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Record number of Small Businesses looking to grow

Research from the Federation of Small Businesses reveals that confidence is on the up among small businesses – but recovery isn’t being felt in all parts of the country.

It only seems like yesterday we were reporting on the climate of uncertainty that was stifling SMEs’ growth, at least until after the general election. However, following the Conservatives’ shock victory on May 7, it seems the nation’s small businesses have shaken off the shackles and are now looking confidently towards the future.

The latest Small Business Index from the Federation of Small Businesses (FSB) shows that confidence levels are now sitting at +37.9, up from +28.7 in Q1 2015, albeit slightly down from the all-time high of +39.7 a year ago. Encouragingly, 65.3% of small businesses said they aspire to grow moderately or rapidly in the next three months – the highest figure ever seen in the Index. The research also reveals that almost one third of businesses plan to increase capital investment over the next 12 months, while the balance of firms that have employed new staff has risen to 8.9%, up from the 2% reported 12 months ago.

Elsewhere, the FSB Productivity Index reveals that annual output per hour for workers rose by 1.4% year-on-year in Q4 2014, compared with 0.3% in the economy as a whole. Small business revenue and profits are also on the rise, with 24.1% of firms reporting increased revenues and 17.4% reporting higher profits. At 1.9%, wage increases are now in line with the overall economy – and the highest ever recorded in the SBI – while 28.6% of firms said they were exporting this quarter, up from a consistent 25%.

It’s not all rosy though. The Index shows that business confidence remains highest in the south east but Wales has seen a fall in confidence and employment, with confidence in Scotland lower than the UK as a whole. And, echoing figures from the Chartered Institute of Personnel and Development last week, businesses are still concerned about the cost and availability of workers with the right skills; 35.4% of firms said this was a barrier to growth.

“The results of the Q2 Small Business Index are very positive and show the major role that small businesses play in the growth of the UK’s economy,” said John Allan, national chairman of the FSB. “It is critical the new government continues to develop the right environment to support businesses planning to grow, invest and take on new staff in the next 12 months.”

There’s still work to do but things are slowly heading in the right direction – thanks in no small part to Blighty’s super small businesses.

To read the full article click here.

How I Grew My Company From $100 to $400 Million

 

Before launching my current startup, I started a company called Trace3 with $100 and grew it to over $400 million in revenue. Certainly, Trace3 has been successful as a technology consultancy and reseller, but I didn’t start the company to get rich quick.

You too need a different reason for starting your business. If you want it to impact a market or even just have longevity, your business at its core must wage a constant battle to find the truth. And for a business, “the truth” means value. As an entrepreneur, you should be spending every day getting to the core of what “value” means to your customers.

Your job is to build a venture that will search for real value and “the truth” of what your client really needs.

 

Separate people’s goodwill from the truth.

When you are getting ready to launch a new venture, you should find five potential customers and talk to them about the concept, product or service — whatever you are about to bring to market. Then say, “I am contemplating starting this business and I need your help. I would very much like you to convince me why I shouldn’t do it. I am hoping you will listen to the concept and tell me why it won’t work.”

After explaining the concept, shut up. Don’t “sell.” If your potential customers encourage you to pursue your idea, then you need to go one step further: Ask them right there to pay for the product. Not make an investment, but pay for the product. Tell these customers to consider that act a prepayment for serious value, to be delivered soon.

I have started many companies, and asking for the money right on the spot is a critical act. All of a sudden, a completely different conversation happens. It is a real conversation, and one that drives progress.

All of a sudden, those people you’re talking to may tell you that their purchasing department is not really adding any more vendors right now, or that they want to see a couple of more iterations first, or that you’ll need to show them 100 other clients using the product before they can commit to anything. Or maybe they’ll say they are out of cash.

Whatever their reason, you’ll be separating their goodwill from the perceived value of not just your concept, but their belief that you can execute it.

Next, ask why you shouldn’t do it, and if all goes well with that conversation, ask for money. Usually half of the people you ask will still give some excuse why they can’t pay now.

 

Be willing to change course quickly.

A critical moment in the growth of Trace3 came at a dinner meeting when one bold client told me that if our company continued down its present path with its current offering, we would be out of business within three years. That was a gut punch for me, but it was the truth.

This client recognized that a product of ours which had offered us terrific growth had hit a ceiling and was potentially going to be commoditized very rapidly. Even though we had grown from $100 million to $300 million in two years, we might be sprinting right off a cliff, the client said.

After much thought and debate, I made the call to build two new practices and invest all the profits from that year into my bet. We would continue the old business, as it still had good play in the market. But we would also fund a cloud and big data team and start to look at how to add advanced technologies for our clients by offering the best next-generation products coming out of Silicon Valley.

I made the executive decision to lose money and invest in securing our future and creating massive opportunity. Not everyone agreed with my plan, but in the end it worked. The point is that progress does not always mean racing forward as fast as you can. Sometimes it means taking hard feedback and retrenching on those things that are no longer working.

