Unless you have spent the last decade in hibernation, surely you have heard about the ongoing – and growing – trend of companies going ‘green.’ Eco-friendly firms are taking the countless small and medium sized businesses around the world and making adjustments to their business models and overall ethos in order to ensure that they are as easy on the environment as possible.

So-called green technologies and environmentally friendly business practices are taking off in popularity, and while their positive effects on the planet are laudable, they can be quite costly to enact. Read ahead to learn more about making this transition, and find out if it pays to be ‘green.’

What does ‘Going Green’ mean?

With so many business people around the world espousing the virtues of going green, it pays to try to define the term. The definitions of ‘eco-friendly’ and ‘green’ can be vague, and can change dramatically depending on who is doing the talking! ‘Green’ is a term that is normally used to refer to strategies and materials that are perceived to be better for the environment than others.

When someone states they are ‘going green,’ they often mean that they are pursuing new knowledge and planning to enact ecologically minded strategies in order to help protect the environment and to sustain the planet’s natural resources for future generations.

This is certainly a noble goal, but the resulting benefits are not always so cut and dry, as there is a bit of a problem with the term ‘green.’ Experts around the world can hardly agree on what is the best course of action when one wants to be environmentally friendly, and so there is a lot of misinformation out there.

Green actions favoured by small businesses

Here are just a few simple actions you can take to go green around the office.

• Going paperless – Choosing to do away with paper copies of documents and instead, storing everything digitally can be a great way to save paper – and save money.
• Enacting energy saving strategies – Educating your staff and enforcing energy saving tips can be a great way to lower your electric bills.
• Donating money – Putting a percentage of your profits toward environmental causes can be a great way to contribute to the planet.
• Commit to using eco-friendly supplies – It is relatively simple and inexpensive to make the switch to eco-friendly cleansers, materials and supplies of all kinds. Buy in bulk to see big savings.
• Recycle, reduce and reuse – This old slogan still holds true; don’t settle for simple recycling – ensure that you are also reusing old items (buying second hand furniture is cheaper and better for the planet) and reducing your waste as much as possible.

Pros and cons of ‘going green’

While the tips above are simple and require little spending, larger initiatives take time, money and planning. Read ahead for a comprehensive list of the pros and cons of ‘going green.’

PRO – You can substantially cut your energy costs

Depending on the measures that you elect to enact, you might immediately start to see increased energy efficiency and a substantial reduction in material waste. By cutting your energy costs you can expect to see lower electric bills, and some small companies report savings of over £7000 per year simply by going paperless. This chunk of money will certainly help any small or medium sized enterprise increase their bottom line and end their year in the black.

CON – The initial costs can be very high

Transforming your business model to include green measures (including where you source your raw materials, how you travel around the globe and how you power your machinery) can be a time consuming and costly endeavour. Even though the pay off might be worth it in the long run, can your small business handle such a large investment at this time?

PRO – You can build trust and rapport with the community

Being able to brand yourself as ‘eco-friendly’ can be a huge boon to your standing in the local community, helping you to impress your existing clients and earn new ones in the process. People like to know that the companies they support are trying to make the world a better place, and this goodwill will often translate to customer loyalty and an increase in sales.

CON – You might have to ditch longtime suppliers

As you strive to make the transition into becoming a ‘green’ firm, you may need to say goodbye to treasured relationships with longtime suppliers. If you have a supplier or use a product that is known for its poor environmental policies, it will be hard to tout yourself as ‘eco-friendly’ – and it can take years to form strong relationships with new vendors.

PRO – You can take advantage of lucrative tax breaks

By reorganising your business to be more environmentally minded, you are not only helping to save the planet, you are helping to put pennies into your coffers come tax time. The UK offers many diverse environmental tax credits and schemes for small businesses – click on the link to see if you qualify.

PRO – You will probably see an increase in profits

Reports suggest that going green can earn savvy businesses an increase in profits of up to 10% annually. This increase is based on new clientele, lowered electricity costs and the other financial benefits of reducing waste.

It ain’t easy being green

As you can see above, the decision about whether or not to go green is not cut and dry – different companies in different industries will find that they have to assess myriad factors before making this decision. If you elect to undergo this transition, you can expect upfront costs that hopefully lead to a healthier company, positive long term forecasts and, of course, a strong financial result.

