The Academy of Business Strategy has launched the first of a series of new websites providing information about topics that are close to the hearts of their students and academic staff.  The first to be launched is The Academy of Business Strategy – Consultancy.

This resource publishes unique articles written by staff and students discussing topics such as:

• How consultancy services can be developed as a product
• How, as a consultant, you can achieve the best consulting assignments
• Identifying the key critical skills that help consultants achieve the best results
• Why consulting services are so important and valuable to organisations

In addition to papers presenting timely information and discussion about consultancy topics this resource also provides feedback from Associate Consultants and Students of the ABS Certified Professional Consultants Course.  These references outline previous experience, explain reasons why students chose their selected courses and what has happened to their careers since.

More information resources from ABS are due to launch in the coming weeks. These Resources will cover the following areas:

• The Academy of Business Strategy – Career management
• The Academy of Business Strategy – Finance
• The Academy of Business Strategy – Marketing
• The Academy of Business Strategy – Operations
• The Academy of Business Strategy – Human resources
• The Academy of Business Strategy – Management
• The Academy of Business Strategy  – Training
• The Academy of Business Strategy – E-commerce
• The Academy of Business Strategy  – Small medium sized enterprises (SME)

Finally there comes some good news for business – Enterprise Finance Guarantee scheme.  It has been announced that until March 2010 there is going to be a new initiative, the EFG Scheme, which will assist businesses with a turn over of up to £25 million with a loan of up to £1 million.  75% of the loan will be guaranteed by the Government and 25% will be unsecured and at the banks’ risk.  This will of course be based on the applicants meeting certain criteria and for companies that are creditworthy.

There are some very interesting changes to this scheme compared to the Small Firms Loan Guarantee Scheme as the SFLG could not be used to cover debt. Many of our clients seek a way of consolidating various debt lines and this was impossible to do with the old scheme.  At first sight the sector industries that are ineligible seem to be greatly scaled down, which is good news, we will of course have to wait to get final information.

What is Enterprise Finance Guarantee Scheme?
This is the Government’s new £1bn EFG Scheme will support up to £1.3bn of new lending by banks to eligible SME’s with working capital or investment needs.

Which companies will benefit from the scheme?

The Enterprise Finance Guarantee Scheme is going to be open to businesses with an annual turnover of up to £25m, seeking loans of £1,000 to £1m, which can be repaid over 10 years.

Most businesses in most sectors will be eligible for the scheme. However, state aid rules exclude businesses in the agriculture, coal and steel sectors.

What sorts of lending will this cover?

The guarantee can be used to support refinance existing loans, new loans or to convert part or all of an existing overdraft into a loan to release capacity to meet working capital needs.

How much of the loan is the Government going to guarantee?

The Government will guarantee 75 per cent of the loan.

How long will the scheme run for?

EFG will be available until March 2010.

Who are the participating lenders?

RBS/Natwest
Barclays
Clydesdale / Yorkshire Bank
HBOS
HSBC
Lloyds TSB
Northern Bank

Other lenders will be come eligible as they apply.

Contact Strategy Consulting Limited Today to see how we can help you with your application – call 0845 838 0936 or email info@strategyconsultinglimited.co.uk

In this country we have the most prolific and successful SME business community anywhere in the world. The vast majority of the UK’s wealth is generated by SME businesses. We pay the highest taxes whilst struggling with the ever growing burden of red tape, regulation and lack of help and information.

Large corporations have the luxury of expensive and highly skilled advisors that help them minimise their tax positions, move profits offshore and around complex webs of corporate structures. The government seem to be happy to help the large corporates whilst leaving the SME community to fend for itself. Whilst the small businesses continue to fight for survival the largest of corporations, both here and outside the UK seem to be on a head on collision with disaster. It is not the SME’s that have caused us to be in the current climate but they are the ones, along with the general public who are feeling the pain the most.

It has become clear to me in recent months that the government do realise that it is down to the SME community to trade the UK out of its present precarious position and would dearly like to see that happen.

