workers at small businesses have won previously inaccessible, large clients and grown as a business throughout Covid-19 (3,687,000)

(nationally representative research carried out across a body of 2100 respondents, in full compliance with British Polling Council guidelines)

Chris Biggs, Partner at Theta Global Advisors – a consultancy and accounting disruptor – comments on the unprecedented success of small businesses in the last year and how this has seen 2021 exceed expectations for the UK’s economic recovery as a result:

“With companies adopting new policies and a substantial number of SMEs planning to expand in 2021, it seems that as we saw over Covid-19, 2021 is an optimum time to be a small business. New business generation rates are at the highest they have ever been for many small businesses across a variety of industries, and this is proving to have significant impacts on the UK’s economic recovery, boosting it beyond expectations.

To small businesses, this is great news, with increased public support and new, large clients allowing them to change the landscape and culture in their industries previously dictated by corporate giants. This unprecedented growth and influence comes at an opportune time for the UK economy as we return to a degree of normalcy. With SMEs accounting for three fifths of employment in the UK, their success is having ripple effects, employing more staff and giving our economy a much-needed boost.

In our concerns for what the future looks like for businesses with lockdowns, returning to offices, and economic recovery, we must not forget the success, innovation and resilience of small businesses in the UK. We need to continue to support these SMEs on their current growth trajectory, as the public have been doing more and more over lockdown. Our support of small businesses and their own confidence in their ability to grow is helping to see unemployment rates fall, and will be crucial in our return to a degree of normalcy and continuing our current trajectory of economic recovery.”

Hernaldo Turrillo

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The CV Buzzwords Ruining your Job Hunt

Hernaldo Turrillo — Fri, 31 Jul 2020 11:47:52 +0000

With many businesses forced to temporarily close for a few months earlier in the year, their finances have severely been impacted. So much so that they have had to take the drastic decision of making some of their employees redundant to ease cash-flow.

•‘Best’ is the buzzword that hiring managers most hate seeing on CVs (76%)

•71% are not a fan of applicants using the world ‘motivated’ on CVs

•With over 4,000 appearances each on the CVs analysed, over 50% would rather candidates sway away from words such as ‘passionate’ (57%) and ‘excellent’ (54%) to highlight their skills/suitability

•Interestingly, 43% of employers would prefer it if candidates didn’t use the cliché‘hardworking’ to describe their work ethic

Those made redundant will undoubtedly be itching to get back into the job market and to do so, will be using their curriculum vitae (CV) to signal their credentials to prospective employers. Their eagerness to get back into work exemplified by an astonishing 9,900 Google searches* for ‘CV writing’ in the UK last month (June 2020).

To help candidates increase their employability prospects, Resume.io consulted 562 hiring managers* across several popular industries in the UK, to discover the commonly used words on CVs they most dislike seeing.

Resume.io found that ‘best’ is the word that employers most hateseeing on a CV, with 76% agreeing. The word indicates a strong ego and sense of self-importance.

71% of hiring managers are not a fan of candidates using the word ‘motivated’ on their CV. With nearly 4,000 uses of the word on CVs from Resume.io’s database, applicants might fare better with alternative options such as driven or goal oriented.

‘Dedicated’ (69%) and ‘proven’ (65%) are other words that a significant proportion of employers disapprove of on CVs.

Given that a lot of individuals (4,207) are crediting some of their skills and accolades as ‘excellent’, they might be better off not doing so – as 1 in 2 (54%) hiring managers don’t look too fondly at the adjective on a CV.

On the other end, 43% of employers would prefer it if candidates didn’t use the cliché ‘hardworking’ to define their work ethic.

Resume.io top tips on how to cut down buzzword usage on CVs

Don’t overstate

It is a competitive job market, so you might feel the need to describe your skills better than they are. But saying you are ‘great’ at a skill when you are only at a ‘good’ level is only going to cause you grief. Especially, if you get a job and your employer sees you’re not as great as you claimed to be.

