Monthly Archives: July 2020

A quarter of entrepreneurs don’t use social media for their small business

Originally written by Anna Jordan on Small Business
New research reveals that 25 per cent of entrepreneurs don’t use social media for their small business despite the benefits that it can bring.
The UK Domain study shows some surprising results from the 500 business owners it surveyed. Out of all the users that took part, 24 per cent don’t think it’s relevant to their industry, with 23 per cent saying they don’t know how to use it to promote their business or they don’t have time for it.
A smaller 15 per cent say that they have enough customers already and 15 per cent have other reasons for not using social media.
For those that do, Facebook remains the most widely used social media platform (27 per cent), surviving recent controversies over data. The visually powerful Instagram comes in second place (25 per cent) while social media veteran Twitter takes a respectable third (though it has around half as many users as Facebook at 14 per cent).

 
Small business owners use social media for a variety of functions. Chief among them is raising brand awareness (29 per cent), increasing customer engagement (26 per cent) and generating sales (20 per cent). Social media platforms are also

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Top 7 turnaround tips to save your small business from going under

Originally written by Steve Swayne on Small Business
On average some 300 plus companies fail every week in the UK, with multiple effects: employees lose their livelihoods, customers lose access to services, suppliers, creditors and shareholders all lose money.
Not every company can be turned around, but there are many stressed businesses that, with professional time-limited expertise, can reverse their decline and prosper. The COVID-19 pandemic has created unprecedented and complex challenges for businesses and in the short to medium term we are likely to see even highly competent management teams stressed and challenged.
Just over a month into lockdown, we published a societal impact report that conservatively estimated that our turnaround expert members saved more than 200,000 jobs and protected £2bn in enterprise value in the previous year. The report also looked at the key steps in achieving an effective turnaround and the specific challenges for SMEs.
Although for SMEs a typical turnaround is between three and 18 months, a longer period of two to two-and-a-half years is required. The first period is about stabilisation, understanding what has gone wrong and resetting the direction. The second 12 months is about building on change and preparing for growth.
With a turnaround approach, this unprecedented situation

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City grandees call for small business Covid debt to be turned into tax owing

Originally written by Timothy Adler on Small Business
The Government should convert the projected £35bn of bad debt from small business owners who have taken out Covid loans into tax owing.
Converting the bad debt into tax that could be repaid over years to HMRC would free up cash better spent on investment and saving 3m jobs.
So say over 250 financial experts led by Aviva chairman Sir Adrian Montague in the long-awaited report from TheCityUK.
TheCityUK Recapitalisation Group calls for the Government to back a “UK Recovery Corporation”, which would manage £35bn of unsustainable debt already Government guaranteed.
>See also: Government should triple equity to invest in businesses to £30bn
Over time, private investors could invest in the UK Recovery Corporation, encouraging the public to back SMEs in Britain, something chancellor Rishi Sunak is keen on.
Depending on how much money they owe, small businesses could either go into a “Business Repayment Plan” to convert unmanageable loans into means-test tax liabilities, or, for larger debts, use “Business Recovery Capital” to convert COVID-19 crisis loans into preference shares or long-term subordinated debt.
Both solutions mean small businesses will not have to give up any equity in their businesses.
>See also: Bim Afolami calls for £15bn Recovery Fund for scale-ups
Business

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