After 3 months of COVID-19 and during this response phase to the attack, how have some of the finance packages the government put in place been responded to by businesses in the UK.  Apart from the premises business rate related grants and the job retention scheme, some of the other popular funding support schemes that businesses have responded positively to are:

1. Coronavirus Business Interruption Loan Scheme - CBILS
2. Bounce Back Loan - BBL
3. Self-Employment Income Support – SEIS
4. Future Fund and Innovation financial support  - £1.25b

 
Has this been a load of hype or have they been accessible real solutions. How have they done so far?

1. CBIL Scheme - Loan The overall approval rate for the CBIL Scheme remains at 50%. That means 50% failure rate so far.  Its also means that those that applied and were not able to access it may need other forms of support.  Don’t assume that failure means they are not viable businesses, absolutely not. The government needs to be thinking of other solutions for this large group of businesses as they have an impact on local economies and employment and if they run out of cash, they won’t be going down because they are not profitable or credible businesses, but because they have not had the right bridging finance to get them through this torrid time.

The average CBIL loan size has been £194,000 since the commencement of the Scheme. In more recent weeks after the initial rush, the volume of applications has reduced significantly.  This may be due to the bad press and the decline rate of this scheme. Nevertheless, the repayment terms and rates are extremely attractive and between 2.5% and 9.8% depending on individual business circumstances.

2. BBL  Scheme - Loan The average Bounce Back Loan amount remains at the £30k level – One cannot assume that every borrower is applying for the maximum 25% of turnover, however, the anecdotal evidence is that the scheme is helping the micro and SME market. Some sole traders have had problems, especially when they don’t have business accounts or if they do not bank with one of the approved providers.  Sterling and Tide have been a life saver for some micro and sole trader businesses, but others have not had such luck, even when producing all the required documents.

The 80% approval rate and the £20bn+ total lending via the scheme is a huge injection of capital into SMEs and should help with the local economies of where they are based.  It should also help with their long term sustainability. The interest and repayment terms are extremely attractive, that applying for it is nearly a no brainer.

3. SEIS Scheme - Grant This scheme has so far seen 2.3 million claims worth £6.8 billion since it opened for claiming in April. The scheme will be extended - with those eligible able to claim a second and final grant capped at £6,570.  Unlike the original claim of 80% of average monthly trading profits, this extended grant will be worth 70% of their average monthly trading profits, paid out in a single installment covering three months’ worth of profits and capped at £6,570 in total. This has been of immense importance to self-employed business people who have struggled over this tough time.

Individuals can continue to apply for the first SEIS grant until 13 July. Under this first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single installment covering three months’ worth of profits, and capped at £7,500 in total.  

4. Future Fund and Innovation – Grant and Loan This funding targets some of the most dynamic sectors of the UK economy – ranging from tech to life sciences. The government has committed an initial £250 million in funding towards the scheme, which will initially be open until the end of September 2020. The scale of the fund will be kept under review. The £750 million of targeted support for the most R&D intensive small and medium size firms will be available through Innovate UK’s grants and loan scheme. The Future Fund will provide convertible government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. There have been some challenges with the eligibility criteria for some tech companies as match funding is partly a requirement for some of the loan and also a minimum investment of £250k needs to have been made in the company in the last 5 years.

For more details on any of these click on any of the links above.
If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd in Romford on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses in east London and Essex.

You have probably been bombarded with information on the above measures that the Government has taken to support and protect businesses of all kinds against the impact of the COVID 19 virus in the UK. There is a lot of information going out to businesses and employees at the moment. The information isn't static but evolving daily.  I have received many calls and I understand your frustration and concerns. After several conversations with senior staff in Financial Institutions, Trade Body Associations and Funding Associations and reading subsequent follow up documents from the government, things are much clearer. The operational mechanisms for delivery and implementation are still being worked on in some cases.