Don’t be over-reliant on adjectives

Having a text-heavy CV does not automatically make you a better candidate, it’s all about quality over quantity. So, don’t feel the need to pack your CV with as many flattering adjectives as possible. Use them where you think they will truly give you a competitive advantage.

Give examples of achievements

It’s easy just to list a ton of skills without any evidence and in doing so, an employer might wonder if you are just making it up. So, instead of pinning all your hopes on buzzwords to solely boost your skills, use results and achievements from past professional and personal experiences to showcase those ‘excellent communication skills’, ‘proven sales record’ and ‘great teamworking skills’.

Hernaldo Turrillo

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Dragonchain Launches Provably Fair Contest System with 500K DRGN Giveaway for ‘Open Source Money’ Docuseries

Hernaldo Turrillo — Sun, 28 Jun 2020 09:47:51 +0000

Dragonchain Launches Provably Fair Contest System with 500K DRGN Giveaway for ‘Open Source Money’ Docuseries

Dragonchain, small business of the year in innovative blockchain technologies, today announced a $50,000 digital treasure hunt around the broadcast premiere of Open Source Money.

Premiering on the 4th of July holiday in the United States on Discovery Science Channel, Open Source Money is a groundbreaking documentary series about the rise of the blockchain company Dragonchain, originating from The Walt Disney Company in 2016.

The 5-part documentary series, produced by Vision Tree, highlights the company’s story through the volatile landscape during the explosive growth of cryptocurrency and blockchain technologies worldwide. Each episode focuses on the role played in the blockchain space by people like Patrick Byrne, Brock Pierce, and Joe Roets, as well as companies such as Disney, and Facebook. The series takes Discovery Science’s viewers on an exploration journey through the global evolution of cryptocurrency and blockchain technology.

The digital treasure hunt, open for participation to all viewers, highlights the capabilities of Dragonchain’s Provably Fair Contest System, a blockchain technology-based application. Treasure seekers submit their answers in a simple form. Behind the scenes, blockchain technology is used to guarantee a provably fair selection of the entries, backed by hundreds of millions of dollars worth of proof.

Anyone can partake in the digital treasure hunt by watching Open Source Money each week, to find answers to clues revealed on Dragonchain’s weekly live broadcast on YouTube, Super Happy Dragon Lucky. Alternatively available as a podcast on all podcast platforms. For official rules and to enter as a treasure hunter, visit Dragonchain’s Official Provably Fair Contest Page.

The grand prize amount will be 500,000 DRGN, valued currently at more than $50,000 USD.

Every entry from treasure seekers is time stamped and recorded on multiple blockchains. For selection, the system uses future hashes of a predefined block height of Bitcoin and Ethereum.

The combined hashes are used to select the winner based on an algorithm. It is not possible to know the hash of a block height of any one blockchain, thus making it nearly impossible to profitably game the system. The end result is a fully transparent selection process where entrants can verify for themselves who the winner is and that the results are fair and accurate.

Hernaldo Turrillo

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Alibaba Announces: Cross-Border Payment Creation Providing Cash Flow Control to U.S. Small Businesses

Hernaldo Turrillo — Thu, 04 Jun 2020 12:17:28 +0000

U.S. small businesses “Go Digital, Go Global”

Alibaba offers four new methods to make it easier to do business globally.

Transformation of Alibaba.com hits new milestones as sellers from U.S. grow at fastest rate worldwide, U.S. buyers increase more than 70% year over year and overall transactions by U.S. businesses on Alibaba.com increase more than 100%

“Doing business online is the bridge for American small businesses through this crisis and into the next decade,” and“We are accelerating our transformation to get both sellers and buyers quickly set up for success and provide the critical tools and services that are required for growth – access to supply and demand, shipping and logistics, and working capital. Ultimately, our goal is to give SMBs even greater access to the $23.9 trillion global B2B ecommerce opportunity – which is six times the size of the B2C ecommerce market.” Said John Caplan President Of North America Alibaba.