Progress may even mean executing a 180-degree turn and walking back to the start. If you are walking away from value toward money or short-term gain, yours will be a short walk. And I do not mean that in a trivial sense. When you have to make this call, you can never know for sure if you are making the right move. Many times, you will be wrong.

 

Failure isn’t just acceptable, it’s mandatory.

Progress toward the truth requires trial and error. The classic Silicon Valley term “fail fast” should be your motto if you are starting a company. When I started my new company, POP, I asked five clients to tell me why I shouldn’t do it. I wanted to fail fast. But three different companies gave me $35,000 each based on the concept alone, and now I have a new company that I love.

POP is a crowdsourcing app that drives engagement and buy-in from a company’s human assets. We pivoted at least 20 times in the first six months to figure out POP’s true value. I expect to pivot 20 times more now that we have clients such as DirecTV, Comcast, CoreLogic and Kaiser Permanente.

Failing isn’t just acceptable, it’s a prerequisite for success. If you are reasonably intelligent, and you hire a smart team, most of their work will involve testing value and making small corrections.

Failure is an integral part of making progress toward real value, which is another way of saying you are making progress toward the truth.

 

To read the original article click here.

Chinese citizens are donating millions of dollars to Nepal earthquake relief

China has long been ranked among the least charitable countries in the world, but the response to Nepal’s massive earthquake on April 25 has been much different—due in part to the ease of donating through the country’s popular online payment platforms.
As of noon in China on April 30, over 250,000 people had donated 19.7 million RMB ($3.2 million) to Nepal earthquake relief efforts using Tencent’s online payment system.

 

About 58,000 citizens had also donated 1.6 million RMB ($268,000) through Alipay’s Wallet app to a partnership between the One Foundation and the China Foundation for Poverty Alleviation and almost 96,000 people had donated 3.1 million RMB ($500,000) through Alipay’s online website. Alibaba and Tencent also each pledged 2 million RMB ($323,000) in corporate funds to earthquake relief efforts.

 

The Chinese government—which was mocked overseas for its paltry aid to the Philippines after 2013’s Typhoon Haiyan—has already pledged over $3 million in goods and supplies and sent in dozens of red-uniformed search and rescue experts, as it jockeys with India to come to Nepal’s aid.
There are other, smaller efforts, too. The China Siyuan Foundation for Poverty Alleviation, part of the Communist Party’s United Front Work Department, for example, sent 20 members, “including professional rescuers, emergency doctors, and water purification engineers” to Nepal on April 27 , carrying water purification devices.
China ranked 128th on the Charities Aid Foundation’s World Giving Index  last year, worse than all but six countries on the global list, although there was an increase in the percentage of people who said they had donated to charity, from 10% to 13%. Next time the rankings come out, aid to Nepal could help China put in a much better showing.

 

Click here to view the article.

New Exemptions for Providers of Consumer Credit

New consumer credit exemptions have been introduced by the Financial Conduct Authority (FCA). Previously firms offering consumer credit were only exempt from the requirement to apply for FCA authorisation if they provided credit agreements that were repaid within a maximum of four instalments over the course of a year.

This has now been increased to 12 instalments. Firms must still meet additional criteria to remain exempt from authorisation, such as only providing credit for a fixed amount and not adding any charges or interest.

Firms which meet all of the criteria may still require authorisation from the FCA if they carry out other credit-related activities. The new exemptions were introduced on 18th March 2015 and only apply to credit agreements made on or after that date.

 

Click here to read more about the exemptions.

BIS Confirms Forthcoming Ban of Zero-hours Exclusivity Clauses

Exclusivity clauses in zero-hours contracts (ZHCs) will be banned under the Small Business Bill, the Department for Business (BIS) has confirmed in a response to a consultation on this issue.

However, the ban will not apply to contracts that guarantee a weekly income above a certain threshold or a basic pay rate of £20 or more per hour.

Secondary legislation will be introduced to deal with employers who breach the ban and to provide for employee compensation. The Small Business Bill was originally expected to become law later this month, but is still progressing through Parliament.

 

Click here to view the consultation response.

Where are all the female innovators?

The dearth of women in STEM careers isn’t from discrimination but a perception and visibility issue, says Dame Sue Ion.

Women now make up 24% of FTSE 100 board positions and are increasingly represented in high profile science, technology, engineering and maths (STEM) roles. Both the Royal Academy of Engineering and the Institution of Engineering and Technology have appointed female presidents in the last year; Dame Ann Dowling and Naomi Climer respectively. The Institute of Physics has Frances Saunders at the helm, and Louise Kingham is Chief Executive of the Energy Institute.

Many women are also at the cutting edge of innovation. Women such as Professor Eleanor Stride at the University of Oxford, who is developing new treatments for cancer and Alzheimer’s using microbubbles, are pioneering new technologies to change our world. Asha Peta-Thompson is creating revolutionary electronic textiles for military uniforms to help save soldiers’ lives, and Dame Wendy Hall is involved in pioneering work towards the semantic web in order to make the data on the web more useable and interlinked. These are just a few of the hundreds of amazing female innovators from across the STEM sectors.

