Issue 05, June 08

www.impact-corporate.co.uk

"Developing Business Excellence"

Hi {~Firstname~},

In this edition:

1. Introduction
2. Tip Bitz
3. Feature: Customer Service - A BIG issue!
4. Mortgages and the Credit Crunch
5. Contractual Due Diligence
6. Offers
7. Subscribe/Unsubscribe information

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Introduction
Welcome back to Biz Tips and more useful information tips and anecdotes for the world of small business.

As you can see, this month's offering reflects a worsening economy as business owners feel the pinch.

Even more reason to make sure your strategies are tight, your profit is improving and your risk is well managed.

Your feedback is valued and if there are items or subjects that you would like more information on please call and let us know.

Biztips is completely complimentary and I hope you find the content here both useful and informative. If you haven't already done so then please subscribe and feel free to send it to a business colleague, friend, client or even supplier, by using the link here or in the right hand margin

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Tip Bitz

Flexible Working

The government are planning to extend the rules on flexible working to include parents of children under 16 some 4.5 million additional parents.

VAT Errors

When you make an error in your VAT return, you can include the under or overpayment of VAT in your next VAT return, as long as the net error is not more than £2,000.

Entrepreneurs Relief

This is now available on disposal of qualifying assets which in the right circumstances will see the effective rate of capital gains tax again reduced to 10%.

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Feature: Customer Service - A BIG Issue!

Do you ever consider the impact that the smallest of problems can have on your main delivery?

If the proverbial ‘stuff' hits the fan how will you deal with it?

Why the question I hear you ask? Well after enjoying a fantastic holiday basking in the Egyptian sun and enjoying some Red Sea reef life it was unfortunately time to come home and get back to the team and a shot of reality.

Now, that should have occurred, as planned, on a Sunday night in time for a leisurely bank holiday and a gentle easing back into the swing with a little preparation and of course a full diary to follow (excellent business planning if I do say so myself).

Little was I to know that the small issue of a faulty reverse thruster, some further hydraulic pump problems and a shed load of inappropriate cabin humour (after 4 hours on the tarmac with half a cup of warm water), zero clarity in communication, a severe lack of leadership and problem solving from a well known airline would have the most laid back passenger (yours truly) baying for the CEO's blood! Kept waiting for our return flight some 48 hours with little or no communication, three trips to and from Sharm airport (you may have seen the reports/videos on BBC news) complete with immigration and baggage claim and the airline's reputation was damaged beyond repair for some 400 passengers that at times, understandably, resembled a mob, as earnings slipped from their grasp.

Ok it’s all over now and we’re home safe and sound, but - imagine something like that occurring in your SME business where your reputation and ‘life time earnings’ are at stake because you just didn’t handle an unfortunate and unplanned event occuring in the delivery of your product or service.

• What would you do to make it right?
• What is your contingency?
• How and when will you handle communications?
• How do you demonstrate to your clients (in this case passengers) that you are still their first choice?

Some food for thought and I have to say as I watched the other passengers (especially those with kids) struggling with their frustrations I thought to myself - I wonder if the CEO’s office will contact us anytime soon upon our return.

Perhaps (given there were many families) 200 or so calls (they didn’t by the way) and the chance to turn around an unmitigated PR disaster (the press were waiting for us at Gatwick) into a feel good experience was gone. I’d like to think that however large Impact grows we will never lose what has established our reputation in our market – Fairness to our valued customers.

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Mortgages and the Credit Crunch

Well, I guess there are many amongst us who have a mortgage as the main vehicle with which we intend to ultimately purchase our property. Some may have their business lending secured in this way also. There is hardly an individual in the SME market who has not been affected to some degree or another by ‘Le Crunch’.

With the price of diesel and food exacerbating the problem, families and individuals are tightening their belts and looking to ride out the storm.

If you have a mortgage deal that is due for expiration or review then the advice from our resident Independent Financial Advisor is ensure that you have at least 8 weeks in advance to way up your options.

Dean Meyer (DM Financial) explains, ‘there very few competitive mortgage products on the market at present. However, do not be deterred at looking for alternative lenders when your present deal is due to expire. Indeed, your current lender may rely on any reluctance to do so, to enhance their margins.’

Please don’t kid yourself that the problem isn’t real or is one for tomorrow... We know of very successful mortgage brokerage firms that are already cut to the bone, from a staffing perspective, based solely upon the lack of products on offer. If you have a concern or need some advice in this area, please feel free to call or email Dean for an impartial appraisal on 01737 218933 or dmeyerfinserv@ntlworld.com

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Contractual Due Diligence

Just how much risk do you take when entering into a new contract to deliver goods or service?

I guess we would agree that the most important thing when considering investing your time in that delivery is:

• Will you get paid?
• When will you get paid?
• How will you get paid?

All too often I hear of businesses struggling because collecting against their invoice has become arduous and time consuming, which in turn has a negative effect on cash flow – the life blood of small business.

Our friends at Frost Business Recovery would confirm that indeed instances like these are common place and in some cases can become the death knell for a business.

It makes sense that the bigger the contract the higher the risk, so I would suggest a process of due diligence for any significant size of contract. I am pleased to announce that they have just launched a fantastic service at a very reasonable rate which will allow a small business to assess the credit level of another business based upon their current financial status and will indicate suggested credit terms.

If you want to dig a little deeper or to understand the facts behind a company’s numbers they can even offer you a bespoke comment. Why not take a look at www.frostriskservices.com

To discuss any aspect of the above call Frost Risk Services on 0845 2600101 and ask for Morgan Elliott.

If you have a concern regarding general business risk or you would like a Risk Review please call Impact on 020 8642 1919 and ask for Phil.

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Business Reviews

As usual we are offering our Business Review (a two to three hour review session with one of our consultants entirely at our expense) to the first three businesses who reply to this edition. Give us a call at the offices on 020 8642 1919 now to reserve yours.

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Thanks for reading, I hope you found this month's offerings useful and please consider the questions in this month's feature carefully. I urge you towards unprecedented success!

 

Phil Wells
Business Success Coach
www.impact-corporate.co.uk

I will only bring you items and information that I believe will benefit your business.

 

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written by
Phil Wells

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