LOUISE HEWETT 14 BEYOND THE CRUNCH 15 CHAMBER NEWS 16 PLAN A PENSION 18

Business NewsWEDNESDAY, JANUARY 21, 2008 – LEGAL MATTERS

In association with

IF members of your staff have everdespaired at how boring some team-building exercises can be then anexciting business could be just thething for them.

Go Ape, at Callow Hill, nearBewdley, in the heart of the WyreForest, is a new venture whichoffers an adrenalin-fuelledcorporate events experience with adifference.

Participants will find themselveson a high-wire forest adventurecourse set high up in the trees andwhich includes rope bridges, Tarzanswings, cargo nets and zip wires.

Everyone taking part is fitted witha climbing harness and given fullinstructions before they head-off.

The course, which takes about two-and-a-half to three hours tocomplete, is split into sections thatincrease in height and difficulty asparticipants near the finish.

With 21 courses across thecountry, Go Ape has sky-rocketed inpopularity since its launch eightyears ago and the venture inWorcestershire is one of four newcourses to open this year.

It has also signed-up as a memberof conference-worcestershire, whichpromotes the county as an idealbusiness tourism destination.

Emma Robinson, head of theservice, said: “With businesseslooking for ever-more innovativeand exciting ways to engage theirworkforce and boost team-working,Go Ape offers the perfect chance forcompanies to hold a trulymemorable and valuable team-building experience.

“As the course becomesincreasingly challenging, team-work becomes all-important andthe sense of bonding andachievement, once it has beencompleted, is second to none, Aboveall that, it is great fun.”

Go Ape offers half and full-daycorporate packages for groups of 10people or more. This includes a

dedicated host, extra time to enjoythe course without other visitors,refreshments, a picnic lunch,exclusive use of an all-weather basecamp shelter and pre-paid parkingon-site.

Ms Robinson said: “The opening ofthis course really is a boost forWorcestershire and I wouldencourage any business looking toinject some excitement into itscorporate events to head for Go Apeand take to the trees for someadrenalin-fuelled fun.”

For more information about GoApe, and a range of otherconference-worcestershiremembers, call 01905 766895 or visitconference-worcestershire.org.

You Tarzan, me JaneHow’s this for a spot of team-building? Go Ape at Callow Hill, near Bewdley, is an adrenalin-fuelled corporate events experience with a difference.

Event willgive adviceand helpraise fundsKENDALL Wadley, theWorcestershire firm of businessadvisers and chartered accountants,will be hosting an evening withGeoff Burch at Worcester WarriorsSixways ground later this year.

Burch, a writer and broadcaster, isconsidered to be one of the mostexciting business speakers inEurope. His unique, humorous andrefreshing outlook on all manner ofbusiness topics means he isconstantly in demand for hismemorable and upliftingpresentations.

Burch is the author of manypopular cult business books whichare published worldwide and he isalso a regular contributor totelevision and radio programmesincluding BBC2’s All Over The Shopin which he helps small UK retailersimprove their businesses.

During the event on Thursday,March 26, Burch will offer hints andtips on how to survive the creditcrunch and kick-start a business in2009. It is also being supported byHewett Recruitment, MFG solicitors,Royal Bank of Scotland, WorcesterWarriors and Modus Creative. It willnot only help local businesses butprofits from the evening will go tothe Noah’s Ark Trust appeal.

Through its network of volunteers,the trust offers individual support tochildren, young people and theirparents or carers and follow-upsupport for as long as they need it inthe event of bereavement.

The event starts at 5.30pm with adrinks reception. Tickets cost £25and to book call 01905 454182 ore-mail events@warriors.co.uk.

Writer and broadcaster Geoff Burch.

BY MIKE PRYCE01905 742247mp@worcesternews.co.uk

worcesternews.co.uk 13

Wednesday, January 21, 2009BUSINESS NEWS

BUSINESSTALKINGLOUISE HEWETT

GOOD news may be a rarityin the business world atthe moment, but keepinga positive mindset andfocusing on solutions

rather than problems during thesechallenging times really can make adifference.

According to marketing guru ChrisCardell, instead of aiming to purelysurvive during the recession weshould set ourselves challenginggoals. We may not reach all of thembut one thing’s for sure, if we aim lowthat’s likely to be exactly what wewill achieve.

Taking a view from businessesaround the county, a key messagefrom Mike Ashton, chief executive ofthe Chamber of CommerceHerefordshire and Worcestershire, isthat businesses need firstly to speakto support organisations and not puttheir collective heads in the sand.

He said: “The businesses that aresucceeding at the moment are thosewho are continuing to market,continuing to look for new markets

both here and overseas and investingin their workforce in terms oftraining.”

There are success stories inWorcestershire.

Morgan Motor Cars based inMalvern Link – and featured on theBBC’s Breakfast programme lastWednesday – is celebrating 100 yearsin business this year. It has gonethrough a number of recessions andtwo world wars.

