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Memorandum submitted by Business Link (EE 11)
1 Overview
1.1 EEDA funded Business Link is supporting established business owners and future entrepreneurs in the East of England to start, endure and thrive. In the past 12 months (April 2008-March 2009), during which the downturn was confirmed, the service served 108,082 customers.
1.2 Our universal, publicly funded service is accessible to any SME or entrepreneur in the region. Operating from 13 key locations across the region our free, independent and impartial offering includes: one-to-one business support and advice from a team of nearly 100 local business advisers; business reviews to diagnose areas for improvement and signpost ways to achieve it; access to a wealth of information available through a dedicated information and intelligence centre; brokerage services to refer clients to over 2,000 suppliers listed on our database; and focused workshops and seminars covering every aspect of starting and running a business or social enterprise.
1.3 In anticipation of and as a direct result of the declaration of recession, we flexed and adapted our service and resources to meet the needs of our customers ensuring that, along with our existing service offering, we were able to implement new initiatives, including those announced by the Government, to give the region's businesses the best possible chance of survival.
1.4 Initiatives included:
§ Free business health checks § Removing charges from our extensive range of business seminars and workshops § £500 voucher towards consultancy services for those who had received a health check from a Business Link adviser and for whom the benefits of consultancy support were identified § Launch of a new helpline to serve customers that wished to remain anonymous § Start-up response to redundancy programme to provide seminars and information to those facing redundancy § Additional start-up workshops to respond to the increase in demand from those feeling insecure in employment § Open for business campaign to assist rural pubs § Working with our partner network to respond to the recession
2 Free business health check
2.1 These health checks are comprehensive business reviews that identify strengths, areas for improvement and issues for trading companies. Problems and opportunities may be obvious or hidden by a number of factors.
2.2 Initially our telephone based advisers guide companies through the health check review and offer solutions to issues. Specific questions are asked to help identify how a business is performing and highlight any potential issues. If further in-depth support is needed, a Business Link adviser will meet the customer at their workplace to further diagnose their needs and fully assesses the company's strengths, gaps and opportunities. The adviser will help write a realistic action plan to help the customer move the business forward.
2.3 Taking stock of where a business is currently ensures that the business owner is in the best possible position to take early action and increase the chances of the business surviving the economic downturn.
2.4 We know that businesses who take advice from Business Link have better survival rates [the national average for businesses surviving to their third birthday is 66%; the number surviving to the same point with help from Business Link rises to 83%], so our message to businesses in relation to the health check remains simple: call us now.
2.5 The health check is part of the package announced by the Government to support local firms to bear the impact of current global economic challenges in October 2008. Since 23 October, Business Link in the East of England has delivered 4915 health checks. In the past 12 months our advisers have provided 5,607 clients with in-depth help via a one-to-one relationship.
2.6 Our marketing and PR messages in relation to the health check focus on encouraging businesses to ask for help early. Many businesses were and still are approaching us for help far too late, so our campaigned centres upon encouraging businesses to request a health check early to ensure that they are in the best possible position to weather and ultimately survive the downturn.
2.7 "When I first met Rachel and Vhari we talked about the current state of the business and their hopes and plans for the future. I conducted a business health check which demonstrated that doughdough.com is still growing and has plenty of potential, despite the economic downturn." Business Link adviser, Diane Budd
2.8 "Diane has given us some great pointers on marketing and is a fantastic sounding board for our ideas and plans, giving us the confidence to know that we're taking the business in the right direction." Rachel Prothero, doughdough.com
2.9 "Like any business we have outstanding payments to HMRC for PAYE income tax, National Insurance and VAT. I was finding it increasingly difficult to juggle the finances and meet all our bills in a timely fashion. When we made contact with the various government agencies, we were relieved at how accommodating they were. Business Link has helped me identify where improvements can be made in the business to restore our healthy cash position." Tom Luxmoore, Eye of the Heart
2.10 "We recognised that we needed to strengthen our position and reduce our business risk by increasing our client base. But [my business partner] and I are self-confessed techies, and we wanted to get some impartial, external advice. Business Link has helped us to clearly define our business plan and priorities that will ensure our continued success through hard economic times." Daren Donald, iDev
3 Removing charges from our extensive range of business seminars and workshops
3.1 One key area highlighted in the government's package of support to SMEs at the end of 2008 was training. In particular, the importance of keeping staff skills up to date to assist businesses to manage the impact of economic change. In support of this, Business Link removed charges for its programme of workshops and seminars. Initially this was for a three month period, but has continued and will continue for the foreseeable future. By removing the £30 fee, businesses in the region will have collectively saving around £400,000 per year.