1. Alibaba Payment Terms – A Powerful Digitised Trade Finance Solution

Maintaining cash flow and ensuring cash on hand have become even more vital for SMBs during the covid 19 pandemic. Alibaba.com Payment Terms is the first-ever trade financing solution made directly into a B2B cross borders e commerce platform, allowing qualified buyers to order goods and pay for them up to 60 days after they are shipped. Before today, the vast majority of cross-border trade between small businesses required full payment upfront. Small businesses could not benefit from the global supply chain financing programs that their larger competitors frequently enjoyed. Alibaba.com Payment Terms1, offered in collaboration with MSTS, addresses this problem and gives qualified SMBs an additional way to stay competitive by helping to alleviate cash flow pressures.

“We typically pay our suppliers upfront, which ties our cash up in inventory costs and keeps us from planning very far ahead and investing in our business,”. “With Alibaba.com Payment Terms, we’ll be able to keep our costs competitive with larger beauty brands, plan for our future product lines and stock up far in advance of the back to school and holiday seasons.” Said aid Necia Boston, founder of Greenville, N.C.-based B.A.A.B.S. Beauty, a makeup and beauty products retailer and early applicant of Payment Terms

2. Freight – A Shockingly Simple Built-In Ocean And Air Shipping Solution

With an average order size of $2,000, Alibaba.com shipments involve containers and pallets, not parcels and envelopes. The newly launched Alibaba.com Freight, powered by digital freight marketplace Freightos, helps SMBs simplify arranging their bulk shipments with the ability to instantly compare, book, manage and track ocean and air freight in real time online, effectively modernizing the analog, opaque and historically slow process for arranging cross-border logistics.

“Alibaba.com Freight’s extremely friendly user-interface takes what is usually a daunting and extremely complicated task, and turns it into a simple, concise step-by-step process without allowing you to make any mistakes before you move on to the next step,” said Casey Heim, founder and CEO of Hoxie, KS-based WAKE 10, a manufacturer and seller of equipment in the wakesurfing and boating industry and early user of Alibaba.com Freight. “Alibaba.com Freight has helped us continue to source from overseas and expand our product line even during this global crisis, and we are set to launch four new products for the summer.”

3. Online Trade Show – Live Curated Connections Between Businesses Buyers And Sellers

According to Alibaba research, trade shows have historically been the most important way for sellers to meet and acquire new customers, and business buyers have benefited by using them to explore new products and suppliers. COVID-19 has drastically limited this critical channel for trade. In response, Alibaba.com is launching Online Trade Shows USA, a series of category-specific, livestreaming experiences designed to convene quality buyers and sellers to meet and transact in real-time over a pre-determined period of days. These events showcasing U.S.-based manufacturers and wholesalers are part of Alibaba.com’s global online trade show initiative2 of over 20 shows in the next 120 days to bring the world’s SMBs together over virtual show floors.

These innovative, digital-first events feature agendas full of insightful keynotes from industry leaders as well as top U.S. suppliers promoting their products to a select audience of verified business buyers. U.S.-based manufacturers and wholesalers are able to showcase their stories, capabilities and products as a way to promote their business, meet new prospects and drive sales during this transition to digital-first trade. Buyers who attend the events can interact and ask questions of the suppliers, schedule one-on-one sessions and place orders through the platform.

“With the disruption of COVID-19, the next era in global trade starts today, from home and online,” said Caplan. “The grit, resilience and needs of American small businesses who face extraordinary challenges right now have inspired and motivate us to re-imagine the trade show experience for our customers. Alibaba.com Online Trade Shows USA will showcase the innovative products and capabilities of U.S. small businesses and connect them to our rapidly expanding community of more than 10 million global buyers.”

The first live event exclusively designed to showcase American businesses will run from July 7-10, 2020 with the Supplements & Nutrition category. Alibaba.com is hosting the event in partnership with the USA CBD Expo, the nation’s largest CBD industry event, and the United Natural Products Alliance (UNPA). The event will feature daily sessions designed to facilitate meaningful connections between business buyers and U.S.-based manufacturers, wholesalers, raw ingredient suppliers and brands in the supplements, nutrition and CBD category who offer finished and customizable products. Sellers interested in being featured can apply online and buyers interested in joining the online event can register online. Additional U.S. shows will take place over the coming months for a variety of categories, including Food & Beverage, Agriculture, Beauty & Personal Care with more on the way.