Head of the firm Charles Morgantold me: “Morgan has survivedthrough a mixture of lack ofshareholder greed, borrowing littleand never more than the worth of itsassets in a fire sale, cautiousexpansion in new markets andkeeping the market slightly short bycreating its famous waiting list.”

Mr Morgan doesn’t think theGovernment should be propping upailing businesses with short-termcash flows. He believes it shouldsupport innovation and productdevelopment to enable businesses tobe confident in their investment innew technology.

He said: “Tax credits and grants forinnovation are what is needed.”

Hotelshop told me it has recentlybeaten strong competition andre-signed a substantial contract.

It is also expanding into Europe,which is a real achievement for thisprivately-owned company.

News that BOSCH is launching newproducts and creating a potential1,000 jobs will also be music to theears of local people.

This long-term commitment toWorcester is definitely good news forthe area.

“The Government shouldsupport innovation andproduct development toenable businesses to beconfident about the future”

Helping handgives club awinning planfor a future inentertaining

WORCESTERWarriors hasreceived a£5 million fundingline from the Royal

Bank of Scotland (RBS) to helpincrease its ground capacity andcorporate entertainment facilitiesat its stadium.

Worcester Warriors’ ground –known as Sixways – is close tojunction 6 of the M5 and providestop class stadium and entertainingfacilities for rugby fans andbusinesses in the West Midlands.

With the help of the fundingpackage from RBS, WorcesterWarriors has rebuilt the East Stand– now known as the Slick Systemsstand – to provide additionalseating capacity and larger andimproved entertaining facilities.

The new stand includes 120-metres of new pitch-side hospitality

with corporate boxes, lounges,function rooms, balconies and bars,a pitch-view restaurant and theWarriors Business Club.

The stand will increase thecapacity of the ground by 2,000 –giving the stadium a total capacityof just over 12,000. In addition thereis a new administration cornerblock which gives the club animpressive main entrance andreception area. It also includes theSixways box office and KukriSixways store with ease of publicaccess and parking both on matchdays and during the week.

RBS and Worcester Warriors haveworked together on a number ofprojects over recent years,including the development of theentertaining facilities, the Kukristand and the corporate boxes inthe south stand.

Cecil Duckworth, chairman ofWorcester Warriors, said: “The newSlick Systems stand will provideour fans and corporate customerswith much-needed extra space andamenities and the corporateentertainment facilities will be themost impressive and spaciousavailable in the region.

“We are very pleased with all ofRBS’s help in providing us with aflexible funding package to allowus to complete this project. It’sability to work closely with us overrecent years has helped theWarriors move closer to achievingour ambition of becoming a

European force in rugby.”Tim Rolph, relationship manager

for commercial banking at RBS inWorcester, said: “We are delightedto continue working withWorcester Warriors. On thisoccasion we have been able to puttogether a well-structured andbespoke funding deal for the club.The deal allows for the completionof the development whileminimising future cashflowimpacts for the club.

“Proposals such as thisdemonstrate our teamworkapproach and we worked veryclosely with both the club and itsaccountants, Rabjohns LLP, whoassisted with the preparation of theprojections for the expansion. Wewish Worcester Warriors all thebest this season and look forwardto continuing our long-standingrelationship with the club.”

The Royal Bank of Scotland has provided a £5millionpackage of funding for Worcester Warriors’ ground

Kicking off towards a secure financial future, from left, Phil Dutton, RBS;Cecil Duckworth, chairman of Worcester Warriors, and Tim Rolph of RBS.

Business briefingKeep up to date withthe latest local newsworcesternews.co.uk

Take stock and lookto a brighter new yearHave you made a new year business resolution? AAnnddyy BBiirrdd suggests a few

WE are now atthat time of yearwhere it is usualfor us to takestock, make

changes and look forward in ourlives,and without doubt ownersof businesses should be doing thesame to ensure they are in goodshape for 2009.

Here are just a few points andsome new year resolutions youmight want to consider.PLAN FOR THE YEAR AHEAD. Howfar do you want to take yourbusiness this year? Do you thinkthis is achievable? If not, what isstopping you and is it possible,practical or cost-effective toovercome?SPEAK TO YOUR BANKMANAGER TO SEE HOW HE CANSUPPORT YOU. Businesses don’tachieve sustained growth bychance. It takes careful planningand hard work. Your bankshould be well-placed to help youplan for the year ahead, toanticipate future needs and

ensure you have the rightfinancial support and solutionsin place to survive and thrive.HAVE A WORK/LIFE BALANCE IN2009. Research from Barclaysshows that business owners workan average of 63 hours each week– the equivalent of two-and-a-halfdays overtime a week. Makinguse of technology and speakingto your bank manager andaccountant can help you toidentify ways of reducingadministrative and financialburdens which could free upmore time to devote to activitiessuch as attracting newcustomers, or even give you someextra leisure time. After all, noone starts a business because

