http://www.premierlinedirect.co.ukNews and updates from Premlierline Directen-gb15 If you're in the buy-to-let business, it's highly recommended to take out buildings insurance as a minimum.  Landlords who buy with a mortgage, will find that the lender will always insist on there being buildings' cover. Often they'll want to see proof of this insurance.  Flats in blocks are usually insured by the freeholder, but it's worth checking for any exclusions and what and how much is covered.  The standard types of insurance also are relevant to landlords - buildings and contents. But landlords need to at least consider other options - a tenant injuring themselves due to a fault in the property that you are responsible for or perhaps you could consider covering yourself for loss of rent. A commercial landlords' policy is the way to go.   Contents cover is also an option and is generally designed to protect your goods either from damage or theft by the tenant.   The policies will also usually cover malicious damage, damage caused by water leaks and accidental damage to items, including electrical ones. But coverage will differ, so it's important to check the policy you are thinking of buying has the right cover for your needs.  Checking will also help ensure that you are not paying for cover you don't really need.  If you're buying with a mortgage and the mortgage repayments are close to the rent being earned, or if you don't have deep cash reserves, it might be worth thinking of covering yourself for loss of rent so you will be covered if there happened to be an insured incident such as a fire which means the premises is unable to be occupied. There is also public liability in case the tenant tries to hold you responsible for personal injury, such as a slip trip or fall on a faulty stair tread or electrocution for faulty wiring. You may consider legal cover that will cover you if you need to take the tenant to court.  If you're letting a property for the first time, it's worth checking existing polices because they may be unsuitable for coverage when tenants are in the property. Some policies may have exclusions in this regard, which would mean you would be paying a premium but not be covered. Landlords and tenants should take care to review any existing policies when renting or letting a property for the first time as some standard insurance products will either not provide cover, or might place restrictions on cover, for rented property and/or its contents. A failure to inform your insurer that you are renting/letting a property could invalidate any subsequent claim. It is for a landlord to insure the building and his/her contents, fixtures and fittings. The tenants are responsible for insuring any of their own possessions. There are various specialist insurance products designed for landlords and tenants and rented property: - Buildings, Contents, Legal Expenses, Emergency Repair cover, Rental Guarantee cover etc. Since the 14th January 2005 it is illegal for a letting agent (or anyone else) to advise on or sell such general insurance products unless they are authorised by the Financial Services Authority (FSA), or, directly regulated by a broker registered with the FSA. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/2/buy-to-let-landlords’-guide-to-insuranceTue, 07 Feb 2012 16:48:35 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/2/buy-to-let-landlords’-guide-to-insurance Cloud computing is undoubtedly revolutionising business IT - and there's little doubt the huge trend towards storing data and running apps from the Cloud is going to continue.  The convenience, the unlimited storage capacity and, probably most of all, the big cost benefits are pretty clear for most businesses.  For many smaller businesses in particular the idea of not having to worry about IT at all and instead be able to focus entirely on running a business is hugely appealing.  This is all very well, though, but cheapness and convenience are not so attractive if you can't be sure that your data is safe.  If you're concerned about data security it's a good idea to consider some basic points even before you consider the Cloud.  If security is a big concern for your business, then starting in-house might be a good idea.   Probably the first point to consider is: 'How important is my data?'  What are the consequences of it being lost or stolen?   Can you quantify, even if only in general terms, the effects of this data being breached or stolen - this includes the effects on the good name of your business and how it would affect the running of your company? Would it mean you could not trade, for example?  Answering these questions realistically at least gives some idea of how far you should go - and spend -  to make sure your data is secure, whether it's kept on a local server or in the Cloud.  Examine who controls or has access to the most sensitive information. Establish access on a need-to-know basis. The huge rise in mobile devices means that data can be accessed from many points, often outside the workplace and this in itself creates points of vulnerability.  So, take a look at what devices are used and by whom, to access this data and how is it protected?  After all this, then consider the possible risks of Cloud computing.  The problem for most businesses is that, in terms of security, Cloud computing feels counter-intuitive.  How can data stored 'up there', in a place not always fully understood and then accessed over the Internet - a fundamentally public network - be safe?  Even the term 'Cloud' sounds woolly and insecure.  But the reality is rather different.  The Cloud has been compared to banks.  