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Government introduces Consumer Rights Act, as it seeks to simplify and modernise UK consumer law

Posted by Wellden User

Small and medium-sized enterprises (SMEs) are being made aware that the law has changed for consumers and it now covers new areas.

Introduced on 1 October 2015, the Consumer Rights Act 2015 seeks to simplify and modernise UK consumer law. The act replaces three major pieces of consumer legislation; the Sale of Goods Act 1979, Unfair Terms in Consumer Contracts Regulations 1999 and the Supply of Goods and Services Act 1982.

Importantly, this is the first time that consumer rights relating to digital content have been clearly set out in the UK. It means that if a digital product such as a game or music file is faulty, not as described or not of satisfactory quality, consumers are entitled to a refund, repair or a replacement. However, if that repair or replacement is impossible or if not done within a reasonable time, then consumers can ask for a price reduction, which can be up to 100 per cent of the cost of the digital content. Consumers will also be entitled to a remedy if any device or other digital content is damaged as a result of the digital content that has been downloaded.

Furthermore, the Consumer Rights Act 2015 introduces a specific period of 30 days for consumers to reject a faulty item and obtain a full refund. The period is shorter for perishable goods where the timeframe will be determined by how long it is reasonable to have expected the goods to last.

There is also a ‘tiered’ remedy system for faulty goods, digital content and services, as well as a focus on unfair conditions in consumer contracts. This will mean that the key terms of a contract, including charges, may be assessed for fairness. Furthermore, the Consumer Rights Act 2015 states that if a retailer provides pre-contract information in relation to a service and the consumer takes this information into account, the service must comply with that information.

For information and advice on how to run your business please contact us today.

Top Tips for Starting a Business: How to link your Personal goals with your Business Plan

Posted by Wellden User

It often amazes me how many Small and Medium Size Enterprises (SME’s) there are in the UK that do not have a Business Plan. According to even the most conservative of estimates, over one million MD/Business Owners don’t have a plan for their business. Are you one of them?

This raises numerous questions…

How can success be gauged accurately? How do you know what direction your business should be heading in without a plan? How can you plan for contingencies if you don’t have a plan in the first place? Let alone not being able to measure your businesses progress on a regular basis.

I think there is another reason that SME owners of small medium do not have clearly thought out business plan. It’s a lack of vision, or perhaps the loss of passion that was there when they started the business originally. Surely your business venture should be the vehicle by which you, the business owner, can achieve your personal goals, thus creating a better life for yourself and those dearest to you?

However too many of the classic business plan templates (usually handed out by banks) fail to link the aspirations of the person running the business, with the objectives of the enterprise concerned. How can the owner of a business be fully engaged with the targets of the business if there is not a direct link to the personal goals that are most important to the business owner? This disconnect is a fundamental flaw in the majority of SME Business Plans as there is often little emotional engagement with the cold hard business goals.

Here’s how to address this issue…

Whether you are starting a business, or planning ahead for your existing business, before putting ‘pen to paper’, ignore the goals of the business (for the moment at least). Your first points of reference for the business plan are your own personal goals and objectives. Time needs to be spent working out exactly what you wish to achieve in the most important areas of your life over a given time period.

These personal goals should be written down, stated in positive language and follow a model like S.M.A.R.T (Specific, Measurable, Agreed, Realistic and Timed) or something similar. There are more detailed goal setting tools, but this method is a start. Once your personal goals are clear, and written down, only then should the Business Plan be drafted.

The key is to ensure that each personal goal has a corresponding goal in the business plan. Personal and business financial goals are easy to link together and therefore easy to measure. For other personal goals you may find it more difficult to make a direct connection between these and business targets. However if you spend time giving these more thought, then a bridge can be built between what you which to achieve in your personal life with the goals you want your business to achieve.

Here’s an example…..

MD/Owners often work long hours, therefore not having enough time for their personal life. I have lost count of the number of business owners who simply don’t get the opportunity of spending more time with their loved ones. When they do manage to spend valuable time with the family it is often interrupted by business communications via the latest mobile device.

One of your personal goals could therefore be to spend five more hours per week with your family and friends, without interruptions from the business. To free up this time, certain business tasks may have to be delegated. The easiest way would be for you, the business owner, to write out simple easy to follows processes for tasks that only you carry out. The business goal in the business plan would therefore be to ensure that written processes are in place to enable you the business owner to delegate. This in turn frees up more time for you to work ‘on the business, not in it’ and to spend more of your time away from the business.

On other words Personal Goal = More time with the family = Business Goal – write down processes to enable me to delegate tasks

In summary, if you don’t have a business plan then write one, but only if it has a direct links to those goals you wish to achieve in your personal life.

For advice on how to manage your business more efficently and effectively, plesase contact us today.

Growth top of the agenda for SMEs

Posted by Wellden User

According to research from Close Brothers Asset Finance, growing a business is top of the agenda for 34 per cent of SMEs.