4. Alibaba Business Transformation

Alibaba.com – initially an online catalog of the world’s best manufacturers – was the original Alibaba business launched in 1999. It disrupted global trade by catapulting the global sourcing and supply chain industries into the Internet-era. Nearly two decades later, Alibaba.com began an earnest transformation on its journey to reinvent global trade, this time by disrupting itself and continuing the transition from a catalogue of suppliers to an end-to-end global trading platform with simple search and discovery, efficient communication and trusted payment, financing and logistics options. The platform opened to American sellers in July 2019, and the U.S. has since been the fastest growing market for new sellers and buyers. As a result of the transformation, gross merchandise value (GMV) on the platform has grown over 85% year over year and customers will transact tens of billions of dollars in GMV this year. At the same time, Alibaba.com’s annual revenue growth accelerated from the low single digits in 2017 to a 17% compound annual growth rate (CAGR)3.

With today’s announcement, Alibaba.com continues to transform amid the global pandemic while keeping at its core the mission to make it easy for businesses to do business anywhere.

Hernaldo Turrillo

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5 Reasons Why SMEs Struggle To Stay In Business (And 5 Tips To Stay Afloat)

Hernaldo Turrillo — Wed, 19 Feb 2020 12:36:16 +0000

5 Reasons Why SMEs Struggle To Stay In Business (And 5 Tips To Stay Afloat)

As we enter a new decade, 58% of small businesses in the UK anticipate a plateau, or for their SMEs to struggle to stay in business. Only 1 in 4 predict to see growth. But not everything is bad news, here we also provide 5 tips that businesses can use to stay afloat in the digital era.

A new report, which surveyed 1,000 small business owners and sole traders across the country has been carried out by financial technology experts, Takepayments Limited, unveiling a snapshot of the small business landscape in the UK. It uncovers key challenges for small businesse and tips on how business owners can secure a more consistent cash flow.

Below the report unveils the five biggest reasons why SMEs are struggling to stay afloat in a digital era.

Why SMEs are struggling to stay afloat in a digital era

Needing to chase late payments

Even if you are a business to consumer (B2C) company, the likelihood is you will still need to manage some partnerships and affiliations with suppliers etc. Perhaps you are providing a service or a product to another business and therefore, charging for the exchange. One worrying issue for small businesses that have to deal in a B2B scenario, is waiting for others to pay their invoices for the sale of your goods/service.

Whilst wanting to maintain a positive working relationship between your business and theirs, when people do not pay their invoice on time, it leaves you short-handed for that months revenue and cash flow can become tight.

46% of small businesses have admitted to consistently needing to chase late payments with over half of them claiming that late payments have a worrying impact on cash flow.

The Uncertainty of Invoicing

As a small business, you do not have the luxury of sending all your money related tasks to the tax & finance department and will most likely have to do this yourself, unless you have someone externally handling all your businesses finance.

For those running a small business, well over half (63%) claim that they are “self-taught” about tax and invoicing. All whilst, 39% say that they aren’t confident using online banking for work. Struggling to invoice effectively can result in a much slower process of receiving money, especially if the invoice needs to be amended and sent back to the supplier or there are important details missing.

Therefore, it will come at no surprise that the better part of half (45%) of business owners say that finding funding to grow their business is holding it back.

Little to no tech support

Over half of SME’s have claimed that they have little to no tech support, and are having to figure things out for themselves as they go along. Unlike a larger corporate who have entire teams to solve all types of IT or development issues, they must press on and do what they can with limited knowledge.

With 47% having a lack in website creation and management skills, it is apparent that it is one of the key problems that is holding small business owners back in a digital era, where consumers expect to be able to find everything they need in the click of a finger.

From issues with having poor WI-FI in their business location (39%) to struggling with online competition (45%), SME’s are now expected to be tech guru’s to stay in business.