So, why is it, with high profile female innovators like this, that STEM is still often perceived as a career more suited to men? The Institution of Engineering and Technology’s (IET) “Engineer a better world” research recently highlighted that a staggering 93% of parents would not support their daughter in pursuing an engineering career. With that in mind, it’s perhaps not surprising that only around 13% of STEM professionals in the UK are women.

I don’t believe that discrimination against women once they choose these STEM paths is responsible for these stark figures. In over three decades in engineering, I have never personally experienced discrimination, and I doubt the women mentioned above have either. The primary challenge is that, even after years of efforts to change them, the public perceptions of STEM are largely misinformed and outdated.

Science and IT suffer from the idea that they are geeky and solitary professions, which can be off-putting to many girls and their parents when weighing up career options. Engineering, my own profession, is often mistakenly believed to be all about engines, cars and bridges. In reality, it encompasses a vast breadth of areas, from biomedicine to renewable energy, which is what makes it such a great career.

Click here for the rest of the article.

UK inflation reaches record low of 0.3%

 

UK inflation fell to the lowest level on record in January as the sharp drop in global oil prices fed through to petrol pumps and food prices continued to fall amid a supermarket price war.

The government’s preferred measure of inflation fell to 0.3% in January from 0.5% in December, the slowest pace since equivalent records began for the consumer prices index in 1989.

The Office for National Statistics said the drop in inflation was driven by falling fuel and food prices. The chancellor, George Osborne, welcomed the news as a “milestone for the British economy” that will ease the pressure on household budgets as he sought to rebuff fears that the UK could be headed towards “damaging deflation”.

Economists in the eurozone and the UK have been watching for signs of a deflationary spiral where consumers and businesses put off spending in anticipation of lower prices. They were reassured by the news on Tuesday that core inflation, which excludes the more volatile prices such as food and energy, actually rose in January, edging up to 1.4% from 1.3% in December, partly on the back of smaller clothes discounts compared with a year ago.

Click here for the rest of  the article.

Changes to Copyright Law: In Effect NOW

Copyright law is very strict, with only a limited range of exceptions where copyright material can be used without licence (permission). A range of new exceptions and changes came into effect in 2013 and 2014, following the Gowers review of intellectual property in 2006 and the Hargreaves review in 2011, and the need to implement European copyright directives. These changes amend the Copyright, Designs and Patents Act 1988, with the intention of creating a copyright system that is better suited to the digital age.

Brief intro to copyright law

Copyright protects original literary, dramatic, musical and artistic works; sound recordings, films, broadcasts and cable programmes; the typographical arrangement of published editions (what a publication looks like), and compilations of data that do not comply with the requirements for database right. It covers most original written and artistic work, including articles, reports and books whether published or not, leaflets, fundraising materials, drawings, paintings, photographs, correspondence, music, dance, plays and theatrical productions, email and website design and content, and computer programs.

To be covered by copyright protection, the creative work must be recorded in writing or some other medium. This includes broadcast media, or electronic media such as the internet.

Copyright comes into existence as soon as the work is recorded on some way, whether on paper, film, videotape, audiotape, CD, DVD, websites, computer, computer disks or any other medium. There is no need for registration, or to use a copyright © symbol.

Copyright belongs to the creator of the work, unless the work has been created by an employee in the course of their employment, in which case it belongs to the employer; or if copyright has explicitly been assigned (transferred) to someone else.

When the rights holder (the copyright owner) allows someone to use the work without assigning copyright, this is a licence — a permission to use the work in a specified way, or for a specified purpose or purposes. In most cases the licence has to be explicit, although not necessarily in writing. (For example, if you ring me and ask to reproduce this article, I can grant the licence orally. But the mere fact that I have made the article publicly available on the internet does not give you licence to reproduce it.)

Information about all aspects of copyright law can be accessed at www.gov.uk/intellectual-property/copyright.

To see the rest of the article click here.

Bill Gates Turns Our Sewage Into Perfectly Clear Water.. and Drinks It?!

2 billion people worldwide don’t have access to adequate sanitation, with human waste often polluting the water supply and remaining untreated.

 

The OMNIPROCESSOR aims to help with this problem!

 

Using an innovative blend of steam power and water filtration, according to Gates and his foundation, this plant can convert up to 14 tons of sewage into potable water and electricity each day.

 

Now that a prototype is up and running in Washington, the foundation hopes to bring the OmniProcessor to India, Africa, and other developing parts of the world, saying that each roughly $1.5-million plant can process sewage for a community of about 100,000 people.

 

“If you can get thousands of these things out there, then you’ve ensured the people really will grow up in a healthy way,” Gates says. “They’ll live much higher quality lives. You will save a lot of lives. And you’ll have local entrepreneurs who are maintaining these things.”