People choose to keep money in a bank because it's safer than keeping it at home.  But, obviously, there are good and bad banks!  Total security doesn't exist. Even so, there are some key points to think about if you're considering selecting a cloud provider.  First off, make sure you choose a provider that has its own data centre and owns its own equipment. This way, it is not dependent on a third party and you can deal directly with the provider.  Check their record of 'uptime' - in other words, check how often their network fails for whatever reason. Reliability is right at the top of any check list. It's not the same as security maybe, but, without it, your business could well be compromised. You should be looking for near 100 per cent reliability, giving you access to your data at anytime.  Is your data stored in this country? It probably should be for peace of mind. For some types of data, it's a requirement.  Make sure you know the financial health of the provider you are thinking of using.  And, even if they seem sound and well-established, you still need to ask the question: what happens to my data if they go bust.  Similarly, one of the reasons you store data in the Cloud is that it's a form of back up away from your business. But what happens if the data centre burns down or is in some other way compromised?   Choose a provider that responds to your questions and concerns rather than just going for the biggest. Service and support are extremely important.  Find out if you can deal directly with a named person who deals specifically with your account. It's vital to have open and clear lines of communication.  Always make sure you speak to other clients of the provider who are willing to share their experiences.   Check how well the physical data centre is protected - does it have CCTV security, security guards, controlled access and so on?  What about safety standards, protection from fire and floods, as well as temperature control to keep all those servers cool and working at optimal levels?  Are there on-site engineers available around the clock?  Check that the data centre's certificates and qualifications of competence are properly recognised, such as the internationally recognised ISO 27001.  If in doubt, contact the United Kingdom Accreditation Service (UKAS) for further information. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/1/making-sure-your-business-is-safe-in-the-cloud-what-to-checkTue, 17 Jan 2012 11:40:41 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/1/making-sure-your-business-is-safe-in-the-cloud-what-to-check 2011 has been quite a year for scammers.  There's no doubt they are getting more sophisticated, more clever and, arguably, more successful. This is especially true of those who use the Internet to target their victims.  Think you and your business could never be taken in?   Then it's probably wise to think again.  No doubt there'll be a few more in 2012; but, whatever new schemes arrive, there's little doubt they all play on the same two human drivers - fear and greed.  Perhaps we should all be a little more wary before we decide we, or our staff, can't possibly fall victim.  Reading the descriptions of almost all the biggest scams out there, it's hard to believe that anyone can fall victim. But they do, every day. So, it's a good idea to imagine that your business and the people who work there are as vulnerable as anyone else.  Here's a run down of some the common types of scams out there.  Identity Thieves  Whether it's known as phishing, vishing or even smishing, doesn't make much difference, the aim is always the same - to capture personal information almost always to gain access to bank accounts, credit cards or other funds.  Phishing is done through emails; vishing comes over the phone and smishing attacks specifically target mobile phones.  There are countless examples of these scams, but there's one golden rule to stop them dead: don't take any action, enter any information, call any number, visit any website as directed, or open any attachment unless you know for sure where a communication has come from and trust that source.  Even this doesn't guarantee immunity all the time because some malicious apps, once opened, will use a person's address book and send emails as though from them.  If something looks suspicious, don't click on it, open it or spend any time scanning it. Never open an executable programme that is attached to an email unless you are sure of its source.  Just delete it and check with the supposed sender that it was legitimate. It can always be re-sent if it was.  Fake Invoices  Fraudsters often target businesses in the hope that a busy workplace doesn't always allow for sufficient checking.  A business might receive invoices for services or items that have simply never been provided - perhaps some advertising in a legitimate directory that was never placed.  Sometimes these invoices may actually be disguised invitations to buy into a service.  Such a scam can be beaten by having a relatively simple signing-off process for all invoices, traceable to the individuals responsible for ordering a service or product. The Cash for Cheque Scam  This is a favourite of scammers targeting online retailers especially. The principle is simple. A potential buyer offers to pay by cheque - perhaps even a banker's draft. When the money comes it is for more than the agreed amount. An elaborate and often convincing story follows as to why this has happened and you are asked to transfer the excess money to an account.  Of course, the original cheque turns out to be fake and worthless.  