they want to chase invoices orcount stock.LEARN SOMETHING NEW.Training, development and usingexternal contacts really cancontribute to the success of yourbusiness. Research suggests thatgrowing firms and innovatorshave a greater propensity toprovide a combination of on andoff the job training than therestable/declining counterparts.Join a group of like-mindedbusiness owners so that you canbenchmark yourself againstsimilar enterprises.DON’T TAKE UNNECESSARYRISKS. Have you identified allthe risks in your business? Forexample – are your best peopleadequately rewarded andinsured? Are your IT systemssecure? Have you identified yourfinancial peaks and troughs? Ifyou know you are going to have alean time in February, forexample, don’t take a chance –negotiate sufficient funding nowrather than later. How certain isthe interest liability on yourborrowings? Do you tradeabroad? Discuss ways tominimise your exchange risk.

Andy Bird isBarclaysCommercialBank areacorporatedirector forWorcestershire.

14 worcesternews.co.uk

If you are looking to relocate and areinterested in commercial properties inWorcestershire, then check out ouron-line database – or telephone us on0845 641 1445 and we’ll do it for you.

Worcestershire’s Property Service is operated by WorcestershireCounty Council on behalf of Worcestershire Partnership.

Looking forbusinesspremises?

Here’s anaddress tolook at…www.worcestershire.gov.uk/business

Wednesday, January 21, 2009 BUSINESS NEWS: LEGAL MATTERS

Oldest law companiesare one super practice

ADVERTISING FEATURE

TWO of Worcester’soldest law firms havejoined together tocreate a super practicefor the 21st century.

Hallmarks, which can trace itshistory back more than 200 years,and Hulme & Co, which is morethan 100 years old, havecombined to makeHallmarkHulme.

The new firm, with sevenpartners, will operate fromHallmark’s existing offices inSansome Place, Worcester.

Tim Sherwood, of Hulme & Co,said: “We soon realised in ourinitial discussions that bothfirms share the same focus inproviding the best possibleservice to our clients.

“HallmarkHulme will build onthis approach.

“With the personnel andexpertise available to the newcompany we will be able toprovide a really excellent andcomprehensive legal service.”

Martin Thomas of Hallmarkssaid: “This is a very positive

development for both companiesand their clients.

“HallmarkHulme will have avery experienced group ofspecialists with excellentresources who will be able toprovide a complete legal serviceto new and existing clients.”

Both Hallmarks and Hulme &Co are prominent members ofWorcester’s business communityand the latter has deep roots inWorcestershire and particularlystrong links with the localagricultural community.

TimSherwood,of Hulmeand Co,left, andMartinThomas,ofHallmarks,worktogether asone legalfirm.Picture byFT Images.

Looking beyond the credit crunchis a positive way of planning ahead

THESE are unusual timesfor corporate companies.Traditional merger andacquisition activity has toall intents and purposes

stalled.UK corporates are facing

increasing pressure on sales andmargins and bank support iswavering when it is needed most.

Companies are increasingly beingmet with unpredictable responsesfrom their banks when approachingthem for refinancing andnegotiating funding arrangements.

With falling interest rates andincreasing public ownership, banksare becoming much more focused onensuring that their position is asprotected as it can be, resulting incustomers facing new challengeswhen attempting to restructuretheir business debt.

Working with both companies andlenders has revealed that banks arelooking more closely at their ownportfolios to get out of what theyperceive to be bad deals, and tomove out of those sectors whichhave been more harshly hit by thecredit crunch.

Our clients have reported that theimpact of this squeeze by banks isputting them under increasingpressure and making the day-to-dayrunning of their businesses muchmore difficult.

However, we have discovered thatit’s not all bad news and banks

frequently remind us that theyremain “open for business”; withHSBC pledging to make £1 billion ofextra funding available to Britain’ssmall businesses following a pledgeby the Royal Bank of Scotland tofreeze overdraft rates for smallbusinesses and a series of otherinitiatives from HBOS and Lloyds TSB.

Combining corporaterestructuring, refinancing and evenrestructuring through a formalrescue insolvency procedure canopen up avenues to restructuringbusiness debt in a way that can meetthe needs of each individualbusiness.

There is no one-fit all solution, but

with a flexible approach and awillingness to consider a possiblediversification of business activities,the prospects for restructuringbusiness debts are fair and there areopportunities available.

The key is to work alongsideadvisers who have direct access tosources of funding, who can matchthe needs of clients to the focus ofbanks and alternative lenders andwho can structure a deal in a waythat is attractive to all partiesinvolved.

We have found that businessowners who felt that they have nooption other than to progress downthe insolvency route can be matchedwith a buyer and/or investor willingto make immediate decisions andmove quickly to limit any worseningto the financial situation of thebusiness, allowing them to takestock of the situation and toconsider the options available goingforward.

