Measuring the core aspects of your business is a good practice when identifying the strengths and weaknesses of your business. Doing so, will help you to create an action plan focussing on improving areas of weakness and doubling down on strengths so that your business can continue to grow and flourish. There are non-financial as well as financial factors that need to be considered when measuring performance. Here are three factors to consider when measuring performance: Measuring the level of productivity Measuring customer retention rate Measuring profitability Measuring productivity Productivity is an important measurement when looking at the efficiency of your business. To be able to grow and scale your business, you need to be able to maximise output with the resources you have available. Measuring productivity will help you identify the areas that you need to improve in order to become more productive. The formula for calculating productivity is simple. Productivity = output / input. However, applying this to your business might not be so simple and it will vary depending on the industry you are operating in. For example, if you are measuring the productivity of an employee who is not responsible for producing a physical good, this can become more complicated. This is typically the case in service-based industries. Alternatively, businesses will use timesheets to record the hours spent completing tasks on certain projects. This way they can measure the cost being spent on each client. Overall, measuring productivity can have a range of benefits for your business. You will be able to monitor the level of output within your team and also measure the level of service that is being delivered. However, there are a few challenges associated with measuring productivity including; accuracy and the invasion of staff privacy. Measuring customer retention rate Measuring customer retention rate can tell you a lot about your business and it can define a business’ success. It takes a lot of time, effort and money to acquire new customers, so when you do receive them, its important to keep hold of them. If you are not able to keep hold of them then you may have problems in customer service, marketing, the quality of product or even the quality of your internal processes. Once again, its very straightforward formula when calculating customer retention rate. (# of customers across a period / Total # of customers in the previous period) x 100 If you have a low customer retention rate, you will need to start investigating the weaknesses in your business so that you can start improving the number of customers you retain. Once you know the areas of your business that are letting you down, you can start to allocate resources more efficiently so that your weaknesses soon become strengths. Measuring profitability Measuring profitability can be slightly more complex than just subtracting costs from revenue. In fact, there are several different profitability ratios that help businesses to measure which areas are doing well and which areas are struggling. Profitability ratios are also useful when forecasting future profitability. We won’t go into full detail on all the profitability ratios in this article but you can find out more here. Sorry to state the obvious, but businesses rely on profitability. Without it, businesses will not be able to survive and they certainly won’t be able to thrive. Using the profitability ratios will allow you to forecast future profitability and begin creating your action plan so that you can work towards growing the business. Looking for support? If you’re looking for support to help grow and scale your business, you can contact one of our team on hello@smecofe.com. Our team is here to provide you with the right support, at the right time, for the right price so your business can start, survive and thrive.

Marketing and business development are very similar right? In truth, marketing and business development are actually two different aspects of a business and it’s important not to mix them up. Business development is all about prospecting, qualifying leads and converting the leads into paying customers. Marketing, however, involves creating a key message and establishing your position in the market. In this article, we will look at how the two can work together to get winning results. Business development and marketing work together It’s important to understand that marketing and business development work well together and often they depend upon each other for results. Marketing will often focus their efforts on establishing the brand in the marketplace and increasing exposure through key messaging. Through increased exposure, marketers aim to bring more leads to the business which will then be passed over to business development. Business development plays a critical role within the business by qualifying leads, building relationships and converting prospects into paying customers. Once marketing has filled the business’ pipeline with leads, business marketing can start working through them with the aim of converting them into customers. What would happen if marketing or business development did not exist in a business? If one of the departments did not exist within a business, the success could be very limited as the two can become very dependent on each other. In the scenario where marketing only exists, marketing would most likely fail to convert prospects into paying customers as they are not familiar with building and nurturing the relationship. Alternatively, if marketing did not exist in a business, business development might struggle to fill the pipeline with consistent leads. Marketing can learn from business development Since business development is all about nurturing prospects and building strong relationships, marketing can actually learn one or two things from business development. As traditional marketing shifts more and more towards digital, the approach marketers take also changes. Now marketers are looking to build relationships with their audience through channels such social media, blogs, email and more. By working together business development can inform marketing on how to build more meaningful relationships which would help to keep the entire approach consistent all the way from the top end of the funnel through to the bottom end of the funnel. Marketers can also use the knowledge of the business development team to understand the difference between a good and a bad lead. From this, they can then create campaigns that will target the ideal target audience to improve return on investment. The rise of digital The rise of digital marketing is becoming more common. In fact, by the end of 2020, digital advertising expenditure is projected to be £15.6 billion. With the use of technology and online platforms, marketers are now able to reach prospects at more touchpoints, helping to build the relationship. The technology provided can even allow marketers to track leads for re-targeting purposes. The introduction of this technology has made it easier for marketers to build those relationships that the business development team would normally handle. You might think that digital marketing has taken the role of the business development team but that’s not the case. These technologies are simply a way to facilitate the whole process and make life easier for the business development team at the bottom of the funnel. Summary Marketing and business development work hand in hand. Marketing is focused on the top of the funnel, bringing in new leads on a consistent basis while the business development team focuses on the bottom of the funnel. Without one or the other, both departments would fail to reach the overall objective which is the same in any business – more paying customers! If you are looking for marketing support to help increase your exposure, please contact one of our team here.

