Q. Software + Services, Software as a Service (SaaS), online services, cloud computing - what does it all mean?

A. Pretty much the same thing really. Instead of having to buy (or licence) the technology you need to run your business you can choose to subscribe to various software services instead. For small businesses in particular, the beauty of this is flexibility and low overheads of course - you don’t need to make large up-front investments. Plus you don’t have to maintain or upgrade the software directly.

Earlier this week Microsoft launched the Business Productivity Online Services Suite (BPOS). Hosted by Microsoft and sold by its partners, BPOS provides enterprise-class email, intranet, and instant messaging available via monthly subscription at highly competitive prices (minimum order of 5 seats).

BPOS includes:

• Exchange Online


• SharePoint Online


• Office Communications Online


• Office Live Meeting    

You can get a free 30-day trial of these new services and learn more about them at www.microsoft.com/online.

Read more in a recent ’Ask the Expert’ article from C7 Solutions: Making cloud computing less nebulous 

And here’s a testimony from one early adopter:

“Making our images accessible through SharePoint Online will save me at least 10 hours a month. We’ll also free up 20 hours a month that another staff person spends fielding requests.”
- Miriam Forde, Chernobyl Children’s Project International
Business Size: Small; 8 employees
Industry: Charities and Philanthropic Services
Products: Microsoft Business Productivity Online Standard Suite

Source: Microsoft Small Business

Increasing confidence but frustration with banks is the feedback this month from the ten small firms that the BBC has been tracking.

You can read the full report from the small businesses on the BBC website but here’s a few examples of what they have to say:

• “I am going to become a seriously grumpy old woman if I have to keep setting aside my company work to throw time and money at ticking official boxes.”


• 
  
  “Major frustrations have been delays with service suppliers, especially the bank. Simply setting up our merchant accounts to take card payments has now taken three months. One starts to wonder if the banks are capable of changing fast enough to really help and keep pace with their customers’ needs.”


• “I just hope the banks begin to see that the market has started to move, and stop hounding firms like mine. For example, to try and help the company I suspended my monthly dividends last month, and they charged me £35 for the privilege. How is that helping small businesses?

Related posts: Small firms fighting the economy blues;

Source: Microsoft Small Business

Want a break from the workload and a bit of humour? Take a few minutes off and read the MSN article - Top 10 reasons they don’t like you at work. If you recognise any of the traits discussed maybe it’s time to change….

These are the headline bullet points to get you guessing:

1. “The Sky isn’t really blue — it’s actually cyan”
2. Chains of Love
3. Workaholic Wannabe
4. Hello Magazine — Office Edition
5. Devil’s Advocate
6. Nattering
7. Oh my ba-a-aby!
8. Mr. Un-Clean
9. What’s that on your nose?
10. Big mouth

Source: Microsoft Small Business

Guest blog from Emma Jones, Founder of Enterprise Nation and author of ‘Spare Room Start Up - how to start a business from home’  

A niche business

In best-selling book ‘The Long Tail’ author Chris Anderson says the future of business does not lie in blockbuster hits but in niche products. Home businesses up and down the land are testimony to this. Emma Jones looks at why niche is good and showcases a few shining examples.    

An authoritative source

Chris Anderson has achieved fame (and possibly a small fortune) through his excellent book that started the conversation on the power of being a niche business. In it he said:  

“We are now a nation of niches. There are still blockbuster movies, hit TV shows and top-selling CDs but fewer events that capture the communal popular culture spirit. The action is elsewhere, with the country watching cable shows or reading blogs that play to a specific audience.”

Niche is good

Anderson is right. Home businesses are starting up to cater for specific needs and a specific audience. This is good for three reasons:

• It keeps marketing costs low. In a niche business you know where your customers are and you know what they like to see and hear. No scattergun marketing; instead a personal and well-tailored approach.


• It increases income. You are a specialist/expert in your field and people will pay a margin for this.   


• It strengthens customer loyalty. When you’re the only kid on the block providing a niche and specific service, you tend to keep customers as they have nowhere else to go. But no room for complacency - it’s still important to provide a good service!

Shining examples

Here are just a few examples of niche businesses. They show you can find your niche whether you’re in food, fashion or events.

• Designer-petwear.co.uk - using her own furry friends as models, Debbie Nelson started a business selling designer petwear. She’s gone on to develop her own line of parker coat for small dogs and is now planning a fashion show.    


• Green Union - this is no ordinary wedding planner as Rosie Ames organizes ‘green weddings’ for couples who want to tie the knot in an eco-friendly fashion.


• The Cheese Shed - came about after founders Ian Wellens and James Mann asked themselves: “What if there was a website where people from far-flung parts of the country could buy fabulous west country cheese?” - they went on to create it, bringing joy to west country cheese lovers everywhere.