Aside from the regulatory woes we all suffer, the largest hindrance is the lack of financial support. I have for many years been assisting SME’s with obtaining funding, often from banks and regularly utilising the government led Small Firm’s Loan Guarantee Scheme (SFLG). Much has been written about the SFLG scheme in the past but for sake of clarity I should explain. It is a scheme whereby if a bank subscribing to the scheme, which most do, decides to make a business loan of up to £250,000 based on the merits of the application, but there is no security available from the company directors, the SFLG scheme, managed by BERR (formally the DTI) can be used to guarantee 75% of the loan for the bank, with the bank taking the remaining 25% as unsecured.

Over recent years I have witnessed an increasing reluctance by the banks to work with the scheme. I have seen lending move from 90-100% of requirements to matched funding whereby the business owners are expected to personally inject at least half the requirement into the company as share capital and to not expect to withdraw that money during the life of the loan. In more recent times it has become more and more difficult to obtain approval on such loan applications.

Of course, it is not the bank’s legal responsibility to support economic growth but to deliver a return to shareholders. Something they are quite spectacularly failing to do at the moment, mainly due to their own mistakes.

In these interesting times I have great hope that the government will do all that they can to encourage the banking sector to support SMEs far more pro actively than they have for many years. For we are the future of this country and I firmly believe its only hope. With the horrific pension shortfalls that are still only just starting to come to light, increased public borrowing and reducing taxation income despite still being taxed at a higher level than in modern history, the SME community is the only long term hope. I think the government know that very well.

I for one, sincerely hope that much more pressure is placed upon the banks to allow the funds to flow out. I would never encourage irresponsible lending, for that is largely what has led us in to the present mess we find ourselves, but sensible support and nurturing for businesses. It will be most interesting to see how things progress in the coming months. With many billions of taxpayer’s money, much of which has been produced by small businesses, having been pumped into banks, effectively making them state owned in some cases, will the government be able to force the banks to do the right thing?  I most desperately hope so!

In any situation there is a positive for every negative. I have considerable involvement in raising business angel investments for businesses and have seen a dramatic increase in the number of businesses now looking at such options. Growing awareness of this source has led to a large increase in activity in this sector. Even in these hard times there is a large base of both private and corporate investors out there that are prepared to inject capital in return for shares in businesses. In many cases this can be much more beneficial for businesses that could benefit from additional skills and experience rather than just cash.

Whilst there will always be a demand and necessity for bank funding it is encouraging to see the SME community increasingly supporting itself with private investors taking interests in other SME businesses and helping them grow.

I have no looking glass into the future but hope and believe that this will continue to grow and prosper and that, with encouragement, the government and banking sector will eventually catch up and get back in the game. They most certainly should. After all, we know the money is there because it is you and I that have given it to them!

After intensive and very successful beta-testing, a “third way” of Internet Marketing is being launched at E-Commerce Expo by Strategy Internet Marketing: Pay-Per-Results (PPR).

John Courtney of Strategy Internet Marketing commented: “Until now there have been two main methods of Internet Marketing: Pay-Per-Click (PPC) and generic Search Engine Optimisation (SEO).  Pay-Per-Click has become very popular because the client only pays every time a prospect clicks on his advert.  Search Engine Optimisation, while very effective, is traditionally priced with up front fees which puts some clients off as it demands a financial commitment and the SEO company is paid regardless of how well they perform.

This Pay-Per-Results (PPR) method is really combining the best of Pay-Per-Click and the best of Search Engine Optimisation. We are only obtaining generic listings but we have priced it like PPC.

One electrical e-commerce client that Strategy Internet Marketing has been working with over the past few months on Pay-Per-Results (PPR) has seen dramatic increases in both traffic and sales and a substantial return on investment.

Strategy Internet Marketing is a division of Strategy Consulting Limited which has just celebrated its 10th Anniversary.

