Category: Small Business News

Small business news

Santander announced plans to close 140 branches across the UK

(qlmbusinessnews.com via cityam.com – – Wed, 23rd Jan 2019) London, Uk – –

A total of 1,270 jobs are at risk after Santander announced plans to close 140 branches across the UK today.

The bank said it expects to redeploy around a third of the employees affected within the business.

A shift in customer behaviour is to blame for the closures, the lender said, after research found that the number of transactions carried out in Santander branches has fallen by 23 per cent over the last three years while digital transactions have grown by 99 per cent.

The bank plans to refurbish 100 of its remaining 614 branches over the next two years, with an investment of £55m.

Santander head of retail and business banking Susan Allen said: “The way our customers are choosing to bank with us has changed dramatically in recent years, with more and more customers using online and mobile channels. As a result, we have had to take some very difficult decisions over our less visited branches, and those where we have other branches in close proximity.

“We will support customers of closing branches to find alternative ways to bank with us that best suit their individual needs. We are also working alongside our unions to support colleagues through these changes and to find alternative roles for those impacted wherever possible.”

By Jessica Clark

The UK business shining a light on retail stores

 

(qlmbusinessnews.com via telegraph.co.uk – – Sat, 19 May 2018) London, Uk – –

With LEDs widely regarded as the modern lighting solution of choice, one family-run company is looking to enlighten the masses
How is the Internet of Things changing the way we shop? We might expect inventory or the supply chain to be affected by changes in technology, but there is one aspect of the shopscape that is hiding in plain sight: lighting.

Modern lighting systems have undergone a transformation. Incandescent bulbs are hot, wasteful, don’t last long and many countries have restricted their sale. Fluorescent lighting is cheaper but harsh, difficult to control and less attractive. Both types of lighting have given way to LEDs, which offer more flexible lighting solutions, but not all retailers have caught up yet.

Shoplight, founded in 2014 by Mark and Melanie Shortland, puts the power of LEDs into the hands of stores. “Shops have always been about creating an experience for the customer,” says Ms Shortland, “and with the threat from online shopping, customer experience is only becoming more important.”

Thinking about the customer experience is what kickstarted the business in the first place, she notes: “Mark felt after 20 years of working with large manufacturers in the lighting business that there was a gap in the market. As the offer was getting more high-tech, old fashioned customer service was missing and that’s where we stepped in with Shoplight.”

Mr Shortland decided to differentiate the business by demonstrating to clients that the business understood the fast-paced nature of store opening programmes and the dynamic requirements of the retail sector that often drive down costs and force more nuanced competition through product and service.

“Early on, we secured an order from Skechers,” he says. “Although it was a small order it led to us supplying Skechers with their lighting solutions across the UK, Europe and in Africa and certainly allowed us to gain confidence and momentum with other clients.”

Today, their client list includes Moss Bros, Selfridges, T2, Waterstones, Jigsaw and Lush. Mr Shortland says: “Some of these clients have moved from long-established relationships with our larger competitors, which really reinforces our belief that great service matters now more than ever and that we are definitely doing many things right.”

Looking ahead, he predicts that flexible lighting will become more responsive to customers, with IoT-enabled luminaires allowing shopping environments to adapt to new moods and settings at the flick of a switch – or increasingly a tablet. “This will help retailers put the customer at the centre of retail experiences, encouraging people to visit, stay and buy,” he says, “and Shoplight are playing a leading part in this evolution.”

Parlez Media

 

 

Enterprising SMEs garnering the power of social media to become local hotspots


Jorge Quinteros/Flickr

(qlmbusinessnews.com via telegraph.co.uk – – Sun, 22 Apr 2018) London, Uk – –

How small and medium-sized enterprises (SMEs) use Instagram, Twitter and Facebook to become local hotspots.

‘We reach people who don't know we exist’
Paula Milner, founder, The Crafty Lass

For every workshop that we hold, we set up a Facebook event and post that link to local Northamptonshire Facebook groups.

It means that we can keep track of people interested in our events
(they can click the “interested” button) and reach locals who may not even know that we exist, but are only a few clicks away from purchasing a ticket.

Facebook reviews are also key, because people check these when they visit your profile page, the star rating of which is visible when your page appears in Google search, so a poor score can put someone
off before they have even clicked through.

Encourage customers who have a good experience with you to give
a high-star rating and leave some positive words, which are vital if you want to improve word-of-mouth recommendations.

‘I use hashtags to stand out’
Pragya Agarwal, founder, The Art Tiffin

Across all my craft company's social media, I use location-specific hashtags, such as #lancashirehour and #liverpoolhour, which are used by locals during specific time periods to find out what’s going on in their area.

I do this on a regular basis and during specific times; for example, #liverpoolhour takes place every Thursday from 8-9pm.

The local hashtags create a real sense of community. This especially works with social enterprises like ours, because people are particularly keen to chat with and retweet businesses that are engaging with the community and have a sense of social responsibility.

I also use location tags in Instagram’s live “Stories” feature,
which is good for attracting followers and messages. I recently posted an Easter-themed short video of my kids painting eggs, which was viewed more than 500 times – and thanks to the local hashtag, half the views were from Formby, Merseyside.

I have also made quite a few sales to locals who have seen my Instagram or Twitter posts.

I once posted images of a red squirrel linocut that I made on Twitter, so tagged the local Formby National Trust Red Squirrel reserve and the location hashtag. It resulted in quite a few sales of the linocut print.

