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4 Tips for Becoming a Shop Owner

Posted on by Nova Blogger

Even though retailers have had a hard time over the past few years there are signs that the economy is on the mend, which means that shop owners are expecting a brighter future. This is why it may be a good time to start thinking about getting into the retail business, however for many this may seem a bit daunting as they don’t know where to start. This is why Nova Insurance is here to help with our four top tips for becoming a shop owner:

Think about what you want to offer

The first thing you need to decide when getting into retail is what type of services and products you want to offer your customers. Most people will already have an idea of this before they begin the buying process, however just because you have an idea it doesn’t necessarily mean it’s going to be a successful one. For instance, if you are planning on selling clothing you need to look at other shops in the area and see if you can realistically compete.

Getting to know your local area and its high street is a great way to help you decide what type of business you want to start, as not only will it give you an idea of the amount of demand in the area but also the type of shops that are already popular. For example, if you want to open a shop in a quiet rural area you should think about the types of products that would appeal to those that live there; instead of a high tech music store maybe focus on selling vintage radios and records instead.

Research the market

Even though the economy is improving it will still take a long time for shops in Britain to see the success they did pre-recession, which is why it is important you understand that investing in a shop is still risky. In order to reduce the amount of risk you should research the market to understand what issues you may face in the future. Don’t forget that the rate of success for businesses vary from area to area, so make sure you get information not just from the national papers but also your local council.

Another thing to keep in mind when thinking about opening your first shop is that there are a number of outgoings you will have to pay for even if business isn’t doing well. Rent, shop insurance, and even the products themselves all cost a considerable amount of money, so it is advisable that you have some sort of contingency fund in place in case you go through a rough patch.

Future proof your business

Many people claim that the demise of the high street has been partially caused by online shopping, especially as it has become increasingly popular over the years. However, there are still enough people who like the option of physically seeing a product before buying it, so as long as you give your customers the choice you can protect yourself for the future.

It is essential that when planning on buying your first shop you think about how you are going to market it online. It is very rare these days for any company not to have a website at the very least, however if you go further you could improve your business. Offering your customers the ability to order products online is just one way of doing this, however you can also utilise social media platforms in order to get to know your customers, build an online community and further advertise your store and products.

Be Passionate!

If you are still on the fence when it comes to deciding whether to open your own shop then you need to think about what you truly want. Putting time and effort into your business is the only way that it will have a chance of succeeding, and so you need to make sure that this is something you really want to do.

Owning your own shop can be great fun, especially if you have a real passion for the products you sell and want others to enjoy them as much as you do. As long as you make sure you plan ahead and give it your all you should enjoy your new career path!

Things To Consider When Searching For The Right Business Premises

Posted on by Nova Blogger

For any business, finding the right premises can be challenging. Business premises are one of the biggest expenses for a business, so it is important to find the right one at the right price, in the right location. It can often take longer than you think and you might need to look at many places before finding the right one, but it is usually worth it.

Here are a few tips to help with the process:

 

Decide On What You Need

Do you want to buy or lease? Both have their pro’s and con’s, it depends on your situation. If you are just starting up, it may be wise to lease somewhere until your business has proved its-self, before making the commitment to buying a property. However if you are an already established business looking to grow, then buying a premises could be a long term investment.

Which ever you decide on you will still need to workout what you need, based on a combination on both your businesses current and future plans. A few things to consider are: what size of premises, what layout, and the length of time you require the property if you are renting. Your location of choice will depend on your business type, and you may need to be near your customers if your business requires it.

Set a Budget

The most important thing here, is to make sure you can afford which ever premises you are interested in. Look at your business financials to get an idea of how much you can afford to spend, and do some research about the various costs you are likely to incur. For example there are costs to get the premises such as deposits, equipment, furnishing, renovations, moving, and any professional fees. Then there are also costs to run the premises on a monthly basis such as rents, heating, insurance, business rates etc. Once you have a realistic idea of your budget and the costs, then you can start the process of looking for your ideal premises.