FURTHER INFORMATION AVAILABLE FROM JOHN COURTNEY ON 0117 377 8237

We have since the government abolished the DTI and replaced it with BERR (department for Business Enterprise and Regulatory Reform) received a number of enquiries to ask if the old DTI scheme no longer exists.  The scheme is now supported by BERR and follows the same rules and regulations as it did with the DTI and is very much still in existence with two of our clients having drawn down funds guaranteed by the scheme in the last two weeks.

Here is some useful information regarding The Small Firms Loan Guarantee Scheme:

Many small to medium-sized enterprises (SMEs) have viable business plans that need funding, for which a loan would be appropriate. However, some SMEs may be unable to obtain a conventional loan because they do not have assets to offer as security, because the owners have already invested all of their own funds into the business.

The Small Firms Loan Guarantee (SFLG) helps to overcome this by providing lenders with a government guarantee against default in certain circumstances, whereby the government act as guarantor for 75% of the debt and the lender will generally cover the other 25% unsecured.

The SFLG is a joint venture between the Department for Business, Enterprise and Regulatory Reform (BERR) and a number of participating lenders, largely banks. Participating lenders administer the eligibility criteria and make all commercial decisions regarding borrowing.The cost of the guarantee is two per cent per year on the outstanding amount of the loan, payable to BERR.  The bank will generally charge anywhere from 2% to 6% above base lending rate.

Some changes were made to the SFLG in December of 2005 to reflect the recommendations of the Graham Review. As a result, the SFLG focuses on newer businesses. The main features and criteria of the scheme are:

• A guarantee to the lender covering 75 per cent of the loan amount, for which the borrower pays a two per cent premium on the outstanding balance of the loan to BERR.
• The ability to guarantee loans of up to £250,000 and with terms of up to ten years.
• Availability to qualifying UK businesses with an annual turnover of up to £5.6 million and which are up to five years old. This is generally determined by the date the business came within the charge of corporation tax (for a company) or became liable to pay Class 2 National Insurance contributions (for a self-employed individual). In the case of a business transfer the five-year age limit applies to both the business making the acquisition and the business being acquired.
• Availability to businesses in most sectors and for most business purposes, although there are some restrictions.

In order to be eligible for the scheme an applicant requires and extremely strong Business Plan and needs to be able to demonstrate that they have invested as much money as they possibly can into the business themselves, the bank will potentially match fund the applicants investment if the business plan is strong enough. 

The applicant must have no personal equity or assets available for a guarantee in order to be eligible for the scheme.

One of the main misunderstanding with the scheme is the 75% guarantee, many clients make the mistake of believing that the bank will offer 75% of the required funds if they can produce 25%.  This is not the case as explained in the first paragraphs BERR acts as guarantor for 75% of the loan in the event that a business has no means of guaranteeing the debt.

—————–

Stephanie Iles

Strategy Consulting Limited

steph@strategyconsultinglimited.co.uk

 

Small businesses are reminded to submit applications for Small Business Rate Relief (SBRR) before the end of the month.

The SBRR is available to ratepayers who occupy single properties with rateable values below £15,000 (or £21,500 in London) and offers reduced payments of up to 50 per cent for small firms. The deadline for applications for the 2006/7 financial year is 30 September.

It also applies to those who occupy multiple properties which each have a rateable value that is below £2,200, where the total value is less than the above threshold.

Previously, businesses could apply annually for rate relief but due to government changes, the next round of applications will not be until September 2010.

Ratepayers need to notify their local authority within four weeks if there is an increase in the value of any business property located outside the council area which provides their SBRR discount. They must also notify their local authority of any additional properties they occupy.

Philip Moody, Senior Member Services Representative at the Forum of Private Business, said:

“Many business owners will be unaware of this deadline. It does not apply to everyone, but they need to check their rates to see if they are eligible, and get their applications in if they are.”

Source: The Forum of Private Business, 13/09/2007

 

Businesses across Wales are set to reap the benefits of up to £3 billion in European Union funding.

