A Bright 2015 for Small Businesses?

With new figures suggesting that 46% of SMEs are set to grow next year, Axis for Business asks; is it going to be a bright 2015 for small businesses across the UK?

The Lay of the Economic Landscape

Axis for Business is an independent energy and telecoms provider that’s committed to providing quality service to small businesses across the UK. As such, we understand that SMEs need to expand in order to grow their business.

In order to grow your firm, you need to understand the lay of the UK’s economic landscape and know what avenues of funding are available to you to fund said expansion. That’s why we knew you needed to know that a new survey has suggested that whilst firms all over the UK plan to expand in 2015, many don’t know the range of funding open to them which they could take advantage of to do so.

Small Business Finance Markets 2014

According to Startups.co.uk, Whitehall’s British Business Bank surveyed 1,000 SMEs to determine the state of the UK’s financial markets. The resulting Small Business Finance Markets 2014 report showed that 46% are planning to expand in 2015.

Yet the report brought one key issue to light. When asked how they were going to fund said expansion, 68% said that they were “confident in their ability to obtain external finance.” However, when questioned over funding avenues, 65% admitted to not knowing about mezzanine finance, import and export finance, peer-to-peer lending or even crowdfunding.

Meanwhile a third (33%), suggested that they didn’t know they could access government funding via government or local authority grants. However when it came to which avenues of funding SMEs were aware of, 95% said credit cards and 85% said lease or hire purchase; both prove inefficient for the profit margins of any small business.

A Useful Benchmark

Vince Cable commented on the findings of the survey. Cable said: “This new research – the first of its kind by the British Business Bank – is a useful benchmark for measuring the challenges ahead in making British businesses aware of the various alternative finance options available in the market.

“This is particularly important given the findings also show that almost half of British small and medium enterprises plan to expand in the next year. I am confident more businesses will be able to realise those ambitions thanks to the new finance on offer, especially on the equity side.”

Consider Every Avenue to Fund Expansion

If this benchmark has shown us anything, it’s that more needs to be done to show SMEs every avenue available to ensure they find the most cost effective manner possible to fund expansion. Only then will 2015 prove to be a bright year for SMEs across the UK.  

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One in Five SMEs Face ‘Supply Chain Bullying’

The results of a new survey have shown Axis for Business that one in five small business have faced ‘supply chain bullying’ in the last two years.

A Symbiotic Relationship

As an energy and telecoms supplier that strives to deliver value for money to small businesses in the UK, Axis for Business understands the symbiotic relationship many SMEs have with larger firms.

For many small businesses, a significant portion of their revenue stream relies on the trade they receive from supplying their larger equivalents. That’s why it’s so worrying that according to Smallbusiness.co.uk, nearly a fifth of SMEs feel they have been subjected to one form of ‘supply chain bullying’ or another in the past two years.

17% of Small Businesses Face ‘Supply Chain Bullying.’

In a poll of 2,500 members of the Federation of Small Businesses (FSB), 17% (almost one in five) admitted to facing pressure from a larger company that they supply.

Furthermore, the survey found that this goes beyond pay to stay, where larger companies’ demands a supplier pays a fee to continue to do business. It indicated a serious deterioration of payment practises, with issues such as exceeding payment agreements, prompt payment discounts and excessively long payment terms highlighted by SMEs.

“Small Businesses Are Fast Approaching Breaking Point”

Speaking out on the results of the survey, FSB’s national chairman, John Allan, said: “The government has indicated that they are prepared to do more to improve the culture of payment practices in the UK and they are right to do so.

“The sense I get from talking to our members is that small businesses are fast approaching the breaking point. They are no longer prepared to put up with these sharp practices. Brands that think they can continue to squeeze their suppliers with impunity may get a nasty shock when what they are doing comes to the attention of their consumers.”

Protect Your Small Business from Supply Chain Bullying

If you don’t want to reach that breaking point, ensure you protect your small business from the prospect of ‘supply chain bullying.’ That way, you’ll be able to ensure you are able to generate the capital you need to stay in the red. 

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How to Save Money on the Office Christmas Party

If you want to throw a shindig your employees will talk about in hushed whispers for years to come without damaging your small business’ bottom line you’re in luck, as this week Axis Telecoms shows you how to save money on the office Christmas party.

The Mandatory Office Christmas Party

Bringing competitively priced energy and telecoms to small businesses all over the UK, Axis Telecoms knows that when it comes to motivating employees, SME owners have a hard choice to make.

