Posts Tagged 'coaching for growth'

the Trend of Re-Shoring British Manufacturing

I am grateful to Emma Heath of GrowthAccelerator for this powerful evocation of British manufacturing capability. Go to http://bit.ly/1nuwQ7W to read her original blog post.

For many years the low costs associated with manufacturing in the Far East and Eastern Europe have tempted many British manufacturers to move their processes abroad, something that is known as ‘offshoring’. However we are now seeing a trend known as ‘reshoring’ develop, whereby manufacturers are bringing their production back to the UK. Latest statistics from the Manufacturing Advisory Service (MAS) Barometer show that last year 11 per cent of England’s manufacturing SMEs brought production back to the UK, compared to just 4 per cent that offshored.

MAS_reshoring

Many businesses are now realising that whilst the ‘landing’ price of offshoring may appear attractive initially, once factors such as delays in logistics and issues around quality are taken into consideration, an entire layer of hidden costs may become visible. The MAS Barometer revealed that these areas are the main focus for those firms looking to move production, with 26 per cent citing a reduction in cost as their main driver, whilst 20 per cent cited improved quality and 18 per cent shorter lead times. These factors, combined with the increasing labour and shipping costs in developing economies, are leading firms to realise the growing benefits of manufacturing in the UK.

MAS_barometer-one
The benefits can also be seen in the UK’s wider economy, with the possibility of reshoring leading to the creation of more jobs and driving economic growth. For those firms who have brought their manufacturing process back to the UK in the past twelve months, 68 per cent have reported an increase in sales.

Speaking at the World Economic Forum in Davos last week, Prime Minister David Cameron shared his ambition for the UK to become a ‘re-shore’ nation, and announced that the expertise of UK Trade and Investment and MAS would be brought together to create ‘Reshore UK’. The purpose of this new service will be to provide tailored support for businesses that want to capitalise on the opportunities of reshoring, with each company having a dedicated individual to help them.

For more information on how Reshore UK could help your business, contact the Manufacturing Advisory Service on 0845 658 9600

What They Don’t Tell You About Starting a Business

Congratulations on becoming self employed! This is an exciting time however there are a few key points to remember to make the process go as smoothly as possible:-

Tax & National Insurance

If you were previously an employee you didn’t have to worry about this as the payroll department deducted them automatically and you received the balance.

As a self employed person you will now have to pay two types of national insurance, as well as paying two years worth of tax in the first year of trading.

National insurance

You will now pay class 2 contributions, which are set at a fixed amount per week.

In addition, you have to pay class 4 contributions payable, based on the profit at the year end. Currently 9 percent.

Tax

As a self employed person you pay your tax by the 31st January following the end of the tax year. This for all practical purposes the 31 of March.

However, to make up for this benefit the revenue also ask for payments on account for the following years estimated tax – on 31st January and 31st July each year.

Therefore after your first year, your tax bill may actually be 150% of the amount you were expecting, with a further 50% due in July.

These forward payments are then netted off against the following years tax.

It is important to provide for these liabilities to ensure that interest charges and late payment penalties do not arise, which can significantly increase your liability. 

Tax deadlines

It is also important to ensure that deadlines for registration and submitting returns are followed in order to avoid needless penalty charges arising. 

You are the whole operation

A good question to ask a room full of self employed people is ‘who here works in sales?’ – the actual answer is that everyone does!

As a self employed person you are now also your sales department, admin assistant and chief bottle-washer.

It is important to realise that you may have to spend a significant amount of your time on tasks that you had not planned on and for which you don’t have the skills or knowledge.

Get ahead with expert help, this can be cheaper in the long run and you can avoid mistakes by learning from other’s experience and training.

Many self employed people think that one way to save money is to do everything themselves, such as their web site, sales/marketing, tax returns, etc.

However, if you work out the number of hours this actually takes at the rate you could earn from a client or customer, combined with the results then you could actually find that in many cases that you could save significant money, time and hassle by getting some help at an early stage.