Get Professional Help

Now it’s time to get professional help for your search. You need to make sure you seek professional advice before agreeing any terms, signing any paper work or paying any deposits so you don’t make any mistakes. Your accountant would be able to double check your budget to see if it is affordable.

Commercial property leases can be complicated and so there is a good chance you will require a commercial property lawyer. Also you will need a commercial property agent to find a list of vacant premises for you to look at.

Start Searching

At this stage it is important to try an see as many properties as you can. It may help to make up a schedule so you know in advance when you have to view properties. Setting up a checklist can be a great way to compare the properties you see, so you can make a better decision about which is best.

The list could contain all the elements that are important for your business. You can then score each property you see based on your criteria. At the end of your search, the ones with the highest scores can be put on a shortlist for further consideration.

Purchase The Premises or Sign The Lease

Once you have found your ideal premises, one that fits all your requirements and meets your budget, then it’s time to sign agreements and hand over deposits. Your professional advisers will help to guide you through each step of the completion process. After all that is done then it’s time to renovate, move into your new premises and carry on with business as usual.

 

2 Easy Ways To Get More Referrals For Your Business

Posted on by Nova Blogger

 

Referrals can be one of the best ways to grow a business without having to spend much. In some cases they won’t cost you anything at all. With this low cost source of potential revenue at their disposal, it’s a wonder as to why more businesses aren’t making use of referrals. It may be because many businesses feel uncomfortable asking for them, but the trick is knowing how and when to ask for referrals so that you don’t come across as being pushy or annoying.

Here are two easy ways to get more referrals for your business right away:

 

Existing Clients

You can start by asking for referrals only from your regular clients that are already happy with your service or product. You already have a source of referrals, and they are your existing customers. Treat your existing customers well, give them an experience they can’t forget, and they will talk about your business. There is nothing like happy customers advertising for your business. The word of mouth from a client to a friend or family member is a very effective marketing tool

By creating some kind of loyalty reward program you can stay in touch with your customers and be able to send them thank you and birthday/ Christmas/ gift cards or weekly discount vouchers. This way they become a part of your community, a relationship develops as you learn more about them and how to help them solve their problem, and they learn more about your business.

You can leverage technology to help with this. By using tools like social media or a blog you can continue to build that customer relationship by offering them free solutions and ideas to solve any related problems they might have.

 

New Clients

Make a habit of new asking customers for feedback and reviews on how your product or service has helped them, and keep score. Don’t be afraid to ask them what you need to do in order for them to consider telling someone else about your business.

When new customers buy from you can also send them a thank you email in which you could include a discount gift code. That’s to say you appreciate them for choosing your product or service from the variety of choices they had. You might also consider giving potential customers a free trial of your product or service so as to generate a potential referral.

When you ask your customers for referrals, make sure the process is quick and easy. You should show them how to do it and give them a choice as to how they would like to refer you. For example you can let them know they can also give testimonials as a form of review/referral.

The aim is to create a continuous funnel of customers going through your referral program at all times. Each customer may be at a different stage of their journey with your business, so the programme has to be customised to each customer depending on where they are.

Don’t be afraid to ask them what you need to do in order for them to consider telling someone else about your business. Make it a habit to ask customers for feedback and reviews on how your product or service has helped them, and don’t forget to keep score.

 

In summary in order to increase the number of referral your business gets, it may be worth setting up a formal referral program for both new and existing customers. This would also involve training all relevant staff so that they are aware of how to deal with referrals when they occur.

 

 

Making The Switch From A Sole Trader To A Limited Company

Posted on by Nova Blogger

You can choose to change your businesses status from sole trader to limited company at any time. Both formats have their pros and cons, the best choice will depend on a combination of your current situation and future plans. However there may be an optimal time to make the switch and that is when the benefits of being a limited company outweigh those of begin a sole trader.

So when might this be? Well here are a few possible situations in which it might be the right time to make the switch, but it is important to make sure you calculate the potential benefits and savings first before making the switch.

You may decide its time to make the switch if:

Your salary is increasing:

As a sole trader you have only one way to take your salary, and that is as a salary, plus you must pay both income tax and national insurance contributions on it. A company director on the other hand can choose to take their wages by a combination of salary and dividends. Dividends are free from national insurance contributions. So as a company director you can reduce your taxes by taking a small salary and the rest from dividends, making it a more tax efficient way.