Clearly, the moral is never go along with reimbursing any money until you are 100 per cent sure any funds sent have actually been cleared in your account. And if anyone offers to pay over the odds, this should immediately set off alarm bells.  Banking Scam  The quality of these scams can range from the laughably bad to quite convincing. So it's as well to make sure any relevant people in your company are aware that they may be targeted.   The scam usually consists of an email claiming to be from your bank and asks that an attachment is opened and information entered in order to carry out a security check or verify an account. Obviously, the claim is a con and the information can then be used to access your bank account.  Phone Scams  Many, many scams start with the unsolicited phone call. Again, the con artists hopes to exploit the fact that your staff are busy and perhaps can be taken unawares by a carefully scripted patter.  It's all too easy to agree to accept a service or product that you don't really want or need.   Often, the criminal will simply be after information that can be exploited later. This might seem relatively innocuous, such as the brand and model of computers you use.  But this information can be used at a later date - showing that they have this knowledge can make the scamster seem believable.  Here are some measures you can take to protect your business.  Make it clear who has permission to order goods and services on the company's behalf. This way, anyone else can simply say that they don't have authority to agree to anything.  Make it policy that no orders for goods or services are ever entered into with cold callers the first time contact has been made, no matter how good the offer may sound. Always go away and do some research before agreeing to anything.  Put things in writing and keep copies and records of posting.  Don't sign anything before checking all terms and conditions.   Warn staff to be on their guard against the possibility of scams and to not be afraid to seek advice.  Educate staff about the risk of malware being introduced onto computers.    Get on police alert or council alert lists - most have them and they can provide a warning of specific scams that are known to be operating.  Keep in touch with Action Fraud http://www.actionfraud.org.uk/  the UK's national fraud reporting centre.  http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/1/scams-and-your-business-–-spot-them-and-stop-themTue, 10 Jan 2012 09:51:59 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2012/1/scams-and-your-business-–-spot-them-and-stop-them With many businesses shutting temporarily over the Christmas period, here we highlight the measures companies may wish to take to ensure their business remains safe and sound.  Turn off water, gas and electrics.  Protect your premises from potential burst pipes, explosions and fires by turning off any non-essential utilities.   If it's not possible to turn off the electrics because of CCTV and alarms, at the very least remove plugs from sockets and switch them off.   Check premises. It's advisable to pop in and check your premises during the closure period.  Look around for any signs of disturbance and remove post from the letter box, as it not only indicates that the premises are empty, but can also be a temptation for arson.    Review external security Look at the physical aspects of the building, which act as the first line of defence against an incident.  These include windows, doors, locks, CCTV and consider any external influences such as anti-social behaviour outside your building.    Assess your internal security. Secure cash tills, visible stock and contents left on display after closing, and items which aren't security tagged. Store expensive stock and valuables in a secure room, use lock down plates on computers and ensure CCTV is working and focused on entrances and exits.  Install a good alarm system and make sure it's set. It's worth thinking about installing an alarm linked to a central monitoring station, providing peace of mind that a key holder will be alerted should it be triggered. Monitoring stations can also alert the Police so they can respond as soon as the alarm is activated. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/12/top-tips-for-christmas-closureTue, 30 Nov 2010 15:41:40 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/12/top-tips-for-christmas-closure Dealing with bad debts and bad debtors is no one's idea of fun.  Sadly, though, for just about every business, it's a fact of life that sooner or later they are going to have to deal with the problem.  Having a plan and understanding what steps a business can take to get the money it's owed, are important parts of making debt recovery as smooth a process as possible.  Debt recovery is always a balance between the time, costs and trouble it takes to bring the matter to a conclusion and, bluntly, how much money is actually owed. Spending more on a recovery than a debt is worth obviously doesn't make economic sense. Then again, you may decide that, as a matter of principle, a debt needs to be recovered even if the costs don't add up. What steps your business takes to recover a debt will probably depend on how much money is owed.  Here's a guide to the escalating steps you, as a business, can take.  1. Contacting the debtor  The first step, not surprisingly, is to contact the debtor and assume non-payment may simply be an oversight on their part.   After this, and assuming a simple reminder is ineffective, it's best to put the matter in writing at an early stage and to spell out clearly the facts AND what you expect to happen.  