As you now know, money will not come directly from the government to businesses.  It's a wholesale process and it’s the British Business Bank that will be liaising with selected banks.
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Key highlights however are:
1. The CBILS is being disbursed through the banks and even this is evolving with time
2. The schemes are taking time to set up HMRC and have said they will be ready for April 2020. However, banks are already taking loan applications through their EFG
3. Some of the information is changing rapidly
4. No matter how big or small you are the government is saying schemes will become available, ranging from Universal Credit for the Self Employed to Grants and Loans for SME's
5. Look at your insurance policy under the business interruption section to ensure that any business interruption by viruses is not covered already. The Government will not double fund what is already covered in your insurance.  Some policies have fixed diseases they will cover and some don’t
6. Government will pay 80% of the salaries of staff who are kept (where it can be proven that these staff were about to be let go by their employers due to the virus crisis) covering wages of up to £2,500 a month – Part of the Job Retention Scheme
7. Please note that GRANTS only relate to business rates and you will be contacted directly by the local authority and not vice versa if you are entitled to this
8. Relief for Statutory Sick Pay
9. Mortgage Holidays even for Buy to Let properties
10. IR35 tax reforms postponed for a year
11. VAT and income tax deferments
12. Reclaims for Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19.
13. Support for the Self Employed – Please click here for more details 
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For full details regarding CBILS, please click here
 
The key thing to note is grants are all rate related and will be dealt with by your local council. Loans will be through banks, mostly likely through the Enterprise Finance Guarantee (EFG) Scheme already in place, but with 80% government backed guarantees. Job retention will be through HMRC as they manage the payroll program and it is all linked to your reference numbers and UTR. Self Employment support will be through HMRC. Finance terms are from three months up to ten years for term loans and asset finance and up to three years for revolving facilities and invoice finance.

Facing Cash flow problems now, then please feel free to contact us and we will help broker and facilitate access at no cost to you.  We will also offer guidance around eligibility and possibilities for raising finance.
 
If you want some help for your company with regards to the above or you just want someone with the required knowledge and experience in business to guide you on other related matters, please connect with our business advisers at RBSS Consulting Ltd on 0333 355 1696 or direct on 07796 800 187 or drop us an email. We provide real business solutions for start-ups and existing micro and small businesses.

One of the prominent ways to prevent your business from being stagnant is to stand out from the competition. One of the most common questions business owners need to ask themselves is: ‘Is my business still relevant to the target market I have and am I presenting or packaging it in the best possible way taking in to account the resources available to me?'. One of the catch phrases in businesses today is; beyond expectations or exceeding expectations. The way to achieve the above, would be to look at your business from a constructively critical view. The following 5 tips can help you revive your business:

1. Re-evaluate your market
2. Check your customer acquisition methods
3. Review your business plan
4. Review Your website
5. Review your brand and marketing collateral

 
1. Re-evaluate the market to see your relevance and offer
Experienced, successful business owners and consultants will recommend that at the start of your business you focus on a niche or at least a very clear market. Once you gain traction, you can expand your product and/or service offerings and market share. For existing businesses on the other hand, depending on if it’s a product or service, you will have real time data to use to evaluate the market place.  What lines are moving and what isn’t.  Why they are or not moving. Is demand low due to visibility of the product or service or in actual fact the market has moved on to other products or services that you don’t provide or offer. There is benchmarking software or services you can buy into to compare your performance and marketing with others in the market. Staying relevant may require looking at your whole business model and reviewing it.  Our business consultants will help you with a Business Health Check to address some of the above matters.  This will identify specific key drivers in your business.
 
2. Check your customer acquisition methods 
Many businesses are mostly particular about reaching their target.  Such as; sales, services, expansion, acquiring more customers and retaining old ones etc. However, how you acquired your customers in the first place is very important as it gives you the opportunity to utilise your strengths and rectify your weaknesses. If you sell from a store on the high street, do you also need to consider online sales too and which social media platforms would be relevant to your business? Better to do your homework rather than just base it on trial and error. Is the stagnation because even though you are getting new customers, you are also losing existing ones? This could be the reason, so you have to look at balancing getting new customers whilst retaining existing ones. The use of customer evaluation, feedback analysis, user groups set up, etc could be a way forward in this area. Don’t get lost in believing your own hype.
 
3. Reviewing your business plan
Business Modelling and Planning is sometimes seen as old school and rigid. However, this doesn’t have to be the case. It is necessary to serve as a guide, such as keeping on track, identifying a new marketing strategy, planning a customer acquisition campaign, identifying and achieving your business strategies to generate overall success. However, your business plan should be tweaked every now and then strategically to align with customers/clients needs, change in the economy, new business ideas or even getting a business loan which would have to be incorporated into the business plan. No business plan can afford to be rigid, otherwise it becomes obsolete.