An SME business hub which has supported the growth of hundreds of ventures across the North East has now established a base in the Tees Valley to provide dedicated support to the Tees business community. The Tees Valley Business Hub, powered by the SME Centre of Excellence (SMECofE), has opened a base in Boho in Middlesbrough to offer a full range of support services to startups, scale ups and high-growth businesses throughout the area. The team, backed by partners from across the Tees Valley, offer a bespoke holistic approach to entrepreneurs and innovators to help them start their business, survive and thrive. With a strong focus on digital, the Tees Valley Business Hub will also offer expert support in areas from new market entry and product development to core back office functions including HR, accountancy and marketing. The Tees Valley Business Hub builds on the success of its first hub, based in Ponteland, Northumberland, which has worked with hundreds of businesses from all sectors throughout the North East since its opening in September 2018. Having already supported around 200 Tees-based businesses during that time, and delivered Digital City Scale, Investor Readiness and Accelerator Programmes on behalf of Teesside University over the past three years, SMECofE is now in a position to extend that even further by having a dedicated Tees Valley centre. Led by prominent Tees entrepreneurs Matt Atkinson and Jordan Dargue, they will work alongside the creator of SMECofE, Ammar Mirza – awarded a CBE for his efforts in promoting the North East business community – to deliver the tailored support Tees Valley businesses need to help get them to the next level, guiding them through the current COVID-19 crisis and map out a plan for their future. Its opening has been welcomed by Tees Valley Mayor Ben Houchen, who said: “Supporting our fantastic local businesses is my absolute priority and is more important than ever as we continue our recovery from the coronavirus pandemic, and the new Tees Valley Business Hub will play a crucial part in that. “My plan for the economic recovery of Teesside, Darlington and Hartlepool is a plan for jobs which will see the creation of good quality, high skilled local jobs for local people, and this new centre will support hundreds of businesses in our region to help them invest, grow and create these jobs.” The team already has strong relationships with many businesses and business support services – it has recently been appointed as a partner for Tees Valley Business Support funding – and is also looking to develop links with serviced office providers to offer additional tailored assistance to tenants. Matt Atkinson, Chief Executive of the Tees Valley Business Hub, said: “The Tees Valley business community is unique and we have established this Hub in response to the specific challenges and needs that entrepreneurs here will face, both in the current climate and into the future. The SMECofE is a very well-established brand in the North East, and to have already supported so many Tees businesses is phenomenal, but to truly support our community, you have to be part of it. “Digital transformation is a key focus for us and presents a significant area of growth for the Tees Valley. As an entrepreneur, I have years’ of experience in this field and I have seen first-hand what it takes to establish and grow a successful business here. Working with our expert team, I want to pass on our knowledge and experience to others and work alongside them to offer the right support at the right time and help them to achieve their full potential.” Chief operating officer Jordan Dargue added: “These are exciting times for the Tees Valley. We have so many businesses led by dynamic and passionate entrepreneurs which could be set for big things with the right guidance at the right time – and that’s where we come in. We work with everyone from startups to scale ups and established international brands to help them realise the vision for their business and how to achieve it. “Our ambition is to help businesses already based here, as well as to help attract inward investment and bring new ventures to the Tees Valley through the first-rate business support on offer. With our bespoke support in all areas of what it takes to run a business, we can help them thrive and continue to show the world that the Tees Valley is the place to be.” For more information on the Tees Valley Business Hub visit: https://www.tvbh.co.uk/