As a small firm operating primarily online, it’s difficult to be found in Google keyword searches, but with customers more conscious about supporting their local businesses, social media offers an opportunity to be seen in a crowded marketplace.

It’s also good for offering attractive discounts such as free delivery, because local people will likely be able to pick the goods up in person.

‘It’s powerful marketing on a budget’
Russell Jenkins, managing director, Thomson’s Coffee Roasters

We make sure that our social media posts are tailored to our local Glasgow customers. We will also use hashtags such as #glasgowcentral and #glasgowcafe to reach local people who want to find out what’s going on in their area.

Don’t forget to use your local knowledge and include directions for those who don’t know how to find you.

Social media also means that we can engage directly with the locals.
For example, a post about our policy of welcoming dogs, which featured pictures of canines sitting in the café, was our most successful to date; we got 50 shares and 568 likes within 24 hours. People commented about how excited they were to come to visit with their pups.

Across the three main social media websites, we have built up a community of more than 5,500 followers, which is increasing daily.

If you think of social media as a digital version of word of mouth – and local social media followers as a community group who make recommendations to each other about where to go – then it’s a really powerful tool, especially on a
budget.

We make sure to target messages to the most relevant consumers by location, demographic and interest – and we respond to reviews
and feedback, whether they're positive or negative. It shows customers that we're actually listening.

‘We tap into people’s interest in buying local’
Charlotte Mitchell, co-founder, Charlotte’s Butchery

People are more interested in buying local meat and social media enables us to tap into that.

We use Instagram, Twitter and Facebook to encourage people to
place orders for big events and we share little bits of information about the meat to garner interest. We recently started “did you know” Mondays, where we write about different cuts and share recipe ideas.

It shows that we provide a service, rather than just sell meat.

Customers have also become accustomed to using the messenger service on Facebook and Instagram. When they watch cooking shows that feature unusual cuts of meat that the supermarkets don’t
provide, such as lamb neck fillet or marrow, they send us messages straight away to order the ingredients.

It means that we can do business 24/7, even when the physical shop is shut.

By The Telegraph Small Business Connect community

 

 

Kleeneze goes into administration putting 140 jobs at risk

(qlmbusinessnews.com via bbc.co.uk – – Fri, 13 Apr 2018) London, Uk – –

One of Britain's oldest home shopping companies has gone into administration.

Kleeneze, best known for selling household and beauty products through its network of door-to-door sellers, said it had ceased trading on Thursday and 140 jobs are at risk.

But there is also a question mark over the future of 5,000 independent distributors who sell the products.

Administrators FRP Advisory is seeking a buyer in a last ditch attempt to save the 95-year old firm.

Joint administrator David Acland said: “Kleeneze has performed well over the years and has a strong network of independent sales distributors.

“Unfortunately, tough trading conditions have resulted in the business entering administration.

“The business suffered from operational issues after its move to the Heywood distribution site earlier in 2017.

“There were logistics challenges and IT issues that took six months to resolve, which resulted in significant lost sales,” Mr Acland said.

Kleeneze's self-employed distributors deliver catalogues throughout in the UK and Ireland, earning cash or rewards for every sale they make – either at the doorstep or through their own online shop.

These sellers are a mixture of self-employed sole traders and partnerships, and many work for Kleeneze alongside other jobs.

The company employs 69 permanent staff at its head office in Accrington, Lancashire, and a further 71 at its warehouse in Heywood, Greater Manchester.

Usdaw, the trade union for Kleeneze staff, said it was seeking urgent meetings with the administrators in a bid to protect jobs.

Annette Bott, an Usdaw area organiser, said: “This is clearly a difficult and upsetting time for the 140 staff based in Accrington and Heywood.

“We are pressing the administrators to find a buyer for the company who will protect jobs and keep the business going. In the meantime, we are providing our members with the support, advice and representation they need.”

 

 

Brexit: London Mayor warns £50bn investment could be lost over 12 years with ‘no deal’

Wikimedia commons/Mayor of London

(qlmbusinessnews.com via uk.reuters.com — Thur, 11 Jan 2018) London, UK —

LONDON (Reuters) – Britain could lose almost 500,000 jobs and 50 billion pounds investment over the next 12 years if it fails to agree a trade deal with the European Union, according to a report commissioned by London Mayor Sadiq Khan.

Cambridge Econometrics, an economics consultancy, looked at five different Brexit scenarios, from the hardest to the softest form of Brexit, and broke down the economic impact on nine industries, from construction to finance.

The study said that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide.

“If the Government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment,” Khan said. “Ministers are fast running out of time to turn the negotiations around.”

Britain and the EU will soon begin the much harder task of defining their future trading relationship, after settling the broad terms of their divorce settlement last month.

A stand-off between Britain and the EU over the future access to single market for London’s vast financial services industry is shaping up to be one of the key Brexit battlegrounds before Britain is due to leave the bloc in March 2019.

Reporting By Andrew Mac

 

BCC warns shortage of skilled workers in the UK is reaching ‘critical levels’

(qlmbusinessnews.com via news.sky.com– Wed, 10 Jan, 2018) London, Uk – –

A business group warns the crisis is the biggest potential drag on firms in 2018, as “it is people that make businesses work”

The shortage of skilled workers in the UK is reaching “critical levels” and a large number of companies are struggling to recruit qualified staff, a business group has warned.

Research by the British Chambers of Commerce (BCC) showed 71% of businesses in the services sector are finding it difficult to hire the right workers – the highest figure on record.