As we approach the end of the first quarter of 2016, it is time to assess the year’s business forecast – and most importantly, what this information means for those involved in a small to medium sized business (SME). As the first two months of the year have passed, hopefully you have settled last year’s accounts and are moving on to make 2016 a new – and successful – year in its own right.

There are some positives – and negatives – for SMEs in the following expert predictions, read on in order to learn more about the year ahead and what you can do in order to maximise your potential.

2016 – A positive outlook for the year ahead?

The year started off with a bang when experts across the UK began predicting some positives for those involved in entrepreneurship and business. In late December 2015, the Telegraph published predictions that the nation seemed to be on the “cusp of a period of sustained good health.” This certainly seemed to be great news for SMEs.

It has since been predicted by the Bank of England that the British GDP will grow at an annual rate of 2.5 percent over the next half decade, a healthy boost that is pleasing business owners large and small. After all, if there is more money in the economy, it stands to reason that average people have more money in their pocket – there are then certain to be more people willing to part with their hard earned pounds on products, services and experiences – and maybe even on your SME.

Cautious Optimism

While this news seems like unequivocal good tidings for any SME in the UK, many small business owners are remaining cautiously optimistic. In a survey of thousands of entrepreneurs conducted by YouGov and EasyJet, only slightly more than half of the SME owners reported feeling like their businesses will grow over the next year.

This means that over forty five percent of those questioned are feeling rather apathetic about the prospects of the coming 12 months. Perhaps this is less a feeling of apathy, and simply just caution as the economy slowly recovers; it would be interesting to poll those same business owners this time next year and see if they have embraced the economy’s potential.

How can SMEs embrace and harness the surging economy’s potential?

If the UK continues to grow, many SME owners are wondering how they can embrace this potential and truly harness it for their own growth and profit. Here are a few pieces of advice that any small business owner can implement.

Hire the right people for the job

While it may be tempting to hire prodigiously during this time of growth and positive economic forecasting, it always pays to slow down and truly think about the best person for the job when it comes to hiring new staff.

While you may be in desperate need of a warm body to help you field calls, complete daily tasks and help around the office, it is incredibly important that you put a considerable amount of effort into finding the right staff. You may need to offer increased benefits, more perks and higher salaries in order to attract the best talent on the market.

Prepare for your exports to increase

Whether your SME regularly ships millions of pounds worth of goods around the globe, or whether you have never sold a single item beyond the border of your county, you need to begin to craft an international sales strategy. With foreign markets more lucrative than ever, and platforms such as Amazon, EBay and Etsy enabling you to reach them quickly and easily, you would be remiss to lose out on exports.

Even if you are not immediately planning to commence sales abroad, you should begin preparing for the logistics in order to do so as soon as possible. Having a strong implementation strategy in place will help you to enact smart policies as soon as the time is right, saving you time, money and lost sales.

Stay cautious

While you do not want to squander opportunities owing to an overly vigilant attitude toward the economy, you still must be realistic; a slip in the national and/ or global economic outlook may cause the UK to fall right back into a recession. While you should plan for and take advantage of growth, you must also always have a back-up plan and a more conservative strategy to fall back on in the event of financial turmoil.

2016 – The Next Three Quarters

Of course, for every positive financial forecast there is at least one more foreseeing doom – some economic experts have predicted that we can expect a financial crisis paralleled only by the great recession. While this opinion certainly has its champions, a financial crash is far from a foregone conclusion; many other experts are predicting a far better outcome.

One thing that analysts can agree upon is the supposed glut of SMEs on the market; start-ups, once so exciting and new, are increasingly being seen as a dime a dozen, and some experts think that that could spell disaster. lan Patricof, co-founder of Greycroft Partners, is worried. He has stated, “I am concerned about the over exuberance in financing of startups. There are just too many at the moment… I think inevitably we’re going to see more of these try the public market, and that will finally tell us whether they can support themselves.” While he does have a point about the large number of start-ups on the market, Patricof may be underestimating the power and the innovative spirit of your SME.

As a savvy entrepreneur, you already know that you need to ensure that your business stands out from the rest – let the financial climate of 2016 help you to prioritise, strategise and grow wisely.

