If you’re losing track of current leads or struggling to close deals – or your sales team grows to more than a couple of people – then having a formal sales pipeline could be the right call for you. Here, we explain what a sales pipeline is, how you should set it up and how to manage it.

What is a sales pipeline?

A sales pipeline gives you a visual overview of sales prospects. It’s typically represented by a horizontal or vertical bar and includes the different stages of the sales cycle. Having a sales pipeline will break down deals into small, achievable tasks.

They’re usually used for gathering sales leads, building relationships with prospective customers and closing deals.

The markers of success in a sales pipeline can be:

• Number of deals
• Conversion rate
• Average deal size
• Average win rate
• Sales velocity (how quickly a sales team closes a deal and generates revenue)

In the early days, a sales pipeline can be created with Excel or Google Sheets as a lower-cost solution. “If you were starting a business and you’ve literally got a handful of leads, you might well get a standalone Excel spreadsheet or a flipchart or a whiteboard on the wall,” said Martin Knowles, co-founder of Sales Untangled.

When you’re generating more sales though, it’s worth moving to a sales pipeline platform. Most of the time, a sales pipeline will be part of a larger Customer Relationship Management (CRM) system.

“A Sales CRM enables you to keep all your customer and deal records safe and up to date in one place,” said Jonathan Branney, strategy director of BANC.

The next decision to make is who oversees your sales pipeline. “A common mistake is setting up a sales pipeline within a CRM tool without having someone appointed internally to keep on top of this. The process requires constant resource and attention — but investing this time and energy will only pay dividends for a more managed and effective process,” said Branney. Note that you won’t need to hire someone to oversee it unless you have a larger sales team. Say, 30 or more people.

Naturally, the features that are in your sales pipeline/CRM should be near the top of the list of considerations. You want the usability that your business needs now and will need in the future, but without the bloat of unnecessary extras.

“The thing about CRM is you can get yourself in a world of pain by focusing on hygiene and filling in a CRM. There’s a real balance between it being a useful amount of information and a burden on people who are trying to close stuff,” said Emma Maslen, founder of sales strategy consultancy, inspir’em.

Knowles agrees, acknowledging the importance of budget. There’s everything from free to very expensive platforms – even from the same supplier. “If you do decide to switch suppliers, you want a relatively easy transition,” he added.

How a CRM fits into your company and its culture must rank highly too. “However good your system is, how your people use it will determine how successful it is,” said Knowles. “It’s about how easy it is for people to input and how much value it adds to them in their jobs, which will then encourage them to actually keep the data up to date and keep it relevant rather than you ending up with an expensive database that doesn’t work.” Read a few reviews before buying a CRM.

Setting up a pipeline for sales

First of all, establish your needs as a business. “Set out your objectives first and be really clear what it is that you want the system to do for you. It’s almost like you design your sales process before you decide what tool best does it for you,” said Knowles.

The second is to know who your audience are along with their needs. Gather a list of prospective buyers (based on buyer persona – demographics, education, interests, buying habits and other traits).

For those B2B firms looking for whomever holds the purse strings, strategise carefully. “The problem with budget holders is [that] budgets get withdrawn at a moment’s notice,” said Maslen. “Look at what’s happening – we’ve had Covid, there was Truss, the cost-of-living crisis, we’ve had Ukraine, we’ve now got Israel. The budgets are really fluid right now.

“If, all of a sudden, a budget holder is not a top priority, they’ll have their budgets withdrawn. What you need to do is be picking people who can go and access discretionary funds and get things on the priority list so that they’re always on the priority list.”

Then define your sales process. What steps does your team need to conduct to close a deal? We’ll go over how to define pipeline stages in just a moment.

“I don’t recommend flipping the customer over to someone else, because you will lose time and lose relationship currency”

Emma Maslen, founder of inspir’em

Look at what you can automate, such as email and text messages that go out to prospects or leads. This will save you a lot of hassle day-to-day.

Sales pipeline stages

Many pipelines are made up of five stages, but some could be up to eight stages, depending on how refined you want your sales process to be. It’s all based on your business’ needs.  

Maslen said that these can essentially be broken down into the research phase, scoping phase and closing phase.

Nothing has to be too rigid here as you can refine stages as you go along. Stages can be set into sub-stages too. One pointer is to try and keep the sales cycle as short as you can to avoid overcomplicating the process for the customer. A lot of back and forth might encourage them to abandon a sale altogether.