Three-quarters of manufacturing firms that were hiring also had problems finding workers with the right skillset.

The findings coincide with fears that the economy is already suffering a brain drain amid uncertainty over immigration and trade rules after the UK leaves the European Union.

Official figures released in November showed a leap in the number of EU citizens leaving Britain in the 12 months to June.

But the BCC has suggested that the Brexit vote is only part of a wider issue, as employment levels remain historically high despite a slowdown in investment, recruitment and output.

Director general Dr Adam Marshall said: “While there are many business bright spots across the UK, the evidence from the biggest private business survey in the country shows that growth and confidence remain subdued overall as we enter a new year.

“Labour and skills shortages are set to be the biggest potential drag anchor on business in 2018, since ultimately it is people that make businesses work.

“Business itself must do more, by training and investing wherever possible in people, but Government must also give firms the confidence to put their livelihoods on the line and go for growth.

“This must be the year employers act rather than just complain on skills, and the year Government delivers clarity, leadership and investment in people and infrastructure. Kick-starting growth, and boosting wages and prosperity for all, depends on this.

“Other findings from the survey included cost pressures remaining a worry for demand in the economy – especially among consumer-facing firms such as retailers.

Suren Thiru, the BCC's head of economics, said: “Looking forward, the UK economy is set to continue on an underwhelming growth trajectory over the near term with uncertainty over the impact of Brexit coupled with high inflation and weak productivity likely to dampen overall economic activity.”

The Government was yet to reply for a request for comment on the report.

By James Sillars

 

Workplace automation will bring greater inequality IPPR warns

 

(qlmbusinessnews.com via cityam.com – – Fri, 29 Dec 2017) London, Uk – –

The rise of the robots will bring with it greater inequality rather than mass unemployment, according to fresh research.

Fears of automated machines replacing humans have led to many predicting that humans will become obsolete. But analysis by the IPPR think tank warned that it is more likely to increase pay inequality and that less well paid low skilled jobs are more likely to be automated.

“Despite the rhetoric of the rise of the robots, machines aren’t about to take all our jobs. While technological change will reshape how we work and what we do, it won’t eliminate employment,” said IPPR senior research fellow Matthew Lawrence.

“A bigger challenge is arguably the effect of automation on inequality in the UK. Managed badly, the benefits of automation could be narrowly concentrated, benefiting those who own capital and highly skilled workers.”

It estimates that jobs with wages worth £290bn a year – a third of all earnings in the economy – are at risk of automation. This may be offset by a rise in wages elsewhere due to higher output and productivity, which it predicts to grow by between 0.8 per cent and 1.4 per cent annually while boosting GDP by 10 per cent by 2030

But the think tank warned that these rewards must be distributed fairly.

“To avoid inequality rising, the government should look at ways to spread capital ownership, and make sure everyone benefits from increased automation,” said IPPR research fellow Carys Roberts.

By Lynsey Barber

 

 

Agency workers paid £400m a year less due to exploited legal loopholes

Alan Clark/Flickr

(qlmbusinessnews.com via independent.co.uk – – Thur, 21 2017) London, Uk – –

Admin workers are losing up to £1,000 a year because of employers exploiting legal loopholes

Agency workers are being paid £400m a year less than the permanent staff they work alongside, with the average admin worker out of pocket by nearly £1,000, a new study has revealed.

According to think-tank the Resolution Foundation,  85 per cent of these workers have been in an agency job for more than three months, which entitles them to equal pay under the law in almost all circumstances.

Despite this, agency workers are still losing £300m a year due to lack of pay parity with other employees.

The study found that workers in admin lose on average of £990 a year, while those in sales and customer service occupations were down to the tune of £803.

The Foundation’s analysis compared the hourly wage of agency workers and employees with the same personal characteristics such as age and ethnicity doing the same type of work.

It found that between 2011 and 2017 the average agency worker was paid 23p less an hour than their colleagues.

The charity said that the pay penalties exist despite the Agency Worker Regulations introduced in 2010 which gives those with 12 weeks-plus of continuous service pay parity with other employees.

These regulations allow agency staff to forgo their right to equal pay with direct employees in return for a contract that offers pay between assignments, but such contracts are often abused by employers, the foundation said.

Lindsay Judge, senior policy analyst at the Resolution Foundation, said that the Government needed to close these loopholes and enforce equal pay rights for agency workers.

“Agency workers deserve to be paid the same as employees if they’re doing the same job, so the Government should look to close the loophole that allows agency workers to sign away their right to equal pay. With the government-commissioned Taylor Review noting this abuse, we’re hopeful that 2018 will be the year of action on fair pay for agency workers,” Ms Judge said.

“Many workers prefer the flexibility that agency work can sometimes offer, and are willing to be paid less as a result, but those doing the same job on the same terms as employee colleagues deserve to take home the same day’s pay,” she added.

The analysis found that the agency pay penalty varies considerably by occupation, with agency-employed managers actually seeing a bonus, which may be in part compensation for missing out on pension contributions.

There are also premiums for those working in less predictable sectors such as social care which legally allow agencies to command a higher price to fill last minute gaps in staffing schedules, the charity said.

TUC general secretary Frances O’Grady said: “Two people working next to each other, doing the same job, should get the same pay rates. But too often agency workers are treated like second-class citizens.

“That’s because there’s a loophole in the law that allows bad bosses to deny agency workers equal pay.

“It’s time to end this Undercutters’ Charter and for the Government to scrap this loophole. It’s recent review into modern employment practices called for precisely that.”