As a small to medium sized business owner, it can be bewildering to know what you should be tackling yourself and what tasks and responsibilities you should consider outsourcing. This is actually a very important decision – outsourcing at least some of the daily (or weekly/ monthly/ annual) duties involved in your operation can free you up and leave you more time to focus on your core business.

Entrepreneurs who are running their own SMEs are required to be modern day “Renaissance (Wo)Men,” juggling dozens of balls at once and still expected to deliver products and services at a high level of quality on time, every time.

On a day to day basis you might find yourself:

• balancing a cheque book
• entering information into complicated payroll software
• attending myriad planning meetings
• scouring an online recruitment website
• writing a business blog
• posting photos on your company’s Instagram page
• scheduling an interview with a prospective employee
• heading to the stationery shop to buy a ream of paper
• even plunging a toilet!

All of these tasks, while integral to your daily operations, are taking you away from the things that you do best – running your business and putting out an excellent product and providing fantastic service.

If any of this sounds familiar, you need to start thinking about outsourcing. After all, you wouldn’t hesitate to delegate tasks to your employees, would you? Outsourcing is just another form of delegation, and smart business people are experts at delegation.

Here are some of the tasks and responsibilities that you should consider outsourcing as soon as possible.

1. Social Media – Every savvy business person knows the importance of utilising social media in order to connect with their clientele, advertise their products and stay in touch with others in their industry. That said, social media expertise is in its infancy, and the average person is not capable of creating a comprehensive and effective social media strategy, let alone spending the heaps of time required for its implementation. Outsource your social media duties and you will not only see a huge boost in your success, you will save a lot of precious time.
2. Blogging – Related to social media, blogging is key if you want to increase your search engine rankings (i.e. appear higher on the results list when someone Googles search terms relevant to your company). Successful SEO (search engine optimisation) is much more than posting your thoughts and ideas; SEO blogging is a science, and a skilled writer will know how to help you achieve results you never dreamed of and increase your sales. You can find excellent business bloggers and article writers on sites such as People Per Hour.
3. Payroll – Payroll duties are another very sensible thing to be outsourcing – payroll software programs are notoriously finicky and complex, and you want to ensure your team is paid on time, accurately and without complication. Outsourcing your payroll duties will save you hours of time each week and give you the peace of mind that your employees are paid correctly. Another bonus? When tax time comes around, you can rest assured that your payroll paperwork is in order.
4. Bookkeeping – If you are like most entrepreneurs, you probably dread the myriad bookkeeping tasks that are required in order to run a successful business. Keeping track of paperwork, receipts, forms and more can be exhausting and irritating – and it can take you away from your core tasks. This is one that is definitely better outsourced – a bookkeeper can lift a huge weight off of your shoulders and keep you organised and on the right side of the law.
5. Recruitment – Depending on the position that you are seeking to fill, the recruitment process can be exhausting and time consuming – not to mention fraught with uncertainty and confusion. Hiring is an art, and a skilled recruiter will be able to help you land the employees of your dreams. While recruiters come with a sometimes hefty cost, they do often increase your chances of staff retention, saving you a lot more money in the long run.
6. Buying stationery, cleaning supplies and snacks – We now live in a world where you can buy nearly anything online, and loads of new companies are popping up whose entire business model involves helping individuals fulfill their simplest needs. Need snacks for the office? Head to Graze and get healthy snacks delivered. Cleaning supplies? No problem, you can have those delivered within one business day. The same goes for stationery, office furniture and pretty much anything else your heart – and your business – desires. Do not waste your time in queues or wandering aisles! Outsource this asap.
7. Odd jobs and repairs – Leaky tap in the office loo? Door squeaking unbearably whenever it swings open? Framed photos sitting woefully unhung? These small tasks and odd jobs add up, and finally getting around to them will take you away from your more important duties. Thankfully, the sharing economy is alive and well, and you can find skilled handymen online at TaskRabbit, Handy and from other similar apps.
8. IT Support – If you are struggling to set up and maintain functioning, consistently up to date hardware and software, consider outsourcing your IT support. Many different levels of support are available, and with various subscription plans you can have a third party IT company supply you with computers, printers and scanners. More importantly, they will be available 24/7 in order to answer urgent queries, fix problems and make sure that the technological side of your business is running smoothly at all times.
9. Delivery – If you are still attempting to hand deliver packages, important documents and products to your suppliers and clients, you urgently need to look into outsourcing delivery. Countless companies exist who will take the stress of time consuming deliveries off of your plate and ensure that your items get where they need to go on time.   