This usually means specifying a date by which you expect payment to be made and suggesting what further steps will be taken if the matter isn't resolved.  It's important to be factual and professional and calm. The UK government's advice site, Directgov, advises that you clearly state who owes what and to whom, send copies of relevant paperwork and to urge the debtor to now deal with this matter in writing, which includes any problems they have with the debt.  It also advises businesses to avoid heated arguments or a lengthy correspondence with a debtor and not to threaten legal action that ultimately you're not prepared to follow through.  2. Going legal  Consulting a solicitor - after first establishing the scale of their costs - can be an effective next step if a debtor still won't pay.  A letter from a lawyer can often prove to be a tipping point for debtors.  A solicitor pecializing in this field can also advise on what further options may be appropriate.  3. Debt collection companies  Debt recovery agencies usually charge a percentage of the debt they recover on your behalf.    Agencies must be licensed and governed by the Office of Fair Trading.  It's worth bearing in mind though that, as Directgov points out, some debt collection agencies may not use legally trained staff. Choose one who will employ a lawyer who can take legal action to recover a debt.  4. Alternatives to Court When none of the above is effective, there are still alternatives to going to court.  These include arbitration, mediation and ombudsman schemes - all of which come under the label of 'alternative dispute resolution' (ADR).  5. When all else fails  Going to court to collect your money should be seen as a last resort, mainly because the process can be lengthy and costly. Bear in mind also that winning may not be as straightforward as it might seem.  It's important to get professional legal advice at this point to have an assessment of the likelihood of your success and the cost. It may be that the debt is less than the likely cost of recovery.  Directgov points out that:  If the debtor files a defence and your case fails and the court rules against you, you could be liable for your debtor's costs as well as your own. A court is unlikely to make a ruling in your favour if it can't establish the facts of the case (this won't be necessary if your debtor hasn't filed a defence). If your debtor has filed for bankruptcy or gone into liquidation, your debt will be more difficult to recover.  Which court deals with your case will depend on the amount of money in dispute.  Small claims court - this court, which is part of the county court, is only for claims up to £5,000.  You don't need to have legal representation. The small claims court will make rulings on claims and it can issue warrants to back up its decisions, but it doesn't award damages or compensation.  County Court  - This court can deal with claims of any size, however small or large.  High Court  - This court can deal with claims in excess of £15,000.  A lawyer must be appointed to act as your representative here.  You can also now make money claims online for amounts up to £100,000, so long as the claim is against a maximum of two people.  The Money Claim Online system (MCOL), is accessible 24 hours a day, seven days a week. Claims are issued in the name of Northampton County Court.  More information about his service is available from Her Majesty's Courts Service (HMCS), an executive agency of the Ministry of Justice. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/10/how-to-deal-with-bad-debtsFri, 08 Oct 2010 15:25:41 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/10/how-to-deal-with-bad-debts Cybercrime is back in the news.  This time it's an especially nasty 'Trojan' called Zeus v3.   What this malicious piece of coding does is attack online bank accounts, clean them out and then issue false statements showing nothing is amiss.   Not nice.  And if you believe that SMEs are unlikely to be targeted in such a sophisticated way, you might want to think again.  Research carried out in February 2009 by the Federation of Small Businesses (FSB) found that over half of small businesses reported being a victim of fraud or online crime in the previous 12 months.  The FSB's survey, 'Inhibiting Enterprise', found phishing emails, card-not-present fraud, and IT system problems - viruses, hacking, interruption of service - were the most common crimes experienced. One third of SMEs did not report incidents to the police or bank.    The average cost of each security lapse is £30,000, according to 'Cybercrime, what every SME should know', published by the Fraud Advisory Panel.  Several companies said viruses, fraud and hacking had cost them well over £500,000.  So, are there some basic steps pretty much every small business should take to increase online security?  The first thing to realise is that if you're a small business you can be open to a wide range of fraud risks.  The Fraud Advisory Panel lists the key parts of fraud risk management for SMEs as:  The company should implement a culture, supported by policies and procedures, to prevent the business from becoming a victim of fraud, and identifying the areas within the business which are most vulnerable to cyber attack.  Detection: implement systems and procedures to detect the early warning signs of fraud.   Investigation: prepare for fraud by having an up-to-date response plan.  Identify any further controls to ensure they are being implemented effectively.  Assess the controls to account for any changes or developments made in the operation of the organisation.   Ensure that procedures and controls are workable and supported by a sufficient level of resources.  