By Stephen Little

 

Black Friday gave unexpected boost to retail sales

(qlmbusinessnews.com via uk.reuters.com — Thur, 14 Dec 2017) London, UK —

LONDON (Reuters) – British shoppers pounced on electrical goods and other Black Friday bargains last month, giving an unexpectedly big boost to retail sales, which contrasted with earlier signs of a subdued start to Christmas spending.

Consumers have been squeezed through most of this year by rising inflation which hit its highest in nearly six years last month, at a time when wages are failing to keep up.

But there was some unexpected cheer for retailers in November data from the Office for National Statistics, which showed sales volumes were 1.6 percent higher than a year ago, beating all forecasts in a Reuters poll of economists.

Spending in cash terms was 4.7 percent higher.

The market reaction was muted and some economists said the surge in retail sales might reflect Christmas spending being brought forward to take advantage of Black Friday discounts.

“The boost from Black Friday will be fleeting,” Samuel Tombs of Pantheon Macroeconomics said.

The figures may provide some reassurance to the Bank of England, which raised interest rates for the first time in over a decade last month and will publish its latest rate decision at 1200 GMT.

Kallum Pickering, an economist with Berenberg Bank, said the figures added to signs from factories that Britain’s economy was picking up a bit of speed in late 2017 and he expected that momentum to continue into 2018.

“The risk from inflation to real spending growth has been exaggerated. Households will simply borrow a little more and save a little less to smooth out their consumption,” he said.

On the month, overall retail sales were 1.1 percent higher, up from growth of 0.5 percent in October and much stronger than economists’ forecasts of a 0.4 percent rise.

Household goods stores specifically reported that Black Friday promotions had boosted sales, the ONS said, with the amount of electrical household appliances sold jumping by nearly 9 percent compared with October.

The data are seasonally adjusted, but the agency said this may not fully strip out the effect of Black Friday, as the promotion period – a relatively recent phenomenon borrowed from the United States – has increased in Britain in recent years.

Looking at the past three months as a whole, which smoothes out monthly volatility, the picture is gloomier. Sales in the three months to November grew by just 1.0 percent compared with a year earlier, the weakest since May 2013.

When the BoE raised interest rates on Nov. 2, it forecast real-terms household consumption growth would slow to 1 percent next year from 1.5 percent predicted for this year as demand shifted towards business investment and exports.

Official data earlier this week showed that consumer price inflation rose to its highest in nearly six years at 3.1 percent in November, while the number of people in work fell for a second consecutive month.

Food prices are rising at their fastest rate in four years, adding to the squeeze on household budgets. The ONS data showed the volume of food purchased was 0.1 percent lower than a year before, while spending on food was up by 3.5 percent.

This week British electronics retailer Dixons Carphone said it had enjoyed record sales during November’s Black Friday promotion, despite weak demand for mobile phones that hit profits.

But home furnishings company Carpetright (CPRC.L) cut forecasts after warning of fragile consumer confidence.

The British Retail Consortium said last week its members had seen subdued sales last month and credit card company Visa reported the first year-on-year fall in inflation-adjusted spending in five years as Britons cut back on big purchases.

By David Milliken, William Schomberg

 

Relativity the company going to space on the cheap

 

Relativity Space and its two founders – Tim and Jordan – have a plan to make rockets faster and cheaper than anyone else. To do this, they're looking to build every part of a rocket – its engine, its fuel tanks and its body – with giant 3D printers.

Entrepreneurs looking to exit at a rate not seen in years

(qlmbusinessnews.com via bbc.co.uk – – Wed, 20 Sept 2017) London, Uk – –

Entrepreneurs are looking to downsize, sell or close their firms at a rate not seen in years, a survey has suggested.

The Federation of Small Business (FSB) found that 13% of respondents were looking for ways out of their business, the highest percentage since it began measuring in 2012.

The survey also indicated that optimism among small firms had tumbled.

The FSB blamed the fall in optimism on rising costs and a weaker UK economy.

“A record proportion of business owners currently expect to downsize, sell or shut up shop, while rent and taxation are frequently mentioned as causes of increased costs. We need to see more support in this space – that includes ending enforcement of the ridiculous ‘staircase tax',” said Mike Cherry, FSB National Chairman.

The term “staircase tax” emerged when some firms found they were paying extra business rates because they had an office divided by a staircase.

The FSB's Small Business Index is based on a survey of 1,230 of its members and was last conducted in July – the responses were used to create a weighted index.

In July, the confidence index fell to 1 from 15 in the previous quarter. The lowest levels of confidence were seen in retail and entertainment firms, according to the FSB.

Exporting happiness

However, the FSB noted that confidence has been rising among exporters, with 40% reporting an increase in overseas sales.

Exporters have been boosted by the weakened pound, which helps make their products more competitively priced overseas.

The report also indicated that, overall, small firms are looking to increase their workforce.

“Employment intentions are up, but so too are labour costs. This is causing significant problems in a number of sectors, not least hospitality and retail,” Mr Cherry said.

“With conference season and the Autumn Budget approaching, policymakers have an opportunity to restore optimism.”

The number of people on zero hours contracts in the UK falls

Tim Tabor/flickr

(qlmbusinessnews.com via bbc.co.uk – – Tue, 19 Sept 2017) London, Uk – –

The number of people on zero hours contracts in the UK has fallen slightly, according to the latest official figures.