You want to motivate them to work as hard as they can, but galvanising your staff roster can prove particularly hard on the tight budget typical of most SMEs. This conundrum becomes particularly pronounced when confronted with the office Christmas party – an event that at this point, is practically mandatory.

Five Ways to Keep Your Office Christmas Party in Budget

Yet it’s possible to throw a memorable Christmas do on a budget. You just need to find ways to stay within said budget. Here are five you might want to consider...

Hold it in the Office: It’s an office Christmas party. Note that word, office. Why drain your company’s bottom line by hiring out the backroom of an upscale bar, when you can hold it in the office for the exorbitant price tag of… oh wait… nothing at all.

Take Advantage of Deals: If you’re throwing it in the office, then you’ll have to cater the party yourself. Reduce the cost of catering your own soiree by flocking to your nearest supermarket and taking advantage of it’s latest offers on party food. At this time of year, you won’t fail to find a deal that’ll lessen your Christmas party food expenditure at the local Tesco or Sainsbury’s.

Club Together: Does someone in your building have a bigger office? If so, talk to them about throwing a joint do. That way, you share the cost of food, drink, entertainment etc. A problem shared after all, is a problem solved.

 Create a Playlist: These days, computers are equipped with an amazing programme called Spotify. With it (if you can stand an advert or two), you can create a playlist for nothing, and avoid paying a DJ to oversee the music at your office Christmas soiree.

Arrange on a Friday: Employees are going to drink a little too much at the office Christmas party, that’s just tradition. Don’t lose valuable employee time to the inevitable hangover; throw the party on a Friday night so they have a weekend to recover from their overindulgence.

Apply the Lesson

If this blog has shown you anything, let it be that you don’t need to deprive your business of the funds it needs to grow, just to motivate your employees. Take this lesson and apply it throughout the year to save money for your small business. 

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Small Business Boost Announced in Autumn Statement

This week, Axis for Business discovered that UK Chancellor George Osborne used the yearly Autumn Statement to announce the initiation of a package of measures designed to aid SMEs.

With One Stroke

Because Axis for Business listens to what our customers say to ensure we supply cost effective energy and telecoms services to SMEs in the UK, we understand the role of government in facilitating growth.

With the responsibility of safeguarding economic prosperity, with one stroke of the pen the government can initiate policies which provide SMEs the climate they need to boost profit margins. The latest stroke of Osborne’s pen could prove extremely beneficial to small businesses throughout the UK.

A Cash Injection for SMEs

This week, the BBC reported that Osborne announced in the government’s Autumn Statement that it’s decided to invest £400 million into Enterprise Capital Funds. These are government-backed venture capital funds that invest in small businesses.

Meanwhile, Whitehall also announced in the yearly budget that it’s decided to guarantee up to £500 million in new lending funds to small businesses. Furthermore, the Funding for Lending (FLS) scheme – which is designed to increase the rate at which banks lend to SMEs – has been extended into 2015.

Time to Focus on Small Businesses

According to the publication, the new schemes are to be managed by the British Business bank, which was established by Vince Cable in 2013.

Whilst announcing the new measures, Osborne said: "Now that credit conditions for households and large businesses have improved, it is right that we focus the scheme's firepower on small businesses, which are the lifeblood of our economy."

The Lifeblood of the British Economy

Osborne makes a valid point. SMEs are the lifeblood of the British economy – this country needs them to stay in the red. Therefore, the government needs to use its power over economic affairs to ensure small business economic growth at every turn. 

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How to Save Money When You’re Starting a Business

You need to strive to protect your flow of capital when you’re taking the first steps to building your own company, which is why this week Axis Telecoms asks; how do you save money when you’re starting a business?

Letting Your Idea Shine

Axis Telecoms is dedicated to ensuring small businesses throughout the UK receive value for money for their energy and telecoms services. As such, we understand that there are certain times when an SME decision maker needs to go the extra mile to ensure their company has a steady flow of capital to hand.

The need to save money is never more important than when you are looking to get your venture started. You believe that your business model could prove lucrative, however when you’re building a venture, you need to trim the budget anywhere you can to provide yourself enough capital to give your idea the provisions it needs to shine and generate healthy profit margins.

Keep Your Firm’s Bottom Line under Control

Saving money is all about ensuring you find any way you can to keep your business’ bottom line under control – do so with the following five tips…

·         Take Advantage of Mates Rates: What are friends for? If you have a mate who’s willing to decorate your office for less, what are you waiting for? Take advantage of mates rates and pair your outgoings own to a bare minimum.