The fear of a cashless society

Digital payment systems such as EPOS and pin machines are an expected method of payment to consumers now, with contactless limits getting higher and minimum spend becoming lower, there is a burden and expectation for small businesses to support the payment process of a becoming cashless society.

Sandra Rowley, Head of Marketing at Takepayments Limited, commented about this that:“Pricing structure and cash flow are both key to driving a business forward and yet for small businesses, many have had no or very little training. There are plenty of online courses available but, it’s not just training that can help.

Technology such as Electronic Point of Sale (EPOS) systems can be beneficial in giving key insights real-time to business performance, saving time on accounts and getting a true reflection of what products and services achieve the best margin.

Our study revealed that 49% of small businesses have seen a decrease in consumer spending and so implementing technology to improve your business could be a smart step to help overcome a variety of finance-related challenges.”

42% of SME’s said that turning into a cashless society will negatively impact their business. This majority comes from the 40% that feel l overwhelmed by digital payment systems such as EPOS and chip and pin machines. If there is little advice, training and aftercare in the setup, it can be a daunting task tracking your income from EPOS machines, over counting cold hard cash.

A lack of social media marketing knowledge

The report revealed that Facebook was the most preferred social media network to market a business. The popularity of social media such as Instagram and more image/video-led content, like TikTok, are very high engagement sites but must be utilised properly from a business perspective.

Nearly HALF (47%) of small business owners are struggling to do little if any social media marketing due to their lack of knowledge. Social media can be a cheap we to extend and gauge new audiences, however, with little knowledge small business owners are worried about keeping up on social media marketing and therefore, missing out on sales opportunities.

From the results in the report, it will come at no surprise that the better part of half (45%) of business owners say that finding funding to grow their business is holding it back and they will struggle just to stay afloat.

Top 10 concerns for small businesses

5 Tips For Small Businesses

Sandra Rowley, Head of Marketing at Takepayments Limited provides 5 tips for small businesses

1. Face technology head-on:

Technology can be daunting but, it brings with it so many advantages. Whether you look to implement new systems or improve old ones, businesses need to make sure they are adapting alongside the rest of society. You could be alienating some customers by not keeping up.

2. Review company sustainability and ethics:

51% of small businesses have noticed clients/customers are caring more about sustainability over the past year. This trend is set to grow further in 2020 and businesses need to make it a consideration in all areas, from supply chain to décor, employee wellbeing and product packaging.

3. Get online:

With the local high street struggling, businesses need to look to other platforms to grow such as online channels. 52% say social media has helped their business grow and gain new customers but a lack of knowledge in how to do this is holding people back.

4. Take care of your work-life balance:

Small business owners are known for being hard workers, 1 in 6 do not take 2 rest days (non-workdays) per week and only around half (57%) stick to a 48-hour working week or less. Make 2020 the year you implement a healthier work-life balance for yourself and your team. Though your working less, productivity levels are likely to improve.

5. Keep up to date on EU news and changes:

There will be plenty of change over the year following Britain’s exit from the EU, so make sure to stay up to date with news. Especially if your business is reliant on imports and exports. 42% are worried about potential changes to rules regarding this.

Hernaldo Turrillo

The post 5 Reasons Why SMEs Struggle To Stay In Business (And 5 Tips To Stay Afloat) appeared first on OpenBusinessCouncil Directory.

UK Government To Establish A New Business Finance Council To Support SMEs Through Brexit

Hernaldo Turrillo — Fri, 06 Sep 2019 12:57:19 +0000

UK Government To Establish A New Business Finance Council To Support SMEs Through Brexit

Government ministers have met to set out plans for a new Business Finance Council to be established to support SMEs through Brexit. Business, Treasury and Cabinet Office ministers met banking chiefs to encourage support for small businesses post-Brexit through an increased availability of finance.

The aim of this initiative is to give SMEs the best chance possible to succeed and seize opportunities that present themselves after the UK leaves the EU on October 31st. The success of growing small businesses will undoubtedly have a significant impact on the economy as a whole given that the SME sector makes up over 50% of jobs in Britain.