Between April and June 2017, the Office for National Statistics (ONS) said that 883,000 people were on contracts that do not guarantee work.

This is 2.2% lower than the figure from the same period in 2016.

However, the proportion of British workers on zero-hours contracts remained broadly flat at 2.8%.

In July, a government review of employment practices said too many employers and businesses were relying on zero-hours, short-hours or agency contracts, when they could be more forward-thinking in their scheduling.

It did not call for a ban, but did suggest reforms such as reclassifying workers for platform-based firms such as Uber as “dependent contractors” and improving in-work training.

The prime minister said the government would take the report's recommendations seriously.

UK manufacturing hits four month high hinting at stronger growth

(qlmbusinessnews.com via uk.reuters.com — Fri, 1 Sept 2017) London, UK —

LONDON (Reuters) – Britain’s factories grew a lot more strongly than expected in August as work flowed in from home and abroad, a survey showed on Friday, suggesting the economy might be picking up speed after a slow first half of 2017.

The Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) jumped to 56.9 from 55.3 in July, higher than any forecasts in a Reuters poll of economists.

Manufacturing accounts for only around 10 percent of the British economy. But Rob Dobson, a director at IHS Markit, said the strong performance last month, after a good July, should help support overall growth in the third quarter.

That could “add fuel to hawkish (Bank of England) policymakers’ calls for higher interest rates,” he said. The BoE’s rate-setters voted 6-2 against a rate hike in August with most policymakers expressing concern about the impact of last year’s Brexit vote on the economy.

Dobson said it looked likely that manufacturing would keep up its growth in the near term because the pick-up was being felt across the sector and among small and large firms alike.

While there were some signs of shortages of workers and material, “at the moment, the survey data suggest that the manufacturing economy remains in good health despite Brexit uncertainty,” he said.

However, there has been a marked discrepancy in recent months between the PMI readings of the manufacturing sector and official data which has painted a weaker picture.

IHS Markit said manufacturing output growth in August hit a seven-month high and new orders rose at the fastest pace in three months.

Growth in exports eased off only slightly from a seven-year high in July, helped by stronger demand from key markets in Europe, the United States and elsewhere and by the fall in the value of the pound since the Brexit vote.

 

Enterprise Ireland Fund Worth up to €750,000 Offered to Start-ups

Flickr/B&F

(qlmbusinessnews.com via Irishtimes.com – – Wed, 30 Aug, 2017) London, Uk – –

Competition open to agricultural, manufacturing, life sciences and renewables sectors

A fund worth up to €750,000 has been made available for start-ups by Enterprise Ireland.

The “competitive start fund competition” will open for applications to early stage companies in manufacturing and internationally traded services on September 13th.

The competition is open to all sectors with a focus on agricultural, manufacturing, life sciences and renewables subsectors.

Up to 15 successful applicants will receive high-level business development support and an investment of up to €50,000 each. The fund is designed to “accelerate the growth of start-ups and enable companies to reach key commercial and technical milestones”.

Joe Healy, divisional manager of high potential start-ups with Enterprise Ireland, said a key priority was “supporting start-ups with global ambition”.

“We do this through funding to help get businesses off the ground while also offering valuable business support and networking opportunities,” he said.

“The Enterprise Ireland start-up team is looking for applications from start-ups working in all sectors. In particular, the areas of agritech, agribusiness, agricultural machinery, eHealth, digital health, medical devices, diagnostics and cleantech.

“Since the start of the year, we’ve seen an increased number of applications to our competitive start funds and we are anticipating more great, innovative ideas with global market appeal in this call.”

Minister for Enterprise Frances Fitzgerald said start-ups offering innovative products and services were “the lifeblood of the economy”.

“Enterprise Ireland’s competitive start fund injects vital early stage funding into companies who have the potential to thrive in international markets,” he said.

“Now that the rates of early stage entrepreneurship in Ireland have returned to pre-recession levels, the success of start-up activity will depend on this kind of funding as well as the crucial advice, training and business introductions offered by Enterprise Ireland to successful CSF applicants.”

Applications are invited from companies that are active in the relevant industrial sectors or individuals who, prior to Enterprise Ireland’s investment, are based in the Republic and have a headquarters registered here.

In addition to written online applications, companies will be asked to prepare an online video pitch. The fund will close for applications at 3pm on September 27th.

By Colin Gleeson

Farmstand Pop-up Health Food Business Taking London By Storm

“If you’re launching an online-only food business, you’re competing with hundreds of thousands of stores; if you want to create a high street chain, you’re up against Pret and McDonald’s,” says Steven Novick, founder of health food business Farmstand. Faced with this conundrum, Novick has eschewed more traditional business models.

After launching a restaurant in Covent Garden, London, Novick took a nimble approach to growth. Over the past 18 months, he’s opened 17 pop-ups across the capital in office canteens, a stand in Planet Organic and corporate catering and delivery services.

Due to London’s high commercial rents, and the doubling of business rates in some areas, it’s not economical for a small firm to rent lots of property, so Farmstand has streamlined operations. All of its food is prepared in a 2,000 sq ft kitchen in south London, from where it is delivered to pop-ups and business customers (around 30 subscribe to a daily delivery) across the city. Its deliveries are outsourced to an experienced courier.

Headcount is also kept to the minimum: 16 full-time staff, with 11 working in the central kitchen and five serving in the Covent Garden restaurant. Farmstand’s in-office pop-ups are staffed by the customer. With this approach, Farmstand’s revenue has grown by an average of 26% month-on-month since opening in February 2016.