·         Provide Your Own Capital: Your business is never going to succeed if you don’t believe in the power of your idea. Take a risk, trim your personal expenses i.e. trade in your car for a cheaper model, and devote the resulting capital to your start-up.

·         Invest in Online Services: When you are starting a business, you need to find any way you can to generate sales, so that you inject cash into your company. At the genesis of a venture, the most cost effective business model is to sell your wares online, as there are few costs attached to doing so.

·         Trim the Employee Roster: Do you really need a receptionist at this point? No you don’t. If you want to put your business in the position it needs to be in to succeed, avoid making a frivolous hire; trim the employee roster.

·         Keep Your Outgoings Low: One of the most effective ways to keep a start-up’s bottom line under control is to keep its outgoings low. If you invest in cost effect telecoms and energy services from suppliers such as Axis Telecoms, you free up the funds you need to grow your company.

An Uphill Climb

As an entrepreneur who is striking out on the road to building a successful venture, you have an uphill climb in front of you. Ensure you keep your outgoings under control if you want to reach the summit. 

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Increase Your Customer Base with the Do More Online Scheme

Last week, the government announced the start of the Do More Online Scheme, which Axis Telecoms believes can help your small business increase its customer base.

Capitalise on Your Presence Online

Because we are a telecoms and energy supplier who are passionate about providing effective customer service to small business all over the UK, Axis Telecoms is always looking for ways to help SMEs do more online.

If you develop and maintain an online presence, you can reach a wider customer base with minimal effort. However, there are a fair share of SME decision makers who don’t know have the knowledge of how to use the tools they need to capitalise on the opportunity to build a presence for their business online.

Government Helps SMEs Do More Online

Those decision makers were given a life line last week, as the government announced the launch of the Do More online campaign – its newest effort to help small businesses do more with their online presence.

Through Local Enterprise Partnerships, the government will channel £2 million into 22 projects which are designed to help SMEs increase their digital presence. Projects include the development of a digital TV outlet in Manchester which will equip businesses with easily-accessible and cost-effective advice, as well as a partnership with Go ON UK that has already created a database of resources for SMEs.

Addressing the Digital Skills Gap

Commenting on the new initiative, Matthew Hancock, Minister of Business and Enterprise said: “To make sure consumers get the best deal and small businesses spread their nets far and wide, the government is investing in a range of advice to help them do more online. I am committed to making the UK the best place in the world to start up and grow, and this is integral to achieving that.”

The initiative has already been endorsed by Go ON UK’s CEO, Rachel Neaman. Neaman said: “Go ON UK welcomes the government’s investment in addressing the digital skills gap for small businesses.”

Giving You the Tools to Reach a Wider Customer Base

By addressing this digital skills gap, the Do More Online campaign gives you the tools you need to reach a wider customer base. By reaching out to your potential customers online, can you attract new sales and bump up your profit margins.

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How to Save Money on Office Supplies

If you’re looking to trim your company’s outgoings any way you can you’re in luck, as this week Axis Telecoms lets you know how to save money on office supplies.

Where Can You Make Major Savings?

Because we strive to deliver high quality, competitively priced energy and telecoms services to SMEs throughout the UK, Axis Telecoms understands why you are looking to trim costs anywhere you can.

Small businesses only have a limited flow of capital to work with, which means they need to keep costs down if they want to facilitate the expansion they need to increase their profit. If you look at all areas of your budget, you soon see that there’s one where you can make significant savings; office supplies.

Five Tips to Help You Save Money on Office Supplies

Yes, you need office supplies to ensure your business runs smoothly, but that doesn’t mean you should let the cost deplete your bottom line. Use the following five tips to reduce the cost of office supplies…

Turn into an Allowable Expense: A few weeks ago, we blogged about the fact that the government allows you to deduct certain allowable expenses from your tax. Stationary costs and general office supplies fall under the remit of allowable expenses. If you are self-employed, you can subtract the cost of office supplies from your taxable profit and save money.

Do Your Research: Do you really need to pay top dollar for a printer cartridge? No, you could probably find it cheaper and pay less somewhere else. However, you’re never going to be able to capitalise on a lower price if you don’t do your research and look for the cheapest providers of office supplies.

Buy at the Right Time: Major stationary providers like Staples often put special deals on at certain times i.e. late August, to entice certain customers i.e. the back to school crowd. Capitalise on these deals and buy your office supplies in bulk to reduce the effect they have on your outgoings.