3.2 This initiative encourages businesses to prioritise the development of the skills, knowledge and understanding of their people during these tough economic times. We have highlighted the need to take time to develop and train staff, ensuring good productivity, not only during the difficult times, but also, on a more positive note, in preparation for the inevitable upswing.
3.4 Workshops are held in over 90 locations across the East of England and provide expert advice and support to new and existing businesses. Topics covered include: business planning, regulations, marketing, running a business from home, asserting yourself, finance, customer service, people management and many more. Workshops typically run for two to three hours and are held at various times during the day to help those with additional responsibilities.
3.5 From October 2008 to March 2009, over 22,000 delegates attended our briefings for start-up and established businesses.
3.6 In a direct response to the recession, we developed a workshop titled 'survive and thrive in difficult times'. Through March and April we ran 7 of these workshops across the region, generating 276 delegate bookings.
3.7 Within a week of launching our new programme of events in April, we had received over 5,700 bookings. In fact, such is demand that we have had to organise 130 further events. Examples of recession tailored workshops in our current workshop programme include: how to increase sales in economic downturn; creative ways to enable your business to grow in the current recession; how to attract more customers with free/low cost internet marketing: bookings to date; and adapting your business to survive the recession.
3.8 "Business Link has helped with everything from staff training and IT development, through to marketing to get more guests through our doors. We used Business Link's workshops to help our staff sell more proactively and our turnover has increased as a result." Hannah Scott, Strattons Hotel
3.9 "Each briefing is worthwhile, even if I only pick up one valuable tip. But at Business Link's briefings I've learned many valuable lessons we can apply to the business." Simon Denmark, Ali Systems
3.10 "Business Link's workshops have been a fantastic grounding in all the basic business skills - they've helped me make the best choices for the structure, marketing and running of my company. Business Link are brilliant and I have learned so many of the basics I would not have discovered by myself. I've got some tough challenges ahead and will be looking to Business Link for advice." Karen Bradley, Nuwave Interiors
3.11 "Business Link's business building workshops coupled with the effective support from expert advisers are ideal for anyone starting a business." Andrew Silley, ST1 Consulting
4 £500 towards consultancy services for those who had received a health check from a Business Link adviser and for whom the benefits of consultancy support were identified
4.1 In January 2009, Business Link launched a scheme to provide financial support to assist East of England businesses through the economic downturn. The scheme enabled business to purchase £500 worth of consultancy services from suppliers registered on our Supplier Brokerage Database.
4.2 Our experience told us that, having undergone a business health check with one of our advisers, what clients wanted was help from experts in areas such insolvency, marketing, tax and liquidation. So that's exactly what this scheme did: enable clients to buy the services they needed from suppliers on our supplier brokerage database.
4.3 Businesses that had been trading for over 12 months were eligible for the voucher. Using our supplier brokerage database, advisers searched for and suggest up to three suppliers who were able to meet the needs identified in the customer's action plan. It is with these suppliers, who had been accepted to be part of the scheme, that the voucher could be redeemed, up to a maximum value of £500.
4.4 This scheme complemented the existing package of help available from Business Link that included a free confidential business health check and skills workshops.
4.5 With EEDA's agreement, we channelled £200,000 of funds from other activity into this short-term project, benefitting 400 businesses. The initial diagnostic exercise undertaken with businesses by our advisers was fundamental to ensuring that these funds reached those businesses that were most in need. Our limited funds led to us not being able to operate this scheme on a first come, first served basis.
4.6 "I'd put up all my own cash, the bank was prepared to extend us a loan and the company was investing, but it was still not enough. I called everyone I could think of to find the additional finance, but hit a brick wall. That is, until my bank suggested calling Business Link. The banks and other sources of finance could do no more, so without the grant that Business Link helped us identify and win, we would not have been able to so successfully grow our business." Darryn Allen, Alpha Powder Coatings
4.7 "When we got the details of the marketing consultants, the first thing we did was look at their websites because if they did a good job marketing themselves, we felt they'd be more likely to do a good job for us. The review was extremely valuable because it confirmed that much of what we've been doing is effective, but highlighted many areas where we can improve on the detail." Phil Clark, ABC Mortgage Services
4.8 "[My adviser] researched and brokered local solicitors who could help me with my terms and conditions of service and also advised me about data protection and protecting the intellectual property of PA Pool. I simply wouldn't have considered these issues without Business Link's input." Katy Etherington, PA Pool
4.9 "I used my one-to-one business advice vouchers to meet with three experienced professionals in key areas of business tax, web design and HR." Rudi Kennard, Inside-Out Seminars
5 Launch of a new helpline to serve customers that wished to remain anonymous
5.1 In January, Business Link launched a helpline that offered anonymity to business owners who wanted to discuss their business issues without disclosing their identity. Dialling 08453 13 45 10 puts the caller straight through to an experienced information adviser from the service who will provide confidential business support, without asking for contact or identity information.