If you’re starting a business, develop a specific product or idea that serves a specific audience and, if you’re growing your business, how about streamlining activity to focus on a niche end of the market.

Source: Microsoft Small Business

Take advantage of this limited offer for SB+ visitors and save 30% on any business cards, labels, laptop skins or custom binders. Avery’s new Brand&Print service makes it easier to design your own products and then they’ll print them for you and ship them direct to your door. Sign up today and you will receive a promotion code that is valid until 31 May 2009.

Source: Microsoft Small Business

Reactions to the budget implications for small businesses are somewhat mixed - here’s a round-up of what industry bodies are saying. Overall the budget does not appear to have been particularly well received although there are some nuggets for small businesses.  

The FSB’s reaction to the budget is a warning that the Chancellor has largely ignored the needs of small businesses that lie at the heart of job creation and economic recovery. The focus on jobs and training for under-25s receives a positive response and the Government’s action in setting up a trade credit insurance scheme is welcomed. But, says the FSB, when cashflow is such a top priority the huge and thorny issue of late payments to small businesses has not been addressed in sufficient depth.

John Wright, FSB National Chairman said, “Small firms will also be disappointed not to have received the benefit of automatic rate relief. This will have boosted small businesses to the tune of £400m.

 ”With a quarter of business failures due to late payment and around £38,000 owed to small businesses at any one time, Companies House should have been given more powers to name, shame and fine companies which fail to pay on time.  The Government has missed an opportunity to save thousands of businesses and the jobs they create.

“We welcome the fact that Capital Allowances for firms investing more than £50,000 will double to 40 per cent.”

The CBI gives the budget the thumbs down as well. Richard Lambert, CBI Director-General said, “The key question for this Budget was whether it set out a credible and rigorous path for restoring the public finances to health. The CBI’s preliminary judgement must be that it does not.

“We are disappointed that the Chancellor had nothing to say on next year’s increase in National Insurance Contributions for employers which is a tax on jobs, and he has not reversed the policy on empty properties. Rates on empty property have forced companies to cut staff, and can make the difference between surviving the downturn and going to the wall.

A budget that does little for business is how an MSN report describes yesterday’s measures.

“There had been much talk in the build up to the Budget that the government would announce a wage subsidy initiative for employers and employees moving towards short-time working, but this proved not to be the case.

“Without doubt the biggest piece of news in today’s Budget for business is the decision to double the main capital allowance rate for businesses to 40%, a move which the chancellor claimed would translate into £50 billion of tax relief to support investment.

Key also is the extension of the initiative that allows loss-making companies to reclaim taxes on profits made in the last three years until November 2010.

“This help, which will lead on average to repayments worth £4,000 each year, will… see well over 100,000 businesses wipe out their full current losses,” said Darling.

“Certainly this will prove a vital lifeline to many, but beyond these headline decisions there is a notable lack of substance to the chancellor’s speech as far as business is concerned.”

The Guardian finds some relief for small businesses in the scheme allowing loss-making companies to reclaim taxes on profits made in the past three years being extended for another 12 months. And and also in the credit insurance programme, which protects companies if a business partner goes bust. Deferring tax bills is an additional positive move, as is delaying the planned increase in corporation tax. The proposed £750m strategic investment fund for high-tech companies is also pulled out as a positive as is the £1.3bn enterprise finance guarantee scheme, designed to get small businesses lending again.

KPMG’s reaction is ‘Lean pickings for smaller businesses‘. “Smaller businesses are ultimately looking to survive in today’s difficult climate. Their needs are simple - more cash and less administration. Overall the Chancellor’s Budget could have done more to stimulate growth and confidence.   

“Focusing on cash, the ability for companies to spread payment of this year’s increase to business rates over three years is a welcome introduction, as is the ‘top-up’ trade credit insurance system that should help businesses maintain their finances.

“However, the cash rebate produced by the extension of the loss carry back rules is not significant enough, and although it is positive that the small companies’ corporation tax rate is staying at 21% it is still the highest it has been in recent years despite the recession.

The Independent takes a more positive view with ‘Budget boost to small businesses‘, pulling out the £12.5m fund to encourage more women entrepreneurs and the intention to investigate “what other barriers we can remove and the practicality of setting a goal for small and medium enterprises to win 30 per cent of all public sector business in the next five years.”

The IOD’s reaction is ‘Government blind to reality‘, but Miles Templeman, Director General, does say “On the business tax front, we are pleased that the temporary right to carry back losses for three years is being continued, as well as the scheme to make it easier for businesses to agree time to pay tax liabilities. These measures will be particularly useful for small businesses”.