Survey Your Employees: Don’t pay for office supplies you don’t need. Survey your employees and ask them what they need to do their jobs. That way, you eliminate excess and reduce the cost of office supplies.

Reuse Supplies: In other words, get more for your money. Do you have folders that are no longer being used? If so, reuse them to store new documents. That way, you get more value for money on your office supplies.

Diverting Vital Capital Away from Your Company

You’d be surprised how the cost of office supplies can build up. If you let it climb without keeping it in check, that cost can divert vital capital and damage your company. That’s why we’d suggest you always find ways to save money on your office supplies. 

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Small Business Owners Most Likely to Seek Advice from Family and Friends

A new study has shown Axis for Business that the owners of small businesses are most likely to seek advice from their family and friends.

The Burden of a Small Business Owner

Because Axis for Business is a telecoms and energy provider that strives to deliver competitively priced services to small businesses throughout the UK, we understand the burden of a small business owner.

To be the owner of a small business is to be responsible for its success. That is why it’s not surprising that SME owners need to seek out advice from time to time. What is surprising is who they’re seeking advice from.

Professional Advice is Too Expensive

A new study conducted by Growth Voucher, a government SME growth programme, has shown that 69% of SME decision makers revealed that they’ve sought out professional advice from family and friends. In contrast, only 57% have taken advice from a professional.

Furthermore, the survey showed that 36% of SME owners would be more likely to trust advice from a professional, and 60% said they would like to source advice from this particular avenue. Meanwhile, 43% of people said that they don’t choose to do so because it is too expensive.

Making it Easier for SMEs to Access Support

In other words, small business owners are turning to friends and family rather than professionals for advice because theirs is the only advice they can afford. Business Minister Mark Hancock recently spoke out on this finding, as well as what the government are doing through Growth Vouchers to make advice more readily available to SMEs:

“Expert business advice is incredibly important for many of the UK’s smaller firms and helps make sure they reach their potential. We know professional advice can be costly and that there is a lot of choice out there, so we are simplifying the government’s businesses support schemes to make it easier to find and access the right support at the right time.”

No SME Owner is an Island

If anything this survey should tell you how important it is to seek out sound advice. No SME decision maker is an island – you’ll need help at some point to ensure your small business stays in the red. 

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How to Collect Bad Debt

Because bad debt is an anathema to the growth of any small business, this week Axis Telecoms thought we’d share a few tips to show you how to collect bad debt.

A Bad Investment

Because Axis Telecoms is an energy and telecoms supplier dedicated to providing value for money to SMEs across the UK, we know how detrimental bad debt can be to the growth prospects of a small business.

If a customer is unwilling to pay, that’s money you’ve invested that you aren’t going to get back. A small business can’t afford to be making bad investments and giving money away. When you do, you deprive the company of the vital capital it needs to stay afloat.

Five Tips to Ensure You Collect Bad Debt

However it is entirely possible to call in a bad debt, and collect the money you’re owed. Just use the following five tips to help you do so...

Write Letters of Demand: A non-threatening letter of demand, clearly outlining what a customer owes, along with past communication can work wonders. It can apply just enough pressure to persuade the customer to pay up.

Record Past Communications: To ensure you’re in a position of strength, keep a record of any past communications between and the holder of the bad debt. That way you can remind a customer what they have agreed to, so that they can’t back out of paying you the money they owe.

Contact Them Any Way You Can: Letters get lost in the mail. The customer certainly might want you to think so. That is why you need to contact them any way you can; phone, email even fax if you have to, to make sure that you collect the money you are owed.

Work Together: A customer might not be able to pay you back in full. That doesn’t mean that you won’t be able to get any of it back. Work with them and hash out an agreement so that you can recover as much of the money you are owed as possible.

Go to a Debt Management Company: If the customer won’t pay up, go to a debt management company. They have resources that you don’t, and exist specifically to help you recover bad debts.

Don’t Let Bad Debts Slide

Bad debts are too detrimental to a small business’ bottom line to let slide. Use these five tips to collect bad debt, and ensure that your company has the capital it needs to survive and thrive. 

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What Business Expenses Can You Claim If Self-Employed?

If you’re self-employed, there are a number of things you can do to save money for your small business, which is why this week Axis Telecoms asks; what business expenses can you claim if you’re self-employed?

You Are Legally Entitled to Deduct Allowable Expenses from Your Taxable Profit

Because Axis Telecoms is a cost effective telecoms and energy provider to UK-based small businesses, we understand how important it is for SMEs to stay in control of their bottom line.