You are looking for investment:

If you are looking for investors, then setting up as a limited company means that you can sell shares to investors. Also there is the added perception that a company has more credibility than an individual, and so many companies prefer only to do business with a limited company. Due to this, potential investors are likely to be more open to investing in a limited company as opposed to a sole trader.

You are concerned about liability protection:

As a sole trader you and your business are considered one and its debts are yours, so if your company fails then you are liable for it’s debts. A limited company on the other hand is legally a separate entity from its owners, and so if your company is fails then your personal assets are not at risk, because as a share holder you are not liable for its debts.

Your company profits start to grow:

When you are trading as a sole trader, you are taxed via the annual self assessment system and you and your business are considered one entity. A company, however is taxed via the corporation tax system. There are some potential tax savings that can be made by switching to a limited company.

For example, for the 2016 -2017 tax year, as a sole trader your tax free allowance is £11,000, you the pay 20% tax on any amount between £11000 and £43,000, after which you are taxed a higher rate of 40%. However for a limited company, the annual small profits tax rate is currently 20% on any amount up to £300,000. So switching to a limited company may be more tax efficient because even though it is taxed at the same tax rate, it has a much higher maximum amount.

You want to protect your intellectual property:

By registering your company name with companies house, you prevent any other person or business from using the name, it is now protected by law. However as a sole trader you don’t have this protection, and so it can be a lot harder to protect your name.

So there are some scenarios in which you might consider changing from a sole trader to a limited company, because to do so will result in some form of savings and other tangible benefits. If you do make the decision to switch, you then need to notify the HMRC that you are becoming a limited company, and then de-register as self employed. From there it is a simple process of registering your business with Companies House and then you can start trading as a limited company.

 

 

 

Top Tips For Dealing With Customer Complaints

Posted on by Nova Blogger

 

In business having a customer complaint is a common experience, because you can’t please everybody all the time. Regardless of how hard you try, there will be mistakes or you may be faced with a customer who just likes to complain. Depending on how it is managed every customer complaint can end in one of two ways, you will either get an angry customer, or a happy customer. The aim is to minimise the number of complaints and to ensure that the same complaint does not keep happening repeatedly.

What is important is that companies acknowledge these complaints and make sure they are dealt with in a timely and effective manner. Failing to do so may result in a bad reputation for the business, as it shows the customer you don’t care. All businesses must place customer satisfaction first and develop a system for handling customer complaints, in order for long term success.

It is a good idea to set up an in house complaints procedure that can be quickly implemented anytime a complaint is received, and the staff dealing with customers should be properly trained. Make sure that proper records are kept of all customer complaints and their final solutions. Also, with social media becoming increasingly important for unhappy customers to voice their dissatisfaction, it is a good idea to monitor your social channels regularly so you can intervene quickly. Here are some useful tips for dealing with unhappy customers.

Handling The Complaint In A Neutral Way

The first step is to take the complaint in a neutral way. When people complain they are often emotionally charged up, so it is important to let them voice their complaint without responding emotionally. You must remain calm at all times even if the customer becomes angry. You may have a had a similar complaint before, but to the customer it is unique to them, so pay attention to them and listen to their problem in full. Try to place yourself in their shoes and empathise rather than becoming defensive. If the customer is blaming a particular member of staff, get them away from the customer, because it will be easier for the customer to calm down if they aren’t present. Make sure the appropriate staff member handles the complaint because customers hate being passed around from person to person.

Giving An Apology

The next step is to apologise. Once the customer has aired their complaint, you must give them a sincere apology regardless of your opinion on the matter, with no excuses. Let them know you understand what has happened and ask them what outcome they are seeking. Try to keep them informed as you tackle the issue, so they don’t feel ignored. All complaints regardless of how small, should be dealt with quickly as possible so the customer feels that they are a priority.

Resolving The Problem

The final step is to resolve the problem, this can come in many forms ranging from refunds to compensation. After resolving the issue it is a good idea to contact the customer at a later date to see if they were happy with the outcome.

