Administrator, Author at Small Business Insider

When small businesses face a challenge where should they go for expert advice?

Posted on November 13, 2019 Written by Administrator

When you start a small business you know that this is a venture that comes with risk. One in five small businesses fail in their first year. Thirty per cent of small business fail in their second year, 50% fail after five years, and 70% fail in their tenth year in business.

Why is this happening?

One of the biggest issues in small businesses is access to a range of expertise and talent. SMEs work using a ‘startup mentality’ ─ hire people with a range of skills and get them to plug holes as and when they appear.

But what happens when your business faces a serious problem? Many SMEs turn to professional services and consultants which has led to a thriving consultancy market. Currently there are over 700,000 consulting firms around the world and in the UK, SMEs spend a total of £60 billion a year on professional services.

Unfortunately, much of the spend is wasted.

Small business owners may only need the answers to a few questions, yet are forced to pay a minimum fee/contract length for advice that they may not have the expertise to implement.

Additionally, consultancy firms often dispatch their junior team members, using senior resources to manage and control their teams.

For these reasons, nearly half of SMEs avoid using external consultants because of over-inflated costs, with 36% citing scepticism about their level of expertise as a barrier.

What can small business owners do to get the type of advice they need at an acceptable price and rather than failing, help their businesses succeed?

1. Talk to employees

One of the quickest, cheapest and most effective sources of advice might just be your own staff. Over the course of their careers, people will often have held a variety of roles in a number of variously-sized businesses in different markets. Just because you hired them as a sales director doesn’t mean they won’t know how to fix an IT issue or can’t provide high-level strategy, for example.

Start by bringing your entire team together for a brainstorming session. This way, staff with fragmented skills and experience can support one another in coming up with a solution that is both practical and effective.

PROS: Staff already know your business from the inside-out, so there’s no need to bring them up-to-speed. Besides, asking your staff costs nothing, so it’s always a good place to start.

CONS: Existing staff will be personally invested in projects and work completed to develop their department. As such, they may be too close to the company to recognise the problems or too attached to existing processes to even think of challenging them. If you’ll excuse the cliché, they can’t see the wood for the trees!

2. Contact your network

Everyone has a network whether you’ve deliberately nurtured it or not. People from school or university, friends and family, as well as business contacts you’ve connected with over the years. Any one of them may have a solution to your challenge.

Start by going through your LinkedIn connections and sending a few messages. The professional focus of LinkedIn makes it an ideal platform for reaching out about business challenges.

PROS: You know these people; you know their background and can view their skills and experience. People are much more willing to help out someone they know than someone they don’t, making it potentially much cheaper than a consulting firm. They may also know someone within their own network that can help.

CONS: If you are asking for a favour you have little leverage to make demands. They may not have a lot of time to help, making them slow to reply and little time to focus on the solution. As such, they are pretty unreliable for quick solutions to immediate problems, causing more uncertainty than they solve.

3. If your personal network can’t help…

If you’ve tried your personal networks to no avail, you could always try an expert network. These are companies that connect businesses with relevant experts from around the world. You send your challenge to the expert network company, they find a suitable expert in their books, and then connect you. Think of it as tapping into someone else’s LinkedIn and getting a guaranteed response.

PROS: As there is a strong financial incentive to help, expert networks are very reliable in terms of putting you in contact with someone. You’ll receive a fairly rapid response and can quickly jump on a call to discuss the challenge. Calls may total several hours, but it’s still a lot cheaper than hiring a consultant for two full weeks.

CONS: These calls don’t come cheap. Businesses can sometimes pay expert networks up to $1,300 per hour for advice and they have no idea how long it will take to find a solution. There is also no way to personally vet the expert you are connected with ─ you simply have to trust the network company to connect you to the right person ─ making it a bit of a blind call.

Expert networks have also come under increased scrutiny, particularly in the US, after several cases of insider trading were discovered and prosecuted by the SEC in 2012. In total, more than 36 individuals and firms were charged with a variety of financial and corporate crimes, causing a swath of regulation aimed at clamping down on unscrupulous practices.

