Pro Installer October 2013 - Issue 07 | Page 59

59 PRO INSTALLER OCTOBER 2013 PRO BUSINESS @proinstaller1 SURVEY SHOWS 92% OF GLAZING CUSTOMERS ARE ONLINE INTERNET expert The Consultancy has emphasised the importance of a digital presence in the windows and doors industry after statistics revealed that three out of four potential customers log onto the Internet every day. The official figures, from the Office of National Statistics, show that daily internet use has doubled from 35% to 73% since 2006. 80’s and 90’s when you got the traditional salesman turn up with a briefcase and a mountain of brochures and take hours going through the whole process. And a staggering 92% of 25-35-year-olds regularly buy good or services online. Richie Thornton, Director at The Consultancy, a specialist in digital sales and online communications in the windows and doors industry, is not surprised at the figures but said firms who do not have online ordering or quoting systems are being left in the dark ages. He said: “The industry has come a long way since the ‘Customers are a lot more educated these days’ “Customers are a lot more educated these days and have the ability to research companies and communicate with others at the click of a button, particularly price checking a lot more, especially in the current climate. They can also visit social media sites and learn about a company’s reputation, good or bad.” Stronger Prompt Payment Code Commenting on the Business and Skills Minister, Michael Fallon MP speech to Conserva tive Party Conference, John Allan, National Chairman, Federation of Small Businesses, said: “We welcome the recognition from the Business Minister of the importance of small businesses for growth and employment, and his commitment to do more to encourage enterprise and remove barriers to running a small firm. That is the strong voice our members need at the heart of Government. “One issue that needs to be tackled, and highlighted by the small business people speaking to Conference, is the serious impact late payments can have on cashflow. It means firms struggle to pay their suppliers on time and in some cases can The digital revolution has not been confined to the younger generation either. Statistics show that daily internet usage by the over 65s has jumped massively mean they struggle to pay their staff. “What we need to see is a much stronger prompt payment code. It needs to be able to stop any big business that tries to squeeze their small suppliers by extending payment terms in some cases to as much as three months. “To help new entrepreneurs start up, keeping the landscape simple for Government schemes to help is important, this is why the FSB has called for a Small Business Administration, modelled on that in the USA, so new businesses can get help and advice they need to get going. “The support from Government to help businesses get off the ground is welcome. The Minister’s support and focus on small firms shows he is listening to their needs.” over the past seven years. In 2006 just over 9% reported using the internet every day compared with today’s figure of 37%. Richie believes that it will become the norm for customers to have chosen their products before they make any contact with the companies. Systems will become fully automated from the point of sale, through the invoicing process to the manufacturing and delivery. He continues: “The glazing and door industry was never traditionally at the forefront of the digital revolution but thankfully the majority now know that to compete they must have a good online presence. That does not necessarily have to be an expensive high-end website, there are plenty of lower cost solutions. For example, we offer packages through www.theglazingvault.co.uk which start at under £800.” For more information, visit www.theconsultancy. co.uk or call (01429) 239689. SMALL FIRMS SPEND HALF A BILLION ON TAX ADMIN PER YEAR New research from the Federation of Small Businesses (FSB) shows the UK’s small business owners are losing around 12 days a year keeping on top of their tax administration costing them half a billion pounds per year. The FSB’s findings show that half of respondents spend between two to eight hours per month understanding, calculating and completing tax forms. A further 11 per cent spend between two and six days per month, hindering their efforts to grow their businesses. More than three quarters (77%) say they spend up to £5,000 in addition to their tax bill paying professionals and for software so they can keep up-to-date with their latest obligations. Further analysis of the data shows that around two thirds of the respondents estimate an annual cost of £3,651 spent on tax obligations, accumulatively this means a minimum of £490 million per year is spent in additional costs. ‘£490 million per year is spent in additional costs’ Worryingly, almost a third (30%) of firms say that cashflow problems have prevented them from paying their taxes on time, while one in five (19%) say that difficul- ty understanding what is required or confusion over payment dates has meant they’ve paid late. John Allan, National Chairman, Federation of Small Businesses, said: “There have been long-running issues with complex tax statuses if you’re a sole trader or running an incorporated business. Creating one new tax system, removing the choice will make it simpler. It will free up time for businesses, giving them the time to grow.”