“I think one of the best things for your CRM is having the stages in there, but also having really clear criteria, a small number of criteria, about how you move [customers] between the stages and what constitutes a move,” said Maslen. “When you talk to a lot of small business owners, they say, ‘Oh, we’re awash with pipeline and it’s all near to closing. But for some reason, we can’t close it, we can’t convert it.’

“They all have those deals all over the place. Some of them know why the customer is buying something. Some of them know who the buyer is. In some cases, they know who the procurement person is, but there’s no consistency with those stages of deals. So, these gates just allow you to be consistent. And they prompt you to think, ‘Okay, have I got everything to be able to move it forward?”

Regardless of how many stages you decide to go for, simplicity, consistency and relationship building should be a focus throughout the pipeline. “I don’t recommend flipping the customer over to someone else, because you will lose time and lose relationship currency,” added Maslen.

So, what are some of the stages you could consider?

Prospecting

This is the point where your potential customers discover who you are through some kind of promotional material.

You might want to think about where your audience are so that you can find them through email marketing, social media, through your website, over the phone and at trade shows. “Making yourself easy to do business with is underpins the success of it,” said Knowles.

Lead qualification

A qualified lead is the right fit for what you’re selling, which is why it’s so important to establish your target audience profile early on. Qualify them based on budget, need and readiness to buy.

You could always place leads in different pipelines if you have that option available. Multiple pipelines are suitable when you’ve got multiple sales channels or you sell different types of product.

Demonstration or meeting

This is your first contact with a possible buyer – this could be over the phone, email, in-person or on social media. This will be their proper introduction to your product or service.

Proposal

Where you go for the sell. Try and convince the potential customer that your product or service can help them with any pain points they have at a reasonable cost.

Negotiation

Discuss the specifics of the sale such as expectations and pricing.

Sale

Closing the deal and/or signing the contract.

Post-sale/retention

Some experts will regard this as a stage in your sales pipeline, while others won’t. It seemed worth mentioning here anyway.

Post-sale can involve referrals, feedback and targeting these customers with future products, maintaining a relationship beyond the sale. Remember the Pareto Principle when applied to sales (it was originally based on population). Under this principle, 20 per cent of leads account for 80 per cent of revenue, so it’s worth focusing on them – even post-sale.

“The customers that you’ve sold to are your best ambassadors, which means they’re also going to shout from the rooftops around the stuff that you’ve delivered for them,” said Maslen.

“Anybody that comes through those referrals is going to be cheaper than getting a new customer. But also, they should be the ones that you’re focused on in terms of upsell, because again, it will be a cheaper upsell for you than a hit and run sales approach.”

She suggests inviting them to be case studies, or to user groups/advisory groups. “They’ll post that on LinkedIn, and they’ll say that they had a good time – it’s more customer advocacy. Invite them to give you some recommendations on the product as well. People like to be asked their opinion, and then they like to tell people that they’ve been asked their opinion.”

Sales pipeline templates

If you’re completely bewildered by the whole thing, start off with a sales pipeline template. These can be very simple or very complex depending on the nature of your company sales.

Most of the pipeline software providers we list out further down this article have templates as part of their offering. Here are a few other examples available online (some as downloads):

• OnePageCRM – A spreadsheet template for either Excel or Google Sheets to create a step-by-step sales process from scratch
• Spreadsheet.com – Includes built-in charts and the ability to breakdown your pipeline in multiple ways.
• Atlassian – If your company already uses Jira for project management then you might consider using this template based on its Kanban-style visualisation.
• Indzara – A free Google Sheets template. They also a offer an Excel version.
• Notion by Template Road – If you are a user of the Notion workspace app this template is available for US$4.00.

Sales pipeline management

Monitor the performance of these sales (the ‘key markers of success’ bullet-pointed earlier can be a good set to start with) and see if there are any obvious flaws or irregularities in the process.

Now, there’ll always be the chance that a prospect will disappear unexpectedly, even if they’ve agreed to the sale. “There is an attrition rate from that and it’s probably one of the biggest sources of frustration if the customer says, ‘Yes, okay, sounds great’ and then they don’t go ahead because they disappear or they start ghosting suppliers – it drives people mad,” said Knowles. “But there are various reasons why things go wrong, even at the last minute.”

That’s part of the reason why you should review your pipeline regularly. “The best thing to do when the pipeline is stalling near the end, is to go back to the beginning: why is the customer even interested in the first place? Just by going back to the beginning, and starting again, you will accelerate your pipeline. It feels like that’s counterproductive, but it’s really not because usually you’ve missed something in the beginning,” said Maslen.