4. Employ a consultant

In reaction to the declining popularity of expert networks and in response to the need for quick, cost-effective consultancy, a number of disruptive services have now become available. For example, Consulthon, allows businesses to post their challenge to a network of experienced consultants for free. The consultants then pitch a brief overview of their solution, which the business owner can then discuss or try out without committing to anything. If the business then wants a deep-dive into the solution, they can book a call with the consultant

PROS: Reviewing responses before committing to a consultant means you can find someone who speaks your language. You can assess which of the consultants has the relevant level of experience and offers a solution that you understand, so there is no risk of overcomplicating the solution. You can even test the solutions in principle before the call, giving you live data to feed back to the consultant.

Additionally, since the network is for expert consultants from a variety of fields, you have a one-stop-shop for all your challenges or a multi-faceted challenge requiring more than one consultant.

CONS: Calls can be expensive (e.g. £250/hr) but you do only pay for the amount of work you need, avoiding the cost associated with minimum contracts. Consultants may also have full-time jobs and therefore be unable to visit your premises or commence work immediately, restricting them to calls only.

With any consultancy option, whether in house, a member of your network or an external consultant, it’s still on you to assess the solution and accept the risk. If it doesn’t work then you’ve wasted time and money with no recourse.

Your team will have to implement the solution. As you’ll know, it takes a team to make any business successful. A consultant can only help navigate specific hurdles to help you achieve success.

If you can get excellent advice, at the right point in time, you’ll be able to tackle any challenge that comes your way. With the solution implemented you can look forward to business growth, without the worry of large debts or unnecessary high overheads.

ABOUT THE AUTHOR

Marieta Bencheva is co-founder of Consulthon, a UK Management Consulting Expert Network. Businesses can raise a Business Challenge and the network’s experts will brainstorm solutions. After selecting the answer they like the most, the business can book a paid one-hour advisory call and deep-dive session with that consultant. All the consultants are vetted by Consulthon and the platform offers businesses access to a wide range of skills, in a variety of sectors and countries.

Web: https://consulthon.com/

LinkedIn: https://www.linkedin.com/company/consulthon/

Facebook: https://www.facebook.com/CONSULTHON.CO.UK/

Twitter: https://twitter.com/CONSULTHON @consulthon

Instagram: https://www.instagram.com/consulthon.co.uk/ @consulthon.co.uk

References:

What Percentage of Small Businesses Fail? (And Other Need-to-Know Stats)

https://www.consultancy.uk/news/13415/uk-smes-spend-60-billion-on-professional-services-yet-much-is-wasted

https://www.inc.com/soren-kaplan/the-business-consulting-industry-is-booming-and-it.html

UK SMEs spend £60 billion per year accessing expert consultants

https://www.bloomberg.com/news/articles/2018-02-28/investors-are-paying-1-300-per-hour-for-expert-chats

https://uk.reuters.com/article/us-investors-networks-asia/expert-networks-thriving-in-asia-away-from-u-s-scrutiny-idUSBRE9810N320130904

Why business loyalty and rewards schemes are moving to the new business model of the platform ecosystem

Posted on November 7, 2019 Written by Administrator

Platform economy has arrived and is here to stay. Businesses across every industry are investing in platforms realising the importance from a strategic growth perspective. The technology era demands a connected world and connectivity channelized through platform driven business models is the way forward.

The emerging platform strategies are demand-driven, and they promise to provide unprecedented scale, speed, and global reach. These can build the foundation for unleashing new market opportunities from system management, data collection to deeper consumer insights. We have seen platform model underlying the success of many biggest and fast-growing companies like Amazon, Google, Alibaba, Uber, Airbnb, etc. The industry has been fast growing and 80% of the global enterprises are expected to create or partner with industry platforms in the coming few years.[1]

What does it mean for the loyalty marketing industry when consumer loyalty is undergoing a tectonic shift?

Customer experience has become a key differentiator for businesses worldwide. Customers are looking for choices and ease of navigating between those choices for better and quicker decision making. They are more expectant as they experience personalised and real-time services with businesses via simple and affordable digital technologies.