Such deals provide for anopportunity to restructure the set-upof the business, to combineresources and reduce costs, to cutany loss-making divisions andsometimes the opportunity to re-negotiate banking facilities and/orfunding.

We have also seen circumstanceswhere an existing lender has made adecision to pull back on funding in aparticular sector. Although this islikely to cause an initial challenge

for the businesses involved, it alsoopens up opportunities to mergebusinesses, re-prioritise the focus ofthe business and create an entitythat an alternative investor may bewilling to fund.

In this uncertain climate and withbanks no longer the safe option theyonce were, there are also cash-richprivate investors who are looking toinvest their money, and who arewilling to take more risks in order tomake the most of the increasingopportunities that are available inan otherwise struggling market.

Invoice-discounters offer yetanother alternative to bank funding,although this often easier source offunding is now proving difficult tosecure if your business is within a“no-go” sector.

Obviously the recent news that theGovernment has announcedmeasures to encourage banks tostart lending to both businesses andindividuals is welcome and inparticular the measure that bankswill be able to take insuranceagainst potential bad debts.

Despite these difficult financialtimes in which businesses findthemselves there are options ofwhich we can take advantage.

With flexibility, focus andspecialist advice, the prospects forrestructuring business debt andgiving your business a chance tosurvive the credit crunch remainpositive.

AAlliissoonn SSccootttt of Worcester solicitors Harrison Clark LLP says that flexibility, focus and specialist advice will see firms through the difficult timesAlison Scottis a solicitorworking inthecorporatedepartmentof theWorcesterfirm ofHarrisonClark LLP.

worcesternews.co.uk 15

Wednesday, January 21, 2009BUSINESS NEWS: CHAMBER NEWS

THE Chamber of CommerceHerefordshire andWorcestershire is thrilledto announce that the dateand venue have now been

set for this year’s business awardsceremony.

The chamber has securedexclusive use of one of the country’sleading arts centres, MalvernTheatres, on the evening of Friday,July 17, for what is going to be agreat event

Since it was first staged eight yearsago, the chamber awards have hadmore than 1,000 companies enter thecompetition and more than 80winners.

Each year the event goes fromstrength-to-strength, attractingmany influential supporters

including local councils, regionaldevelopment agencies and keycompanies in the private and publicsector ensuring more coverage andgreater profile for those who win.

Each year, the Chamber ofCommerce stages a spectacularevent for its awards and 2009 will beno different.

After a glitzy networking receptionwith flowing champagne andsumptuous canapés, guests will beseated in the Forum theatre for

entertainment and a HollywoodOscars-style awards presentation.

Winners and guests will then have

the opportunity to dance the nightaway at an exclusive party andcelebrate their success in style. This

year, more than ever, finding waysto stand out and win business is achallenge. Therefore, the chamberurges every business, large andsmall based in Worcestershire andHerefordshire, to use the mostprestigious business awards in thearea to their advantage.

Winning a chamber award will getyou talked about and make potentialcustomers take notice.

Entering the Chamber ofCommerce Herefordshire andWorcestershire Business Awards2009 is free and easy, so there reallyis no reason to ignore theopportunity. Why let yourcompetitors steal your limelight?

The deadline for entries is Friday,April 24.

Contact Naomi Rusher for furtherdetails on 0845 641 1523 or e-mailnaomir@hwchamber.co.uk.

Postcode Anywhere staff receiving the Growth Business award 2007. From left, Jamie Turner, Rachael Mackwelland Guy Mucklow with Kul Sanghere of sponsors Business Link and ceremony presenter Lars Tharp. 23419229

For one nightonly you couldstep onto thestage and bea prizewinnerTheatre is booked for the 2009 awards ceremony

Malvern Theatres, where the awards night will be staged in July 2009.

Leisure centre will behost to Business ExpoFOLLOWING the hugelysuccessful WorcestershireBusiness Expo that took place atthe Worcester Warriors’ SixwaysStadium last October, theChamber of CommerceHerefordshire andWorcestershire has decided tostage, for the first time,Herefordshire Business Expoat the Hereford Leisure Centre,Holmer Road, Hereford onWednesday, March 25, from7.30am-3pm.

The chamber has always beenhugely successful in stagingevents of this kind which attracta huge variety of exhibitors and

quality delegates. It provides theperfect opportunity to meet newpeople, develop lasting businesspartnerships and learn someinvaluable business advice.

If you’ve not had theopportunity to attend a chamberevent before, this is an easy wayof finding out more.

During the day there will be thechance to get involved with thenetworking breakfast and lunch,listen to some of the region’sleading business people speak onkey commercial issues, browsethe free exhibition and talk tochamber representatives aboutthe many money-saving products

and services that are available.Event organiser Erin Allen

said: “This is the ideal time forthe Business Expo to come toHerefordshire.

“Networking and building newworking relationships is going tobe the key for business survivalin what is proving to be difficulttimes for business and this is theperfect opportunity to developthese links.”