Your business model is not a mathematical calculation, it simply describes the rationale of how your business creates, captures and delivers value. Our professional and experienced consultants will work with you on the building blocks to get both your business plan and model right from the start.

4. Reviewing Your website
The excitement of a website seems to waver ever so often. Websites are left to gather dust. People sometimes move from their website to apps, to other social media platforms at the expense of the site.  Website are still very relevant in most businesses and play their crucial part alongside the other online strategies.  The reality is that your website is your storefront. Whether you are selling a product or delivering a service. It is the first thing a potential customer or client sees when they first view your website. First impressions are very crucial at this stage as it can determine if a customer or client stays engaged and continues to be interested in what you have to offer and therefore honour your ‘call to action’ or bounce off straight away onto another competing website. Apart from stepping back to look at your website from the view of a customer/client trying to purchase or look for information, get colleagues, friends and family to do the same. However, this can be very tricky as they may not want to hurt your feelings and therefore give you positive feedback (or even negative feedback in extreme cases, particularly if they do not support your business). You are therefore often better off consulting an independent consultant. As a website or ecommerce expert would also have so much more to give by telling you if your website needs a whole new face over or a few tweaks here and there. Furthermore, one of the leading web design trends for 2019 according to Amber Leigh Turner of Design & Development was; removing non-essential design elements in favor of simplicity. This continues to be the trend. Customers/clients want websites they can easily scan as opposed to just good looking websites.

5. Review your brand. What does your brand say about you?
You, members of staff and of course your website, apps, and social media platforms ‘wear your brand on their sleeve’ so to speak. When people see or meet you, they form an impression of your brand before you get to sell it. If you impress that person, they would like to know more. Therefore, if you are a representative of a company (which doesn’t sell tracksuits) and you turn up at a business event in a tracksuit, there is the likelihood you will not be taken seriously and therefore could lose important business contacts. There is a lot to discuss on branding as part of your marketing strategy, and many little cost effective things you could do that have a real impact in reviving your business.

At RBSS we have real life case studies of turning business performance around and helping them improve profitability and achieve business goals. If you feel your business is becoming or is already stagnant or you may need advice or support in any of the above tips or other business areas such as help to raise finance, start up loans or grow your business etc. You may even just want to bounce ideas off our business advisors, we offer the first consultancy free, so please feel free to connect with our business advisors at RBSS Consulting Ltd on 0333 355 1696 or drop us an email at info@rbssconsulting.com. We provide real business solutions for start-ups and existing micro and small businesses.

There are numerous tips on how to succeed in business for start-ups. However this is practical advice for real results from feedback from businesses we have worked with and ours:
1. Business planning
2. Test Marketing
3. Right Finance

Business planning
1. A good way to kick start this guide is to state the obvious. Most successful Entrepreneurs who don’t start with a Business Plans do one early on into the start of their business – That’s because they realise it’s a good idea. In fact, businesses always start with a business plan, but maybe just not in the way of a formal one. A Business Plan is a document setting out a business's future operational, marketing and financial objectives and strategies for achieving them. Benjamin Franklin supposedly said, “If you fail to plan, you are planning to fail.” A business plan doesn’t guarantee success, but aids it. On the other hand Winston Churchill also said “Those who fail to learn from the past are doomed to repeat it”.

From our experience, it appears many people seem to think that setting up a business has more to do with talent and experience than planning. However, keeping your business plan alive is what we say is mandatory. There is no use doing one and then filing it away, just to tick that box. It’s a live document. The business plan serves as a guide for keeping the business on the right track. It also lays bare ideas and opportunities you may not have previously thought of. However, you should not be rigid with the Business Plan.  It can be altered to align with changes within the company or economy itself. It serves as a roadmap to success. You can have a 1 year or up to 3 year business plan.  In fast moving industries, looking beyond a year is irrelevant. It’s advisable to renew your plan at least every 3 years. That way you incorporate new ideas and do away with the old before they become obsolete. 