Insurance: review your business's insurance policies to ensure they are consistent with current business risks.   Establish a regular review procedure. It's also recommended that a Whistle-blowing policy is introduced.  This means that employees should know that whistle-blowing is necessary to prevent cybercrime. They should have a simple procedure form reporting their suspicions that cybercrime is taking place. This may include an internal email address to send details to or a fraud hot line to let them report quickly and anonymously. Finally, what to do if cybercrime is detected?  Here are some actions to take: Assess the situation fully before taking action  Isolate the computer so it can't be tampered with.  Record where the computer is based and all who had access to it.  Consider securing all relevant logs - building access logs, server logs, Internet logs - and any CCTV footage as soon as possible.  Call in IT security staff or outside consultants. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/9/guarding-your-business-against-cybercrimeMon, 13 Sep 2010 11:31:09 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/9/guarding-your-business-against-cybercrime For any small business, finding the right accountant is a must. An accountant, after all, isn't just a professional to compile a tax return; they can and should be seen as an advisor and a partner with an interest in seeing your business succeed and grow.  Here's a list of factors to keep in mind when choosing your accountant.  Generally, though, referrals or word of mouth are the best ways of finding the kind of service you're looking for. Even if a recommended accountant doesn't offer quite the right service for your business, they might recommend someone who does. Your solicitor may be a good person to ask for a recommendation, or, if you have a close relationship with your banker, their suggestions may be worth following, or a person running another business whose advice you respect.  Possibly the least effective way of selecting an accountant is to do a simple search for a company online or open a phone book and find a name. The decision is really too important to trust to a random selection or the impression created by a pretty website.  But, if this is unavoidable, at least make sure you quiz those you select to ensure they are right for your particular business. We offer some suggestions on what you could ask below.  Ask for testimonials from other businesses.    These may seem unusual techniques for selecting a professional, but why not?  You will be paying by the hour and you should, just as in any successful business transaction, know what you're getting for your money.  Your business, like any other, needs good tax advice and the ability to plan ahead.  It's important then to see if your accountant is interested in doing this and really appears to engage in your business and its growth plan.  Perhaps ask how they believe they can assist your business in ways that go beyond just compiling a tax return.  How often will they meet you to discuss the status of the business and plan for the future - if you want to involve them at this level.  It's worth thinking about how many of the following factors matter to you and how important you believe they will be for your business.  Do you need an accountant that understands and is experienced in SME finance, such as loans, for example?   Does it matter whether they understand your business area specifically - are there unique factors in your line of business that make this important?  Should the accountant be local to your business?  Is it important that they know about local and regional council matters, such as planning applications and other regulations and rates as they might affect your business?  How active do you want the accountant to be in making suggestions and offering advice to your business?  There are many areas in which advice may be useful such as how to make cost savings, improve cashflow, capital gains taxes, when is the best time to sell your business and so on.   Ask lots of people for recommendations, not only people you know well. If the name of an accountant comes up regularly, that may be highly significant.  Be clear in your own mind about what you really want from an accountant and then you will be able to ask specifically whether these are services they can provide.  Clearly, as with any business transaction, it's important to be certain on fees - what precisely you will be paying and for what. Look for transparency.  The size of the practice can be important, especially if you feel you want to be able to gain easy access to the accountant at short notice - a smaller firm may make this more likely, but not necessarily.   It's always a good idea to visit any prospective accountant, to meet them and see how easy they are to discuss matters with and how informed they are when answering your questions.  Finally, don't take second best. This is potentially a long-term relationship and one that is highly important to your business, whatever its stage of development, so keep your standards high and don't hesitate to look elsewhere if you're not entirely happy. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/how-to-find-a-good-accountant-for-your-businessWed, 21 Jul 2010 15:43:52 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/how-to-find-a-good-accountant-for-your-business Running a restaurant is renowned as being one of the hardest businesses in which to succeed. And with good reason - the failure rate of new restaurants is high.  