For more information aboutexhibiting or attending theHerefordshire Business Expocontact Erin Allen on 0845 6411571 or e-mail erina@hwchamber.co.uk.

From left, MikeAshton, chiefexecutive ofthe Chamberof CommerceHerefordshireandWorcestershire,and JohnArgent, chiefexecutive ofHalo, whichruns HerefordLeisure Centre.

Affordable, high quality training for local business

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16 worcesternews.co.uk

Wednesday, January 21, 2009 LEGAL MATTERS

Company

Senior partner

Business type

Established

Telephone

Website

e-mail

Location

Everatt & Company

Nick Yates

Personal injury and employment law

1970

01386 769160

everatt.co.uk

ccooper@everatt.co.uk

110-112 High Street,Evesham,Worcestershire WR11 4EJ

FEW employers are unaffectedby the current economicenvironment and in some cases

their very survival depends uponmaking difficult decisions whichaffect their entire workforce.

For most businesses staff costs arenormally a significant overheadand therefore it is not surprisingthat employers look to economise inthis area.

Invariably this involvesredundancy, which is of course astatutory process. Despite theunderstandable pressure to takeswift action, it is likely that anyfailure to follow the correctprocedures could result inunwelcome costs, both financiallyand in terms of management time.

Planning is a critical factor andtherefore it is wise to seekprofessional advice beforeembarking on a programme ofredundancies, however small.

Everatt & Company’s employersupport service can provide human

resources and legal support on allaspects of employment includinghow to implement a redundancyprogramme.

Where required the company’sexperienced human resourcesconsultants can even assist withany practical on-site support.

Formore information contactCharlotte Cooper, employmentpartner, or Andy Phillpot, humanresources consultant.

ADVERTISING FEATURE

The risks in redundancy

Employers need to take care tocomply with the law and toconsider the following keyconsiderations:Clearly document that aredundancy situation exists andthat jobs have to be cut. Have allalternatives to redundancy beenconsidered?Think carefully about how andwhat you wish to communicate tothe workforce.Decide on a selection process thatis fair and that can be objectively

justified. It is essential that yourselection criteria do notdiscriminate.Consult with your employees in atimely manner. Allow sufficienttime to listen to alternativesuggestions to redundancy.Adhere at all times to the statutorydispute resolution procedure,including a right of appeal.

Make sure all payments due tothe employee are made in linewith their contract of employmentand/or the statutory provisions.

FACT FILE

worcesternews.co.uk 17

Everatt & Company in Evesham.

You don’t have to waitfor payment of billsLACK of cash is a major cause ofbusiness failure and as therecession takes a strangleholdsuppliers are reporting having towait longer to get paid.

The knock-on effect can resultin a nightmare scenario ofinsolvency and bankruptcy forbusiness owners as the door toessential bank financing isslammed shut.

John Wright, chairman of theFederation of Small Businesses,said: “An increase in latepayments, a decline in trade andpoor access to finance will leavethousands facing closure.”

Cyril Arridge, managingpartner at solicitors ParkinsonWright in Worcester, said: “Somebusinesses are delaying payingsuppliers for longer than theagreed term and someoutrageously demand a paymentfee before settling their invoice.The longer it takes to get paidand the larger the bill, the morelikely it will turn into a bad debt.When it spirals out of control,the collateral damage isbankruptcy.”

Parkinson Wright suggests thefollowing practical steps forbusinesses to take in order toget paid:

Have written terms andconditions that clearly state thepayment period and the right tocharge interest on latepayments. This avoids anymisunderstandings later.Do a credit check on a newcustomer and don’t be afraid toturn away business or to stopsupplying if there is a risk of notgetting paid.Ask for money up front to coverinitial outgoings.Invoice frequently or at theagreed times. Don’t feel you aredoing someone a favour by notbilling them on time. It is easyto be taken advantage of.Have a robust credit controlsystem. Chase up payments theday they become overdue.Use the Late Payments of

Commercial Debts (Interest) Actwhich allows you to chargeinterest at eight per cent aboveBank of England base rate,accumulated on a daily basis,and an administration fee.Consider using a debt factoringagency to release funds.Use the Small Claims Court topursue debts up to £5,000 pluscosts.For a modest cost, a solicitor’sletter advising that court actionwill be taken, will often resultin prompt payment.Get legal advice sooner ratherthan later for more complex orlarger debts and if there is a riskof insolvency.

PRACTICAL STEPS TO ENSURE THE MONEY KEEPS COMING IN

Changes will affect firms’ disciplinary systemsA WEST Midlands solicitorspecialising in employment lawhas warned bosses to carry out athorough review of disciplinaryand grievance systems followingchanges in regulations which arelikely to be introduced in April.

Sally Morris, a partner at MFGSolicitors and head ofemployment law at the firm, sayshuman resources managersshould carry out a review ofpolicies and procedures withintheir company.