For you to do so, you need to find ways to save money, which is why you need to know about allowable expenses; expenses you are legally entitled to deduct from your taxable profit if you are self-employed. Therefore, if you have a turnover of £40,000, and you have £10,000 in allowable expenses, if you claim it, you will only pay tax on £30,000 worth of your turnover.

Claim Allowable Expenses in the Following Areas

In its bid to help small businesses, the government has allowed SMEs to register allowable expenses in a number of areas. These include, but aren’t limited to…

·         Materials You Buy to Sell On: These are materials that you buy, but don’t sell as is, along with associated costs. This category includes goods for resale (stock), direct costs from producing goods and raw materials.

·         Travel: Most small businesses need to travel for business purposes at some point, and when you do, there are certain costs you can claim as allowable expenses. These include parking, fuel, flight costs, train costs etc.

·         Clothing: Certain businesses, for whatever reason, incur clothing expenses. If your company falls into this area, you can claim allowable expenses for things such as protective clothing needed for work purposes, uniforms and costumes (for actors and entertainers).

·         Staff: To encourage small businesses to expand, the government allows those who are self-employed to register allowable expenses for staff costs. You can claim such expenses for staff wages, subcontractors, pensions, benefits, bonuses etc.

·         Business Property: Running a business property, even if it’s your home, can be expensive, which is why the government allows the self-employed to file a number of allowable expenses specifically for your business property. These include, but aren’t limited to business property rent, property insurance, utility bills, security etc.

Find Out More About Allowable Expenses

In other words, if you are self-employed and run a small business, there are a lot of allowable expenses you can claim to pay less tax, and bump up your firm’s bottom line. Find out more about what allowable expenses you can claim, to ensure you reap the benefits of being self-employed. 

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What Do Small Businesses Think of Government?

n light of new statistics revealing the small business community’s opinion of government, this week Axis Telecoms asks; what do small businesses think of government?

The Government Has a Key Role in Shaping a Favourable Business Climate

Because Axis Telecoms is a firm which aims to provide top quality, cost effective energy and telecoms services to SMEs around the UK, we know what small businesses need to thrive.

Essentially, SMEs need an economy that encourages growth. As the arbiter of national financial policy, the government has a key role in ensuring that this is the type of economy SMEs are presented with. A new poll which outlines what small companies really think of government suggests they’re not doing a very good job.

Simply Britain Pulse Check

According to Startup.co.uk, the new ‘Simply Britain Pulse Check’ poll, conducted by Simply Business, showed that over half of small businesses are disillusioned with both central and local government.

33% of respondents meanwhile, actually said they believe government is a hindrance to their growth potential. Various areas of government policy from red tape (33%) to changing energy prices (25%) were named as specific issues. Furthermore, when SME owners were asked what the government could change to ensure increased profitability, tax relief came top of the list. This was followed by energy processes, employment law and environmental requirements.

SMEs Are Not Getting the Support They Need

Simply Business’ CEO, Jason Stockwood, spoke out about the survey’s findings. Stockwood commented: “Sole trader and microbusinesses are the very heart of the UK economy, and it is these firms that are driving the country back to growth. But these firms are not getting the support they need.

“The government is designing policies according to what it believes small businesses need, but because of the specific set of challenges and risks faced by sole traders and micro businesses, government support is passing them by.”

Enacting More SME Friendly Policies to Promote Economic Growth

In other words, SMEs don’t believe that the government is providing them with the economic circumstances they need to flourish. Considering the fact that small businesses are the backbone of the UK economy, this suggests that local and central government need to enact more SME friendly policies to promote economic growth. 

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Will Small Businesses be Damaged by the Holiday Pay Ruling?

In light of the recent holiday pay ruling which shook every tier of the corporate hierarchy, this week Axis for Business asks whether it could be damaging to small businesses across the UK.

The Holiday Pay Ruling is Concerning a Lot of People

As an independent energy and telecoms supplier, who strives to deliver the best deals available to small businesses throughout the UK, Axis for Business knows how important it is for SMEs to keep their expenses in check. Only through doing so, can they ensure they have to funds available to remain viable.

That is why the recent holiday pay ruling is concerning a lot of people in the small business community, who fear that it could impact their profit margins. These are fears that have now been compounded after experts recently spoke out on the ruling’s potential to damage SMEs across the country.

The Impact on UK SMEs

The ruling itself established a new right for employees. Now employers have to factor overtime and other pay supplements into an employee’s holiday pay.