Owning a restaurant is a popular and romantic dream for many people and perhaps this is the reason many restaurants fail - some people opening them are ill-prepared, have unrealistic expectations and little clear vision for what is going to be a business rather than a full-time hobby.  The guidance must therefore be - a restaurant is a business like any other and should be run like one, and no romantic ideals should be allowed to interfere with that.  'Be prepared' is perhaps the number one maxim.  Be prepared to invest lots of time and probably a fair amount of money to make sure your chances of success are as high as possible.   One of the best places to start preparation is with research - perhaps initially looking less at demand and location and so on, but at why exactly do so many restaurants fail. What are the commonest pitfalls and how can you take care to avoid them?  Like any business, cash flow is vital.  Secure lines of credit are very important, especially in the early stages. Sourcing for quality and price within the context of projected profit margins is extremely important. The golden rule is to keep costs under control and in line with initial projections.  Of course, the focus of your business must be on the entire restaurant experience. Without this focus, the business will be certain to fail. Concentrate on food quality, the quality of service and value for money.   To do this most effectively, finding the right people is key.  Surround yourself with people who have some knowledge of the industry - people who have done it before - whether this is waiting at tables, working in the kitchen or any aspect of the business of running a restaurant.  This is traditionally a fairly low paid industry with high staff turnover, so making staff selections can be hard. You need people who wont let you down, who will be prepared to put in that extra effort when needed and who genuinely enjoy what they are being hired to do.  Be ruthless if staff are wrong. If they're not doing things the way you want, or if their customer service skills are lacking, they will damage your business.   So, make sure everyone knows what you want from them and be tough in enforcing high standards. It is, after all, all about survival of the fittest, especially in this business.  Make sure, right from the start, that you research and understand the precise market you are aiming at.  Be honest with yourself in answering the question - is this the right market for the location your restaurant is in? Don't get carried away and just tailor your business to your own likes - you may like haute cuisine, but if the location of your restaurant is all wrong for this product, you'll be wasting your time and money, and you'll be out of business fast.  Cater for the right market.  Taking care of legal and insurance matters is a must. Running a restaurant is potentially something of a minefield in terms of health and safety - quite rightly, the law is there to protect members of the public.  So, you'll need to take advice on what rules and regulations you will need to comply with. Get it wrong and you could be shut down in a flash and your reputation will be hard to rebuild. As with any business, you'll also need good and adequate business insurance.  The kitchen, and the whole restaurant, is potentially a high-risk environment.  Consider how you will market your business. Drawing up a good marketing plan that makes use of a variety of options is highly recommended. Use fliers, the Internet, local media and as many channels for publicity as possible. If there's a story to tell behind the restaurant's opening, so much the better.  And, even if there isn't a back story, make sure there's a unique aspect to your establishment - create a brand.  One suggestion to put a business on the marketing map would be to hold special evenings for food or wine events.  Creating a website is probably a must these days, but a poorly designed site with out of date or incorrect content is probably worse than not having one at all. So, it's worth making your website part of your marketing plan and investing time and effort accordingly.  In conclusion, the key ingredient (pun intended) is to look at the restaurant as a whole; focusing on key aspects - like creating great food - is crucial, but shouldn't happen at the expense of other, perhaps less absorbing, but equally important aspects of running a successful business of any kind. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/running-a-restaurant-–-a-recipe-for-successWed, 21 Jul 2010 15:32:50 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/running-a-restaurant-–-a-recipe-for-success This is a useful question to ask because it helps focus attention on a crucial areas for any business  - customer retention.  Let's say you sell a physical product, in fact, let's say you're a motor trader - so your products are cars or vans.  If a customer buys a van from you, just once, then the value of that customer is the net profit you make from selling the van.  That's one value.  Another is calculated by selling more than one van: let's say, over a ten year period you sell four vans to the same customer. The value has increased fourfold - depending on the type of van bought, obviously.  We can then extend this calculation by looking at the value of the same customer if they not only buy a van from you, but also come to you for servicing, perhaps, MOTs and so on.  Again, this could be over a lengthy period.   Adding all this up probably gives a pretty impressive total. And helps a business to quantify an individual customer's worth beyond just an immediate sale.  This value has two very big implications for any business - and it doesn't matter whether you're selling hotel rooms, drinks in a pub or meals in a restaurant.  