Whether you want a new bike to cycle to work and stay fit, need the latest smartphone or want a state of the art tablet to do your work on, by entering into a salary sacrifice arrangement with your employer you can reduce the cost and pay less tax at the same time. It’s a new way to get the things you want without entering long-term and costly contracts that can drain finance.

The idea comes from the same company that runs the CycleScheme who latched onto the Government’s initiative to lower carbon emissions by offering tax free bikes that can save up to 42% on cost. It involves having an agreement between an employee and their employer whereby the bike is essentially hired out and paid for through their income.

When an employer signs up to the scheme any member of staff can then log on for free and essentially hire the bike of their dreams for a short period of time (normally 12 months) with reductions to their salary. At the end of the term they can then pay for the bike and own it outright for a much lower cost than if they bought it through a standard HP agreement.

The CycleScheme has been so successful that the company is now running similar ventures for phones, computers and childcare offers. The PhoneScheme operates much the same way and was launched in January this year, allowing employees to get hold of great new smartphones at much lower prices. For example, if you wanted to buy the iPhone 6s you’d be looking at a standard price of around £634. With the PhoneScheme you make sizeable savings which means the eventual cost of the phone would be £493 give or take a few pennies.

What is a salary sacrifice arrangement?

It all works through what is called a salary sacrifice arrangement which is why your employer needs to be registered and involved. This agreement basically asks you to take a reduced salary in return for some other benefit, for instance, a brand new mobile phone. Because this is a non-cash benefit it means you get some great perks from the tax man.

How does it benefit you?

First of all, reducing your salary and exchanging it for a phone means that you pay less tax and National Insurance contributions. The payment for your new iPhone or Samsung is made by your employer who also benefits by getting to make less payments in NI contributions and gets their money back because you are on a lower salary so they don’t have to pay you as much. At the end of the 12-month hire period you can either opt to:

• Extend for a further 12 months and then own the phone outright.
• Pay 25% of the phone’s original price and own it outright there and then.
• Return the phone back to PhoneScheme with no extra payments as long as it’s in good working condition.

Not only that, but because you are only getting the phone, you are free to take advantage of any network provider you want without having to enter a long-term contract. That means you can shop around for the best rates or simply put in your current SIM card.

For employers, it provides a great way to cut down on costs overtime and supply staff with the right phones to work in their business. Nowadays, more and more employees need to use smart devices such as iPhones to do their work. It means your staff are fully equipped to deal with what the modern world throws at them. They are easy to contact, can network effectively and can use cloud services to stay up to date. Plus they get a brand new phone in the bargain.

Across the UK, employers are finding new ways to maximise their operating budgets and opting for a salary sacrifice arrangement. With something like PhoneScheme, they can save up to 13.8% on National Insurance contributions as well.

Moreover, because you are helping your employees get some of the latest smartphone kits at a lower price overall, this helps you develop more staff loyalty. Signing up for the scheme is easy to do and can be used for a number of things. The CycleScheme is helping employees get fit and because it’s tied into green issues you’re also finding a great way of cutting down the collective CO2 emissions of your company when staff cycle into work. The CycleScheme stretches to accessories too which can all be incorporated into the same salary sacrifice arrangement.

Apart from the PhoneScheme offer, you can also take advantage of the ComputingScheme which allows employees to better spread the cost of the latest PC or tablet devices. It’s an ideal way for businesses to ensure that their staff have the latest equipment and improve their productivity.

With its launch in January, PhoneScheme has certainly become a great new way for people to access updated technology. It’s beneficial to both employees and their employers and can help reduce costs for both parties. There are a few caveats that you need to be aware of, of course. The employee needs to be earning above the minimum wage and you need to be paid through Pay as You Earn or PAYE. You can only order 1 phone at a time and the salary sacrifice should not take the employee below the minimum wage.