This, along with the suggestion that the ruling is retroactive (payments can now be backdated) means that experts are now suggesting that it could cost British firms billions of pounds. According to SMEWeb, National Chairman of the Federation of Small Businesses, John Allan, even suggested that retroactive claims cold force some small companies to close down.

The Appointment of a Government Taskforce

Allan went on to talk about how the FSB will help to safeguard SMEs from the effects of the ruling, saying that "clearly it would be desperately unjust to expect businesses to pay retrospective compensation for how they calculated holiday pay when they were fully compliant with the law as it was understood at the time.”

Allan went on to elaborate, saying that "the FSB has been appointed to a Government taskforce to examine this issue and will be fighting hard for small businesses to be insulated from the uncertainty and legal risks this ruling brings."

Diverting Funds Away

The fact that this taskforce is being appointed suggests that yes, the holiday pay ruling could impact small businesses throughout the UK. It has the potential to impose extra demands on their profit margins, that could divert funds away from ensuring said businesses remain successful. 

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How to Reduce Small Business Taxes

To help you trim the company budget and save money, this week Axis for Business reveals how to reduce small business taxes.

Keep Your Expenses in Check

At Axis for Business, our goal is to help small businesses across the UK make real savings as an independent energy and telecoms provider, by offering value for money.

That goal extends to helping small businesses make the cost cuts they need to keep their expenses in check, and thus remain profitable. One of the major areas any business can do so is taxes. However, because you are dealing with legally required payments, you need to be careful when you decide to look at how to reduce taxes for your small business.

Five Tips for Reducing Small Business Taxes

As luck would have it, Axis for Business is an expert in this area, so if you want to do so the right way, here are five tips you can use to reduce taxes for your small business…

 Keep Track of Expenses: Under UK law, there are certain expenses that you can offset against your taxes i.e. the cost of running a mobile phone, business travel expenses etc. Keep track of them and submit evidence of them with your tax return to lower the amount of tax you have to pay.

Use the Annual Investment Allowance: The Annual Investment Allowance is a 100% allowance made for tools and equipment for your business up to a capped amount. Anything spent within this allowance (£500,000 to 31^st December 2015, then goes back to £25,000) can be written off against taxable profits for the period in question.

Withdraw the Allotted Amount: UK law says that the director of a limited company may withdraw a certain amount every year without being subject to additional income tax or national insurance. Use this allowance to trim the overall cost of tax.

Take Advantage of Being a Sole Trader: If you are a sole trader, there’s a tax benefit open to you, that isn’t open to bigger companies. You can claim any profits for items used in your business even if you bought them before you started trading. Do so and bring down the cost of tax.

Avoid Automatic Penalties: You absolutely have to file your tax return on time. If you don’t you can be the most tax efficient company in the world, you’ll still end up paying an exorbitant amount. Why? Automatic penalties are charged to any company who files their tax returns late.

Ensure Your Small Business Remains Successful

It’s always important to remember that the government values small businesses as a driver of the economy. In other words, there is always a way to cut down the amount of tax your company is liable to pay, and generate the extra cash you can then use to ensure your small business remains success. 

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How are Organisers Promoting Small Business Saturday?

With the event designed to promote SMEs nationwide coming up, this week Axis Telecoms asks; how are organisers promoting Small Business Saturday, and what could it mean for your bottom line?

Awareness is Everything in Profitability

Axis Telecoms is an independent energy and telecoms provider to SMEs up and down the length of the United Kingdom. As such, we are intrinsically positioned to understand the struggles small businesses face every day to keep their profit margins up.

One of the main obstacles to profitability for any SME is larger competitors. That is why we support Small Business Saturday. It is a day designed to promote small businesses and persuade consumers to shop locally; awareness really is everything in this game.

How Effective Will Small Business Saturday Be?

So how effective will Small Business Saturday be? Well if last year’s efforts are to be believed, very, as organisers are using the same tactic to promote the event as they did in 2013. They are setting off on a nationwide bus tour!

Last year, they got personalities such as David Cameron, Ed Milliband and George Osbourne to take part in the bus tour, and these efforts made the event highly successful. This year the bus tour, which kicks off in Leeds on 17^th November will involve similar tactics, with even more locations. 13 in fact, including Birmingham, Manchester and Edinburgh, before ending in Camden on 4^th December; two days before the event.

Equipping the Public With Vital Information

National campaign director at Small Business Saturday, Michelle Ovens, commented on the promotional tactic. Ovens said: “Our bus tour last year was a very visible way of bringing Small Business Saturday to centres around the UK and was instrumental in drumming up interest, support and enthusiasm.