As for the loyalty marketing, this has been a key tool for businesses to gain repeat sales, consumer insights and acquire new customers. However, the industry has transformed rather slowly as compared to, for example, the banking, payments and retail industry. It requires a technological edge to bring the much-needed momentum with $360bn worth points lying unredeemed, globally.[2] Traditional loyalty programs are costing significantly more and delivering less. Loyalty points are not fluid enough. They hold value within single or a small group of brands and it takes too long to earn a meaningful reward.

Businesses require deep consumer insights as mass-segment marketing strategies aren’t reflective of individual’s preferences. Digitally managed platforms can create network effects such that every business can leverage the interconnected network for insights, analyse future prospects and design marketing strategies to drive sustainable growth, faster and economically. Whereas, a standalone or a closed-loop loyalty programme has its limitations. For the loyalty industry to enable true customisation and acquire more loyal customers, it requires rich and relevant data that can be generated by a platform that connects businesses and customers through a unique network.

The concept of loyalty point exchange or programme coalitions are not new. Businesses reward customers with points that are redeemable among a group of brands or transferrable to another programme. However, traditional coalitions have a standardised model of points exchange that doesn’t work for all sizes of businesses. Most of the settlements and reconciliation processes involve manual labour, adding to the time and cost. Eventually, the end consumer pays that as a transaction fee. By the time points are exchanged, consumer loses both, time and points value. The coalition owners tend to own the currency and businesses often lose out on the customer insights.

Redemption drives brand engagement. Then imagine the kind of engagement to be expected by offering diversified redemption. Businesses can potentially reclaim the lost value of their loyalty programmes by joining an exchange that will induce liquidity within the points. An advanced exchange platform can facilitate points earn, burn and exchange within the businesses in the network in a very cost-effective and real-time manner. 70% of customers leave a programme if it takes too long to earn a meaningful reward.[3] Helping customers to reach the redemption threshold is of prime importance to gain their loyalty. LoyalT_® underpinned by blockchain is among such platforms that connects businesses of all sizes and domains. In time, such platforms can emerge as a data hub with global and local businesses joining the network. Consumers can consolidate points to their preferred brand and redeem for a higher value. The network ensures real-time and secure points exchange and provides instant gratification to the consumers. One such platform can support numerous use-cases like multi-currency gift cards, peer-to-peer transfer of loyalty points, donations to charities. Every business is unique and LoyalT_® helps businesses maintain their individuality and generate the brand awareness through their own loyalty programmes. The platform acts as an enabler connecting businesses and consumers to facilitate the exchange.

We are headed towards a connected world with digitally managed platforms of consumer goods and services. Loyalty industry is waiting for such a transformation. Managed loyalty platforms on blockchain can emerge as a single source of trust less and decentralised point of connecting the businesses at a global scale. Business will be able to focus on their core offerings while the network takes care of the engagement rules, manages partnerships, multiple currencies, individual business preferences and more. All enclosed within the digital smart contract that is executed every time a transaction is initiated.

ABOUT THE AUTHOR

Aparajita Roy is the Head of Market Research at KornChain. She started her career with the Central Bank of India. She has extensive work experience in blockchain with her researches on International Money Transfers using Blockchain technology, account aggregators, trade-creating effects of the EMU and more. She brings her knowledge of international trade economics and experience of conducting independent researches to KornChain where she has been involved as a co-founder.

KornChain is a technology company that is building a global blockchain network for the loyalty marketing industry. KornChain have recently launched LoyalT® which seeks to be a global loyalty point exchange network underpinned by Blockchain. Customers can earn, spend, exchange & consolidate points in real-time while businesses benefit from customer acquisition, repeat-sales and deep insights. On-going implementation with large clients.

https://www.kornchain.com/

https://www.linkedin.com/company/kornchain/

[1] https://www.idc.com/getdoc.jsp?containerId=US42843817

[2] https://medium.com/@vjkrish.ram/you-are-not-alone-globally-360-bn-worth-reward-points-go-unredeemed-each-year-3ad3469e094e

[3] https://www.collinsongroup.com/en-meai

The importance of trace and access cover

Posted on November 5, 2019 Written by Administrator

Property insurance provides essential protection against a host of risks – whether you are the owner of your own home, a buy to let landlord or an investor in commercial property.