The quarterly survey of UK SME owners and senior management from a range of sectors also revealed that more than half of firms have already experienced growth in the last 12 months, while a further 37 per cent expect their business to expand during the next year.

The results also highlighted that a significant number of firms are planning to recruit, with 43 per cent hoping to take on new staff within the next year.

Simon added: “Naturally, firms need to expand their team as they grow organically but the challenge often lies in how they manage this growth. It’s important that firms seek professional advice to help with obtaining funding.

“I would urge any business owners looking at expanding to ensure that they assess their plans and evaluate all of the financial options available to help them find an appropriate solution to fit their needs. At Wellden Turnbull my team and I can assist with a range of issues affecting SMEs and we can also handle the payroll. This allows SME owners to get back to doing what they do best; running their business and growing their enterprise.”

If you would like more information and advice about how to grow your business, please contact us today.

Growing opportunities for SMEs to secure public sector contracts

Posted by Wellden User

The Government has announced that it is aiming to increase its spending with small and medium-size enterprises (SMEs) to a third by 2020, and we are encouraging all our businesses clients to get involved.

The most recent public expenditure figures show that from 2013 to 2014, the government spent £11.4 billion of its budget with SMEs – equivalent to 26 per cent of its total spend during that period.

This taken into context with its new target of 33 per cent by 2020 would mean that an extra £3 billion per year will be spent with SMEs, either directly or through the supply chain.

 

Invoice financing for SMEs

Posted by Wellden User

There has been a lot of publicity recently on the availability of finance for small to medium sized enterprises (SMEs), particularly focusing on traditional bank loans or equity investments.

However, there are other forms of business funding which should also be considered as an alternative source of money for firms.

Invoice finance is a solution that is being increasingly used by companies to deal with late payments whilst also improving cashflow. This is where a finance provider pays an agreed proportion (usually 80-85 per cent) of approved invoices to the company on receipt of a copy of the invoice. The balance (minus a small charge) is paid upon client payment.

Andrew Brown, Associate Director said: “With the economy growing, there has been a surge in demand for working capital in the SME sector that has created lots of opportunities for more invoice financing. Despite this, its current use is relatively low compared to ‘traditional’ sources of lending. In fact, only around 43,000 SMEs out of a total of nearly five million in the UK are currently using invoice finance.

“Whilst invoice financing is available from the banks and independent providers, one of the major problems is that there is a general lack of awareness by SMEs of the advantages of utilising this source of funding.”

For more information on what finance options are available for your business, please contact us today.

Businesses need to prepare for changes to company law

Posted by Wellden User

New changes  to company legislation have recently been announced, which  will require businesses to register individuals with ‘significant control’ over the company.

Under proposals, laid down in the Small Business, Enterprise and Employment Act 2015, all businesses that are not subject to specified separate disclosure requirements must create and maintain a register containing details of any person with ‘significant control’.

A person with significant control is loosely defined as a person who directly or indirectly holds more than 25 per cent of the shares or voting rights in the company.

It also includes any person who directly or indirectly has the power to appoint or remove the majority of the board of directors of the company or otherwise has the right to exercise or actually exercises ‘significant influence’ or ‘control’ over the company.

Any person who has the right to exercise or actually exercises significant influence or control over a trust or firm (such as a partnership) that is not a legal entity, which in turn satisfies any of the first four conditions over the company, is also considered a person with significant control under the legislation.

The new Person with Significant Control (PSC) Register must be available for inspection and up to date information must also be provided to Companies House at least once per year.

For confidential advice on managing your business, please contact us today.

A growing number of SME’s to be affected by Auto-Enrolment

Posted by Wellden User

Recent data from The Pensions Regulator has revealed that approximately half a million more businesses will have to enrol than previously anticipated and will face higher employment bills as they set-up their pensions.

Apparently, around 1.8m small and micro employers will need to meet their pension duties over the next three years, compared to the previous estimate of 1.3m. Under the new regulations, employers must contribute at least one per cent of eligible employees’ qualifying earnings, rising to two per cent in October 2017 and then three per cent a year after that. However, these contributions are not subject to National Insurance (NI) and they can be offset against business profits for tax purposes.

In addition to the employer’s contribution employee’s will also be required to make contributions which many employee’s see as an extra deduction being made by their employer and it is essential that businesses communicate clearly and at an early stage with their employees to avoid any negative feelings.

But as well as the financial implications this will have for SMEs, businesses could be hit with further costs if they fail to comply with their duties as an employer. If a scheme has not been established by its staging date, the cost could escalate, with fixed penalty fines ranging from £50 to £2,500 a day.

Jane Watford, Payroll Manager said: “It is important to remember that the contributions must be paid into your scheme at each pay reference date. I would therefore advise SME owners to calculate how much they are likely to have to pay in contributions at each date, and set their budget accordingly.

“We can help by providing payroll services as well as sound financial advice for SMEs. Receiving help can reduce the cost of auto-enrolment for your business by ensuring that you’re compliant and avoid financial penalties,” concluded Jane.

Contact us today to discuss setting-up auto enrolment for your business.