The UK Small Business team welcomes your feedback on how you feel the budget affects your business. You can email the team at SBCUK@microsoft.com.

Source: Microsoft Small Business

Quick post today - need to digest the budget properly before we can analyse the pros and cons for small businesses. Take a look a the BBC summary here: http://news.bbc.co.uk/1/hi/uk_politics/8011882.stm

Drinkers and smokers are hard hit again - an obvious target. (Will it be chocolate next?) Drivers - of course - will also see an increase in fuel duty, but that’s not news really.  

For Business:

• Help for loss-making companies extended - they will be able to reclaim more taxes paid in the last three years until November 2010


• Businesses’ main capital allowance rate doubled to 40%


• New £750m strategic investment fund to help emerging technologies and regionally important sectors

Source: Microsoft Small Business

The first glimmerings of positive economic news are beginning to appear - the number of mortgages being granted is up, the BBC is quoting a report saying the UK economy will grow in 2010 (although elsewhere it’s quoting 2012), and it looks as though local councils will get their Icelandic money back.

MSN Money says the UK’s recovery from recession is still a year away and will be “slow and fragile”, according to the CBI business group.

Elsewhere on the BBC website though there is continuing grim news - high-tech firms under threat through loss of funding, thousands more job losses and an austere budget looming. There’s still a long, long way to go before we’re out of recession but it’s reassuring that there does seem to be a slight shift in the economic outlook.

The BBC website offers specific advice for SMEs on coping with a recession, including delaying tax payments, securing a bank loan and winning contracts.

Related posts: Beat the recession: affordable online advertising made even faster

Source: Microsoft Small Business

For all you out there with children or relatives who are thinking about embarking on student life at university, we have the perfect exclusive offer to get them started…

Microsoft can now offer students the new software they need for a rock-bottom price.  The ‘Ultimate Steal’ is an offer being run by Microsoft for university students where they are able to obtain Office Ultimate for only £38.95 which is a whopping 90% off the current price amongst the retail outlets! 

Microsoft Office Ultimate Edition 2007 includes:

• Microsoft Access
  
• Microsoft Excel
  
• Microsoft Groove
  
• Microsoft InfoPath
  
• Microsoft OneNote
  
• Microsoft Outlook with Business Contact Manager
  
• Microsoft PowerPoint
  
• Microsoft Publisher
  
• Microsoft Word

All you have to do to get your hands on this fantastic deal is visit The Ultimate Steal website.

Source: Microsoft Small Business

More than five million people are working from home after finishing their day job, according to new research published this week.

The survey, commissioned by the world’s biggest office products company Staples, and carried out by Enterprise Nation, the UK’s largest website for home-based business, confirms that the ‘5 to 9′ trend is spreading across the country.

Of those 5-9ers questioned, 50% said their business was growing and over 60% expected to be going full time within the next 12 months.

Enterprise Nation Founder Emma Jones said: “We were amazed by what we found. Although we knew there had been a tremendous growth in home business, we had no idea that much of this was coming from the 5 - 9 trend.

“What’s particularly significant is that the current economic climate is the impetus behind this trend. For some people it’s about increasing their income to cope with a partner’s redundancy while others felt uncertain about their future career prospects and wanted to make sure they were better placed if they lost their job.”

There’s also the added attraction that building a business at night and weekends from a spare room is low risk and low cost, allowing people to increase sales, confidence and cashflow, whilst holding onto a salary.

“In a recession people often set up their own business as a way of taking control of their own life again. But the current downturn is so severe that people are being more cautious, hanging onto their full time jobs and testing the water first before making a decision. This clearly makes good business sense.”

The survey also highlighted that 72% have considered giving up their day jobs to spend more time on their home business.  When asked what would make them leave their job, 42% said it was the only way they could grow their business while 32% said it would be when they could afford to.

Staples commissioned the research after noticing a shift in shopping patterns with more people visiting their stores after 5pm.

Yetunde Ige, Staples Head of Marketing said: ”Clearly this trend is something that we’re interested in as our stores are open late. As a result we are looking to launch a 5-9ers club, which will reward people shopping after 5pm and hopefully be a real benefit to those trying to start a business in their free time.”

Trendwatching.com - one of the world’s leading trend firms - has picked up on this phenomenon. Its monthly report confirms: “A recession induced need for cash and an ever-growing infrastructure enabling individuals to act as part-time entrepreneurs, are fuelling concepts that help ordinary consumers make money as well as just spending it.”

A free copy of ‘Working 5 to 9 - how to start a business in your spare time’ is available at http://www.enterprisenation.com/  

Source: Microsoft Small Business