Here's How We Can Help Your Business - Spring_Summer2012

here’s howSpring/Summer 2012

we can help your business…

Phone calls: We may monitor and/or record calls for security, quality or training purposes. Calls to 0845 numbers may be free from BT landlines but will vary with other providers, and calls from mobiles may be considerably higher. Please check with your provider for exact charges.npm10000/04.12

ContributeGet involved with your local community

SaveCut costs with group buying deals

RefreshSpring clean to help boost productivity

Inject fresh life into your workplace:

Save time and money with Direct Debit

SavingsGenerally you could pay 2% less for your electricity if you switch to pay by Direct Debit. Because your payments become easier to administer, we can remove the surcharge that’s added to bills paid by other means.

ServiceSave time paying bills. With Direct Debit, the payment is automatic – so once it’s set up, you don’t need to do anything more.

ChoiceChoose which way to pay. You can opt for variable Direct Debit and just pay for what you’ve used or, for easier budgeting, you can pay the same amount each month as a fixed monthly Direct Debit. Your account is then reviewed at least once a year to ensure your payment is appropriate.

To set up a Direct Debit, call us on

0845 166 3360

RF10798 npm10000 Q2 SME Billing 2012.indd 1-2 05/04/2012 13:45

Editorial content provided by Susannah Lawson & Associates (www.slcommunications.co.uk). npower is a registered trademark and a trading name of Npower Direct Limited (registered in England and Wales No.3782443) and associated companies. Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB.

RefreshNow’s an ideal time to spring clean your business and help your operation run more efficiently and profitably – see our ten-point plan starting on page 4.

ContributeGetting involved with your local community provides two-way benefits that can help to raise your business’s profile – as illustrated on pages 10-12.

SaveThe rise in group-buying sites for SMEs allows smaller companies to gain greater purchasing power – find out more on pages 14-15.

You can find out how to invest to potentially save on energy bills and get the lowdown on useful online resources, plus see the back cover for more on Direct Debit savings.

Wishing you a great Summer!

Pam Andrew Customer Service Manager

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Energy Market View

What’s inside Energy market view 3

Hot topic: Spring clean your business 4

Need to know: Employment law 7

Energy Savers: Invest for efficiency 8

Spotlight on: Community action 10

Quick guide: Online resources 13

How to: Boost purchasing power 14

Save money: Direct Debit 16

Energy market viewWelcome

With warmer weather on its way, why not inject some fresh life into your business?

Group-buying sites bring big-company discounts to the SME sector – read more in our feature on pages 14-15.

Davey’s key message as he took over was that there would be no change in energy policy – even taking forward DECC’s widely-criticised plans to cut solar photovoltaic tariffs. Although it was well known that these generous tariffs would be cut in 2012 – because the price of solar panels was falling so fast – DECC’s decision to bring forward the reductions, so they took effect with little notice, caused an outcry. By the Spring, it was still not clear whether the new tariffs would mean solar power installation could benefit small and medium users.

Spotlight on SMEsDavey’s experience as consumer minister means he brings to his new job an interest in domestic measures like buying groups, but less of a track record of measures for SMEs. Interestingly, it’s energy suppliers themselves who have begun to wake up to the importance of these customers. This year has seen suppliers like npower offering new products to businesses at the larger end of this sector, so it’s feasible we may see more choice coming to the wider SME market in the near future. Regardless of contract type, however, there’s some welcome news in the form of lower wholesale gas prices.

No change in policy, but good news with lower gas prices

Change at the top of the Department for Energy and Climate Change (DECC), with Ed Davey replacing Chris Huhne, doesn’t alter things much for the energy market – at least for now.

Reduced demand for gasWhile the latest government figures show that the UK’s reliance on imported gas has increased, the anticipated price hikes haven’t materialised. In fact, we are now in a better position to benefit when global gas prices fall – and that’s the situation in early Spring.

Reduced demand is partly the cause – the UK’s gas use in 2011 was the lowest since 1995, according to DECC. And this year we are still well supplied and using relatively little. Energy market watchers Platt’s forecasts that gas prices are “drifting down”.