She said: “They need to ensuredisciplinary and grievancesystems comply with the newlegislation in the EmploymentAct. They will have to identifywhether any changes or trainingis required.”

CyrilArridge,themanagingpartner atParkinsonWright.

Employers don’t cometo us with a clean slate

Everatt & Company Employer Support exists to helpemployers to overcome immediate problems and, over time, toprevent such problems from arising.

From contract to compliance issues, our role is to reduce therisks, distractions and avoidable costs that all employers face.

Better still, because our team is staffed by qualified HRprofessionals, backed by employment solicitors, we have all theexpertise you need at a lower cost than you might imagine.

For further information on how we can help to clear yourslate of employment problems, please contact Andrew Phillpotor Elaine Fisher on the number below.

EVERATTE M P L O Y E R S U P P O R T

& C O M PA N Y S O L I C I T O R S

www.everatt.co.uk

01386 769160

A proven track record and a fast, efficient service in all areasof business adviceA partner-led approach with a team of 55 staff dedicated solely tohandling your business interestsAn unrivalled reputationRecommended by Chambers and Legal 500 Directories

Corporate Commercial Intellectual PropertyCommercial Litigation Commercial Property Employment

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T 01905 612001Or visit our website www.harrison-clark.co.uk

Wednesday, January 21, 200918 worcesternews.co.uk BUSINESS NEWS

Is that pensions plan reallythe one to suit your needs?CClliivvee CCoolllliinnss of McCarthy Taylor offers advice following a change in the rules about investment options

THE Financial ServicesAuthority has started areview into self-investedpersonal pension (SIPP)suitability following

concerns that advisers werepersuading clients to sign up to therelatively expensive schemes whenthey would not benefit from theinvestment options available.

The suitability factor will becomemore of an issue after rule changesare introduced which will allowprotected rights to be invested inSIPPs.

Protected rights are pensionbenefits that have accrued as aresult of the individual beingcontracted out of the stateearnings related pensions (nowstate second pension), through apension scheme.

The option of self-investment hasbeen around for a while, allowingthe more sophisticated investor toplace their pension contributionsacross a wide-range of investmentfunds, investment trusts, quotedshares and government gilts, aswell as being able to draw down anincome from the funds onretirement and delaying thepurchase of an annuity until thelatest age of 75.

This approach contrasts sharplywith the basic stakeholder pensionoption, which has restrictedinvestment to the collective fundsmanaged by the insurer and

perhaps a limited number ofexternally managed funds. Astakeholder pension is a simplepension plan with a low-costcharge structure.

In the past the major problemsassociated with personal pensionshad been to do with theirinflexibility and high charges.With stakeholder pensions,personal pension providersscrambled to produce“stakeholder-friendly” personalpension plans. The idea was tomirror the charging structure ofthe stakeholder.

With new technology and moredemand for transparency andcontrol over pensions, severalcompanies have brought a newtype of pension proposition to themarket. These are known asplatform pensions.

SIPPs will not suit the vastmajority of people, because theywill not use all of the options, such

as the ability to borrow from thescheme for commercial propertypurchase.

Many people have been advisedto have insured SIPPs when theyend up only using the insurer’score pension funds which wouldnormally be available under astandard pension plan.

The costs of a SIPP largelydepend on whether an online orfully-administered SIPP is beingused – the latter is the mostexpensive. Research demonstratesthat the costs of a platform pensionare very competitive comparedwith a SIPP. You have to factor inadvice costs, since this will vary.

If you simply want a wide choiceof non-insured investment options,a platform style pension may bemore suitable and cheaper for you.Alternatively, you may do just aswell with a stakeholder pension.

For more details call Clive Collinsat McCarthy Taylor on 01386 422611.

It’s time to lookat what’s beingleft in your willWITH home valuesplummeting and otherinvestments struggling,many assets in a person’swill have lost value.

Paul Marsh, president ofthe Law Society, said: “Thosewanting to leave friends andfamily in a secure positionafter they pass away mightfind that what they have leftin their will has considerablyless value than when theirsolicitor wrote it.

“With homes losing valuepeople may need to lookagain at their wills,especially if they haveincluded tax planningprovisions which are nolonger appropriate.

“The same goes for sharesand other assets. The valueof the assets in a person’swill might have fallensignificantly since it wasdrafted and so the will mayneed to be rewritten.

“It is essential that anyonewith a will who has not

looked to update it recentlygoes to their solicitor toreview it and, if needs be,change it to reflect theircurrent financial situation.

“A solicitor is best placed toadvise on any necessaryamendments, as well asprovide guidance on taxplanning.

“Reducing the tax burdenon the assets you wish toleave in your will has aneven more relevant benefitfor your family and friends inthe current economicclimate. If you do not have awill, now would be a goodtime to write one or riskleaving friends, families orother intended recipients ofyour assets with nothing.”