Let’s say your business has passed the start phase, tackled the survive phase and is now on its way to begin thriving. You’re probably wondering how you can take your business to the next level to achieve goals you never thought were possible. In this article, we will look at the various methods that businesses have used to grow and serve more customers. Building funnels One of the biggest challenges associated with growth is capacity. Businesses simply cannot keep up with growing demand and so they can’t grow any further. With the advances in technology, it is much easier to set up an automated sales funnel for your business which can save you a lot of time and resource. By using digital marketing techniques, you can deliver marketing messages to your audience at every touchpoint in their journey without even having to push a button. You can also deliver relevant messages to your customers based on where they are at in the journey. This will help to increase your success as more relevant messages will have a higher chance of being read and acted upon. There are many tools and resources out there to help you build a fully automated sales funnel including Click Funnels. Rewards / Loyalty Programmes Why focus all your effort and resources on finding new customers when it’s much easier to increase the value of your existing customers. Many small businesses have a large customer base yet struggle to encourage customers to make a repeat purchase. If you think about some of the largest organisations that you shop with, a lot of them have loyalty and reward programmes in place. The incentive of collecting points to receive money off or a free reward is something that entices all of us to keep coming back. Adding this feature to your business helps to ‘gamify’ everything making it more fun to business with you. If you can spend some time thinking about the products and services that your customers desire most, then you can start to think about how you can work those into your very own tiered loyalty and rewards programme. The benefit of doing this is that you don’t have to spend the money it takes to acquire a new customer and you can focus on boosting the overall value of each of your customers. Developing new income streams Software companies have become very successful due to their business model. If you think about companies such as Adobe, they have been able to grow the success of their Photoshop software by offering it to customers on a subscription model. Doing so creates a passive income stream for their business meaning that they receive increased revenue without using up all of their resources. To grow your business, you might want to consider developing new streams of income that won’t take up too much resource every month. Finding these passive income streams is key to improving cash flow and keeping up growth on a month by month basis. Acquisition Acquiring another business is one of the fastest ways to grow your business and it could be a great solution if you’re a business that is struggling with capacity. By acquiring a company, you can gain access to their infrastructure that will enable you to boost supply and keep up with rising demand for your products and services. Although this is one of the quickest ways to grow your business, it is also one of the most expensive so it isn’t an option for every business to consider when growing their business. Utilise social media Social media has enabled businesses to reach people all across the globe and with over 2 billion active users now using Facebook, it’s clear that businesses can find their target audience on the platform. If businesses are serious about growing, they might want to start exploring markets overseas and social media is the perfect way to start connecting with people. To get started you can publish paid Facebook ads that are targeted to your unique audience in the specific country that you wish to explore. Grow2Succeed Want to take your business to the next level? The Grow2Succeed workshop is designed to support businesses through their growth stage so you can maximise your potential. This lunchtime workshop will equip you with the knowledge and tools needed to reach the next level and get ahead of the competition. Find out more here. Summary There are hundreds of different strategies out there that could help your business to reach the next level but its all down to you to explore the various options that are available and find what is most suitable for your business. If you are looking for expert strategy support, our team is available to help you find the most appropriate solution.