Looking at the real value of a customer helps a business understand just how worthwhile it is to retain that customer.  It also helps with calculations on how much a business should spend to acquire new customers.  As the old business adage goes, it costs far more to acquire a new customer than to keep an old one.  So, when working out the lifetime value of a customer, it's also necessary to take into account (deduct) the costs of acquiring that customer in the first place. All those ads, website work, optimisation and so on.  Many small businesses focus, quite understandably, on getting new customers, and it can be easy to neglect the other, just as important, side of the equation - getting them to come back again and again.  Yet this is where their really outstanding value can often lie.  The key to retaining a customer - we'll assume they are at least satisfied with the service or product they have been sold - is communication. And that means making an effort without necessarily any immediate prospect of making a sale.  Putting effort into follow-up calls, emails and news of relevant offers, new services and so on, is one good way of keeping communication channels open and making sure your business is kept to the fore in that customer's mind whenever they have need of the product or service you sell.  It's vital, though, to make sure the contact and the form of contact is selected by the customer, or it can just become irritating. When you communicate, you  need to offer some added value, inform of something that benefits, or could potentially benefit, that customer. That benefit, though, could be something as indirect as asking if the customer is satisfied, has any problems with the product and so on; in other words, a good, old-fashioned courtesy call. Phone calls are excellent, but can be intrusive; emails are more passive, but there is always some uncertainty about whether they have reached their target, or been opened by them.  SMS texting is yet another way, but should be used only for communicating something concrete and only used infrequently with a customer opt-out stop code. Twitter can also be used and has the advantage of allowing the customer to leave the feed whenever they choose.  The key to success here, as with maintaining a website if that is appropriate too your business model, is to provide real value, or a sound reason for customers to visit, and not necessarily one with an immediate benefit to your business.  The watchword then is to keep customers - not perhaps at ALL costs, but certainly at an investment cost that's reasonable based on your lifetime worth calculations.   Allow Premierline Direct, a leading direct provider of business insurance solutions in the UK, to help you take care of business. Take advantage of our van insurance to cover your vehicle on the road. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/what’s-a-customer-worth-to-your-businessMon, 28 Jun 2010 14:09:38 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/7/what’s-a-customer-worth-to-your-business For most small and medium-sized businesses, hiring staff is one of the biggest investments they will make.  Getting that investment right, then, is about as important as it gets.  Interviewing plays a vital role.  And for many SME bosses looking to take on staff, interviewing can be a fuzzy area about which they may have little experience.  Some interview questions will always be specific to a particular type of job - are you a qualified plumber, what training as an electrician do you have, have you driven a van before?  Many interview techniques though can be applied across the board to all job specs.  We asked Premierline Direct's HR and Training Manager Marie Brown, who has more than 20 years' experience in the sector, and who has interviewed hundreds of applicants, for some tips to help SMEs get the best out of a job interview.  The good news is that Marie believes most aspects of good interviewing technique are actually common sense.  First, be precise about what the job actually involves.  Don't be vague. Spec it out and decide what skills are required.  This helps your business be clear about why it needs to hire someone at all and it also makes it clear to the applicant exactly what is required of them - something they certainly will expect to know.  Role Profile is the modern term, and is more commonly used these days than the old Job Description - but they amount to the same thing: what the role involves and what, precisely, is the person employed to do?   Once you have the profile, we can break down the requirements to general attributes, then specifics, and then establish whether additional training is likely to be needed for the role.  'Role profiling should be done pre-interview,' says Marie.  'It's then used as part of the process of selecting job candidates for interview, which is where the interview process really starts.'  Once the specifics of the job are detailed, it should be a relatively easy task to compare a CV or letter of application or a completed application form to that role.  'I always think an application form is a good idea,' says Marie.  'Because, for many people, who might make excellent candidates, writing a CV can be a daunting task. They may have lost a job after 15 years and they have no recent experience of compiling a CV.   'Plus, a job application, with its specific questions, allows you to focus on the areas you are interested in. Otherwise, you run the risk of receiving waffle!'  