To find a solicitor, to writea will go to lawsociety.org.uk/findasolicitor. To find outmore about making a willand how solicitors can helpwith common legal problemsvisit lawsociety.org.uk/commonlegalproblems.

The key advantages:Transparent costs, includingdiscounted fund managementcharges.Consolidated reporting, includingweb access.Wide fund choice. Ability to invest inquoted shares, commodities and

government gilts.Flexible funding.Cash account facilities.When you are ready to draw yourpension benefits, you will be ableto do so via the platform service,without having to transferelsewhere.

PLATFORM PENSIONS: THE FACTS

Clive Collins is director and adviserat McCarthy Taylor In Evesham.

What you’veleft in yourwill could beof less valuenow thanwhen thedocumentwas lastupdated.

KENWIGFIELDWorcestershireChairman,FederationofSmallBusinesses

6. Spending large amounts on glossy marketingmaterialsGlossy marketing materials, where appropriate, canhelp your company. However, brochures andbusiness cards, no matter how beautiful, don'treplace direct customer contact.Solution: Give promotion items directly to people orsubstitute the spend for more direct forms ofcustomer/prospect contact.

7. Spending a significant amount of time onlow-return activitiesIt's easy to spend time doing things we like doing orundertake unproductive routine tasks rather thanworking on those things that will improve thebusiness.Solution: Track and target your time and calculateyour profit per hour. Hire a part-time or 'virtual'assistant if you are spending time on administrativework.

8. The curse of discounting.It's so tempting - get the sale at all costs! But theimpact on the bottom line can be massive. Tomaintain the same level of profit for the companyyou must increase turnover by 50% when a 10%discount is given on goods with a 30% gross profitmargin.Solution: Increase sales activity, don't decrease prices.Consider adding some 'added value' such as a 'freereview' after 6 months.

9. Limited use of technology.Technology, such as: voicemail, wireless internetconnections, speech recognition software, managedoffices etc. can help you use finite resource moreeffectively. If you don't use relevant technology youmay lose out.Solution: Use inexpensive technology whereverpossible

10. Staying with outdated business models or plans.Defensive statements such as "I've been in thisbusiness for x years" can often be a symptom ofimpending doom. If you don't keep up with trendsin your business you risk a steady decline in yourprofitability.Solution: Keep an open mind. Attend meetings andconferences, talk to suppliers, competitors andconsultants, read magazines and Internet articles -find out what's happening in your market.Update your business plan regularly.

IT’S A SMALLBUSINESSWORLD!

ADVERTISEMENT

FSB local support to helphard-pressed businesses.This year I shall use this column tobring a range of tools and informationto help local business owners. January'sbrings you ' what NOT to do'!

10 Business Practices thatREDUCE Profitability!1. No / inconsistent marketing.

Ongoing, planned marketing is not a cost - it's aninvestment; like equipment, people, etc. Increasemarketing activity (not necessarily marketingspend) -- including sales activitySolution: Review and continually market!

2. Not asking for the sale.Sales are often lost because we don't want toappear pushy. Buyers expect you to close the deal.If you find it difficult to "ask for the sale" you risklosing it.Solution: Practice asking for the sale.

3. Not seeking advice about crucial aspects ofbusiness.If you spend more time working on things you'renot good at you risk a double-whammy effect. Inspending less time working on your strengths andmore on your weaker areas your business isrunning below par.Solution: Get expert advice from professionals,possibly appoint a Non-Executive Director,negotiate a payment-by-results package.

4. Not following up with past customers.Retaining customers is vital. Additional businessit's usually easier to with former customers than toattract new ones.Solution: Develop and implement a method ofcustomer follow up.

5. Not regularly reviewing business costs.Reducing costs (without shedding staff) is easierthan you think! Have you "gone to market" withyour purchases lately? Or, do you 'loyally' stickwith one long-term supplier? Are you paying morethan you need?Solution: Regularly review expenses for all spends;negotiate adjustments where appropriate.

www.fsb.org.uk/092

Shrub Hill Industrial

Estate, Worcester

Terms: Licence

370 sq.ft. workshop, 580 sq.ft., 703 sq.ft. Workshop +

Small Office

905 sq.ft. Office, one large open plan room, one small

room + kitchen, stores and own entrance

Wednesday, January 21, 2009 worcesternews.co.uk 19

Our first lunchwas a successBusinesswomen raise more than £200 for charity

RECOGNISABLY BETTER SERVICE

WWW.HEWETT-RECRUITMENT.CO.UKBusiness newsIN ASSOCIATION WITH

Ladies wholunch, fromleft, SallyMorris ofMFGSolicitors;Angela Bakerof MarketingIQ; HeatherGorringe,who runsWigglyWigglers;DianeSheldon ofLloyds Bank;LyndseyBreeze ofSt Mary’sSchool andSusie Stylerof LloydsBank

NEARLY 100 local business-women attended the inaugurallunch of the Worcester branch ofLadies in Business (LiB).