Another business with a canny growth strategy is Chester-based, AM Custom Clothing, which provides personalised, printed garments (from T-shirts to lanyards) to universities and businesses. Co-founder Alex Franklin says: “A lot of fashion companies will have have warehouses filled with stock, but we have a unique relationship with our suppliers.” Franklin doesn’t store stock. Instead he calls on his network of 15-20 suppliers of plain clothing when an order comes in. Altogether, Franklin’s suppliers have around 12m items in stock.

However, getting to this point has not come without difficulty. In the past, the business has experienced much greater demand than anticipated, which put pressure on its supply chain. “Since then we have adapted our business model, to make it as scalable as possible, most of this was achieved through automation,” Franklin says. While stock shortages can still occur, the amount of stock at hand now allows the business to find alternatives when needed.

Automating orders and deliveries, and using a computer bot to follow-up on customer enquires, has also smoothed operations. But, Franklin adds, all clients have a dedicated account manager to ensure strong customer service.

While some businesses can handle most operations online, others do require a physical space. So how can entrepreneurs in this situation cut costs? Market stalls and pop-ups, which have been made more accessible thanks to apps such as Appear Here, are one way to trial locations without committing to long-term leases. Meanwhile, some small food businesses might opt for a service such as Deliveroo’s purpose-built kitchens, called Deliveroo Editions. Initially designed as overflow kitchens for established companies, now smaller firms are using these spaces to reach customers outside of their delivery area.

“They are very cheap to set up, so we decided to use them to bring new types of cuisines to areas where we found a gap,” says Rohan Pradhan, vice president of Deliveroo. Deliveroo sometimes takes a higher commission from the sale of small firms using its kitchens. This, Pradhan says, is in order to buffer the risk of the businesses not working out.

Pradhan cites Crust Bros pizza company as a successful example of this relationship. Crust Bros’ founder, Joseph Moore, started his business in 2014 as a stall on Southbank market, originally named Dough Bros. Using Deliveroo’s kitchen service, he has doubled sales. Moore says: “It’s been a good testbed for opening our first restaurant this summer, there were some teething issues at the start [such as pizzas not arriving with customers piping hot]. But now we’ve got the process down.”

Rapid expansion can also occur when entrepreneurs add a subscription element to their businesses – and it can be overwhelming. Vanessa McDermott, founder of creative startup Vee McDee, which delivers craft sets to customers, discovered this while crowdfunding on Kickstarter.

McDermott was raising money to launch a creative studio in Bolton. Through Kickstarter’s crowdfunding model, backers of her idea were offered craft sets as a reward. The sets proved a hit, word spread and people were soon asking where they could buy the packs. Then orders mushroomed. “I [quickly] went from selling 30 packs a month to 700,” says McDermott. “It was hard because keeping the quality up is so important to me, I didn’t want to lose that [as custom grew].”

To avoid this, McDermott outsourced the delivery of the kits to a subscription service that works with startups. “My advice would be to anyone in this position to partner with people who have the infrastructure in place to help with the technical and logistical side [of a subscription service],” she says.

Expanding a business while keeping outgoings lean can be a challenge, but these approaches offer food for thought. Some might still argue that a physical space is key to building a business. However, a more flexible approach has its benefits, says Ian Roberts, an SME adviser with Business Doctors consultancy. “To me, high levels of service and product quality are still a better way to build a strong and positive brand identity, than physical presence.”

Peter Kelly, a senior finance partner with PwC’s small business service MyFinance, agrees. He says that one of the hardest things when expanding is finding the right people to work with and identifying gaps in your expertise. He adds: “It’s hard because [your business] is your baby, but to expand efficiently while keeping up quality you should outsource if you can […] Use spare to money to invest in the areas that will help make [your business] profitable.”

By Helen Lock

Home Grown Produce Threatened by Brexit Workforce Shortage

(qlmbusinessnews.com via bbc.co.uk – – Thur, 24 Aug 2017) London, Uk – –

The UK food industry has warned that a Brexit workforce shortage could leave a third of its businesses unviable.

The Food and Drink Federation said: “Our sector faces a rapidly approaching workforce shortage and skills gap.”

Its survey of the “farm-to-fork” supply chain said 31% of businesses had already seen EU workers leave the UK.

The FDA's survey was conducted across a wide range of respected trade bodies, including the British Retail Consortium and the National Famers Union.

It added that almost half of those businesses surveyed said EU nationals working in the UK were considering leaving.

Big net migration fall since Brexit vote, latest estimates show

The federation is calling on the government to guarantee the rights of nationals from across the European Economic Area.

Ian Wright, its director-general, said: “It is only a matter of time before the uncertainty reported by businesses results in an irreversible exit of EU workers from these shores.

“Without our dedicated and valued workforce we would be unable to feed the nation.”

In April a report by the Commons Environment Food and Rural Affairs Committee said: “Evidence… suggests the current problem is in danger of becoming a crisis if urgent measures are not taken to fill the gaps in labour supply.”

A government spokesperson said: “In June we published our offer to protect the rights of EU citizens in the UK, confirming no-one living here lawfully will be asked to leave when we exit the EU and they will have a grace period to regularise their status.”

The federation said it had welcomed the government's announcement. However, of the businesses it surveyed:

47% said EU nationals were considering leaving the UK
36% said they would become unviable if they had no access to EU workers
31% reported EU nationals leaving since the referendum
17% said they may relocate overseas if they had no access to EU nationals
The federation is calling on the government to ensure there is no abrupt reduction in the number of EU workers in the UK the day the country leaves the EU.