5.2 In the first instance, our aim is to establish whether or not we can help. To do this the caller needs to share with us some non-specific information about their business, issues and problems. We will then try to identify a potential way forward, without pressing for any details that might identify the caller or their business.
5.3 Via feedback from our customer facing teams we recognise that for many business owners, admitting to themselves that their business is struggling can be difficult, so declaring it to others is even tougher. That's why we launched this new helpline, to enable those worried about the future of their business to anonymously seek help from our team of professional telephone advisers. Experience tells us that seeking advice early gives a business the best possible chance of survival
5.4 To date, 31 calls have been received. While a few callers opt to remain anonymous, most are interested in accessing support and provide their details. Anonymous callers have quickly gained trust in us and go on to benefit from health checks, one-to-one specialist advice and skills workshops. The helpline was promoted via the media and our partner networks.
6 Start-up response to redundancy programme to provide seminars and information to those facing redundancy
6.1 For businesses announcing redundancies, Business Link has offered to provide support for those thinking of or interested in starting a business.
6.2 Our enterprise awareness managers have addressed groups of staff in order to highlight self-employment opportunities, together with an overview of what Business Link can offer in support of those considering self-employment, or starting up a small business.
6.3 In addition we have deployed our mobile office unit to conduct on-site surgeries as required. This unit is fully equipped with presentation and on-line facilities, enabling interested individuals to ask questions about self-employment in a more confidential setting. Family members wishing to participate in such meetings have also been welcomed.
6.4 We have also delivered our starting your own business workshops either on-site or off-site depending on requirements. This half day workshop has typically been delivered to individuals wanting to know more about self-employment or starting a business and provides an overview of the areas to consider beforehand. Some have already had a business idea and want to know the next steps to progress it. By the end of this workshop individuals should be better able to make an informed judgement, able to develop any business ideas further and be clear of the further workshops and support available.
6.5 Examples of redundancy support include:
§ Supporting those made redundant at Travis Perkins via an event where Business Link provided advice to those considering self-employment § Attending a job fair for workers made redundant from Visteon. A steady flow of visitors to the Business Link stand considered self-employment to be an option and were advised by our enterprise awareness managers accordingly § Supporting those made redundant at Kodak, where some of the staff highly skilled had shown a strong interest in starting up for themselves and leveraging their technology expertise § Working with Jobcentre Plus to run a series of workshops for those made redundant at Cambridge University Press § Working with staff subject to redundancy at Freemans via an open information surgery on-site to answer questions from individuals wanting to further explore the self-employment option § A dedicated webpage
available to Ford workers outlining Business Link support for those considering
self employment. In addition, we presented 3 sessions titled 'first steps to
starting your own business' at the Dunton and Warley sites in
7 Additional start-up workshops to respond to the increase in demand from those feeling insecure in employment
7.1 Calls into Business Link's frontline Regional Information and Intelligence Centre up 70% on the same point last year and 50% of calls being from those thinking of starting a business, the recession has clearly led to a rise in those considering self employment as a real career option.
7.2 Currently there are 4,324 delegates booked onto business start up workshops in the April to September schedule. In addition, 330 people remain on the waiting list and every effort is being made to bring this number down. Further workshops have been scheduled to meet the demand and customers are being called by the events booking team to offer places.
7.3 Having already scheduled an extra 67 workshops in April month, the need for a further 72 business skills and business basic workshops has been identified across the region to meet customer demand. This means that we have had to schedule an additional 139 workshops between April and July.
7.4 We run a two day residential start-up boot camp and to meet demand 6 have been scheduled into the year ahead. It is aimed at people who want to get their business up and running as quickly as possible. The boot camp provides a streamlined approach to the subjects covered in the Business Link start up workshops and gives people the chance to focus totally on their business plans, away from outside distractions.
7.5 The intensive format covers all the business essentials, such as business planning, marketing, sales, finance and research. Because we run the event at Business Link's largest office in Hatfield, delegates are able to work with the information team learning how to research their business ideas. This gives them the chance not only to find out about the huge range of resources on offer, but also to leave with some really targeted research material. Each delegate meets with their own dedicated adviser who will continue to support them after the event.
