Training Projects 2000

News - IMPORTANT ISSUES AND REPORTS by Tom Edge

PCs ON THE WAY OUT

Lou Gerstner, Chief Executive of IBM says the PC is dead. In a sense its days were numbered when people realised the mass-market potential of the Internet.
Surveys in the UK have shown less than 50% of homes will have a PC by 2006 so for the Internet to expand it has to look for other connections. TVs with processors plus key boards and WAP phones with screens seem the most likely way forward.

We have the word of the top man in the top computer firm! A revolution is about to take place!

A Government commissioned report found the English to be the worst educated in Europe with 20% of us not able to find a company in Yellow Pages, and 30% not able to calculate the area of a room. Less than 30% of small business owners have training BEFORE start up. While 75% believe training to be important to their business success less than three in ten business owners HAVE HAD TRAINING IN PAST THREE YEARS and most of that was job skills NOT business skills. It seems their motivation to train was to improve themselves and not their business.

Tom Edge comments: "Half of business fail in the first three years because the owners "think" they know enough. As the business grows it will face dozens of new situations so less than 8% (Eight in every hundred) survive beyond 10 years. All that will survive will have had some business training." See Hot Tip #1

The Fair Trading Chief has upset supermarkets by claiming they over charge customers and under pay their suppliers. This is the first shot fired in the war to match UK prices with European prices because the Euro makes all prices transparent.

Of course the supermarkets will retaliate using a red herring approach and blame their high prices on UK fuel and planning regulations.

Tom Edge comments: "Fuel in the UK is much too high but fuel has little to do with supermarket prices or costs.

Supermarkets are very good at business especially negotiating, and we can learn a lot from them (see Hot Tips #6 through to #11 How they charge top price while appearing to offer price advantage) We can also learn from the negotiating tactics they use on their suppliers. It is important that a new business person gets some training in Negotiating and Selling as soon as possible.

Now I am not saying we should screw our suppliers and customers to the same extent as supermarkets screw theirs but most small businesses do not charge enough for their goods and services and they often pay too much for their supplies. If you do business get on a negotiating course ASAP and watch your profits soar too"

Falling prices are one danger from deflation. Manufacturing particularly is in danger of having prices plummet quicker than at anytime in the past 40 years. Low inflation helps with interest rates but a downward spiral on prices is already causing problems for some firms. Customers are delaying purchases in the hope of lower prices later.

Lloyds TSB research has shown younger business owners are more optimistic about competitiveness following the introduction of the minimum wage than are those 45 years plus.
This is because younger owners are more likely to employ expensive specialist workers and they believe that the legislation has had the effect of levelling out the playing field.

Now we have had time to digest the "give away" budget - Surprise surprise! we will pay more Road Tax again next year. The so-called "Green Emissions Changes" did most of the damage. It's just a "clever" way of hiding yet another Tax Increase. AND ON THE SUBJECT OF CRAFTINESS, wasn't he clever in encouraging Small Businesses to "Go Limited" last year? Getting us to place our heads above the parapet so that this year he could easily knock them off!

Late payers will be named and shamed by the Federation of Small Businesses in an effort to get small firms paid on time. Some have to wait seven months to get paid which is diabolical! The list of late payers is compiled by Dunn and Bradstreet with the backing of the Trade and Industry Secretary.
Small firms are owed £20bn in overdue invoices which hurts cash flow and growth.

New legislation passed last year gives small firms the right to claim 8% over base rate
(unless parties have negotiated differently) Late payment is defined as over 30 days or past agreed dates.

Just as the Prince's Youth Trust has been helpful to young people who wish to start their own business, now PRIME is helping people aged 50 and over to get started. Go to your local Business Link and ask about Over 50 Start-Up Grants.

Unless Britains small businesses get out there and start selling to France, Spain and other countries they could lose out to European firms with the same products exporting to the UK and hitting their home markets says Barclays Bank Corporate Services.

Tom Edge comments: Barclays are right, and also look to Southern Ireland and the USA who are used to us and speak almost the same language!