If you think that you could be paying almost £20 more a month on a normal contract with a phone supplier, the savings are pretty good from the outset with PhoneScheme. All you need to do is make sure that your employer is signed up to the scheme and then you can choose your phone and apply online. Then it’s a simple matter of your employer logging in and agreeing to the arrangement. Because you are doing all this through your employer, you don’t even have to undertake a credit check.

Get together with your boss today and see how PhoneScheme can make a difference to you both.

As the owner and operator of a small to medium sized enterprise (SME) you are undoubtedly familiar with the need to create a detailed budget for all aspects of your business. That said, this might be easier said than done – if you have no experience with business budgeting this might be an overwhelming and difficult task. Thankfully, there are a lot of tools out there that can help you – read ahead to learn more.

By compiling a strong and well thought out budget you will dramatically improve your annual revenue and get your business into the black much quicker than you ever dreamed.

How to budget for the year ahead

One of the biggest mistakes that SME entrepreneurs make is that they focus their budgets on too narrow a time period, worried about doling money to the appropriate categories over the next week and month more than they are concerned about the following year.

By budgeting for the entire year ahead you will increase your chances for success. Start by compiling a comprehensive sales forecast that prioritises and manages your sales opportunities and helps you expertly estimate your earnings for the year – which in turn determines how much you can spend. With this number in hand, you can begin to plan a year long budget that will see you through the next twelve months.

This is a much more involved process than you might think – after all, there will be many more line items and variables on this budget than on any typical household financial plan. No experience creating a budget for business? You are not alone. Consider contacting a professional accountant or bookkeeper in order to help you create this document, or simply have a look at the budgeting tools listed below.

Budgeting tools perfect for SMEs

Just because you have the great ideas, dedication and smarts to start your own company, that does not mean that you are automatically a whiz when it comes to maths, accounting and budgeting. Thankfully, a whole new generation of budgeting tools, software and apps are available that can help you create a budget, track your progress and keep you on target.

• Budgetao – Budgetao is a software package that has been designed specifically for start ups and small businesses, and it can really help you organise and plan your finances. It is ideal for people with no experience using budgeting software, and is incredibly intuitive and easy to use, and quite affordable at less than £40 per month.

• PlanGuru – This software will help you to do more than budget your finances; PlanGuru can also assist you with forecasting, and performance reviews, making this a multipurpose tool with many attractive features. They offer new clients a free trial upon signing up, and they can grow with you, as they have many clients who are managing multinational firms.
• PearBudget – PearBudget started as an Excel spreadsheet formula and has evolved and developed into a fully functional web and smartphone app. It has been voted easier to use than Quicken and Microsoft Budget, which may be perfect for you if you struggle with software use. Another benefit is that, as an app, it is very simple to keep track of your expenses while you are on the go.

What should you be spending on marketing and advertising?

While you are in the process of budgeting you may need to reconsider how much you are spending on your marketing and advertising. It is common for entrepreneurs to have difficulty when planning how much to spend on these vital components of a successful business, and many are unfamiliar with how to gauge a sensible ROI (return on investment).

Many experts agree that if your annual revenues are below 3 million pounds, you should be spending between 10 and 12 percent of your gross revenue on marketing and advertisement (that number drops to roughly 8 percent once your revenues increase past this number). This number should fluctuate depending on how competitive your industry is – varying between 3 and 20 percent.

Remember – marketing and advertising can drive money into your business, and so this should be a priority rather than an afterthought paid for after all other expenses have been fulfilled.

Using metrics to judge value of marketing and PR

Once you have allotted a specific amount of money for your marketing, public relations and advertising, and have implemented these strategies – you cannot sit back complacently and hope for the best. After all, this is your business, and your success rides on monitoring how effective your expenditures are in both the short term and over the long haul.

If you have outsourced your marketing and PR duties to an outside firm or agency, you must independently monitor their successes and not rely on the reports that they generate for you to see. While you may really value the friendly nature and quick customer service they provide, you do still need to use external metrics to judge their value and calculate the ROI of their services.

By using this simple ROI calculator you can determine just how well spent your money has been, and make adjustments when needed. Do not settle for a mediocre ROI – search for an agency or firm that has excellent reviews and proven track record of prooving excellent value for money.

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By following this simple advice and prioritising your budget, spending wisely on marketing and monitoring your ROI, your business will have a far high chance of success.  