Mr Wright told the BBC: “What we don't want is a sudden switch-off of the availability of EU workers who are part of the lifeblood of our industry.”

He added that there were a lot of practicalities in the government's plans for EU workers “that we don't know yet”.

“We don't know how much it's going to cost. We don't know how dependents will be treated,” he told BBC Radio 4's Today Programme.

“And crucially, in order to believe the scheme is going to work, you have to believe the Home Office can register two and a half million Europeans in a year. That defies some level of belief.”

Last month the National Farmers Union deputy president Minette Batters said: “The NFU cannot emphasise enough the urgent need for clarity and certainty on access to a competent and reliable workforce and all other issues relating to Brexit.

“The industry needs commitments that there will be sufficient numbers of permanent and seasonal workers from outside the UK post-Brexit.”

Immigration

The government said in a statement: “After we leave the EU we must have an immigration system which works in the best interests of the UK.

“Crucial to the development of this will be the views from a range of businesses, including the agricultural, food, drink and manufacturing sectors.

“We will be setting out our initial proposals for this system in the autumn but we have already been clear there will be an implementation period after we leave the EU to avoid a cliff edge for businesses.”

In the longer term, the federation accepts it will have to adjust to the reduction in the number of EU workers.

“Over time [training local workers] is something that will have to happen as a result of the Brexit vote. We recognise that immigration was a big factor in the Brexit vote,” Mr Wright said.

To deal with fewer foreign workers, the federation will have a strong emphasis on building skills through apprenticeships and investment in technology to support automation, it said.

The survey was co-ordinated by the FDA, and as well as the BRC and the NFU, it gathered results from trade bodies the Association of Labour Providers, the British Beer and Pub Association, the British Hospitality Association, the Food and Drink Federation, and the Fresh Produce Consortium.

It said that across the various workforce surveys there were 627 responses, collectively representing almost a quarter of the food chain's total employment of four million people.

Duty Free Booze Cruise Looks Set to Return

(qlmbusinessnews.com via Irishtimes.com – – Fri, 18 Aug, 2017) London, Uk – –

It could happen in March 2019 when the UK leaves the customs union. Or it could be two or three years later if the proposed transitionary period is adopted. Nobody knows until it is settled at the Brexit talks. But the return of duty-free shopping on travel to and from the UK appears to be only a matter of time. After two decades docked in port, the booze cruise is set for a comeback.

The abolition of intra-European Union duty free on July 1st, 1999, was a landmark for the single market. It was one of those tangible moments that punctured the pall of Brussels bureaucracy for citizens, reaching into their everyday lives. No more cheap Superkings on the ferry back from Holyhead.

The abolition was originally pencilled in for 1993, when the single market was established, but European governments gave duty free a six-year reprieve after howls of protest from airports and airlines, ferry operators and the trade unions whose members staffed their duty-free shops.

Intra-EU duty free was an estimated €5 billion market back then, when the bloc had just 15 members. In the current age of high-frequency, low-cost air travel, who knows what the pot might reach this time on travel in and out of Britain?

Ireland-UK air passenger traffic is now approaching 12.8 million annually, with another 2.2 million on ferries. For Irish and British travel companies, that’s a new, 15 million-strong retail market that will soon be ripe for tapping.

But when? As soon as possible, if the industry gets its way.

‘Potential benefit’
Kevin Toland, the outgoing chief executive of airport operator DAA, told an Oireachtas committee in June that duty free on UK flights should commence “immediately” upon Brexit in 2019, “regardless of any transitional arrangements”.
The DAA said this week that, overall, “Brexit is a negative” but the potential reintroduction of duty free is “clearly a potential benefit” for Dublin and Cork airports.

“The exact relationship between the UK and the European Union post Brexit still remains unclear, but our hope would be that duty-free sales on travel between EU states and the UK would resume as soon as the UK leaves the EU rather than having to wait for the end of any transitional period,” it said.

The UK Chamber of Shipping, whose members include Irish Ferries, P&O and Stena, also wants the British government to push for the “automatic” reintroduction of duty free in 2019. Politicians on both sides have so far remained coy.

Kenny Jacobs, Ryanair’s chief marketing officer, says it is too early to speculate on the reintroduction of duty free on its flights to and from the UK. But the airline, ever alert for opportunities to boost ancillary revenues, has a plan.
“We have contingency plans in place for all eventualities,” Jacobs said.
For Irish travellers to the UK, a cursory examination indicates that the potential savings on alcohol and cigarettes – the most common duty-free fare – will be significant: up to 60 per cent on cigarettes and more on many spirits.

But given the fact that not even the most senior Brexit negotiators in London and Brussels have a clue what it will look like, we must make a few assumptions.

Let’s assume that, post Brexit, duty free returns at the pre-1999 allowances, which still exist for travel to all areas outside the EU. This means passengers returning to Ireland from the UK should each be able to bring in 200 cigarettes or 50 cigars, one litre of spirts, four litres of wine, 16 litres of beer, and €430 worth of other goods.

Duty free must be carried across a customs border under the rules. So Irish passengers flying to Britain from Dublin, for example, will not be able to use the airport’s intra-EU “shop and collect” service, which allows them buy goods on the way out and pick up on the way home. Irish shoppers will have to buy their inbound duty free aboard the ferry or aircraft home, or airside in a British airport.