West Wales and the Valleys has become the first region in Britain to have its EU Structural Fund programme legally adopted, leading the way for massive investment during the period 2007 to 2013.

Around £570 million will be ploughed into a Convergence programme for West Wales and the Valleys, as a successor to the previous Objective 1 funding programme carried out between 2000 and 2006.

The European Development Fund (ERDF) will also provide an additional £856 million to support research and innovation, tackle climate change, and regenerate deprived communities.

Other new initiatives in the pipeline include the East Wales Regional Competitiveness scheme and an Employment programme.

Announcing the windfall in Swansea, First Minister Rhodri Morgan, said:

“We are now in a position to move forward with a seven-year plan to continue Wales’ transformation into a dynamic, thriving nation.

“In line with the Lisbon and Gothenburg agendas of sustainable jobs and growth, we will be taking action to encourage full employment with quality jobs, as well as helping to ensure the growth and expansion of our businesses.”

Ieuan Wyn Jones, Deputy First Minister and Minister for the Economy and Transport, said:

“Our aim is to ensure that Wales continues to progress towards competitive, sustainable economic development.

“We want to create long-term, high quality jobs as well as providing the right environment to enable businesses to flourish and expand.”

The first round of projects set to benefit from the funding are due to be approved within the next couple of months.

Previous rounds of European Structural funds had seen more than £1.5 billion allocated in Wales to almost 3,000 separate projects.

Source: Welsh Assembly Government, 20/09/2007

More on Grant Funding

John

Are you looking to expand your business? 

Does your Company need a financial boost?

Could your business benefit from a highly experienced individual getting involved?

If so, then the bi-annual London Investment Fair could be the place for you. A simple set-up – we provide the venue, the coffees and the investors – you exhibit! It’s being held on Tuesday 6th November in Central London (St. James’s Street) with the doors opening at 10am and closing at 4.00pm.

For 7 years now, we have been running this highly successful event, attracting up to 200 private investors and institutions wishing to invest between £50,000 and £2m.
There will NOT be any service providers, just investors wanting to put money in SMEs.

“…an excellent event for us. As a direct result, we have secured commitments for more than two thirds of our equity funding requirement, and with the balance now in negotiation, we expect to complete our funding imminently. In short – money well spent!”

So, how much and what do I get? £800.00 + VAT + success fee

• The opportunity to promote your proposal face-2-face with investors.
• An Associate helping you before, during and after the event, maximising your presentation’s impact.
• Your synopsis mailed out to more than 1500 investors.
• An A5 colour entry in the catalogue, handed to all attending investors.
• And, of course, help with securing a deal!

There are just 30 spaces available! Due to the popularity of the event with exhibitor and investor alike, the spaces fill up fast. To avoid disappointment, don’t leave it to the last minute.

If you would like to know more, call Steph Iles on 0845 838 0936 or email strategy@nildram.co.uk

A boat docked in a tiny Mexican village. An American tourist complimented the Mexican fisherman on the quality of his fish and asked how long it took him to catch them.

“Not very long,” answered the Mexican.

“But then, why didn’t you stay out longer and catch more?” asked the
American.

The Mexican explained that his small catch was sufficient to meet his
needs and those of his family.

The American asked, “But what do you do with the rest of your time?”

“I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, have a few drinks, play the guitar, and sing a few songs … I have a full life.”

The American interrupted, “I have an MBA from Harvard and I can help
you! You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat.

“And after that?” asked the Mexican.

With the extra money the larger boat will bring, you can buy a second
one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City! From there you can direct your huge new enterprise.”

“How long would that take?” asked the Mexican.

“Twenty, perhaps 25 years,” replied the American.

“And after that?” the Mexican asked.

“Afterwards? That’s when it gets really interesting,” answered the American, laughing. “When your business gets really big, you can start selling stocks and make millions!”

“Millions? Really? And after that?”

“After that you’ll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends.”

Know where you’re going in life … you may already be there.