That missing piece is often researching your prospects enough to carry the sale through.

“We have this term that we use quite a lot, which is ‘show up and throw up’,” said Maslen. “This is when we get really excited when people come through our website and say, ‘Hey, we’d like a meeting’ or ‘Hey, we’d like a demo’. Then we don’t do any research, we just turn up and hit them with all of the stuff. It’s almost like we’re throwing as much stuff up against the wall just to see what sticks.

“Most people say, ‘It takes us several meetings before we get conversion.’ It’s because, actually, you’re taking several meetings to listen to what you should have been listening to in the first couple of meetings.”

She says that three of the most effective questions to ask are:

• What’s the implication if they don’t solve the problem that they’re trying to solve?
• Is the problem that they’re trying to solve a paper cut which they could live with and just crack on? Is their business going to bleed out? Or is it going to be a leg amputation, which means that they are going to be more in a hurry to get something done?
• If they solve this problem, what would success mean to them?

“Whatever the thing is, and just by asking them those questions, then the customer will realise, ‘Well, actually, this is a big deal to us. Because if we don’t solve this, we’ve got a really big problem. And if we do solve this, we’ve got great success’,” added Maslen.

If it isn’t a big problem after all, you can then focus your efforts on another prospect.

You can set up multiple automated processes and introduce more over time too, which is why it’s worth considering in regular reviews. Think about tasks that you do repeatedly and whether they can be automated.

Finally, for potential buyers and those even earlier in their decision making process, build content that will attract and retain leads. These draw customers to your website and give them something informative and practical to associate with your brand.

Create content for them at all stages in their search. This could be how-to guides, point-of-view articles on news stories, infographics, videos and podcasts. Remember those calls to action (CTA) too.

Sales pipeline software

Here are some sales pipeline/CRM providers, complete with features and pricing.  

Small Business Pro

https://smallbusiness.co.uk/business-pro/

With Small Business Pro, you can build sales pipelines with a tool tailored to small businesses, at a fraction of the cost of other CRM systems. It comes as part of a full membership which includes low-cost payments, 24/7 access to NHS GPs and legal and employee protection. Plus, you’ll automatically be entered into a monthly competition to win a £2,500 grant.

For full Small Business Pro membership

Sole trader: £39.99 a month (including VAT)
1 to 30 employees: £49.99 a month (including VAT)

HubSpot

https://www.hubspot.com/

The HubSpot sales pipeline is customisable, allowing you to add, edit and delete sales stages. Plus, it’s easy to drag and drop these deals between stages as they progress. It’s easy to identify roadblocks and identify revenue blockages so that you can optimise sales performance.   

It also has a sales pipeline template for Microsoft Excel.

Prices for CRM suite

Free: £0
Starter: From £18 a month
Professional: From £1,404 a month

Insightly

https://www.insightly.com/

On Insightly, centralise customer data, create engaging customer journeys and connect to the apps you already use including Xero, Slack, asana and WordPress. Have your sales reports created in a Kanban-style and alter your settings for automated pipeline alerts.

Free: £0
Plus: $29 (£24) per user, per month
Professional: $49 (£40.50) per user, per month
Enterprise: $99 (£82) per user, per month

Monday.com

https://monday.com/crm?selectedTag=sales_pipeline

Look at your sales pipelines in multiple views on Monday.com: table, form, chart and calendar. Customise which steps of the sales process that you automate. Monday.com has integrations with Salesforce, HubSpot, Mailchimp and more. Use the Mirror feature to view and edit columns’ data from connected boards for easier collaboration.

The sales pipeline template lets you forecast revenue, generate insights and learn where to focus your efforts.

Free: £0
Basic: £7 per seat, per month
Standard: £9 per seat, per month
Pro: £14 per seat, per month
Enterprise: Bespoke

Pipedrive

https://www.pipedrive.com/en/products/what-is-crm

Spot opportunities, measure key activities and set automated reminders and follow-ups to increase productivity, with real-time reports to help you shape priorities. Customise your pipeline so that you can see your entire sales process at a glance.

Pipedrive has a sales pipeline template for Microsoft Excel.

Essential: £14.90 per user, per month
Advanced: £27.90 per user, per month
Professional: £49.90 per user, per month
Power: £64.90 per user, per month
Enterprise: £79.90 per user, per month

Zendesk

https://www.zendesk.co.uk/sell/features/sales-pipeline-software/

Zendesk features end-to-end conversational CRM and automated outreach, as well as forecasting and analytics. Integrations from Zendesk Marketplace include Shopify, Slack and Google Reviews. Plus, you can store and access details so that you can access contacts quickly.

