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How to create a marketing plan for your small business - build a brand, target customers and set prices that will maximise sales.

The internet has transformed business marketing. No matter what you do, the internet is likely to be at the heart of your marketing strategy.

Social media is firmly established as a marketing tool. Having a presence opens up new lines of communication with existing and potential customers.

Good advertising puts the right marketing message in front of the right people at the right time, raising awareness of your business.

Customer care is at the heart of all successful companies. It can help you develop customer loyalty and improve relationships with your customers.

Sales bring in the money that enables your business to survive and grow. Your sales strategy will be driven by your sales objectives.

Market research exists to guide your business decisions by giving you insight into your market, competitors, products, marketing and your customers.

Exhibitions and events are valuable for businesses because they allow face-to-face communication and offer opportunities for networking.

Small firms on the brink as cost of living crisis bites

21 March 2023

New research has found that almost one million SMEs have £1,000 or less saved to help them stay afloat in the event of a decline in revenue.

A new study by Yell has found that 17% of UK small businesses have just £1,000 or less in savings. The survey of 500 leaders of SME businesses also reveals that one in ten say they aren't confident their business will still be afloat in six months' time and 13% say they are not confident that they will still be trading 12 months' from now.

The key findings of the Yell study show that:

  • 10% of SMEs say they can't save anything each month at the moment;
  • A further 9% are only able to save up to £200 per month;
  • One in three sole traders aren't saving anything at all.

Commenting on the findings, Connor Campbell, business finance expert at NerdWallet, said: "Cutting costs without sacrificing quality is a balancing act. Whenever you look to make a saving, you should ask yourself whether it will materially impact the quality of your service or product. If it will, those savings may lead to greater losses down the line."

Mark Clisby, co-ceo at Yell, said: 'This feedback from UK SMEs is a good reminder of the importance of regularly reviewing where to invest and where to make savings. Quite often, a common reaction can be to cease marketing activity, but time and again we see this as a counterproductive option. Marketing is required to bring in new customers and keep revenue coming in."

Instead of cutting back on marketing, Connor Campbell recommends that small businesses first look at switching suppliers, renegotiating deals, reviewing costs and increasing prices. "Where businesses have cut all the costs they can, the most important thing is to then minimise exposure to risk. For example, locking in contracts for longer periods of time is one way of doing this."

Risk of business closures

Many businesses are at risk of closure, according to a survey of 500 small business owners by Nucleus Commercial Finance has found that an estimated 275,000 UK SMEs are at risk of closing due to economic volatility this year. Rising costs is the key issue, with 83% of businesses reporting that their costs have risen and they expect them to rise further.

How SMEs are dealing with rising costs

  • 35% are increasing the price of their products and services;
  • 23% are delaying planned investment in technology or infrastructure;
  • 16% are shelving their growth ambitions;
  • 14% have delayed investment in staff training and development;
  • 13% are asking employees to work more from home;
  • 13% are reducing staff hours;
  • 12% are reducing staff numbers;
  • 11% are instigating a promotion/ hiring freeze;
  • 9% are reducing staff perks;
  • 5% are reducing their contribution to employee pensions.

Source: Nucleus Commercial Finance

The Recovery Loan Scheme

A recent survey conducted by Opinium for Novuna Business Cash Flow has found that many small business owners are unaware that the government's Recovery Loan Scheme (RLS) is still available.

The RLS was introduced by the UK government in 2020 to help businesses affected by the pandemic; it currently offers financial support in the form of loans of up to £2 million and is set to run until 30 June 2024. The findings show that just 5% of sole traders and 50% of micro-business owners (with 1-9 employees) are aware the scheme is still running.

Written by Rachel Miller.

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