Consider the loss and damage that might be caused, for example, by:

an escape of water which floods one or more floors of your insured property;

a fire – or the risk of fire – caused by electrical cables that are shorting; or

a potential explosion from faulty or leaking gas supply pipelines.

What your property insurance covers

You are probably resting confident that your home, buy to let or commercial property insurance makes provision for the loss or damage caused by an escape of water, fire, or explosion – and if these risks are covered in your policy, you are indeed entitled to suitable compensation from your insurer.

By no means all property insurance policies, however, offer cover for the potentially considerable expense of identifying, tracing, accessing and repairing the source of the problem responsible for the escape of water, or risk of fire or explosion.

Unless your insurance makes specific reference to trace and access cover, it has been found that your insurer bears no responsibility for providing cover for the expense of tracing, exposing and repairing the problem – costs which may prove considerable if floorboards need to be lifted, floors dug out, plasterwork removed, or holes knocked in walls.

If you don’t have trace and access cover, and you make a successful insurance claim, only the costs for repairing the damage caused by the problem will typically be covered (less any policy excess).

Where can you buy trace and access insurance?

Trace and access cover is not provided by any standalone insurance but may be incorporated into your overall property insurance policy.

It may be included as standard, but only certain property insurance specialists and providers offer trace and access cover as a standard feature of any property insurance they arrange.

The cover ensures that you are not only protected against the loss and damage caused by incidents involving the escape of water, fire or explosion, but also the expense of identifying, tracing, accessing and repairing the root of the problem, fault or failure.

Some property insurance policies may also provide trace and access cover for sourcing problems with underground services, such as pipework for gas, water and sewerage – pipework which you are responsible for.

Just as with other headings of your property insurance, if you make a claim under the provisions of your trace and access cover, you may expect to pay an excess – and the amount of that access is likely to vary from one heading of cover to another.

Next steps

It is not always immediately apparent whether your property insurance includes trace and access cover – some policies do, but many do not.

To ensure that you are not left footing the bill and personally responsible for the cost of identifying, tracing, accessing and fixing problems responsible for loss and damage such as that caused by an escape of water or gas, for example, it is worth carefully checking your property insurance policy for the definition of trace and access insurance and specific reference to its inclusion.

If you remain in any doubt as to whether trace and access cover is incorporated into your policy, you might want to consult a specialist property insurance provider who arranges this aspect of cover as standard.

Lightweight essentials for today’s traveller

Posted on October 29, 2019 Written by Administrator

Among the many things I love about running our business is the need to travel frequently. Wherever it is I am going, travelling lighter is essential; for convenience, speed and ease. The idea goes further than that, for me, travelling lighter is also about my impact when I travel and buy travel-related products.

Like lots of people who travel, I’ve honed my packing and security skills to an art form! So, what are my tips and picks of lighter travel essentials?

Choose versatile clothes

I need to be able to go seamlessly from a formal meeting with a factory owner to a photoshoot to the mad dash for the plane, all in style and comfort. So, choosing a few signature pieces in materials that never need ironing. I love sustainable staples from The Cotton Story and as someone who only ever wears a white tee – one less thing to think about every day – theirs are perfect.

Men's Classic Rib Crew Neck White

Avoid too many shoes

Also because I have to move seamlessly – read quickly – from formal meetings to walking around a city taking pictures to casual catchups in coffee shops, I want to do this in one pair of shoes that I can fly in, walk miles in and depend on. My new favourites are Flite. They are super-lightweight and come in a multi-use packing cube which is used to deliver the shoe, pack the shoe in your case, and store the shoe – so no more single-use shoe boxes taking up space. The design is versatile; from business to casual wear – so no need to pack lots of shoes. Plus, they are 100% vegan, made from recycled plastic fibres with a unique sugarcane sole.

https://www.kickstarter.com/projects/sevenfeetapart7/the-shoe-with-the-sugarcane-sole-designed-for-travel

The perfect case.

