Federation of Small Businesses - FSB Weekly Brief 31

In this week’s issue: criminal record checks, postal changes, business growth, keeping cool, spreading your bets, interest rates, national minimum wage, helping hand, late retirement.

1. FSB criticises delays in background checks
The FSB revealed this week that the Criminal Records Bureau is making employers wait for up to eight weeks or more to have essential background checks completed on potential recruits. David Croucher, FSB Home Affairs Chairman, told the Financial Times last Saturday: “We recognise that these checks have to be made to protect the vulnerable people that our members serve. However, the tangle of red tape and delays that businesses have to suffer is unacceptable.” The Daily Telegraph also ran with the story this week.

2. Royal Mail to change pricing method
Much ballyhoo, hullabaloo and kerfuffle this week over the forthcoming adjustments to how Royal Mail charges its small business customers. From the 21st of this month post will be charged according to size AND weight as opposed to just weight. The Financial Times and the Daily Express printed the FSB’s view that the transition could cause a lot of short-term problems for companies that do not have a dedicated post room. Royal Mail has got some info on their website to try to dispel the confusion. Check it out here: www.postoffice.co.uk.

3. Northern and Welsh towns attract business growth
Towns in Northern England and Wales are the hotspots for new business growth according to research by the aforementioned Royal Mail. In particular, areas including Stockton-on-Tees and Liverpool attracted the largest number of new firms or company expansions in the past year. Carol Undy, FSB National Chairman, told the Daily Express: “The UK business landscape has changed substantially during the past five years, with businesses expanding and an increasingly large number of start-ups emerging.”

4. Casual clothing to keep cool
The FSB has backed small businesses that have relaxed dress codes to provide some relief to staff in the recent hot weather. Matthew Knowles, FSB spokesman, told The Times: “In hot weather, people need to be comfortable to work effectively. Where appropriate, employers should allow a relaxed dress code to help their staff do good day’s work.” The FSB also published legal advice on the subject in partnership with Abbey Legal.

5. The importance of a wide client base
The Mail on Sunday had a story this week on the number of small business failures. Simon Briault, FSB spokesman, warned against putting ones eggs in one basket: “It can be tempting to take on a big contract, but if it is cancelled or that customer fails to pay, you’ll be in trouble. Diversify and also maintain smaller contracts so that you always have something you can fall back on.”

6. Surprise interest rates hike
The FSB gave a balanced reaction to Thursday’s surprise decision by the Bank of England to put up interest rates by a quarter of a percent. The FSB pointed out in the Financial Times that while new small businesses with more debt would be hit hard, seasoned owner-managers of small businesses would welcome the boost to their savings.

7. Small businesses’ experience of the National Minimum Wage
The National Minimum Wage is set to increase again in October, with the adult rate increasing from £5.05 to £5.35 an hour. What impact is the NMW having on your business? The Low Pay Commission is currently consulting so now is the time to send us evidence for the FSB response. Please email laura.davies@fsb.org.uk.

8. A message from a TV company…
Calling all wannabe entrepreneurs or small business owners!

Are you tired of working for someone else? Or are you a mum desperate to set up your own business from home but don’t know where to start? Is your current business going down the pan? Or do you run a family business but find that politics get in the way? Help is at hand in the form of formidable but fantastic Apprentice star; Ruth Badger. Business brain Ruth will become your troubleshooting expert, teaching you to turn unhealthy profit loss into healthy profit margin. Your blue sky thinking could become reality; but can you handle the heat of ‘The Badger’ in your boardroom? Please get in touch with Zoe at GMTV on 0207 827 7094 or e-mail zoe.thorogood@gm.tv if you want us to help you!

9. Another message from a different TV company…
Are you still working past retirement age? Channel Four is researching a documentary about people like you who are bucking the stereotype of old age. If you are working into your 70's, 80's or beyond, we would like to hear from you about what you do and why. Please contact Kirsty on 020 7907 3437 or email kirsty.garland@silverriver.tv.