Savings
World Duty Free is the biggest UK operator, operating at airports such as Heathrow. This week, it was advertising duty-free one-litre bottles of Jameson whiskey for £15.89 (€17.40). The same bottle was this week listed in Tesco Ireland for €36, and €47 in SuperValu, a saving of up to 62 per cent.
A one-litre bottle of Bombay Sapphire gin in Heathrow’s duty free currently costs €23.47. In Tesco Ireland, the same gin is priced at €42.85 per litre (based upon the €29.99 cost of a 70cl bottle), or 82 per cent more expensive.

One litre of Absolut Elyx top-shelf vodka is €51.56 at World of Duty Free in Heathrow, but currently €64 in SuperValu for 70cl (€91.42 a litre). That is a saving of 43 per cent on the Irish price. Another Cosmopolitan, please!

World of Duty Free doesn’t list cigarette prices online, but British Airways lists 200 Benson & Hedges on its “high-life” shop (where you purchase online and collect on the aircraft) for £41 (€45.04). It would cost €115 to buy 200 B&H in an Irish shop, a saving (for your wallet, if not your blackened lungs) of 60 per cent.Duty free means no VAT, customs or excise taxes. As excise is a volume-based tax, regardless of the product’s value, its effect is more pronounced on cheaper items. For example, excise adds the exact same cash cost to an €8 bottle of plonk as a €1,000 of the finest Bordeaux, but proportionally more.

Therefore, the savings can be less stark when buying high-end wines on duty free, and sometimes there is no saving at all. A bottle of 2011 Chateau Lynch-Bages, a fine Pauillac, is £165 (€180) at World of Duty Free in the UK. You can pick up the exact same wine in Le Caveau in Kilkenny for €119.

But overall, Irish travellers to the UK are in line for cheaper prices on booze and drink on the way home. The alcohol retail industry in Ireland is worried about the impact of the reintroduction of duty free on sales here, especially at peak times. The manufacturing industry should be broadly unaffected.
“It will be quite damaging at key holiday periods, such as Christmas,” said Evelyn Jones, public affairs director of off-licence lobby group Noffla and the owner of the Vintry in Rathgar, south Dublin.
“Lots of Irish emigrants would be travelling home at Christmas, and you can be sure they’d use their allowance to bring a bottle. It will have a particular impact on premium spirits.”
Noffla is signed up to the wider drink industry’s campaign for a budget cut in excise taxes, which in Ireland are among the highest in Europe. The industry wants an across-the-board cut of 15 per cent, which seems unlikely as it would cost the exchequer €223 million. Try selling the cost of that policy to the public when there’s an acute homelessness crisis.
But Jones says a cut would help offset the effects of a reintroduction of duty free to the UK: “Duty free will also encourage more illicit trade.”
Aviation industry
Britain’s departure from the EU is, overall, likely to be huge negative for the aviation industry. The possible reintroduction of duty free will not be enough of a silver lining to make the Brexit more bearable. Analysts have not built any potential boon into the forecasts for listed airlines, such as Ryanair.
“It might help airlines at the margins,” said Stephen Furlong of Davy stockbrokers. “This is probably something that will be bigger for the ferry operators, where onboard spending and the historical capture of duty-free sales was more material to their performance.”
Gerard Moore, an analyst with Investec, says Irish Continental Group, the stock-market owner of Irish Ferries, generated as much as “roughly half” its net profits from onboard duty-free sales in the late 1990s. That old rythmical clinkety-clink of the duty-free shop rolling on the waves was the sound of philharmonic profitability for ICG and its boss, Eamonn Rothwell.
“It would be a big silver lining once again for ICG,” said Moore. “The company’s view now is, if duty free came back, they’d do a much better job of retailing it this time round. But it might not make up such a significant slice of profits.”
He agrees that airlines would have less to gain, but “if anyone can do it, Ryanair can do it”.
Datalex, the stock market-listed travel software company backed by Dermot Desmond, helps airlines design digital systems to boost their ancillary earnings from activities such as retail.
Ornagh Hoban, its chief marketing officer, said Ireland-UK airlines could “invent a digital marketplace for duty free” by pushing sales on passengers at the booking stage or on the airline’s website, allowing travellers to pick up their goods at the airport or on the aircraft.
“Duty free as an opportunity could evolve to a greater stage. It might be an even bigger opportunity than before,” she says.
The return of duty free is often conflated with customs and the issue of Ireland’s border with the six counties of Northern Ireland, which upon Brexit will become the EU’s only supra-national frontier with the UK.

But there is unlikely to be any duty free between the North and the republic. Duty-free sales happen in transit or at ports of exit. There are currently no direct flights between the Republic and the North. Duty free is unlikely to be much of a factor, unless someone opens a drive-through facility on the M1.
There has always been smuggling across the Border, however. Here’s a potential scenario to finish up that might help illustrate the unintended consequences of the Brexit vote, and the spaghetti bowl of problems facing the negotiators.
This summer, a new car ferry began operating across Carlingford Lough from Co Louth to Co Down. Its owners have said the reintroduction of duty free to UK travel could create an opportunity for the business.
It is only a 15-minute crossing, however. That wouldn’t leave much time to ditch the car on the ferry and leg it up to duty free for a carton of Marlboro and a few bottles of Campo Viejo.
But let’s assume duty free is allowed on the short crossing. What will there be to stop some enterprising soul spending all day, every day, crossing over and back from each side of the lough on the ferry, maxing out their duty free allowance on each journey, and “gifting” the haul to accomplices on either bank?