One of the biggest strains on businesses is time and studies have found that one in ten SME owners spend less than one hour per week on business growth activities. Taking this into consideration, businesses need to find a way to free up more time so that they can focus on the growth of the business. In this article, we will look at the different technology that is available to business owners so that you can streamline your processes and make everything more time-efficient. Zapier The first tool that any business owner should be using is Zapier. Zapier is a tool that allows you to integrate different apps and automate the process between them. For example, if you wanted to add a form to your website using Mailchimp, you could connect Mailchimp with Google sheets using Zapier so that the data is automatically added to your spreadsheet whenever someone submits a form. The options with Zapier are endless and I could spend all year discussing the possibilities but to get an understanding of this platform, I recommend experimenting with Zapier and see how you can make it work within your business. There is an integration for everyone and I can guarantee you will save time by setting it up. Productivity Apps Using productivity apps such as Trello is a great way to save time if you’re struggling with prioritising and managing tasks. To work more time effectively within your business you will have to start prioritising tasks to ensure that you are contributing your time to the most important aspects of the business. These tasks include; client management, business development and marketing etc. Without these important tasks and goals, moving your business forward is going to be very difficult. An app such as Trello can help you organise your tasks, set deadlines and assign priorities so that you are always working towards your goals. Trello can also be integrated with other applications that you might already be using such as Teams. Once again, integrations are super simple and they are great for saving you time and improving productivity. Website The simplest way to improve time efficiency in your business is through creating a website and building your operations around the site. If you don’t have a website yet, this is something that will have an instant impact. If you have decided to build your website through WordPress, this is even better because WordPress offers you a huge range of plug-ins that can be used for automation. I can’t tell you the exact plug-ins that you will need because this will depend on your operations and business model, but to give you an example, plug-ins can help you to add fully automated chatbots to your site, automate form submissions and much more. If used correctly, you could automate your entire customer journey helping you to save time when dealing with customers face to face. Over time, you could start to integrate tools such as Mailchimp so that you then have a full digital sales funnel running through your website. With Mailchimp integrated you can send customers/prospects automatic emails so that they are always engaged. The best part is that you won’t have to do any of the manual work once it is set up. Summary There are many different options available to you as a small business owner and I would recommend exploring each of them to see what works best for you. If you are looking for support around taking your business digital or improving your operations to save time, please contact one of our team.

The idea of providing your products and services digitally is at the front of all business owners minds and its what the customer expects when shopping in todays world. Digital transformation is a term that is often used to described this process but what does this actually mean for your business. In this week’s guide, we will look at what digital transformation means and why it is important for your business. What is digital transformation? Digital transformation is the process of using new technology to improve your business operations and user experience for customers. The process of digital transformation is often used to make life easier for you (the business owner) and your customers. For example, there might be many different manual processes within your business that could easily be replaced with technology to fully automate each step. The McKinsey Global Institute’s 2016 Industry Digitalisation Index suggests that the United Kingdom is only operating at 17% of its full potential so there is certainly room for businesses to become more productive through their use of digital transformation. An opportunity and a challenge Going through a digital transformation for your business will present you with both a challenge and an opportunity. The opportunity is clear as technology will allow your business to reach new heights through automation, increased productivity and potentially lower costs. However, there are a few challenges that you should consider when taking your business digital as they might influence the long-term growth of the business. Transforming your business to digital will always have a clash with the current culture that you have built in your organisation. If you have a team that is comfortable with the culture of your organisation then it could be more difficult to get them on board with new changes. In most cases, your team is going to need extra training once the digital transformation comes in to place as they will need to understand the new systems and ways of doing business. This puts a time strain on you and it will cost you so it is something to take into consideration. Despite facing some immediate challenges when implementing your digital transformation program, studies have found that digital transformation could add $100 trillion in value to businesses over the next decade. It is clear that digital transformation is the future for all businesses and it will be required if businesses are wanting to survive and thrive amongst heavy competition. Should you invest in digital transformation? Digital transformation is the future and businesses will need to consider digital approaches if they want to compete and survive. The initial investment will be worth your while but we do recommend speaking to a digital transformation expert to find out what this would look like for your business as it will vary for every sector and business model. If you are looking to implement digital transformation in your business, please feel to reach out to one of our team for guidance and support.