I take an AWAY Carry On. When Jennifer Rubio’s case fell to pieces on a trip, she decided to design her own replacement. I love the minimal style, organisation cubes – a revelation in packing – and the on-board power bank. Nice kit, living up to the hype and no more paranoid searching for the one plug socket in T5!

https://www.awaytravel.com/uk/en/suitcases/carry-on/brick

Get a grip!

When we need to keep our pack light and want to shoot stable video, we use the GorillaPod system; it can be used to mount an iPhone or a full size DSLR and with its grippy legs, it can be attached to practically anything, anywhere.

https://joby.com/uk-en/gorillapod-flexible-camera-tripods/

Ditch the big stuff.

We optimise our kit by losing the big DSLR cameras and shooting with the Moment App and Lens. The photo application that gives you more control of your phone’s camera, especially Depth of Field. Knock out those backgrounds without an upgrade. And the lenses take mobile cameras to the next level. Big pictures in a tiny space. Another great idea that began life on Kickstarter!

https://www.shopmoment.com/

Reduce the waste.

There are some big steps we all have to consider related to sustainability and travel; for example, is every trip essential? Could some of them be avoided? However, the tiny steps add up too, which is why I pack a Keep Cup Brew everywhere I go. It’s easy to carry, attractive, and brilliant to use, keeping my coffee warm and reducing the number of disposable cups going to landfill – the foundations of a great everyday carry item.

https://uk.keepcup.com/

With these six great travel essentials, you can pack and travel lightly, knowing you have everything you need without lugging a giant case around. Happy travels!

ABOUT THE AUTHOR

Matthew Bagwell is a seasoned traveller and co-founder of SEVEN FEET APART, a UK footwear brand. Founded in 2017, it’s purpose is to make every everyday journey better by creating brilliant shoes for the modern traveller.

The shoes, known as Sevens, are crafted and engineered to deliver understated style, premium quality and outstanding comfort. SFA’s lastest range of shoes – known as Fite – is entirely vegan and features the innovative Sugarcane Sole, a substantial environmental improvement over conventional EVA materials.

SEVEN FEET APART is committed to being sustainable, kind and better; the sale every pair of Sevens affords the preservation of 100ft²of biodiverse, endangered land, in partnership with the World Land Trust.

Web: www.sevenfeetapart.com

Instgram: @sevenfeetapart

Twitter: @SEVENFEETAPART

Facebook: @SevenFeetApartLTD

World Land Trust: https://sevenfeetapart.com/pages/100-ft

Kickstarter: https://www.kickstarter.com/projects/sevenfeetapart7/the-shoe-with-the-sugarcane-sole-designed-for-travel

Dinghy’s on-demand insurance cover integral to future of modern work

Posted on October 25, 2019 Written by Administrator

Dinghy, the London-based insurtech pioneers behind the UK’s first flexible, on-demand insurance cover for freelancers, are prominently featured in a new report – “The Impact Entrepreneur: Building a New Platform for Economic Security in Modern Work” – from the RSA (Royal Society for the Encouragement of Arts, Manufactures and Commerce) and the Mastercard Center for Inclusive Growth. The report can be read in full at the following link:

https://www.thersa.org/globalassets/pdfs/reports/impact-entrepreneur-report.pdf

Due to its deep understanding of the freelancing contingent, Dinghy were one of a cohort of early-stage ventures who were invited to take part in the RSA’s Economic Security Impact Accelerator (ESIA), all of whom are focused on affecting systems change around the rapidly growing freelance workforce.

Thanks to the rise of the freelancer, the world of work is evolving at a rapid pace. But is the swiftness of that change happening at the expense of the economic security of those driving it forward? The goal of all ESIA participants is to ensure that doesn’t happen.

Over generations, the vast majority of the workforce have become indentured to the economic safety net that ‘regular’ employment provides. Injured at work? You’ll be paid until you’re fit, healthy, and ready to return. Want to go on holiday? Just book some leave. Having a baby? Most companies have excellent parental benefits in place.But if you’re self-employed – currently – a large part of that safety net is cut away. With the number of people working for themselves now close to 5 million, the pioneers involved in ESIA are looking for ways to make sure that people can live and work securely.