Sometimes it is not possible to avoid customer complaints, but it is possible to prevent a disgruntled customer from spreading negative comments about your business, by handling the complaint properly.

By taking care of complaints effectively you can improve your company reputation while at the same time retaining your customers. Customers will know that if anything goes wrong with their order, you will take care of it. This will make your business stand out as a customer friendly one, which may in turn lead to referrals from happy customers.

For a business, complaints can provide a great opportunity to learn more about your customer, and to use that information to improve their customer experience. You also have the chance to turn the complaining customer into a loyal customer. Dealing with customer complaints can be challenging, and there will be times that nothing can be done to satisfy an unhappy customer.

 

 

What Are The Allowable Business Expenses For The Self Employed?

Posted on by Nova Blogger

Every year the majority of self employed people in the UK are required to file a self assessment tax return. For those that do it online, the submission deadline is January the 31st each year and the 31st of October for those that file paper returns. Here is a look at the subject of business expenses and how they are included in annual returns.

What are allowable business expenses?

They are defined as costs that are incurred “wholly and exclusively” for the purposes of the business.

Who is entitled to claim them?

Any one who is registered as self employed with HMRC. Theses expenses can be written off against any income you earn in the tax year, thereby reducing the final amount of tax you pay.

What can you claim for?

Not all expenses are allowed, you can’t claim for personal expenses, and there are some business expenses that you can’t claim for. It is very important to separate business expenses from personal ones, and if there is something you use for both, you can only claim for the business use.

For example if you work from home you can claim for costs such as heating, electricity, council tax, mortgage interest, rent, internet & phone. However you have to calculate them, based on how much time you spend working at home and how much space you use when you are working. Then you have to figure out what proportion of your total house costs they account for.

Here are some of the business costs that you can claim as tax deductible expenses:

  • The cost of goods that you are going to sell or use in providing a service.

  • If you are in the construction industry, you can claim payments to subcontractors.

  • Staff costs such as wages, salaries and any other staff costs.

  • Travel cost including car, public transport, taxi’s and other travel expenses.

  • Premises costs such as rent, rates, power and insurance.

  • Office costs such as phone, fax, stationery and other office costs.

  • Advertising and business entertainment costs such as websites, social media.

  • Finance costs such as interest on bank and other business loans, bank and credit card charges.

  • Professional fees such as accounting, legal and other professional fees.

Here are some of the costs you cannot claim as tax deductible expenses:

  • The cost of goods or materials bought for private use.

  • Your own wages, drawings, pension payments, national insurance contributions.

  • The costs of buying, improving or altering premises.

  • Cost for entertaining clients, suppliers and customers.

  • Repayment of the loans or overdrafts, or other finance arrangements.

  • The costs of buying premises for your business.

  • Any payments to clubs, charities, political parties and so on.

How and when can you claim them?

When you complete your annual self assessment tax return, you are required inform the HMRC of your deductible expenses for the accounting period in question. This is when you make your claim.

If you are self employed, you have to keep records of your business income and expenses for your tax return, so throughout the tax year you should keep all your receipts. It can also be very helpful to record them as they occur in some form of bookkeeping / accounting software, or on a simple spreadsheet. This will save a lot of time and make your final calculations easier when it comes time to file your annual taxes.

If however you don’t want to work out your actual costs, you can use the simplified expenses table provided by the HMRC for that tax year. It has flat rates for expenses like like vehicles, working from home, or living on your business premises. Also you can check out the HMRC’s site for other tools and calculators to help with you self assessment submission.

 

 

Planning Your Grocery Store Layout

Posted on by Nova Blogger

 

It is important to understand the needs of your potential customers when planning a grocery store.

By doing so you can make good plans that will result in better customer experience and increased sales.

  • Difference Between a Grocery Store and Convenience Store

While the two are similar in the the products they offer there are still some key differences between the two. For example grocery stores offer perishable items like meat and fresh produce, but convenience stores don’t. They tend to stock just the basics food items that are commonly used such as soft drinks, and prepared foods. Also a convenience store may sell petrol, offer money transfers, and other administrative services. As far as size goes, grocery stores tend to be larger and owned by national brands. Convenience stores on the other hand tend to be smaller and independently owned.