Also on the way down was the price of coal. So with energy demand and fuel prices lower, now may be a good time to renew any lapsed supply contracts.

Janet Wood is editor of Utility Week.

50%Group Buying

Discount


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1. EquipmentYou might have an old PC, monitor or printer that’s doing nothing more than gathering dust and taking up space. If you can’t sell it and don’t fancy a trip to the tip, some computer-recycling companies will come and collect (you might want to destroy sensitive data first). You might also have other machinery/equipment you can get rid of, so why not free up the space and some cash?

2. CustomersA customer database can be a vital marketing tool, but only if the information it contains is accurate and current. ‘Clean’ your database by updating names and addresses where necessary and remove those who are unlikely to buy from you. Also, re-organise your database so that you can more easily target your better customers. And don’t forget that as well as keeping information up to date and relevant, the Data Protection Act also requires you to keep all customer data secure too.

3. Business planIf you’re in the mood for spring cleaning, don’t forget to dust off your business plan. Some of the information will be out of date. Things change quickly in business, which is why you should update your plan at least once a year if it is to remain a useful tool. This can help you to regain sight of your business objectives and development strategies.

Spring clean your business

Performing at your best is key for your company to stay competitive - so SME expert Mark Williams offers some tips to refresh your business

Hot topicHot topic

continues overleaf...

5. Products or services Now could be the perfect time to replace underperforming products or services. They might have had their day. They might never have been as popular as you had hoped. Clean them out and introduce new products or services. Be guided by knowledge of your market. If necessary, speak to your customers to find out what new products or services they’d buy.

6. WebsiteDo you need to delete any inaccurate or irrelevant information? Maybe the copy could be rewritten to make a better job of promoting your business and its product. Does content need to be optimised for search engines? Are all links still working? Could you upload better images? Maybe you could add new traffic-boosting features, such as a blog, or update your customer testimonials?

4. BrandIs your brand looking a little tired or scruffy? Over time this can easily happen, so maybe it’s time to clean up your act. As well as your logo, stationery, website and signage, how your staff dress and interact with customers affects perceptions of your brand. Some simple tweaks might make it sparkle again. At worst, your brand may need a total rethink, which should be carried out as part of a comprehensive marketing review.

Technical appraisal: review stores of old equipment and sell, recycle or donate any that’s no longer useful


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Hot topic

�•� �From�1�April,�the�standard�rate�of�statutory�maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week.

�•� �The�income�tax�personal�allowance�threshold�will increase by £630 to £8,105. The higher income tax rate of 50% will be lowered to £34,371 (from £35,001).

�•� �The�lower�earnings�limit�for�primary�Class� 1 National Insurance contributions (NICs) will rise from £102 to £107.

�•� �The�standard�rate�of�statutory�sick�pay�will�increase from £81.60 to £85.85 a week.

��•� �Employees�will�need�to�have�been�employed�within a role for two years to be able to bring an unfair dismissal claim. Previously, only one year’s service was required. However, this will only apply to employees who begin a new job on or after 6 April 2012.

�•� �There�will�also�be�changes�to�employment�tribunal procedure. Among them, the maximum amount a tribunal can order a party to pay as a condition that proceedings will continue will rise from £500 to £1,000. The maximum amount a tribunal can award in favour of a legally represented party will rise from £10,000 to £20,000.

�•� �Health�and�safety�reporting�requirements�will�also�change�from�6�April�2012.�Following�a serious injury sustained in the workplace, an employer must report the accident to the

Employment law update

A summary of key legislative changes that take effect from April 2012.

enforcing authority if the employee suffers any incapacity for more than seven days – rather than more than three, as before. The employer must then report the accident within 15 days (previously they had just 10 days).

��•� �The�Pensions�Act�2007�and�the�Pensions�Act�2008 will abolish contracting out of the state additional pension on a defined-contribution basis for occupational, personal and stakeholder pension schemes. Employees will be automatically brought back into the State system and they’ll start to accumulate entitlement to additional State Pension. Those in money-purchase/defined-contribution occupational schemes will pay the standard rate NICs (not the reduced rate).