Fabian Wallace-Stephens, Researcher at the RSA Future Work Centre, believes that Dinghy are key players in the battle to secure financial security for the freelance workforce:

“Changes in the way people work have led to a growing sense of economic insecurity in Britain. The rise in self-employment and emergence of the gig economy has left many workers lacking important protections including sick pay and pension contributions. While volatile incomes can exclude them from essential financial services such as mortgages”.

“The Economic Security Impact Accelerator is aimed to support a cohort of entrepreneurs that are working to build a 21st century safety net for economically insecure workers. Dinghy are playing a critical role here, helping to ensure ‘parity of esteem’ between employees and freelancers through access to new types of insurance”.

Dinghy co-founder Robert Hartley, who offered an insight into the groundbreaking work the company are carrying out in a presentation at the RSA in September, notes: “If the future of work is freelance – a fact that seems indisputable – then what does it mean for society as a whole when freelancers won’t get paid if they’re sick or injured and can’t work?

If the current trajectory continues, the world of work in 10 years is going to look very different from how it is today. We need to recreate the economic safety that ‘traditional’ employment offers in that new environment.

Dinghy was founded by freelancers, for freelancers. We know how difficult it can be. Part of our mission is to make economic exposure a thing of the past.”

Hartley continued: “Participating in the Accelerator has allowed us to seed coalitions between other like-minded companies, all of whom share the same passion for economic security.

Our foundations were built on that concept. We don’t charge superfluous fees. We enable freelancers to be flexible. We offer insurance cover which is affordable and easy to access. By keeping costs down we only give freelancers what they need, when they need it – giving them the financial space they require.

A huge part of our ethos is about using our position and our expertise to give something back to the people we insure. The creation of a new shared platform for economic security is essential, and we’re delighted to be involved.”

The Dinghy platform in particular lends itself to the provision of other products that will help freelancers offset the loss of the traditional cover and benefits that ‘regular’ employees take for granted, and the company is actively looking at options along that path. Watch this space.

So – what happens now? The report refers to Dinghy and its co-participants – Trezeo, Labour Xchange and Indycube in particular – as a “coalition for gig worker power”. All share a common view: independent workers are not simply a minority to be “dealt with”, but are a powerful force that will become a mainstream identity as more and more people take up flexible work. All are dedicated to ensuring that people can thrive in “independent by choice” lifestyles, on all tiers of the income spectrum.

Ultimately, Dinghy’s participation in the Accelerator has allowed it to engage with a core group of other changemakers looking at the same issue, each from a different angle.

As the old saying goes, two heads are better than one. Imagine, then, what a whole roomful of them can do.

About Dinghy

London based Dinghy offers on-demand business insurance to freelancers, with cover that can be turned on or off, up or down. There are no fees or admin charges and customers are charged by the second for cover used.

The revolutionary nature of our platform allows freelancers to match their insurance to their on-demand work life, reduce their costs, and alleviate cash flow concerns. Policies can be bought in three minutes, and all claims and policies can be handled online 24/7 through the Dinghy mobile app and website.

Underwritten by Allianz, Dinghy offers professional indemnity, public liability, cyber liability, business equipment and customised legal expenses to cover the needs of freelance professionals.

Invoice finance – a brief guide

Posted on October 21, 2019 Written by Administrator

The recent annual report by the British Business Bank on Small Business Finance Markets revealed that asset finance for small and medium-sized businesses (SMEs) grew by 3% during the period 2018/2019.

Indeed, in 2017 alone some £32 billion was advanced to British businesses in the form of asset finance.

But what exactly is asset finance?

Asset finance

The Merchant Advice Service explains that asset finance allows a business to borrow funds against the value of assets it already owns. The repayment of that borrowing may be spread over several years – so bringing within the company’s grasp otherwise unaffordable equipment, to raise needed working capital or to smooth over temporary cashflow problems.

One of the most valuable assets held by any company, large or small, are its invoices receivable from creditors for goods and services supplied. That asset may be used to raise invoice finance.

Invoice finance

Invoice finance relies on the value of those invoices receivable by effectively selling them to a third party and repaying the sum advanced by way of that sale as and when the invoices are paid.