Business Secretary Andrea Leadsom said: “Lenders must empower their SME customers to seize the huge variety of opportunities that lie ahead as we leave the EU on 31 October. Our new Business Finance Council will bring together key players, ensuring that finance continues to flow to our brilliant British businesses so they can do just that.”

This support to British SMEs also was included in the review of the Spending Round, which was also announced by the Chancellor Sajid Javid. This will consist of an additional £2 billion set aside for no-deal preparedness, however is still unclear how it will reach those who need it most, not least the small firms that make-up 99 per cent of the UK economy. An extra £60 million for the GREAT initiative is helpful, but SMEs need to see the introduction of £3,000 Brexit vouchers alongside targeted support for exporters directly impacted by persistent uncertainty.

This new spending round also contemplates long standing issues that most SMEs face like crime -rising crime is a massive concern for the UK small business community, collectively costing small businesses billions of pounds a year-, the commitment to full fibre access for all by 2025, the stop-start approach to infrastructure and funding for further education institutions.

Talking about the issue, Federation of Small Businesses (FSB) National Chairman Mike Cherry, commented that it’s important to stress that what small firms really want is a return to an environment where they can plan for the long-term, and policymakers consistently tackle domestic challenges head on. With the latest UK economic data painting a bleak picture, small businesses urgently need tangible support on the ground.

Likewise, CEO of IW Capital Luke Davis added: “SMEs are vital to the UK economy both for the jobs they create and the innovation they encourage. Ensuring that this sector is in the best possible position to make the most of future growth opportunities will make a huge difference in years to come.”

“If this announcement is combined with extensions to the schemes that fund the SMEs left behind by banks, such as EIS, we could see a boom of growth. Investors want to support British businesses and firms want to grow, what we need to do is make this sentiment a reality”, he concluded.

Hernaldo Turrillo

The post UK Government To Establish A New Business Finance Council To Support SMEs Through Brexit appeared first on OpenBusinessCouncil Directory.

“Small Business Owners Should Have Legal Power Against Firms That Cause Them To Fail,” Claims Insurance Provider

Hernaldo Turrillo — Thu, 23 May 2019 08:30:26 +0000

“Small Business Owners Should Have Legal Power Against Firms That Cause Them To Fail,” Claims Insurance Provider

The call for a change in the law has come from the All-Party Parliamentary Group (APPG) on fair business banking. The Group has gone to the Supreme Court to seek a change in the law on so-called “reflective loss”, which applies to losses suffered by individuals that overlap with the general loss of the company. The law currently states that only the company itself can bring a claim.

Purbeck Insurance Services, a UK’s provider of personal guarantee insurance is supporting calls to empower the shareholders and owners of small businesses to take legal action against firms that are to blame for their business falling into insolvency.

Todd Davison, Director at Purbeck Insurance Services said: “Thousands of small business directors and owners put their personal assets on the line to secure funding for their business – whether to get it off the ground, keep it afloat or to expand. In a recent survey of SME business owners close to half (47%) are simply looking to keep their business on an even keel this year while 38% are planning for growth.

“A business failing can have long term consequences for that business owner or director yet the current law offers little recourse for these hard-working, entrepreneurial people who shoulder the immense financial responsibility that comes with running over 99% of the UK’s private sector businesses. While Personal Guarantee Insurance can help mitigate some of the financial risks for directors who have taken a Personal Guarantee backed loan, we fully support the APPG’s calls for a change in the law to empower all small business owners with greater legal rights if their business fails.”

Personal Guarantee Insurance offers protection against the risk that the Guarantee is called by a lender and will offset any outstanding obligations called in under a Personal Guarantee. The level of cover is based on a fixed percentage of the Personal Guarantee the company director wishes to insure and this is dependent on whether the corresponding finance facility is secured or unsecured.

Hernaldo Turrillo

The post “Small Business Owners Should Have Legal Power Against Firms That Cause Them To Fail,” Claims Insurance Provider appeared first on OpenBusinessCouncil Directory.