“We are visiting even more places this year and hope small business owners and consumers will visit the bus to get information and find out ways in which they can support small businesses and make the day work most effectively for companies in their own communities.”

Helping You Raise Your Small Company’s Bottom Line

In that way, we see how this bus tour could actually be good for your small company’s bottom line. It provide the public with the information they need to support SMEs including you; ensuring that they are able to help you raise your profit margins. 

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How to Manage Your Employees’ Time

To ensure that your employees’ are a benefit, rather than a detriment, to your small business, this week Axis Telecoms reveals how to manage your employees’ time.

You are Paying Your Employees for Their Time

Because Axis Telecoms is a firm that seeks to make sure that small businesses across the UK receive competitively priced energy and telecoms, we understand how important it is for SME’s to save money wherever they can. Only through doing so, can they ensure they remain profitable.

That is why we want to turn our attention to the issue of time. You are paying your employees for their time. Therefore, if they are wasting time that is money draining away from your firm’s bottom line. Money that isn’t being used to generate profit.

A Few Ways to Manage Your Employees’ Time Effectively

That is why it is more important than ever that you know how to manage your employees’ time effectively; these tips on just how to do so from Axis Telecoms should get you started:

·         Give Them a Break: No employee is a machine. You’ll soon find that if you give them a series of short breaks throughout the day, they become more productive. Quite simply, it’ll cut down the amount of time they spend avoiding the tasks at hand, as they’ll have a more set time limit to complete them in.

·         Create Office Schedules: Deadlines have an amazing effect in any office. They give your employees something to work towards; increasing their productivity. That is why you should make and maintain office schedules to get the most out of your employees.

·         Cater to Your Employees Schedules: If you have an employee who needs to get off early, don’t force them to stay. Doing so will create a bad working relationship, and drive down their productivity. Make sure you cater to their schedules to get the most out of the time they do have.

·         Discourage Multi-Tasking: Multi-tasking is not an effective working method. It divides focus, which means that all the tasks at hand get less time, and they’re performed less efficiently. Therefore, discouraging multi-tasking in your office ensures that your employees are using their time in the right way.

·         Eliminate Distractions: Smartphones, Facebook, Twitter, e. are the bane of the productive employee. They take time and attention away from real tasks. Therefore, banning these distractions in the workplace, will ensure that they can’t divert employee time from the tasks at hand.

Time Equals Money

These are just a few tips to get you started. What we hope to have shown you with this article, is that time equals money. If you are managing your employees’ time effectively you are driving productivity, which in turn has a good chance of boosting your small company’s profit margins. 

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Most Small Businesses Don’t Last Five Years

A new study has shown that most small businesses don’t last more than five years, prompting Axis for Business this week to ask one question; why?

Knowledge is Power for Business Owners

Through our role of providing energy and telecoms services to SME’s up and down the UK, Axis for Business has learned how important it is to business owners to ensure their companies survive in the long-term.

To do so, every small business owner needs to remember one thing; knowledge is power. If you know what it takes to develop a business that is successful long-term, you can ensure yours does so. That is why it is so important that a new study has shown that most SME’s don’t last more than five years.

Growth is the Biggest Barrier to Ensuring Long-Term SME Survival

As reported by Smallbusiness.co.uk, a new study from insurer RSA has shown that 55% of SME’s fail to survive past the five year mark. Construction companies were the most likely to fail, with survival rates measuring only 44%.

This correlates with other figures from the same study, which suggest that facilitating growth opportunities is a major problem for UK SME’s. When asked if it was difficult to grow their companies, 63% of leaders agreed. Meanwhile, the UK tax system was cited as the most effective hurdle of growth (44%). The absence of bank lending came next at (38%).

The UK Needs to Work to Rebuild Business Confidence

SME trading director at RSA, David Swigciski commented on the results, saying “the UK is a great place to start a business, but our research reveals that survival rates are low. The recession has had an unsteadying effect on SMEs and we need to work hard to rebuild their confidence.”

Swigciski went on to add, “The UK economy relies on a balance between start-ups and high-growth businesses, but our research reveals a worrying imbalance and there remain major barriers to achieving growth.”

How to Survive Beyond the Five Year Mark

Therefore, this new study shows what you as a small business can do to ensure its long-term growth prospects. You need to develop a growth strategy, to ensure that you can overcome the barriers to growth that currently exist in the country’s business climate. Only then, can you facilitate survival past the five mark. 