Invoice finance, in turn, may come in two different forms:

Invoice discounting

the finance provider advances an agreed percentage of the value of your invoices receivable – up to 90% of their value in some cases;

you remain responsible for the collection of outstanding invoices and repay the lender – together with interest (in this case called a “discount charge”) as you bank the receipts each month;

Factoring

in this form of invoice finance, the provider is called a “factor”;

the factor not only advances a percentage of the value of your invoices receivable but also assumes the task of collecting them from your creditors;

once the factor has received payment of those invoices, he will deduct repayment of your advance, plus the costs of the service provided, before returning to you the balance of payments received.

It may be seen that invoice financing is a form of borrowing – using the asset represented by your invoices receivable as security against the loan.

Unlike business loans, however, invoice finance is a more flexible way of borrowing. Repayments of the advance are made as and when payment of the invoices is collected. Repayment is directly proportional to the success of your business in terms of the invoices raised and paid.

Costs

Invoice finance – like any other type of borrowing – comes at a cost, of course. It is not regulated by the Financial Conduct Authority (FCA), but the Asset Based Finance Association (ABFA) – now incorporated into UK Finance – maintains an industry-wide code of conduct. By choosing one of its registered members, therefore, you may be re-assured of reasonable costs.

These might comprise:

a service charge – which covers the provider’s administration, management, and invoice collection costs and are typically charged as a percentage of the turnover of your business (generally, at a rate of between 0.75% and 2.5%); and

a discount charge – is a fee proportional to the sum you draw down against your invoices receivable. It is typically calculated daily and is applied immediately after the money is advanced – currently at a rate of between 1% and 3% over the Bank of England base rate.

Given its flexibility and the reasonable costs involved, invoice finance proves a widely popular method for businesses to raise the funding needed for all manner of operations.

Considering Invoice finance? Speak to Nick at Peak Business Finance

Insurance for freelancers FAQs

Posted on October 21, 2019 Written by Administrator

Freelancing is probably one of the fastest-growing sectors of the UK economy says the Association of Independent Professionals and the Self-Employed (IPSE).

As the ranks of these freelancers are swelling, their need for appropriate insurance is thrown into the spotlight so, here are some of the most frequently asked questions about insurance for freelancers.

I’m a freelancer, why do I need insurance?

What is likely to have drawn you to your role as a freelancer is the freedom, independence, and potential rewards of the job. But these may also be the biggest drawback – if something goes wrong, your freedom and independence mean that you alone are left carrying the can.

Freelancer insurance is designed to help compensate you for the losses incurred as a result – and, so, protect the income you have worked so hard to achieve.

What can go wrong – what are my risks as a freelancer?

There are three principal risks you face as a freelancer – and the financial losses they may entail have to be met from your own pocket in the absence of the appropriate form of insurance:

professional indemnity;

public liability;

theft, loss or damage of the equipment you use as a freelancer.

What is professional indemnity insurance?

When you offer your services as a freelancer, your clients are entitled to a level of knowledge and competence on your part that is commensurate with your background, qualifications and experience.

If the service you deliver falls short of those reasonable expectations, if you make an error of judgment or a simple mistake, your client may sue you for professional negligence and claim compensation for any losses he or she has suffered as a result.

Depending on the losses sustained by your client, those claims may run into thousands of pounds – seriously undermining the financial viability of your freelancing business. Professional indemnity insurance covers any such claim and the legal costs associated with it.

RPC Legal has estimated that as many as 500 different types of freelancers, professionals, and the self-employed currently buy professional indemnity insurance.

Do I also need public liability insurance?

As a freelancer, you need to worry not only about liability for work you are doing for your clients, but even members of the public.

If the actions you take – or fail to take – during you work as a freelancer results in a member of the public suffering an injury or having their property damaged, you may be sued for compensation.

Once again, the value of those claims may be significant – especially if someone is injured – so, public liability indemnity insurance is necessary to cover the potential amount of the claim and the legal costs involved.

Can I insure against the theft, loss or damage of the equipment I need for my work?