The year 2020 has brought about the opportunity for many to explore the world of business and self-employment. Even though lockdown restrictions make it seem as though starting a business is impossible, access to the internet means there are plenty of business ideas that you can bring to life from the comfort of your own home. In this quick guide we will look at a few home business ideas, as well as looking into why you should start a business from home. Freelance / Consultancy If you have a unique or in-demand skill/knowledge, then creating a small freelance or consultancy business could be the way forward for you. The majority of services can be delivered digitally as you can schedule meetings over zoom and deliver all of your work using tools such as Microsoft Teams and Google Suite. For example, whenever you complete a project, you can simply use shared drives and cloud-based software to share with your clients. This way you can work collaboratively on the project and receive instant feedback without having to break lockdown restrictions. Physical face-to-face meetings are still very important but many will argue that this new way of working (remotely) is much simpler so there is a chance that people will continue to work this way. This is a business model that is really easy to set-up and comes with little start-up costs as you will only need to invest in a website and marketing (If you already possess the knowledge or skill). Depending on your job, you may also need to invest in tools/equipment/software but this is completely tailored to the work you do so we can’t say it will be cheap for everyone. Bonus – There are many marketplaces already set-up for freelancers such as Fiverr and People Per Hour. These sites will match freelancers with clients who are looking for the service that you provide. There’s no need for face-to-face meetings so you can get started with this idea straight from home. Website design Website design, along with freelance is one of the most common home business ideas but there’s a reason for this. Website design is a skill that can be learned easily with many resources available on YouTube to help you get started. There are also platforms such as Wix and WordPress that have made it possible for anyone to design a website. If you are looking to re-skill, web design could be a very interesting field for you to get into, especially if you already have some form of digital experience. The costs for starting up this business from home will vary depending on the experience you already possess. If you already have experience in the field of web design, you won’t need to consider many costs and you’ll be able to start delivering a service from the very beginning. However, if you do not have much experience, you will need to invest in learning resources before you start delivering the service. Virtual Assistant A virtual assistant is a great business idea for those who are looking for a full-time gig or something to focus on in their spare time for the extra work. The role of a virtual assistant is the same as a regular assistant, however, you will be delivering your services remotely, using technology to facilitate your service. In terms of tasks you could be expected to handle all things admin, as well as the opportunity to handle aspects of a company’s IT, marketing and sales (depending on your background). Once again, this is a service that can be marketed through Fiverr or People Per Hour as there are always businesses on these platforms seeking virtual assistants. The cost to get started is minimal but you might need to look into software and equipment if you are looking to streamline your processes and deliver a high-quality service (recommended). Transforming your skills into a business Everyone has a skill or some degree of knowledge to offer. If you are considering a home business you need to start by thinking of your current strengths and weaknesses. This will help you to decide the kind of business you are going to begin. This could be a product that you create or a service that you deliver. Either way, it is possible for anyone to transform their skills into a business. The technology and software that is available means that you can get started for a small cost and its easier than ever before to deliver it from home. For those who aren’t confident in their skills, you could think about the courses and learning resources that are available. A platform that is great for learning new skills and techniques is Udemy. Starting from scratch is a journey and it’s really challenging to turn your idea into reality, but that’s why the SME Centre of Excellence exists. We have brought together experts from different industries to help small business owners start, survive and thrive. If you do have a business idea but you don’t know where to start, please contact our team and we’d be more than happy to chat through your options and help you launch your business.