It is the desire for every business owner to obtain substantial business growth. Actually, that’s not true. Some businesses were simply set up to fund a lifestyle or to remain small.  Not everyone wants a medium or large size company. However every business owner needs growth in their business. If the business is not growing, it’s shrinking. There is nothing like a stand still. If it’s standing still, it’s like holding your breath. You can’t do that for too long. The inevitable will happen. Every single detail related to the business is of importance. However, in this short blog, I will be touching on 5 key drivers for company growth and management. They are: 

1. People
2. Marketing
3. Finance
4. Systems and 
5. Operations

1. People relates to a productive working person or team. Without someone/people to run the business and people to purchase the products/services, it wouldn’t exist! According to OPOWER CEO and co-founder Dan Yates, the secret formula to small business success is hiring the right people. However, this area can be very difficult to manage especially if the employees/partners views or interest is not aligned with the business. This will interfere with the systems which is the efficiency measure to drive profits and the ultimate goal of any profit making business. What are the key performance indicators for your people? Do you train them or if you are a micro business, do you undergo training yourself.

2. The importance of marketing which does cover a very wide area relates to gaining new customers. It is one area that is often talked about, but not worked on effectively, sometimes due to time or investments required. Effective sales and marketing lies at the heart of any successful business growth and helps to achieve business goals. Your system of marketing will very much depend on your products / services and your target market. Some businesses feel they don’t need a target market. In this day and age, for any business to expand and grow, it needs to have a system of marketing which is geared towards its market. Unlike in ‘the good old days’, there’s no such thing as marketing for all, especially with social media platforms such as Facebook, Twitter, LinkedIn etc. An intelligent investment in marketing will ensure stability and growth, if combined with strong customer retention. This will therefore help in making your business sustainable and therefore also compete effectively. Our Business Consultants at RBSS will help ensure your marketing goals (or help you put them together) align with the business goals.

3. Finance is one of the most challenging aspects of any business especially new businesses and start-ups in relation to profitable working. Profit generation is the root function of any worthwhile business as it acts as a source of income, enables reinvestment for the business, acts as a buffer against setbacks and creates wealth for the owners and other stakeholders. The truth of the matter is that, whether you are a start-up business or an existing business that wants to grow the company to the next level, you may need some form of cash injection to help you on your way, alongside the right plan. But asking for money isn’t often simple. Any funder, be it a business loan, equity finance or any other kind of finance will want to see a business plan and financial projections, to help them decide if investing in your idea is going to be a profitable one, or not. The business advisors at RBSS Consulting in Romford, Essex, help companies of all sizes get finance ready.

4. Systems which is also known as efficient working is what keeps your company together, helps it grow and improve profitability. Our Business Valuation, Performance and Health Check Service is designed to help you achieve the performance and value what you would like to see happen by addressing the above key drivers. This key driver can easily be overlooked especially when the business is up and running smoothly and making a profit. However, it is vital as it expresses how effectively time, money and effort are being utilised. This, is very much the case when managed effectively as it aids a business to improve profitability. At RBSS Consulting we use an artificial intelligence business dashboard run by Runagood, an online software used for measuring company metrics to drive performance and value and benchmarks your company within your industry. As a business grows, the ability of the owner/manager to remember, watch, manage and make good decisions deteriorates unless they have the right systems in place. It does become more demanding to monitor the various systems in place and deciding how to move these systems forward. We can help with that.

5. Operations may sound overwhelming for some. However, it relates to retaining customers and is certainly at the heart of any sustainable business. I’ll refer to Operations as the ‘heartbeat of the business. NOT to be overlooked! It keeps the business ticking as it is the backbone of retaining your current customers or clients with the most efficient form of marketing. A smooth operation leads to smoother growth. If your clients or customers are happy, you will be their first go-to and they will be more than happy to recommend you without realizing they are actually marketing for you for FREE! However, there needs to be a stable balance between maintaining new customers (via marketing) and retaining current customers (via operations). To gain further insight into this area, have a look at our quick guide on how to develop your business performance strategies.

If you require further insight into these key areas to help your company grow or you just want someone with the required knowledge and experience in this area or any other area of marketing to bounce ideas off of, please feel free to connect with our business advisors at RBSS Consulting Ltd on 0333 355 1696 or drop us am email at info@rbssconsulting.com. We provide real business solutions for startups and existing micro and small businesses.

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