Need to know

7. PaperworkIf your office shelves are literally groaning under the weight of a paper and box file mountain, it’s time to act. Recycle paperwork you no longer need (shred it first). Don’t keep printed invoices if you can save space by storing them electronically (be sure to back-up important files). Is there a tidier way to file receipts? If you can view them online, why retain printed bank statements? Introduce a business-wide policy of not printing unless absolutely necessary – it will save you space and money.

8. ComputersBegin�by�cleaning�up�your�PC�desktops.�File�away�stuff you need to keep – delete the rest. Run operating system, software and virus-protection updates to ensure your computers are protected and run smoothly. You might need to get outside help to spring clean your IT system if it’s more complex. Delete emails you don’t need to keep and put the rest into neatly categorised folders. Give your screen a thorough wipe and tidy away any cables.

9. PremisesRight, there’s no more putting it off. It’s time to roll up your sleeves and get your hands dirty by physically cleaning your premises. Involve all team members and try to inject a bit of fun into proceedings. Clear away all clutter – pay particular attention to desktops, shelves and other flat surfaces. If you don’t use it – remove it. Make sure any kitchen, eating, bathroom and customer areas are immaculate. After dusting, brushing and mopping, re-organise the layout to create a more efficient and productive environment. Why not consider getting the place decorated in the summer? And don’t forget to follow the relevant health and safety guidelines.

10. Take stockAs well as taking up space you are paying for, unsold stock ties up capital. To get rid of it, the first obvious tactic is to offer heavily discounted prices or possibly a two-for-one offer. When working out discounted prices be sure to factor in all costs if you want to avoid quite literally giving your stock away.

Why not hold a sale of discounted items to attract customers to your premises or website? This can generate sales of non-discounted items. Some businesses even use slow-selling goods to sweeten bundled offers or as loss-leaders to bolster higher margin sales.

You might be able to sell excess stock via eBay or another auction website (see Group Buying article on page 14). Bear in mind you will have to pay fees and organise/charge for postage. You could sell to a stock liquidator – but don’t expect good prices. Did you know?

Although regulations can come into force throughout the year, some key government departments implement their changes on either 6 April or 1 October (so-called ‘common commencement dates’).


Energy savers Energy savers

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Lighting for lessLighting is a key area to make savings, as it often accounts for up to 40% of a building’s energy use. According to research by the Carbon Trust, investment in lighting efficiency could save UK businesses and organisations up to £700 million a year. Swapping to energy efficient lighting and bulbs – including LED technology – and installing lighting controls such as automatic sensors can deliver impressive savings.

Condensing heating spendMore than half a smaller business’s energy spend can go on heating and hot water. And while simple measures can help to reduce costs – such as turning down the heating by 1˚C to save around 8% – installing boiler load optimisers or even replacing old inefficient boilers can deliver significant�savings.�For�example,�replacing�a�conventional boiler with a condensing model can save 10-20% on annual energy costs.

Increase energy efficiency: top five investment opportunities

The Carbon Trust estimates that SMEs have the greatest potential of any business group to save on energy costs. Susannah Lawson picks five areas that can bring big wins with a little investment, from insulation to lighting choice.

Preventing heat lossUnless properly insulated, the National Insulation Association estimates a building can lose around half of its heat through the roof and walls. An approved installer should be happy to provide a free survey looking at a variety of insulation measures including loft insulation, draught proofing, cavity wall insulation and solid wall insulation. Lagging heating and steam pipes can also help to reduce unnecessary waste.

Easy equipment saversEffective management of office equipment can reduce its energy consumption by up to 70%, so it’s�an�area�worth�reviewing.�For�example,�according�to Ovum, an independent technology analyst, installing computer power management solutions can deliver average consumption savings of 40% – or around £23 per computer per year. Laptops are also cheaper to run as they typically use only around 10% of the energy of a desktop computer.

