Froodee

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Why incorporate?

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You’ve been successfully running a small business for quite some time, and you’re doing it as a sole proprietorship or a partnership. Well, good for you—you’re one of the entrepreneurs who make our economy grow strong (a great majority of economic growth comes from the small and medium business sector). But do give a thought about incorporating.

Why incorporate? Well, why not?

For one thing, incorporating will create a new legal entity, and can protect you from whatever liability you may have as an individual. You also get some tax perks, which will generally improve the business’ cashflow.

It’s not usually difficult to incorporate. It only takes but a few hours to at least a day. In the end, the small amount of time and effort (and money, of course) you will have to spend on incorporating will be well worth it. It makes good business sense, after all, to think of the long term and the bigger picture.

Insolvencies expected to peak in ‘06

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According to new research by BDO Stoy Hayward , it is expecting that 18,052 businesses will fold next year. This is 749 more than the figures posted in 2005. But the forecasted economic growth for the next two years will mean that the number of corporate failures will drop to 17,528 in 2007.

A total number of 17,303 firms have folded this year with shop owners taking the biggest hit. About 1245 retailers have folded business, which is up from 960 in 2004. This increase is not surprising because of the lowered consumer confidence stores had to contend with this year.

But with houses price and interest rate stability in the 1Q of 2006 set to boost consumer confidence, the report predicted better news for the sector.

Company formation and business solutions experts are hoping that the expected drop in corporate failures will come true in order to entice more people to start their businesses.

Business cards subject of new research

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According to research done by Prof. Cary Cooper of Lancaster University Management School and commissioned by the Entwistle Group, most business owners choose bad designs that pay no attention to who they are trying to impress.

Cooper said that business cards should be “the central part of a company’s marketing material.

The Entwistle Group suggests that business owners should design their business cards with a specific set of potential clients in mind.

Company formation and business solutions experts say that this is quite a new insight into the subject of business cards. They advice that this kind of research won’t hurt businesses and business owners could opt to try these new innovative ideas to enhance their business.

New software helps deal with absenteeism

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Based on a survey conducted by the Employment Law Advisory Services (ELAS), about one in four small and medium sized business has had more staff taking sick leaves than it has taken action against.

But almost 90 per cent of businesses have revealed that they would actually discipline their workers if they were legally confident in doing so.

Armed with this information ELAS has released a computer program that will help employers stay within the bounds of the law. The software, a personnel package, will not only keep a record of a worker’s sick days but also alert managers when the levels of absenteeism has already become a problem. The program will then guide them through the correct disciplinary measures to take.

Company formation and business solutions experts agree that these innovative way of handling the absenteeism problem will be a boon to employers who do not know how to go about disciplining lazy staff.

Leadership development needed for London’s small business to thrive

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Almost 43 per cent of London’s business owners have said that addressing the shortage of skilled workers is important so that London becomes the best place for businesses and entrepreneurs to thrive.

One of the solutions proposes is by increasing the leadership and management skills of senior strategic decision makers. According to the survey one in three people who started and operated a business said that personal mentoring schemes would be their primary training choice in order to help their company’s performance while 42 per cent said that one to one coaching is beneficial.