If you want to know more about the above issues so that you can get the answers you need before you start your business please contact Edward at edward.tudor@hcba.co.uk or call him on 01483-453755

Sc: UKBA

 

Growth Accelerator Hits 10,000

The GrowthAccelerator programme of developmental support for SME’s announced, this week, that it now supports 10,000 businesses throughout England.  Businesses supported are of all industrial sectors.  Obviously the GrowthAccelerator team of managers and coaches are delighted with this number but more important is the stat that states that 96% of participating companies are experiencing positive benefits from taking part.

Sc: http://www.growthaccelerator.com/blog/growthaccelerator-reaches-10000-businesses-2/

NI Contributions Bill Goes To Parliament

Businesses and charities can benefit from an annual £2,000 employment allowance towards their national insurance contributions as part of the National Insurance Contributions Bill introduced to Parliament last week. 

 It is expected to be in place by April 2014 and employers will need to confirm their eligibility via the normal payroll process. The allowance will be deducted over a year from employers’ PAYE payments. 

There is more about the announcement at:

https://www.gov.uk/government/news/employment-allowance-boost-for-business-bill-introduced-to-parliament

Sc: MGBA, UKBA

Young People Are Considering Self-Employment

According to The Prince’s Trust 30% of young people believe they will be self employed in the future, while one in four expect to start up in business in the next five years. The Prince’s Trust and RBS also found that although just 5% of young people are currently self employed, over a quarter are actively considering it. The main barriers to starting up in business were concerns about funding and a lack of support. Martina Milburn, Chief Executive of The Prince’s Trust, said “youth unemployment remains high and many are seeing self employment as a way to break the cycle of joblessness.”

The question in my mind is thatv whether these young people are being driven to self employment by lack of career options elsewhere.  And secondly, do they understand the implications of self employment.  In my view many only see the percieved frrdom and flexibility of running their own business.  Many quote the “no bosses” myth.  In fact, as those of us working for ouerselves know: the bank manager; the VAT; HMRC merely replace the boss at work.  I certainly believe that career and business organisations should be very wary of this. The well-known statistic of failure among ill prepared and trained would-be entrepeneurs should make us all very wary of this apparently-pleasing finding.  But what do you think?  Let me know by completing the form below.

More information on the survey: http://www.princes-trust.org.uk/about_the_trust/what_we_do/research/1305_youth_business_boom.aspx

Sc: MGBA, UKBA

How To Achieve Growth is Biggest Challenge Say Company Leaders

Knowing the best way to achieve growth is the top business challenge for company leaders from North West England, a newly published Liverpool Daily Post survey has found. The poll, conducted on behalf of the GrowthAccelerator scheme, found 33% of business owners in the region citied “a clear stratey for growth” as an obstacle to increased success. The survey also found one in 20 companies did not have a written business plan.

 

The survey results also showed 18% of business owners spent most of their time planning for growth, 60% said they did not work regularly or at all on improving their business strategy, and 39% said they only revised their business plans “occasionally”.  Meanwhile 60% said they could not recite their firm’s objectives for the next year.
Read more: Liverpool Daily Post GrowthAccelerator survey lifts lid on companies struggling to achieve growth – Business News – LDP Business – Liverpool Daily Post http://www.liverpooldailypost.co.uk/ldpbusiness/business-local/2013/05/30/growthaccelerator-survey-lifts-lid-on-companies-struggling-to-achieve-growth-99623-33394534/#ixzz2UqNaESTm

Don’t Miss out On Europe

  Despite all the gloom surrounding the Euro zone almost 40% of members of the British Chambers of Commerce (BCC) are actively exporting their goods and services in 2013.  This is a significant increase on 32% last year.  Additionally, according to a BCC survey the EU remains the largest market for UK exporters with 87% of respondents trading in the region.

Potential future growth markets favoured by current exporters include Brazil, Russia and Qatar, and the majority of respondents stated that ease of finding overseas customers and distributors were the factors most likely to encourage them to export.

As ever if you have any thoughts or comments about this topic or my blog please use the comment box below or email me at martin.parry@mgba.co.uk
There is more about the BCC survey results at:
http://www.britishchambers.org.uk/policy-maker/policy-reports-and-publications/2013-international-trade-survey.html

Sc: BCC, MGBA, UKBA


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