Driving down costs Running motors and drives uses almost two thirds of the electricity consumed by UK industry. In fact, the cost of running a motor for a year can be ten times what it cost to buy in the first place. So the efficiency of motor operation is critical to reducing energy bills. Replacing large motors running at low load levels (ie less than 40%) with smaller higher efficiency ones can make significant savings. If the load being driven by your motor has a varying demand, installing a variable speed drive could also save energy.

For�more�information�on�the�most�effective�investments for reducing your business energy bill and to download your free Energy Efficiency guide go to:

npower.com/smartstartq2 or visit:

carbontrust.co.uk

Unless otherwise stated, all energy saving statistics sourced from the Carbon Trust. All figures and statistics are correct at time of going to print April 2012.

Insulation can cut up to 50% of heat loss

Office light choice can have a big impact on energy costs

Using laptops rather than desktop PCs can save energy

Programmable heating controls help to better manage costs


http://www.npower.com/business/

Spotlight onSpotlight on

Waz estimates that sponsorship costs his business about £1,500 a year. “It’s affordable – it has to be,” he laughs. “In any case, it brings people into the pub. The football teams come in after training and matches, they also have their end-of-season function here – likewise with the volleyball team. We probably get back the sponsorship money from trade, but we don’t do it for that reason. Without support from local businesses, these teams wouldn’t survive, and that would have a really negative impact on the spirit of Bolney.”

The pub also supports many local events. As Waz explains: “We have a village day and last year we paid for the band. We also sponsored a pram race that raised £8,000 for local charities. We get involved in many fundraising activities in the village – the pub is the traditional hub of the community. We enjoy it too.”

Charity fundraisingNeil Elsden is director of Swindon-based Banks Chartered Accountants. “Last year was the first time we raised money for a charity. We held a client golf day and entered a team in the Swindon Half Marathon, which I took part in,” he explains.

“We raised £2,683 for Wiltshire Young Carers, a local charity that doesn’t have a high profile,

but does excellent work. We knew the money we raised would make a real difference.”

Elsden says this year his business is planning four main fundraising events. “Some are for staff, others will hopefully involve clients. We will always choose Swindon or Wiltshire-based charities. This year, our target is to raise £4,000 for Prospect Hospice in Swindon.

Giving something back“I believe all businesses have an obligation to support their community. It’s a corny phrase, but apt – we want to ‘give something back’. After all, without our clients, who are mostly local, we wouldn’t have a business.”

Does fundraising bring any positive PR? “Some, via the local media,” Elsden admits, “but that’s a bonus, not the reason why we do it. In any case, any publicity is good for the charity.

“Fundraising�is�also�great�for�team�spirit.�Doing�fun things in support of good causes brings people together. In particular, there was a fantastic team spirit surrounding our involvement in the half marathon, among supporters and runners. There was some friendly rivalry too,” he smiles.

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“It doesn’t matter how small your business is or how limited your resources – you can still make a big difference in your community,” says Robert Tate of Business in the Community (BITC). “Small firms already power local economies. They are also becoming increasingly aware of their social and environmental impacts and many are seeking to make a positive contribution.”

He says being a responsible business means achieving commercial success while honouring ethical values and respecting staff, customers, the community and the natural environment. “Maloney’s Budgens is a small retailer in Ascot that won our Small Company of the Year 2011 award. It developed a community plan that helped local suppliers increase their sales. They also work with local schools and provide a home delivery service for people with disabilities.”

“There are many no or low-cost ways to help your community,” Tate says. “You could offer work experience to a young or disadvantaged person or lend your skills to a local school or charity. And lessening your environmental impact, as well as benefiting the community, can save you money too.”

Business benefitsBut what are the key business benefits? “Improved reputation and higher profile, which can help you to win and retain customers and boost sales,” Tate replies. “Being active in the community doesn’t have to be complicated or time-consuming,”

Community action

Increasing numbers of small firms have been quietly supporting good causes in their communities for many years. But what does it involve and are there any business benefits?

