Avoiding costly mistakes in social media

What are the most common mistakes businesses make on social media? Web specialist CHLOE WILSON (via Barnett and Turner Accountants) explores the pitfalls that can hold you back when promoting your company on LinkedIn, Facebook and other platforms. Although more and more businesses have embraced social media as a way of communicating with customers and promoting their products, it’s possible to fall into a number of traps. Here are five of the most common errors that you can potentially make:

YOU SPREAD YOUR EFFORT TOO THINLY

It’s a mistake to take on too many social media platforms at once, as it can quickly feel overwhelming to post content regularly and interact with followers every day. Instead focus your time and efforts on just one platform at a time. Build up your presence on Twitter, for instance, over a six-month period. Really get the hang of it. Discover what works and then you can add another platform and repeat.

YOU TRY TO MANAGE EVERYTHING IN REAL TIME

Clearly social media operates 24 hours a day, but it may be that you can’t be monitoring it around the clock. Set aside 5-10 minutes a couple of times in the day to review and respond to other people’s posts. And when it comes to your own content, you might consider using a free tool such Buffer.com to schedule and pre-plan your posts in advance. You could, for instance, spend an hour every Monday morning setting up all your posts for the week ahead, to take the pressure off each day.

YOU’RE INCONSISTENT

Many people end up posting on an ad-hoc basis. Five times in one day, perhaps, and then nothing for a whole week. The best advice is to spread your posts out. If you only have time for one post a day that’s fine, but do it consistently and when your target audience is most likely to be online. If it’s mums, for instance, you could send them a message that coincides with their wait outside the school gates every afternoon.

YOU GO FOR HARD SELL

Try to avoid selling constantly, as people tend to switch off. They use social media to connect with their friends and find out information they value. Aim to post useful or topical articles that add value or share ‘behind-the-scenes’ insights into your business in between your promotional posts. And consider using social media as a vehicle for market research. Share two pictures of a product in development, for instance. Which does your target audience prefer?

YOU OBSESS OVER THE NUMBER OF PEOPLE FOLLOWING YOU

Don’t become too fixated by your numbers of followers or friends. It’s more important for a small business to have 100 interested supporters who like and share your content than to have 1,000 followers who don’t engage or buy from you at all. Aim for quality, not quantity.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Linking price to value

How much do your customers value what your business has to offer? Jono Wilson of Mansfield-based accountancy firm Barnett & Turner talks us through the process of pricing. Putting a price on what you sell can be one of the biggest challenges for any business. It’s not only going to play a critical role in your marketing strategy, but also potentially determine the viability and profitability of your company.

The first thing to establish is whether your product or service is considered a commodity. If it’s, say, a mobile phone or even a driving lesson, the band in which you’re operating is going to be pretty narrow and largely outside your own control.

Many businesses do, however, have greater flexibility. You need to understand the perceived value of what you have to offer and work how to quantify it to a customer. Clearly, if something costs you £12 to produce, but its perceived value is only £10, you have an insurmountable obstacle in front of you. If, on the other hand, its perceived value is £100, you’ll see a lucrative market opening up.

Don’t feel you should give away years of experience or know-how for free too often. Be confident in the value you’re able to provide and communicate this clearly to your customer. Remember, you are selling benefits, rather than just features. (Parking sensors on a vehicle are merely a feature. It’s the way they help you avoid bumping your car when parking that’s the actual benefit.)

It’s worth bearing in mind that once you have invested work or effort in creating a product or service, it may be that it becomes more valuable to you. That’s because the next time you sell it, you’ve already done the groundwork.

Here are five additional tips, which you may want to apply:

• Break down the cost of any project work. If you give each component a separate price, it helps with recognition of the overall value.

• Agree price and performance criteria up front. You don’t want to be negotiating at a later stage and will also have some benchmarks in place if you need to increase the price at any point.

• Bill in a timely fashion. You want your customer to value and remember the work that you have done, so invoice when the project is fresh in their mind.

• Avoid adding bells and whistles the client doesn’t want or need. You don’t want your profit margin eroded by setting a five-foot high jump for a three-foot price.

Speak to your client about price. If circumstances have changed and your cost of delivery has increased, be frank and speak to the customer at the earliest possible stage.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

The key to social media success

Social media is playing an increasingly important role for many small businesses. But it’s a confusing world out there! Web specialist CHLOE WILSON via Barnett & Turner offers five top tips for making the most of the new technology. Many companies plunge into the world of social media because they know it’s something they should be doing. But how many of them stop to reflect and plan? By observing these five simple rules, you can make sure that your online presence is stronger and more visible than ever before:

1. ESTABLISH GOALS

Ask yourself what each of your social media accounts is actually for. If you’re on, say, Twitter, Facebook and LinkedIn, what are your objectives for each individual platform? You may intend to drive traffic to your website, for instance, or network with others in your industry. So what does your content actually say? And are you saying it to the right people?