The event was held at St Mary’sSchool, Worcester, and they weretreated to a sit-down two-coursemeal which was followed by anentertaining talk by guest speak-er Heather Gorringe – founder ofgardening equipment and gift-ware online company WigglyWigglers.

Mrs Gorringe, who read a bookabout how worms can be used innatural composting techniques,went on to develop a range ofwormery-type compost bins ather Herefordshire home.

She then extended her productrange to include garden gadgetsand gifts – all with an environ-mental, ethical and educationalbias – and built-up one of the

country’s most successful onlinegarden businesses.

In 2005, Wiggly Wigglers wasvoted British Small BusinessChampion by the Federation ofSmall Businesses and Mrs Gorr-inge’s innovative way of market-ing her business on the internetwhich includes blogs and pod-casts – has recently won her theGlobal Dell Small BusinessExcellence Award.

Everyone attending the eventwent away with a goodie bag con-taining books and giftware fromWiggly Wigglers.

A raffle at the inaugural lunchraised £262.

The amount will be match-funded by a donation from LloydsTSB and the first charity to bene-fit will be the Worcester Rape andSexual Abuse Centre.

A cheque will be presented to

its representative Denise Griff-iths at the next Ladies inBusiness lunch on February 26,when the guest speaker will beJane Sullivan, a journalist formore than 26 years who hasworked on some of the majorwomen’s consumer magazines.

She will be explaining the dosand don’ts of approaching news-papers and how to get the mostout of a press release.

Anyone interested in joiningLiB Worcester should visitnetwork.ladiesinbusiness.co.uk.Alternatively, contact TinaWinter at Lloyds TSB on 0190526083 or e-mail:tina.winter@lloydstsb.co.uk

New support schemecould save £1,000sfor many small firmsAN estimated £12 million in taxpenalties could be saved by firmsthrough a new business supportscheme.

Will Silsby, of accountancy andtax experts Rabjohns in CollegeYard, Worcester, said: “With thetax payment deadline of January31 looming, some businesses willalready have realised they can-not meet their liability and nowface paying interest on any late-paid tax.

“At an annual rate of 4.5 percent, that may not sound too bad;if a liability of £5,000 is paid at theend of March instead of January31, the interest will only be some£37. However, the sting in the tailcomes with the five per cent sur-charge on any tax unpaid byFebruary 28. If a £5,000 liability isnot paid until March 31, com-bined interest and surcharge lia-bility reaches almost £290, equat-ing to a staggering annual inter-est rate of 34.5 per cent.”

There are about 200,000 busi-

nesses in the West Midlands andMr Silsby said if 20 per cent ofthese were late paying an aver-age of £6,000, then the penaltiescould reach nearly £12 million.

Many of the businesses will besmall enterprises to which highpenalties would have a signifi-cant and damaging effect butthose who pay late could facebeing blacklisted as a defaulter.

However, help is at hand froman unexpected source – theChancellor’s Business PaymentSupport Service.

Mr Silsby said “For businesseshaving genuine difficulty in mak-ing payment by the due date, butwhich have good prospects ofpaying if given more time, HerMajesty’s Revenue & Customs isprepared to agree a paymentschedule and exempt the late-paid tax from surcharge so thatthe only liability is the interest.

“I would urge all businesses inthis situation to take up theopportunity.”

Jane’s role isin marketingLAW firm Harrison Clark hasappointed Jane Harrison-Pike tothe newly created role of mar-keting manager.

The post is a first for the 150-strong Worcester-based firm,and follows significant invest-ment in positioning the compa-ny as a leader within the highly-competitive corporate and fami-ly markets.

Ms Harrison-Pike, who lives atBarnt Green, near Bromsgrove,has more than 20 years’ experi-ence in the legal industry andwill oversee the output of all ofthe firm’s corporate literature.

New post: Jane Harrison-Pike.

Your moneyWORCESTERNEWS.CO.UK

The Federation of Small BusinessesThe Magnificent Seven!Top tips for surviving the economic downturn

1. Be Aware of the Current Market!

2. Manage your cash flow - incoming and outgoing

3. Monitor your suppliers’ and customers’ current situations

4. Look for places to cut expenses, such as energy costs, bankcharges, insurance premiums etc

5. Talk to your creditors - don’t wait until it’s too late

6. Build the loyalty of your current customers

7. Don’t discount! A 10% discount on goods with 30% GPMmeans you have to generate an extra 50% sales to retain cur-rent income!

The Federation of Small Businesses provides a wide range ofbusiness benefits including: fee free banking, credit checks, freelegal and tax advice, reduced cost merchant card services, healthcare, factoring, insurance, local networking events and muchmore - visit www.fsb.org.uk for more information.

Sign up to the FSB’s Keep Trade Local campaign today byvisiting http://petitions.number10.gov.uk/keeptradelocal/or phone 01386 750032 to obtain your own petition sheet.

http://petitions.number10.gov.uk/keeptradelocal/