If you are a small business owner, you undoubtedly have a lot on your mind – it takes a lot of time and energy to juggle your career, your family, bookkeeping, recruitment and a plethora of daily management tasks. While you are leading a busy and hectic life, there is definitely one more concern that you should be directing your time and energy towards – protecting your data.

While the Internet can be a valuable tool that can help any small business to succeed and thrive in today’s technology driven world, it can also be a dangerous platform that gives rise to thieves, hackers and criminals run roughshod. These skilled cyber criminals are looking for – and sometimes even going to great lengths to create – holes in security through which they can access your important information.

What kinds of data are they looking for?

Most of the data that you store on your computers, hard drives and Internet based cloud storage is banal; seasoned Internet criminals are unlikely to be interested in the information generated by your daily business dealings. After all, cabinet measurements or clothing orders are not very interesting to anyone, let alone a criminal searching for profit!

The two most common types of data that criminals are looking for include (but are not limited to):

• Payment information: this can include credit card numbers; bank account details (branch, transit and account number); direct debit information; money order numbers; traveller’s cheque information; information about bonds; gift card numbers; and anything else remotely related to payment. While you may think a few strings of numbers are meaningless, to a seasoned cyber criminal they can be a gold mine.

• Personal information – Credit card numbers, while of obvious value, are not the only desirable information you have stored in your computer files. Personal information is very valuable to a certain type of cyber criminal; simple things such as a full name, National Insurance number, home address, home telephone number, mobile number, date of birth and country of origin can all be used by a savvy hacker in order to conduct identity theft.

Identity Theft can ruin your business and destroy your credit – forever

Identity theft is so much more than simply someone impersonating you online for laughs; it can destroy your credit, ruin your reputation and change your life forever. Criminals who have accessed your personal information – or your customer’s personal information – can wreak havoc on your life. They can use this information to:

• Open bank accounts in your name
• Apply for countless lines of credit and credit cards using your details
• Take over any existing accounts that you have
• Raise your credit limits on multiple accounts
• Purchase consumer goods on credit in your name
• Obtain governmental benefits (i.e. go on the dole or receive disability allowance) with your information
• Access safe deposit boxes you may have in your name
• Apply for and receive passports, driving licenses, birth certificates and other official documents that will further solidify their claim on your identity

You can see how absolutely devastating identity theft can be for an individual – now imagine if your business was the ground zero of an information leak involving thousands of your customers? Your name could get dragged through the press, and you would undoubtedly lose countless clients – and a lot of business. A data leak could ruin your enterprise forever.

So, what can you do to protect your data – and the data of your valuable customers?

Now that you are clear about the devastating effects that a data breach could have on your business – and on the bonds of trust you have built with your clients, is there anything that you can do to protect your business from cybercrime? Thankfully, the answer is yes.

Here are three simple ways that you can ensure your small business’s data – and the valuable data of your customers – is safe from a potentially career ending breach.

1. Educate your employees – Employee error – this is one of the most common ways that data security breaches occur. Even if you think your employees are fully versed in online security, your front line staff – the ones who are regularly answering emails, logging in online and accessing your software – are most likely the weak links in your security plan. Countless studies point to the fact that poorly trained staff members are more likely to fall prey to online ‘phishing’ schemes (fraudulent websites designed to look and feel identical to official sites) and other cybercrime tactics – in order to prevent this, you need to provide regular comprehensive training on how to spot security scams.
2. Use a reliable antivirus program – While no antivirus program can keep you completely out of harm’s way, a good malware security system can help to prevent security breaches caused by backdoor access, keyloggers and other nefarious programs. These programs are worth you time – and yes, definitely worth your money, as they will save you in the long run.
3. Use unique passwords for every site – Do you use the same easy to remember password for your online banking, accounting software and email accounts? If your answer is yes, you are putting your customers – and your business – in jeopardy. If your password gets leaked (if another business has a data breach) and you don’t realize this has happened, all of your accounts are in jeopardy, rather than just one. Don’t risk it – use strong, unique passwords for all of your important online accounts.

Now that you know just how important online security is when it comes to your business’s success, hopefully you will take the correct measures to ensure that your data is safe, protected and out of the reach of cyber thieves. While no online system is impervious to theft, your clients can rest assured that you have done everything within your power to secure their data – and their peace of mind.