2. THINK VISUALLY

Always add images to your posts, as the more visual your content, the more engagement you’ll get. As people scroll through their feeds, you’ll get noticed rather than ignored. If you’re not a dab hand with a camera, there are various apps available than can help you make your pictures look sharper and more professional.

3. BE TOPICAL

Being current and having something to say on topical issues actually involves planning ahead! If you struggle for what to post on Twitter, why not pick out key dates such as Valentine’s, International Women’s Day and so on as an opportunity to engage with your target audience? Of course, you may want to choose dates or events that are very particular to your industry or market segment.

4. INCLUDE A CLEAR CALL TO ACTION

With important posts, a clear call to action is vital.  Don’t waste the opportunity for engagement. Make it clear what you hope your reader will do as a result of your post or tweet. You might choose to use imperatives, for instance, such as ‘watch this video’ or ‘click here’. If you don’t give people directions, there’s a danger they’ll keep scrolling past.

5. ENGAGE WITH YOUR FOLLOWERS

Treat your friends and followers as peers. Sometimes we seem to forget that this is social media. Try to interact within your community – sharing ideas, thoughts and opinions. Even if you only spend a few minutes a day over a cup of tea, it shows respect and encouragement for the people who have taken the time to engage with you.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Three marketing challenges for the year ahead

We still have a lot of opportunities in front of us in 2016, writes Jonathan Wilson of Barnett & Turner, but you’ll only take advantage of them if you adopt the right approach to your marketing. With the economy still in difficulty and the age-old mantra of ‘the marketing budget being under pressure’, businesses need to make their spending work as hard as ever. It’s only possible to make that money go further if you’re prepared to revisit and challenge existing strategies and develop creative and cost-effective new ones. Here are three approaches to consider during the remainder of 2016:

ADVOCATE MARKETING

Whether your business is online or offline, business-to-business or business-to-consumer, you want to ensure your customers have a smooth journey to their purchase. Unfortunately, research suggests that 50% of the time, this isn’t the case. You want to move from being a supplier to a partner and, in that way, secure repeat orders and recommendations. Ultimately, you hope your customers may choose to use one of the social media megaphones to share their experience.

It’s a question of identifying your advocates and marketing through them. Find the influencers, with whom you have built relationships, to endorse and bring out the key benefits of your business or products. You’re looking effectively for credible customer testimonials.

CUSTOMER-CENTRIC MARKETING Remember, your core brand values should always be delivered. You can make any promises, but it is the customer who experiences the reality. A mismatch between the two can spell the end of that relationship. And technological change can exacerbate any negativity through the way in which experiences are shared instantly.

Develop a customer-centric marketing approach, in which individual customers are at the centre of your marketing design and delivery. Your audience is becoming more and more sophisticated, which means you need to move on from ‘one size fits all’ approach. Instead of old-style marketing campaigns which bombard your customers with emails and offers, why not tailor your messages and promotions to different segments through different channels? The ultimate aim is to nurture one-to-one customer relationships, but results may not be achieved overnight.

FORWARD-THINKING MARKETING

Keep up with trends; the pace of change in marketing tools and technology is very fast often presenting quite a challenge for small business owners.

The fundamentals of marketing haven’t changed at all, in that you still need to understand your target audience, their needs and the problems they have to solve. You also need to understand what it is that makes your company different and why a customer should do business with you, finding a compelling message to drive people to action.

It’s the ways of delivering that message which have changed at a staggering pace. Ensure that you are aware of new ways to reach audiences and only use them if they are truly relevant to your business. Some Chambers run E-business Club events which are well worth looking into if you wish to learn more about the latest marketing technological tools.

Consider User Generated Content (UGC), for example – where people are creating and sharing material on your behalf via social media. This is especially important for the ‘millennial’ generation, which mostly communicates via a smartphone.

Look for ways to encourage people to act as your brand ambassadors and get them to carry the marketing message using various social media channels. Peer recommendation is increasingly important to consumers in the digital world.

But do be careful and think it through. Modern marketing is truly dynamic, accessible and direct, but can be damaging if it is not carefully considered and planned.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Financial data that’s right up to date

More and more accountancy professionals are encouraging their clients to use the cloud-based platform Xero. Peter Woodward of Barnett & Turner outlines exactly what it is the technology can offer. Xero’s cloud-based accounting software not only allows for multi-user access from anywhere, but it also creates the opportunity for banks to provide direct daily feeds.

Alongside the intuitive reconciliation process, businesses really do have a tool which can now produce up-to-date financial data at the touch of a button. No wonder that Xero is increasingly recommended by so many accountants.

An added advantage to the platform is that it’s led to much greater co-operation between business owners, their employees and professional advisers. Because data is both live and visible, your accountant can add value throughout the year – monitoring how your business is performing, spotting book-keeping errors and providing support when you need it.