Tate adds. “As a first step, try our Responsible Business Check (see bitc.org.uk/responsible_business_check_up). It’s an online tool designed to help SMEs develop a strategic approach to corporate social responsibility. Once you’ve set targets, you can measure your success.”

Sports sponsorshipIndependent pubs frequently support their communities, often by sponsoring sports teams or getting behind local charity fundraising events. Waz and Emma Wasyliw own The Eight Bells pub in Bolney, near Haywards Heath, West Sussex. “We bought the pub five years ago and have always supported the local community,” says Waz.

“We sponsor Bolney Rovers football team. Last year we bought them a new kit; this year, our sponsorship went towards their running costs. We also sponsor darts, pool and bar billiards pub teams, as well as the Dolphin volleyball team.”

Banks Accountants staff got sporty to raise funds


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Quick guide

1. businesslink.gov.ukYou can no longer access face-to-face advice from a Business Link adviser, but thankfully you can still visit this government website for information about how to start, run and grow a business. The site contains more than 600 succinct guides, and the more recently added Growth and Improvement Service pages are well worth a look.

2. marketingdonut.co.ukA huge online resource of free marketing advice. This independent site offers practical tips on internet marketing, PR, advertising, customer care, selling, market research and direct marketing via how-to guides, expert Q&As, case studies, checklists, videos and blogs. Part of a popular series of free business-support websites that includes startupdonut.co.uk, lawdonut.co.uk, taxdonut.co.uk and itdonut.co.uk

3. ukti.gov.uk If you’re planning to start importing or exporting, visit the government’s UK Trade & Investment website. It contains a wealth of useful information about trading in 20-plus sectors in 200-plus countries. You can also read import/export-related news and blogs and find out about trade events you might want to attend.

4. smarta.comLaunched in 2009, Smarta.com is a business support and advice network for start-ups, small-business owners and entrepreneurs. The site contains a large selection of free practical guides, tools and video interviews. It’s a big hit with Dragons’ Den star Deborah Meaden, who says: “Smarta provides uncluttered, informative advice from people who’ve been there and done it.”

5. realbusiness.co.uk According to the publishers, “Real Business is an award-winning magazine and website, the place where successful entrepreneurs gather to share experiences and gain inspiration.” The website is updated daily and is a trusted source of news and information for more than 75,000 unique users a month. The profiles, guides and opinion pieces are well worth reading.

6. acas.org.ukAcas (the Advisory, Conciliation and Arbitration Service) provides independent, impartial and confidential advice on a range of HR issues to employers and employees. The organisation exists to improve employment relations. Its website features a selection of handy downloadable guides and factsheets.

Our favourite online resources

Content-rich websites that can inform, assist and inspire business owners and managers

Spotlight on

npower in the community “At npower we take our social and environmental responsibilities seriously and our community programme aims to give something back to the communities we operate in,” says Anita Longley, Director of Corporate Responsibility.

“We focus on three areas where we believe we can make the biggest difference: improving health, protecting the environment and education, and we contribute time, resources and money. Many of our projects are run in partnership with other organisations, charities and community groups. These long-term partnerships give us more scope to impact the community in a positive and sustainable way.”

npower’s partnership with Macmillan Cancer Support is now valued at more than £5m and employees have taken part in a huge range of fundraising events. Last September, they raised £45,000 for Macmillan in just one day at the World’s Biggest Coffee Morning. The company matches all employees’ fundraising efforts pound-for-pound.

As well as Macmillan, npower supports numerous regional community-based charities and actively encourages employees to take time out during working hours to help the community.

“Many employees support charitable or community groups in their spare time, for example by coaching a local amateur football team,” says Longley. “Through npower’s Employee Volunteering Award Scheme, they can also apply for financial contributions for the organisations they help.”

In 2000 npower set up the npower Health Through Warmth (HTW) scheme to help vulnerable people living in cold, damp homes by installing heating and insulation measures. The scheme helps people of any age and they don’t have to be npower customers. HTW works closely with the NHS, Home Improvement and Care and Repair agencies and National Energy Action.