Marie recommends an initial, pre-interview screening. Again, this can help save wasting time on applicants who are unsuitable, even if they appear to have the right experience on paper.  'I see this phone call as more of a conversation than an interview,' says Marie. 'It's an opportunity for the candidate to sell themselves, and to think on their feet.  This often gives you a more genuine picture of what kind of person they are you'll get in a more formal interview.  'Call out of the blue,' recommends Marie.  'But obviously, always use common courtesy and make sure it's convenient to talk.  Offer to call back, or ask them to call you, if it's awkward for them.'  This is also a good way to judge phone manner.   'Whatever the job, whether you're looking for a hairdresser, an office receptionist, a mechanic, or for someone to work in the kitchen of a restaurant, this person will have contact with your customers, even if it's infrequent. Everyone, these days, needs at least some basic customer-facing skills.  And, if you arrange for someone to call you back and they don't, well you can make a judgment about that.'  What about the interview itself?  Always start the interview on time, says Marie.  'You expect the applicant to be on time and will judge them if they're late, so give them the courtesy of being on time too.'  If there's going to be a written test - basic numeracy or literacy perhaps - then do it before the interview, or it will interfere with the flow of the discussion.  It's important to remember that, for most SMEs looking to take on staff, personality will be important.  Even if the new recruit is not directly customer facing, you need to know that other members of the team - and you - can work with them. Are they a good fit?  'It's important to ask yourself whether you like the person,' says Marie. 'I think it's worth asking: Could I sit round a dinner table and enjoy their company?'  So, personality AND relevant experience are two factors to weigh carefully.  The interview is a stressful time for most applicants and is by its nature a fairly stifling environment, so an interviewer should try hard to put applicants at ease as much as possible.  'Explain the format of the interview, explain you are looking for a fit, make it clear this is a two-way process,' says Marie.  'Chat through the job and I usually also invite an applicant to chip in if they want to  - this is a good way of getting a discussion flow going.  'Asking in detail about their current job is a good initiator of conversation and can be revealing.  'What I think it's important to look for from any candidate for any job is a Can Do, Will Do attitude. It's nice to see if people draw positives from past experiences, so I often ask: What was the best team you've worked for and why?'  Asking what they do in their spare time is a tricky one. I usually suggest leaving this off application forms because it elicits often unbelievable responses. Some people list such extensive after-work activities that you have to wonder how they mange to ever get anything else done!  'But it can be important to ask at interview - they may be in the TA or mountain rescue, for example, and this may have an impact on your business.'  The interviewer's target should be to ensure the job candidate does the lion's share of the talking.  'Some HR managers aim for 70-30%, others 80-20%. There's no magic formula - the main thing is to make sure you let them do the vast majority of the talking.'  Asking candidates what they know about your company can be revealing, says Marie.  'Obviously, your expectations about what they will have researched will depend on what level of candidate you are recruiting; but, certainly if your company has a website, then you should expect any interviewee to have at least done some basic research.'  It's important not to make assumptions throughout the interview - ask questions and look for details if you're uncertain about any aspect of the candidate.  'Don't assume either that the applicant will necessarily want to accept your offer.  If you like them, suggest that now they know more about your company and the job, would they be interested in working for you.   'Vitally - because all of us are prone to kick ourselves later for failing to ask some important question - leave a door open for the interviewee to come back.  This can be done by phone or email. It doesn't really matter, so long as there is a channel of communication. It's useful for you too.'  Finally, always ask if the person has been dismissed or disciplined, going back five years. Any offer made should always be subject to satisfactory references and should always be put in writing along with the terms of the job offer.  Email is fine these days, but get the prospective employee to sign acceptance.  'Never, ever let someone start work without signing a contract,' says Marie. 'Make clear the hours of work, the duties, holiday entitlement, sickness policy and so on.  You can get a template for a contract like this from a Citizens' Advice Bureau.  'A lot is common sense, I suppose, but it's also easy to get wrong.'  'Keep in mind this simple approach and you won't go far wrong,' says Marie.  'Above all - treat people as you would want to be treated, if you want to get the best out of them.'  If you're looking for a commercial insurance provider who works as hard as you do, then look no further than Premierline Direct, a leading direct provider of business insurance in the UK. http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/5/hiring-staff---how-to-interview-a-job-applicantThu, 20 May 2010 16:15:04 GMT http://www.premierlinedirect.co.uk/knowledge/protecting-your-business/2010/5/hiring-staff---how-to-interview-a-job-applicant