What about when you’re on the move? The Xero app allows you to reconcile your banking, create invoices and submit expense claims from a smartphone or tablet, which means that you’re always in touch with your financial information wherever you go.

How does it work in practice?

The more sophisticated you get, the more you can achieve. You can send a quote to a customer and the software allows them to accept, reject or amend it online. It’s then easy to convert this data into a sales invoice which can be paid at the touch of a button. The same is true when it comes to raising purchase orders.

What about cash collection? Well, the Xero dashboard allows you to see at a glance which customers’ invoices are outstanding. And there’s no need to hang on to paper copies of purchase invoices, as Xero will store an electronic record for you.

If you choose to give your accountant access, they’ll be able to review your VAT records alongside your invoices and check everything before filing the return via Xero to HMRC.

To understand the full potential of Xero, it’s worth talking to your accountant. They may even be able to suggest add-ons which integrate with the platform. WorkflowMax, for example, allows employees to input and allocate material costs, as well as their hours worked on specific jobs. A great way of managing business performance.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Ten tips for keeping your business safe online

The government has identified ‘Ten Steps to Cyber Security’, which are essential for any business looking to protect itself online. Jono Wilson of Barnett & Turner Chartered Accountants talks us through the suggestions. There are plenty of simple and straightforward steps that companies can take to keep themselves safe in the digital world. As accompaniment to the support offered in their Cyber Essentials programme, the Government advises you to take action in the following key areas:

1. Network Security

It’s important to be aware of what’s on your network and to see that your hardware and software are properly configured. Make sure you act upon notices and warnings.

2. User Education and Awareness

Make sure you have a proper policy in place for using IT and that your staff members are told about it at induction. It’s also important to remind employees of good security practices on a regular basis.

3. Management of User Privileges

It’s critical to manage access to IT through a combination of user names and good, strong passwords. Remember not to write them down or share them and only give users access to what they need.

4. Security Configuration

This is about keeping your IT updated with relevant firmware and patches. Make sure to document your IT assets.

5. Removable Media Controls

This refers to devices such as USB sticks, SD cards and CDs. Make sure it’s safe to bring them on to your network. It may well be that using the cloud is preferable.

6. Home and Mobile Working

With more people working at home, you need to have a proper policy in place and install relevant passwords and authentication software. People are likely to be using mobile devices too, so make sure they’re not walking around with unsecured corporate emails.

7. Malware Protection

Make sure that you keep your anti-malware software up to date through one of the mainstream suppliers. It will scan and sweep on a regular basis, helping to protect you from threats.

8. Risk Management

Create a board of people who are responsible for risk within your business and ensure that they oversee the development of effective policies.

9. Monitoring

Keep track of your hardware and software and look out for unusual activities.

10. Incident Management and Business Continuity

It’s important to have an incident management team which is capable of dealing with any attack and acting upon it.

For more information, please visit https://www.gov.uk/government/publications/cyber-risk-management-a-board-level-responsibility/10-steps-summary

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Protecting data day to day

Data security is often in the news at the moment, but not all businesses have taken the steps they need to protect themselves says Jono Wilson of Barnett & Turner Accountants Ltd. Hardly a week goes by without reports of businesses being hacked by criminals or negligence leading to data breaches. It’s easy to think that your own company won’t be affected, but the truth is that we’re all potentially vulnerable – particularly with the huge changes in technology we’ve seen in recent years.

More and more devices are now connected to the web, for instance. This allows us incredible flexibility in the way that we work, but also creates a large number of potential risks.  And as data gets stored in the cloud, we need to be ever-more conscious of how we protect information we consider to be confidential.

Often businesses fall at the first hurdle by leaving data lying around or failing to take simple steps, such as password and encryption protection.  It’s essential to have proper policies and protocols in place and communicate them effectively to members of staff.  Remember, many hacking attempts are now highly sophisticated, so if even the fundamental building blocks of security aren’t in place, you’re very much at risk.

Although there may well be cost implications to more sophisticated forms of protection, you need to weigh these up against the potential legal and reputational costs if your data were to be lost or stolen.

The Government has launched a new accreditation scheme called Cyber Essentials (https://www.cyberstreetwise.com/cyberessentials/), which is designed to help your business secure its systems by implementing appropriate frameworks.  Of course, your accountant may also be able to offer suggestions as part of their regular audit process, or you could ask their in-house IT expert. The important thing is to recognise the issues, address them and educate your team before it becomes an unwanted problem.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

The green way to cost savings

If you thought recycling was just about saving the planet, you may be in for a surprise. It also has the potential to influence the bottom line writes Jonathan Wilson of Barnett & Turner Accountants Ltd. Most of us are used to doing our bit for the environment at home. We’ll happily separate recycling from other rubbish and increasingly take our own bags to the supermarket.  Small steps, but ones that make us feel we’re achieving something positive at a time when climate change and the environment have a higher profile than ever.