Due to a rapid rise in the number of COVID-19 cases across the country, a national lockdown will be put in place to control the spread of the virus. The new restrictions will come into place on Thursday 5th November and will be reviewed on Wednesday 2nd December. All of the details on lockdown restrictions can be found on the Government website. Which businesses need to close? The introduction of the recent lockdown restrictions has meant that certain businesses are forced to close in order to control the spread of the virus. The following businesses will need to close from Thursday 5th November until Wednesday 2nd December: All non-essential retail including; clothing and electronic stores, vehicle showrooms, travel agents, betting shops, auction houses, tailors, car washes, tobacco and vape shops. Indoor and outdoor leisure facilities including; bowling alleys, leisure centres, gyms and sports facilities. Entertainment including; theatres, cinemas, museums and casinos etc. Personal care facilities such as hair, beauty and nail salons, massage parlours, tattoo parlours etc. The full list of businesses can be found on the Government website. Despite closures, there are ways for your business to continue operating. For example, if you are a non-essential store that has been forced to close, you can still offer a click and collect service. This also applies to hospitality where restaurants can continue to offer delivery or takeaway services. We do encourage you to consider the different approaches that your business can take in order to continue operating. Whether that’s selling online, offering click and collect or building a new approach, try to find something that works for your business model. What financial support is available? Workers in the UK can retain their job through the job retention scheme which will cover at least 80% of their salary up to £2500 a month. Small, large, charitable and non-profit employers are all eligible for the Job Retention Scheme. Working from home In order to control the virus, the new Government guideline have suggested that everyone who can work effectively from home must do so. If you are unable to do this then you should continue to travel and attend the workplace. Further business support If you are looking for further business support or advice, our team is available and will help you to find the right support. To get in touch please contact 01661 823234 or email hello@smecofe.com For full details on the new lockdown restrictions, please visit the Government website.

The last 10 years has brought about many changes in the world of technology. Now more than 40% of the world’s population has access to the internet which has meant that 90% of the world’s data has been generated within the past two years alone. In this guide, we are going to explore the various ways in which technology can help to grow your business. Efficient and effective marketing Advances in technology have had a significant impact on the way marketing is approached and delivered. It has even resulted in the creation of new jobs such as digital marketers and SEO specialists. These individuals are responsible for applying technology to marketing in order to take a business online. One of the reasons businesses are using technology for marketing is due to the automation that it offers. Platforms such as Mailchimp make it easy for a business owner to set-up email campaigns that are automatically triggered when an event occurs. This way the business owner doesn’t have to worry about sending a ‘thank you’ email every time a customer makes an order (As an example). This process is straightforward but it will save the business owner a lot of time which they can spend more wisely, focusing on the growth of their business. Alternatively, they might have hired an in-house marketer to take care of all their marketing. If this is the case, learning how to implement automated processes will help the business operate more efficiently to cut costs and improve growth. Once again, this individual’s time might be better spent on other tasks so it’s important to make sure you are operating efficiently. Not only will technology make your marketing more efficient, it will also be more effective. Software such as Mailchimp makes it possible to use behavioural marketing. That way, your customers will receive automatic updates when they carry out certain actions. Taking this approach to your marketing will improve the relevancy and this is guaranteed to be more effective when communicating with customers. Keep the business running 24/7 As a business owner, I am sure that you will be pressed for time when running the day-to-day operations of your business, but there’s only 24 hours in a day and you can only cover so much. New technology has enabled business owners to automate their processes, including customer service through chat bots. Chat bots are a great way to provide answers to frequently asked questions and they never sleep so you can continue to serve your customers 24 hours around the clock. If you’re worried about how you will create a chat bot, then you shouldn’t because it’s actually quite simple. To get started, I would recommend using ManyChat which integrates with Facebook and your Website. They also have a wide range of free guides to help you create your first chat bot. Keeping the business operational 24 hours per day will improve the customer experience and you are more likely to gain and retain customers. Expand your reach globally Innovation of infrastructure and transport has enabled us to deliver goods globally for many years now and there’s no reason why businesses can’t access international markets now that the internet has taken significant steps forward. If you haven’t already, you need to set-up a website for your business. Having a website in place will allow your business to be seen globally and you will also be able to take transactions online. Optimising the site with SEO best practices will also benefit the business as Google will display your site in different countries. As a business seeking to penetrate international markets, you can also take advantage of social media marketing. Facebook has over 2 billion active users on the platform which is great for you as a business exploring overseas markets as you can rest assured that your target audience will be using the platform. Social media is a fantastic way to communicate with customers who are on the other side of the world and you should be experimenting as it comes at a little cost to your marketing budget. For Facebook advertising, you can get started with only £5.00 per day which will help you to understand if your product / marketing is suitable in a different country. For businesses looking to expand into global markets, its important to explore the technology that is available because this will help you to access those markets with lower barriers to entry. If you are looking for digital transformation solutions or support around growing your business, please contact one of our team who will be more than happy to discuss the options open to you.