“Through our Climate Cops schools programme, launched in November 2007, we’ve been helping schools across the UK to become more sustainable,” says Longley. “So far we’ve helped 70,000 children learn how they can save energy at home and school.”

Employees take part in raising money for Macmillan Cancer Support

Kevin Keegan lends his support to the Climate Cops ‘No Power Hour’


Online SME marketing expert Alex Harrington-Griffin

How to

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How to

Could your business benefit from guaranteed PR coverage for under £400 with a money-back guarantee? Or how about saving 54% on a Dell laser printer? These – plus discounts of up to 90% on business training and events, office equipment, recruitment and more – are up for grabs courtesy of a new trend in buying: the group-deals site.

You may already be familiar with websites such as Groupon or KGB Deals offering discounts on home and leisure-related purchases such as pizza, house insurance or spa days. But now the idea has spread to the SME market, with a flurry of sites springing up to offer heavily discounted products and services to smaller businesses.

Economies of scale“Connecting a community of small business buyers together gives each one the purchasing power of a much larger company,” explains online marketing expert Alex Harrington-Griffin, who himself founded the SME group buying site Business Crayon. “This economy of scale provides the opportunity for members to try new products and services, which help a small company expand their business – from online marketing expertise to�advertising�in�the�national�media.�From�a�supplier perspective they have a no-risk way of marketing their business, while making sales and new contacts.”

Boost your purchasing power

The rise of the group-buying site can be good news for businesses looking to save money on a range of products and services. Susannah Lawson reports.

Some sites operate a bulk-buying model, so only when a deal attracts a specified minimum number of orders is the supplier then committed to fulfilling it at the price they’ve proposed. “This gives suppliers control over structuring a deal which covers overheads while acquiring new customers,” says Harrington-Griffin. “It’s an incredibly low-risk form of marketing, with guaranteed ROI in terms of immediate sales and then the opportunity to forge relationships with these new customers going forward.”

The range of offers available is also very broad. “Suppliers might include printers, web designers, SEO experts, regional press titles, business insurers, recruitment specialists, leaflet distributors, photographers or taxi firms for example – any area of purchasing interest to a small business owner,” says Harrington-Griffin.

Voucher model Once you select a deal you want to buy, you normally pay online and receive a voucher to redeem for your goods or service. But this can create problems for company accounting procedures, as Neil de Villiers, Managing Director of Blue Square Deals, points out. “Businesses of a reasonable size have a problem buying vouchers,” he says. “Vouchers are a consumer-based vehicle that simply doesn’t fit into standard accounting practices. Most companies require purchase orders, order confirmations, invoices, etc.”

This is why de Villiers decided to structure his group-buying site along a more traditional trading framework. However, he concedes that no matter what the type of purchasing method, the benefits still outweigh any potential accounting challenges. “Regardless of the method chosen, the simple fact that very significant discounts are now becoming readily available is a huge boost for the business community, especially in difficult economic times.”

Group-buying at a glanceTo take advantage of group-buying, you simply need to register with whatever site – or sites – take your fancy. You can then scan the deals on offer and some sites will also send you emails with ‘deals of the day’ or offers that the site considers most suitable for your business sector or particular area of interest. Sites with added extras include:

• smediscounts.com – national and regional deals plus an online small business advice centre. Their site says: “Our aim is to help small businesses improve their performance and reduce business costs.”

• huddlebuy.com – bills itself as offering “daily deals for entrepreneurs.” As well as discounted products and services, the site posts a regular blog with business tips – from marketing and web design to acquiring better negotiating skills.

• bluesquaredeals.co.uk – this site operates slightly differently, with offers limited by quantity rather than marketed as daily deals to ensure the supplier can manage to deliver to a high standard. It also offers subscribers a regular newsletter with marketing and sales advice and tips.

SearchWhere can I get discounted office furniture?


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Here's How We Can Help Your Business - Spring_Summer2012