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How to Know When to Fire an Employee

Staff turnover may be damaging to any SME’s bottom line, but problem employees inflict more havoc, which is why this week, Axis Telecoms reveals how to know when to fire an employee.

The Point of No Return

As an independent telecoms and energy supplier, who aim to bring the highest quality services to SMEs throughout the UK, Axis Telecoms knows what finding ways to save money means to small businesses with limited funds.

Which is why this week, we want to turn to the issue of problem employees. We can understand why you may be reluctant to fire a problem employee; staff turnover is expensive for any small business. However, there is a point where said employee inflicts more damage on your profit margins than staff turnover ever could.

Keep an Eye Out for the Following Five Signs

The trick is determining where that point of no return lies. You need to know what signs you should look for, to identify a problem employee. Axis Telecoms would suggest you look for the following five types of employee…

·         An Employee Who Lies: This world doesn’t place as much value on honesty as it should. An honest employee is worth their weight in gold. A dishonest employee, however, will sow discord and distrust, hampering your team’s ability to rely on each other, because they are never sure they are working with the facts. Extract the poison to ensure survival.

·         An Employee Who Doesn’t Try: We shouldn’t have to tell you what this means. If someone’s lost the will to work for you, just sever ties now. It’ll do you good, as commitment generally tends to lead to employees who care enough about the job to make sure they get it right.

·         An Employee Who Can’t Work as a Team: No man is an island, and no business can make it without teamwork. Teamwork brings the benefits of collaboration and discussion. If an employee consistently shows that they can’t work as a part of a team, trade up for someone who will.

·         An Employee Who’s Always Late: If they’re late once or twice, put it down to human error. If they’re late a lot more than that, that’s a lot of money you’re wasting on time they’re not doing any work. That money could be more effectively spent on someone who’ll work all the hours you pay them for.

·         An Employee with Distractive Behaviour: Does your employee gossip every minute of the day? Do they start arguments, or talk so loudly other people can’t concentrate? Those employees are preventing everyone from working, so you need to fire them to facilitate the proper working environment.

Fire an Employee Only as a Last Resort

In finishing this blog post, Axis Telecoms would like to remind you that you need to take great care when deciding whether to fire a member of staff. Always try to find another resolution to the issue at hand, to ensure the cost-effect of staff turnover doesn’t deplete your profit margins. Yet if no solution can be found, fire them for the sake of the profitability of your small business. 

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How to Reduce Business Insurance Costs

If you want to make sure your business doesn’t go under should disaster strike, you’re in luck, as this week Axis Telecoms explains how to reduce business insurance costs.

Business Insurance, an Essential Cost

Through our role of providing a good quality energy and telecoms service to SME’s across the UK, Axis Telecoms have always aimed to provide value for money. As such, we know how important it is for SME’s to keep their bottom lines in check.

Yet there are some costs that any small business has to meet. One of these unavoidable costs is business insurance. Considering the fact that it covers you should disaster strike, it’s an essential cost, even if it does deplete your profit margins.

A Guide to Finding Cheaper Business Insurance

But it doesn't have to. It’s entirely possible to find business insurance that doesn’t take too much away from your bottom line, with the following guide from Axis Telecoms.

·         Check Your Cover: One mistake businesses often make, is not reading their policy. They end up paying for things they don’t need i.e. buildings cover for a portable business. If you check your cover, you can strip it of what you don’t need, and lower the cost.

·         Make Health and Safety Your Priority:  Insurers don’t want to actually have to pay out. That means they tend to offer lower premiums to attract businesses with effective health and safety provisions – since they’ll be less likely to actually need cover. That is why you need to make health and safety a priority at your company.

·         Don’t Accept the First Quote: Insurance providers don’t want to lose a chance to work with you. That means they’ll be willing to be flexible and you should never accept the first quote. Haggle, and you’ll be able to get the cost down.

·         Use a Price Comparison Site: How are you ever going to find the cheapest insurance, if you don’t know how much they all cost? Use a price comparison site, such as MoneySuperMarket – who do all the comparing for you – to lower the cost of business insurance.

·         Beware Admin Charges: If you’re going with an insurer that offers a finance package, they usually attach an admin charge. Compare it to the ‘buy in rate,’ to ensure that you are not paying for an overpriced policy, otherwise, you will end up paying more than you need to.

Help Your Business Become More Lucrative Than Ever

If you use these tips, you’ll suddenly find that you are paying a lot less for insurance, protecting your small company’s bottom line. You can then ensure that your funds are used to help your business grow, and become more lucrative than ever. 

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