It’s easy to overlook environmental initiatives in the workplace, but even small and medium-sized enterprises can generate potentially large amounts of waste.  Many companies see the advantage of demonstrating their environmental credentials to potential customers from a public relations point of view. Others may have a very strong conviction that they should do something positive for the planet. But how many actually think about the cost savings?

If you recycle effectively, you can often keep the price of waste collection down, but it requires some real discipline. Here are some tips worth bearing in mind:

1. GET THE INFRASTRUCTURE RIGHT

Take advice from your waste collector about the different bins that you’ll need within your office or premises and make sure that they’re easily accessible.

2. AVOID COSTLY MISTAKES

You may not realise it, but you’ll soon be penalised if inappropriate items end up in the recycling. If your bins are full of chewing gum and paper clips, you could end up paying more. Even coffee cups that still have coffee inside or the remnants of a pre-packed sandwich can mean that your waste will be rejected. You’ll have to ask your employees to take simple steps, such as rinsing out tin cans.

3. MAKE SURE TO COMMUNICATE

It’s vital to have all your staff on board. They need to understand what you’re aiming to achieve. It may also be worth holding a face-to-face briefing meeting to demonstrate exactly what can – and what can’t – go into the recycling bins.

If you get the approach right, you may soon be demonstrating your support for the environment to staff and customers, while also making significant savings.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Customer service? We’re still waiting for the Revenue’s answer…

If you’re trying to get hold of the taxman, but failing, you’re probably not alone. HMRC customer service has come under a great deal of scrutiny recently. And your accountant may be having exactly the same difficulties as you. We’re all used to battling with call centres, whether we’re trying to upgrade a phone, pay an outstanding bill or complain about poor service. When our query or request is about tax, however, we understandably get a little more edgy. If we can’t speak to a representative of HMRC, it’s often impossible to resolve problems, causing a lot of difficulty for both businesses and individuals.

A recent report by parliamentarians on the Commons Public Accounts Committee highlighted the fact that half the calls to HMRC were being left unanswered. Last year, the Revenue managed to pick up over 72% of the incoming phone traffic, but this had dropped to around 50% in the first half of 2015.

Spokesmen for HMRC have pointed out that some 3,000 new staff have been hired and that the service issues have not affected the organisation’s ability to collect tax, although doubts clearly still remain among individual taxpayers, the business community and their accountants. The trade union representing the civil servants at HMRC says the equivalent of 11,000 full-time jobs have actually been lost since 2010.

You might think that your accountant has a magical hotline to the Revenue, but many professional advisers are, in fact, experiencing exactly the same difficulties as their clients.

It is perhaps ironic that while HMRC are after tax avoiders, so much time is spent time avoiding tax payers’ calls!

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Start your business by the book

You’ve launched a new business and are optimistic about the future. Perhaps you want to focus on the development of your product or service, or on marketing it to prospective customers. Unfortunately, however, day-to-day book-keeping is an essential part of every successful start-up. You ignore it at your peril argues Jonathan Wilson of Midlands accountancy firm Barnett & Turner. If you’re a budding entrepreneur with big ambitions – or simply someone who has decided to branch out with your own micro-business – the chances are that you will have some kind of particular skill or talent. Perhaps you’re an expert consultant, a technological genius or a retail guru. But there’s no reason to suppose you’ll have any knowledge of the financial legwork that’s so important for any company.

It’s important that you catch up fast, as accurate, tidy records are not only a legal requirement, but also essential for helping your business to grow – providing you with vital information whenever you need it.

In reality, there are many different ways that a business can keep its books and your choice will probably be dictated by your size, your predicted growth and the kind of market you’re in. If you see yourself becoming a household name within a year and are planning on opening offices around the globe, a manual system isn’t really going to cut it. On the other hand, if you are running, say, a small childminding business, it probably won’t make a lot of sense to splash out £1,500 or more on a computerised system.

Costs vary widely, of course. A basic accounting software package, for instance, might be around £200 up front or £10 + VAT a month, although that figure can climb considerably if you opt for upgraded versions. Cloud-based systems such as, Xero, Kashflow and Sage One can also be chosen with different functions as well, designed to fit your pocket via Apps on your mobile and meet the changing needs of your company.

An accountant can certainly advise you and help you to analyse the various options.  If truth be told, however, a well-kept spreadsheet or manual cash book can still often work just as effectively for a small start-up.

After talking to your account, you might decide to let their team take the whole book-keeping process off your hands entirely. Although this involves an additional expense, it will allow for the production of regular management accounts which can prove to be an invaluable tool when making key decisions, especially in the early life of a new business.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk