UK Business Advice and Assistance

The new UK Government 2010 has a lot of work to do. The financial meltdown, and the ensuing Global economic crisis has only been averted by massive Quantitative Easing, by all the major world economies, especially in the UK.

Whilst I am in little doubt that such drastic intervention was probably necessary, it has the effect of moving UK Tax Revenues to pole position in UK Government priorities. This brings me to the key point of the article:  Are you aware or did you realise that Tax Payers in the UK Home Counties (see list below) pay significantly MORE TAX than other parts of the UK, according to recent research by Accountancy firm UHY Hacker Young (Tax Map).

1. Buckinghamshire, 2. Essex, 3. Hertfordshire, 4. Berkshire, 5. Middlesex, 6. Kent, 7. Surrey, 8. Sussex (East), 9. Sussex (West).

All the more reason for business owners to get in contact with their Business Accountant, if they haven’t got a good one then they should use a free online service like Accountant Now to find one, and ask them for business advice and assistance regarding their tax liabilities. There may be opportunities in their business to be more tax efficient. Good accountants constantly keep up to date and invest substantially in tax research to keep their clients one step ahead of the UK Treasury, who does not always have Uk entrepreneurs and their best interests at heart. Yet it is the the UK Government who often look to UK Entrepreneurs to spearhead growth.

When is the UK going to make a sincere attempt to bridge the gap between the Europe, the US and the Far East.

Japan has long been the leader in world productivity per worker output. In the 1990’s research showed that prior to 2000, for measurement sake, if Japan = 100% then the US & Germany, France, Northern Italy = 66% and the UK a lowly 40%.

The UK worker has a global reputation of wanting more benefits for less input, and complaining in every case.

Those of us in the UK who are passionate about our country and our productivity potential need to take some action. Nothing much as changed since the DTI reported in 1997

…too little investment in physical capital and research and development as well as low-skilled human capital, for the UK’s poor productivity. “For every hundred pounds (100) per worker invested in the UK between 1983 and 1993, Germany and the US invested nearly pounds 140, France almost pounds 150 and Japan over pounds 160.”

The US derived a substantial increase in productivity via modernisation and use of computers, sharing of information and general “can do-will do” attitude.

The level of investment has long been a key indicator of management intent, vision and courage.

Since the recession the UK Government has shown willingness, taken action and started to invest heavily in the UK SME infrastructure. Unfortunately it has borrowed heavily to do this as a last desperate measure. It would have been nice to have made financially supporting (investing in) small and medium sized UK enterprises on a steady continuous basis policy when times were good. One problem is that good times never seem good. We all get too used to them too quickly, forgetting the more difficult hard times, never thinking that they might return. Sir John Templeton, one of the world’s greatest investors of all time, says that most economies have 2 bear markets (recessional ‘dips’) every 12 years, though one never knows when they are going to start or when they are going to end.

What can one do if as a SME busines owner one desires to achieve Japanese, or US productivity in their business. As Robert craven the UK Entrepreneur guru will advise you “you can’t do it on your own”, you need advice but from whom? One’s business bank, one’s solicitor or accountant? Where do Uk Business Owners and Seniro managers start their search for the best business support? Every business manager today regualrly uses the internet for supplementary business information, and a serrvice like Business Support Finder can assist in locating the right type of professional management consultant.

One of Stephen Covey’s latest business guru offerings ‘The 8th Habit’ is a good read, and can be bought low cost on Amazon. Dr Covey is trying to inspire us to find our voice – the voice of influence, voice of trustworthiness, voice of trust, and all as ‘One Voice’ of shared vision, values, and strategy.

He suggests the challenge for leadership is to help others find their voice. What works very well is the accompaniment of some videos with the DVD provided. Don’t worry if you purchase a second hand copy which comes without the DVD, because you can see all the videos from Dr Stephen Covey’s website. You will need to register as a member of Stephen Covey’s community.

Among these videos is an excellent video entitled, “Max & Max” which highlights the ‘drone grooming’ of many organisations, stifling creativity and making sure everyone loses their voice. This is well worth a view for this message alone.

The real question is how can one change an organisation (skill: organisational change). Best way is to enlist outside help is in the form of employing  an independent business adviser . The challenge is where can one locate a professional business consultant who has the appropriate experience, honesty, transparency, and produces quality work and results? To maintain in-house would be too expensive for any but the largest organisations, and organisational change is ‘out of the box’ work which at best the in-house manager can contribute to the overview.

Business Support Finder launch in the UK in 2009 is precisely to meet this demand and need of UK SME business owners. The challenge is to build up relational trust between the service and the consumer (business owners/senior managers).  Managament consultants and business advisers can greatly benefit UK SMEs in a number of ways, from improvements in managing performance to assisting with taking the organisation to market in a public floatation.

UK Car Dealerships appear to be benefitting from UK Car Scrappage Scheme. Accoring to the BBC Business 10,000 new cars a week have been bought under the Govt’s car scrappage scheme. It reckons that the money will only last till October.

The cheapest cars are the ‘micro’s, without air conditioning, and other features considered ‘basics’ for most consumers in the 2000’s. Prices starting at £4,200…but the average deal more like £6,500 and for a car with a little mopre space make that £8,500…
How many UK 10+ year old vehicle owners will be tempted to upgrade to new?

The Government says the scheme covers 300,000 vehicles – ambitious?

Would this not have been better staggered in favour UK based car manufacturing (Ford, Vauxhall, Nissan, Honda, Toyota)?

Julian Rowe, Automotive Sector Business Correspondent, Business Service Finder

But have they thought this through. Clearly any claim of

British Jobs for British workers

does not apply (playing around with market forces is always unpredictable and wholly unsustainable). However UK based Car Manufacturers, like Nissan UK, Honda UK and Toyota UK- who have invested greatly in the UK economy and workforce have not received any special benefits.

Hyundai appears to have seen a sharp rise in sales. So UK owned Hyundai car dealerships are benefitting, and that is good. [see article on Uk Car Dealerships seemed to be benefitting....]

Julian Rowe, Business Correspondent, Business Service Finder

US President Barack Obama is doing fantastic work re-building, or possibly even creating for the first time, a relationship globally with nations, and restoring or enhancing US international reputation.

At  the same time President Obama has been delivering measureable results in shifting and moving opinion for positive change on the homefront in the US.

 I am asking you to believe (says Barack Obama)

is reminiscent of the courageous Afro-American visionary Martin Luther King and his

I have a dream (Martin Luther King)

Washington speech of 63.

Based in the UK, I am monitoring the impact in Britain (UK Treasury) and more importantly reaction around the world. The positive impact has been felt in Iran, as well as much of the Middle East and the recent warming of Israeli-Palestine relations.
President Obama has been also speaking out against and at the same time encouraging reconciliation and reform of the major players in the US economy (especially amongst the PowerCrats - the US financial institutions and US global corporations). Time will tell if his endeavours will produce the fruits of his labour, but the signs are promising and it is lifting business sentiment globally.

Julian Rowe, Business Correspondence, Business Service Finder.

For more business news try BBC Business News

Let’s start with Big Brother….
With many thanks to the (US) Treasury Direct site for the up-to-date financial information and recent article

The (US) Debt to the Penny and Who Holds It (17 JUN 09).

The US national debt stands at US$ 17 TRILLION DOLLARS

Current Debt Held by the Public:

US$ 7,133,486,161,909 (US$7 Trillion for short)

Intragovernmental Holdings:

US$ 4,269,284,066,164.82

Total Public Debt Outstanding:

US$ 11,402,770,228,073.98 (US$11.4 TRILLION)

In contrast

UK PUBLIC DEBT.
The uk national debt jumped to £744bn, or 51% of GDP.

Excluding the bailouts, however, the national debt was at a more respectable 42% of GDP.

British politics will be shaped by public debt (says Martin Kettle, www.Guardian.co.uk  22-Apr-09

Alistair Darling’s fiscal plans indicate the 2010 general election will focus on UK’s debt mountain

Public finances continue to deteriorate at an alarming rate, (said Andrew Goodwin, Economic advisor).

A straight comparison is approximately $1 trillion debt for UK

and for the US is $11 trillion debt.
US Population 303m (5 times larger than UK).
UK Population 61m

Yet US better able to support and sustain the debt.

The United States is at risk of losing its triple-A credit rating unless it starts putting its finances in order (says Former Fiscal Head reports Financial Times).

Darling, British Chancellor, is being urged to take more action to bolster the Government finances, in face of threat to downgrade UK creditworthiness with UK public borrowing at record levels. Standard & Poor revised its outlook for Britain’s debt rating to NEGATIVE from Stable.

This will mean a massive hike in the cost of borrowing. Darling appears to be blind to this fact. Can the UK afford it? The US is unlikely to lose their rating, despite threats.

Impact on UK business?

If you as a busines sowners do not have good advisers, then now is the time to get them. Do not wait till the gloom turns to doom. The UK will have 2 more years of maounting unemployment, mushrooming to over 3m. Can the UK Govt. afford it and can it manage this crisis?

For hardened busiess support professionals, try Business Service Finder’s new free online resource  for SME owners and senior management.

Julian Rowe-Business Correspondent-Business Service Finder
Dr Stephen Covey, author of the best seller 7 Habits of Highly Effective People in an interview with Anthony Robbins, explains that after 20 years of working with corporations it became clear to him that private victories always preceded public victories.
All entrepreneurs and most small and medium sized enterprise owners seek public victories either personally or for their businesses. Dr Covey sees courage and compassion as a power and key attributes of character of a successful person in business describing it as “the essence of interdependency in the world”.
Covey asked the fundamental question, “What would help produce this private victory?”.

His answer was “take responsibility for one’s own life”. Sounds simple doesn’t it? It is amazing however how few people really succeed in achieving this fully. I know how much I have struggled to do this. Isn’t this why so many people use food, entertainment, extra martial affairs, alcohol or not to develop their career to escape the stress and pressures in business life?
Taking responsibility for one’s own life (and one’s dependents) is Dr Covey’s Habit 1.
HABIT 1: Personal Vision – BE PROACTIVE (ABILITY TO CHOOSE ONE’S RESPONSE, based on values, not on emotions.)
What is one’s life about – is Habit 2.
HABIT 2: Personal Leadership – ‘Begin with the end in mind’.
To live by it – is Habit 3.
HABIT 3: Personal Management – ‘Put first things first’.
These 3 fundamental ideas provide the foundation of a private victory. Dr Covery describes these attributes of character.
This is Covery’s continuum from dependence, through independence to interdependence.
Dependence: you take care of me, or I blame you for these results, need others to get what they want.
Interdependence: I can do it, self confidence, self-reliance, “we” can accomplish it, requires their own efforts and others to achieve what they want.
What is the public victory?
Regard other people with great respect and dignity, and treat them accordingly.
How does one solve problems? One LISTENS to others first, before seeking to be listened to.
Try synergy, to create something better than anything proposed previously.
These 3 ideas are the essence of the Public Victory or ‘interdependence’ which is what Dr Covey describes as (interdependency) “the essence of what life is”. So habits 4, 5, & 6 are habits of personality – outward habits.
Finally Dr. Covey concludes that the final Habit (7) is ‘Sharpening the saw’. To maintain a level of alertness and personal performance (to be effective with other people).
In these times of economic turmoil it is a timely reminder of what matters most, and to avoid getting caught up or ensnared in what matter least.

Julian Rowe – Business Correspondent – Business Service Finder
Be sure not to forget to renew your business professional insurance despite lower consultancy earnings and fewer business clients wishing to investment in performance improvements and business growth.

It may be tempting not to renew till one secures a large contract. Worse still one loses confidence, or focus, and the professional indemnity policy expires.

This exposes the professional to undue risk, and in a worse-case-scenario might mean that the consultant would lose everything he owns (house, assets, even possible his pension etc) in a case of unsuccessful defence of a damages claims by an ex-client. Another description for this kind of circumstance is moral hazard, which can be found in Wikipedia, with specific reference to principal-agent situations which is not dissimilar to that of a consultant and client.

What kind of business consultants and business support professionals are more at risk and more vulnerable to litigation? I am not trying to answer specifically, but if we examine some customer segments we might say that certain sectors could be marked with a ‘higher risk rating’:

Start-ups and

Small businesses (borderline profitability),

Small and medium sized enterprises (SME) with inexperienced or weak management.

Recovery situations – i.e. SMEs in heavy debt

SMEs already in litigation

So business management consultants and business start-up advisers are probably more vulnerable categories of business support professionals.

Whatever category of professional business insurance you are concerned with, the message is the same, i.e. not to cut corners especially when the economy is in turmoil.

Get key people around you. Be a good motivator of people. Lots of guts and determination. Look for a gap in the market.

Where do you find good people? One idea is to try them out first, and another is don’t pay them 12 months of the year, but say 2 days a month, or 1 day a week. What kind of person can do this? The answer is a business support professional, who has a specialism in one of your business’ weak areas, e.g. ecommerce – a ecommerce business consultant.
Richard Branson recommends his book: “Let’s do it“.
Branson adds that training at universities, like at Derby, is excellent, and people skills are the most important quality in business success.
Most businesses don’t succeed.If it doesn’t succeed, learn to pick yourself up. Success gives you freedom, but also greater responsibility. Use the wealth constructively.