The simple answer is that yes, indeed you can.

Freelancers depend for their business on reliable and immediate contact and communication with their clients and potential clients. If you are deprived of those communications for whatever reason, you stand to lose valuable contracts and commissions.

Equipment insurance for freelancers, therefore, covers against the theft, loss or damage of your mobile phone, the computer you may use (both to communicate and on which you do your work), a tablet, printers, tools, and all manner of items used in your work.

Looking for insurance for freelancers? – Have a look at Dinghy

What is crowdfunding?

Posted on October 21, 2019 Written by Administrator

Small and medium-sized enterprises (SMEs) in particular often find it difficult to raise the working capital they need. The problems are compounded by the general reluctance of traditional banks to advance such business loans.

Crowdfunding has helped to fill that vacuum. Instead of asking one main lender to advance the required funds, crowdfunding offers a way of inviting a large number of individuals and organisations to each contribute small amounts. The required funding is therefore raised through that pool of contributors – through crowdfunding.

The different types of crowdfunding

In a consultation paper released in July 2018, the Financial Conduct Authority (FCA) noted that crowdfunding is often an important, alternative source of finance for businesses and individuals.

As an alternative source of finance, which avoids any bank or other financial institution as an intermediary, crowdfunding is theoretically a cheaper way for businesses to raise the funds they need and for the individuals concerned to receive a more attractive rate of return.

The FCA also draws one of the fundamental distinctions between different kinds of crowdfunding:

Investment-based crowdfunding

through this means, individuals have an opportunity of investing in companies by purchasing shares or bonds and participating in the returns generated by those investments – for that reason it is also sometimes called equity crowdfunding; and

Loan-based crowdfunding

Just as it says, this is a means by which businesses raise finance from a collection of individuals – also known as peer-to-peer lenders – who provide a repayable loan and receive repayment together with an agreed rate of interest.

These two forms of crowdfunding have been received with wide appeal in the UK. A story in the Financial Times from September 2018, for example, mentioned the example of one of the leading crowdfunding platforms Funding Circle – said to be valued at £1.5 billion.

As of the 8^th of August 2019, Funding Circle reported that it currently has some £3.54 billion of funds under its management through its crowdfunding platform.

Other types of crowdfunding

In addition to debt-based crowdfunding, or peer-to-peer lending, and investment-based crowdfunding – which are both regulated by the FCA – there are two other principal types, which are not regulated by the FCA:

Rewards crowdfunding

in this variation of the concept, there is no immediate financial pay-out, but contributors may be “rewarded” with gifts – such as concert, theatre or cinema tickets;

the value or number of gifts issued may be proportional to the size of the donation made;

it was one of the first instances of crowdfunding, where a rock band wanted to raised funds for a forthcoming tour and offered free tickets to their concerts for those who donated;

rewards crowdfunding continues to be used quite widely for such artistic endeavours;

Donation crowdfunding

crowdfunding is also used by many charities as a way of encouraging and receiving donations to its cause or causes;

raising donations in this way helps to build a community spirit online and is used not only by charities but also by individuals who are appealing for financial help with particular personal issues or projects.

In addition to its commercial appeal to businesses, therefore, crowdfunding is also a valuable source of funding for charitable and individual projects.

Equity Crowdfunding Masterclass

Nathan Rose, Author of Equity Crowdfunding : The Complete Guide For Startups And Growing Companies: has launched his online equity crowdfunding masterclass. This is online training class you can take in your own time and use to help build a successful crowdfunding campaign to unlock the finance you need to build your product. The masterclass covers 7 main aspects of running and completing a successful crowdfunding project.

Foundation
Crowd building
Authority Outreach
Platforms Selection
Campaign Prep
During the camping
After the campaign

The masterclass has over 40 videos to ensure you are best equipped to run a crowdfunding campaign. Currently the masterclass has $60 off for new students. While priced in dollars, the course in suitable for anyone in any location. It also provides interviews with those that have raised monies before and will share their tips too.

If you are looking at equity crowdfunding, this is the best investment you can make.

https://www.speedieconsulting.co.uk/recommends/resources/equity-crowdfunding-masterclass/