7.6 "Amazingly demanding an stretching couple of days crammed full with such practical and useful information. Every possible point covered to empower the pre set up and recently set up small business to succeed." Linda Homan, boot camp delegate
7.7 "I've always wanted to start my own business, so when I was made redundant last year it seemed like the perfect opportunity. If you've worked in a large corporation your entire career, you don't have to deal with things like tax and VAT, because you have colleagues who do it for you. But Business Link's briefings get all the key information over quickly and effectively. Business Link's workshops teach you all the skills that you never realised that you needed to run your own business." Michael Goddard, Goddards Bricks
7.8 "Let's be honest, with the economic problems we are experiencing, some people might say right now is not the best time to be launching a new business. But you can still have a successful business when times are tough and what I have learned from Business Link showed me how." Linda Chapman, Weddings Direct
8 Open for business campaign to assist rural pubs
8.1 At the beginning of 2009 Business Link provided rural pub grants to 83 pubs in the East of England, still more benefitted from face to face support from advisers, telephone hotline or received the Open for Business guide.
8.2 While the region suffered the effects of recession at the end of 2008, it was identified that pubs were in particular distress with reports of 5 closing per week. In addition to decreased consumer spending, they also faced the effects of steep tax increases, the smoking ban and competition from cheap alcohol sale supermarkets. 8.3 Business Link pulled together a group of partners representing the key industry bodies CAMRA, BII (formerly British Institute of Innkeeping) and Pub is the Hub, to co-ordinate a package of support for publicans. Each of the partners has a different, but complimentary support provision for publicans. These were represented in a guide for publicans-Open for Business. 8.4 An integrated campaign of direct mail, adverts and PR was supported by communications delivered in partnership with all of the participating industry partners and major brewers throughout the East of England to ensure thorough and consistent messages were delivered to all publicans. 8.5 Following the launch of the Open for Business campaign, EEDA made additional funding of £77k available to ensure that demand could be met: the Rural Pubs Grant was created, providing up to £1000 of revenue expenditure for qualifying rural pubs in the region. 83 rural pubs received the grant during March, exceeding the initial target of 70 pubs. 8.6 Response to the initial mailing to publicans inviting them to apply for the guide achieved an excellent response rate of over 13%. The Open for Business guide was very well received by publicans. Here are just a couple of the comments made by publicans ordering the guide online: 8.7 "I currently have two pub businesses and an area manager, who frankly has probably more trouble on his shoulders at the moment, that he doesn't know which way to turn. Any advice/help would be encouraging at the moment as I really do want to survive if at all possible". Tony Woodman, The Greyhound Pub
8.8 "Further to your recent letter regarding the 'Open For Business' guide, I would very much like you to send me a copy. I think this is a brilliant idea for publicans who are facing such challenges in these difficult times, and would like to take advantage." Richard McDowall, The Chequers Inn
8.9 "There is support for pubs but what the industry really needed was the catalyst that Business Link provided to co-ordinate and communicate with the publicans. Open for Business was a great campaign, providing much needed help for publicans in very challenging times." Mike Benner, Chief Executive of CAMRA
8.10 This specific campaign complemented the ongoing support offered
to rural businesses by Business
Link that includes a team of three specialist rural business advisers, together with a dedicated
rural partnership director with a region-wide remit. The number of rural businesses we have supported over the
past two years has risen almost 25%;
27,170 in our first year of operation rising to 33,883 in the second. The greatest increases were in the traditionally
rural counties in the north of the region:
9 Working with our partner network to respond to the recession
9.1 There has been an increase in partnership working across the board as a result of the economic climate. Business Link partnership directors have reported the primary increase has been with local authorities, who are keen to support local business, work in partnership to provide access to Business Link services and develop new products and services such as top up funding vouchers and dedicated events and websites.
9.2 Business link has worked with partners to deliver recession topic events with many partner including Lloyds Bank, South District Council, South Beds District Council, Constructing Excellence, Royston Chamber of Commerce, Rochford Council and Exdra.
9.3 "We're preparing for a tough 18 months but, with Business Link's help, we intend to turn this economic downturn into an opportunity." Phil Clark, ABC Mortgage Services
10 Generic recession response information
10.1 Along with the specific initiatives detailed above, Business Link has undertaken a number of recessionary response projects to inform and support the region's businesses. These include:
§ Communicating government initiatives, such as Real Help, to our customer base via a marketing mix including email campaigns, press releases, direct mail and focussed marketing collateral § Working with our partner network to signpost businesses to Business Link via channels including presentations at events, email updates on latest support and content in newsletters § Feeding factual and anecdotal information to EEDA, in relation to the economic downturn, to inform a weekly economic report gathered for our regional minister. This content was collated via our frontline client facing teams and management information systems
10.2 Our regional Business Link service was established in 2007 and looking back we have made significant progress upon which we can build for the future. During this past financial year we have served 108,082 customers, provided intensive one-to-one support from our advisers to 5,607 businesses, achieved a customer satisfaction rating of over 88% and helped create 6,952 businesses in the East of England.
21 May 2009
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