Choosing your floor plan

The floor plan is the foundation of a stores layout, it provides the base structure for organising everything else.

  • Types of floor plans

There are several types of floor plans available to any retail store. The straight floor plan use fixtures and displays placed at right angles and the angle plan use a lot of curves in both the fixtures and the displays. The diagonal floor plan places the fittings and fixtures diagonally, and the geometric floor plan places them in a geometric in shape. The mixed floor plan is a combination of diagonal and angular layouts.

  • Deciding on Your Size and Placement of Aisles

Having spacious aisles is one of the key aspects of store planning. The minimum recommended size is 4 foot wide without distractions so your customers can move comfortably around the store without bumping into each other, including those with wheel chairs and push chairs.

The placement of the aisle is important as this will dictate the flow of your customer traffic within the store. The aisles need to be placed in such a way that they expose your customers to most of the products. So you need to work out where you want your customers to go and what you want them to see.

Once you know this, it is then a case of choosing the type of isle layout that matches your objectives, bearing in mind the available space and the floor plan. There are 3 common layouts to choose from, these are the grid layout, the loop layout, and the free-flow layout.

The grid layout runs parallel and perpendicular to walls. The loop layout consists of one main isle that loops around the store. The free-flow layout is open plan.

Display and Sales

  • Mapping out your product, displays, and registers

A good way to start is by walking through the store so as to see it from a customers perspective. It will then be easier to figure out where to put what. Place new products in the best locations and everyday favourites near the back. You can keep some small items near the cash register. Fixtures and displays should emphasize the product and should be adequately spaced apart with cash registers placed away from the front of the store.

Your Store Lighting

  • Types of lighting

There a 4 types of lighting that can be used in a grocery store. There is general lighting for whole store, ask lighting for the work areas, accent lighting for specific areas of the store, and finally decorative lighting to beautify your store. All types must be used, however the most important are the task lighting and accent lighting, because they highlight your product and illuminate your work areas.

  • Setting Up Your Grocery Store Lighting

There are a few key point to take into consideration when setting up your store lighting: Make sure to factor in replacement and energy costs. Then use mirrors to reflect light and dimmer switches to control the atmosphere while reducing energy bills. Most of all the lights must not be in the customers way as it may get too hot.

Conclusion

In summary, planning a grocery store requires a lot of attention to detail. However the results are worth it for you and your customers. Also while the store layout is important, so is the way the shelves are stocked, as this has just as much of an impact on the shoppers buying habits.

 

4 Ways to Manage Returns in your Store

Posted on by Nova Blogger

As a shop owner the last thing you want is your customers returning items to your store, however these days it is very rare for a shop not to have some sort of returns policy. Unfortunately, debates concerning returns can sometimes become extremely heated between customers and shop owners, which is why you need to know how to handle them correctly. Luckily, Nova Insurance is here to help with our four top tips! Continue reading “4 Ways to Manage Returns in your Store”

The Bounce Back of Retailers in August

Posted on by Nova Blogger

Thanks to children going back to school, needing new clothes and shops selling a considerable amount in the autumn sales, retailers have bounced back in the last month. The sunny weather has also had a lot to do with the bounce back, however groceries haven’t been so lucky due to the substantial discounts they offer according to the British Retail Consortium. Sales were up 1.3% compared to last year in August meaning that we have had the most radical growth since January. Forty six per cent of the retailers who were surveyed said that their sales were higher that 2013 whereas 25% said their sales were less. Continue reading “The Bounce Back of Retailers in August”

Top Layout Tips for Your Shop

Posted on by Nova Blogger

Retail shops are cleverer than you think and every item is placed in a certain place for a reason. Researchers have spent a lot of time studying how the mind works, meaning more often than not you will walk out of a shop with more than you needed as your brain corrupts your shopping choices. In previous blogs we have spoken about making your shop more authentic, so now we are going to give you some top tips for the layout of your shop to help boost sales. Continue reading “Top Layout Tips for Your Shop”

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