It has a sales pipeline template for Microsoft Excel.

Sell Team: £15 per agent, per month
Sell Growth: £45 per agent, per month
Sell Professional: £89 per agent, per month

Zoho

https://www.zoho.com/crm/sales-pipeline.html?source_from=crm-ft

Zoho promises more accurate pipeline management and forecasting, helping you to allocate resources to the right deal. Create notes, tasks and comments easily. Make cross-selling and upselling more straightforward by identifying those that are more likely to buy and targeting your efforts at them.

Standard: £12 per user, per month
Professional: £18 per user, per month
Enterprise: £35 per user, per month
Ultimate: £42 per user, per month

Further reading on sales

The best CRM system for your micro business – A customer relationship management (CRM) system can really help your micro business to grow. We take a look at key features and platforms

Building a sales team: What to consider as a small business – Building a sales team is a daunting prospect for any growing company, but can be achieved with the right people, technology, and activities. Here are some tips to getting it right

A beginner’s guide to sales prospecting – For businesses to find success, they need to understand and actively hunt sales. In this article, Katie Deverill, operations manager at Company Check, offers some prospecting tips for businesses

The post Sales pipeline management from a small business perspective appeared first on Small Business UK.

Switching a bank account can be one of the first steps a business can use to take control of their finances. Once a business owner is clear about what they want their bank account to do, they can start to look for it and once they find what they are looking for they can switch to it. From finding the right account with the right bank and the right business manager, to new ways to control revenue and outgoings, to better digital support, all of these things can persuade people to switch.

However, research from the Current Account Switch Service (CASS) and Small Business reveals that 20 per cent of entrepreneurs are using their personal current account for their business banking.

Though it may seem more convenient to bank on your personal current account, you could be putting yourself at a disadvantage. Here, we outline some benefits of switching to the right business bank account.

1: Better functionality

Are you able to carry out all the functions you need in your business account? The one you are using now may be cheaper, but you might not be able to carry out some vital business functions. Does your business account have digital services that allow you to manage cashflow or expenses? Does it link well with money management apps or payment systems? Do you have the right level of access to a business adviser? Are you able to easily deposit cash or do you need support to help your business go cash free?

List the services you need then match them to an account before you plan your switch.

2: Fees & Charges

Those little fees and hidden or recurring charges that some banks’ accounts impose can add up quickly. All though quite some research might be required, if you can find a provider that suits your type of business better in this regard you could save your business I tidy amount of money every month.

3: Greater protection for you and your business

A good business bank account is a means of protecting your identity as the account will be under your business’ name. As the number of transactions you make will likely be higher than on a personal account, you’ll need greater security. Banks tend to have information in place to warn business banking customers of potential scams, as well as security systems that can help you spot scams. If you are worried about fraud, switching to a bank that offers more protection could be a business-saver.

4: A better relationship with your bank

Having a business account may help you build a better relationship with your bank. You may have a business banking manager as part of your account. They can also give you advice to help drive your business forward. You might also want to seek other financial assistance from them at a later stage so it’s a good idea to get acquainted with them early on.

Eight per cent of survey respondents said they have the type of bank account they have due to it being required by their bank. In some cases, your bank won’t let you use your personal account for business transactions, even if you’re a sole trader. If your bank catches on that you’re using your personal account for business, they may close your account – and sever any kind of relationship that you previously had.

You can compare your options on Nerdwallet here.

5: Incentives

Of course, you were expecting this one. Business bank accounts offer perks which could be useful for your operation, such as free accounting software or a card reader. Some give you a free banking period too, say 12 or 18 months.

I’m not sure what type of account I use

Rather worryingly, two per cent of survey respondents weren’t sure what type of account they had. If you’re not sure, check your online banking service – it should tell you, even if it’s purely based on the name of account you have. If that doesn’t confirm it, contact your bank.

It is also worth mentioning that there can be perks to having your personal and business accounts with the same bank. You may be entitled to discounts and other perks if you have both accounts with one provider – you’re depositing more money with them, after all. It does feed into a couple of the reasons mentioned above, like building a stronger relationship, which in turn can help with moves like taking out a loan later down the line.

A simple and stress free way to switch your account

To switch your business account using the Current Account Switch Service between participating banks or building societies, you must have fewer than 50 employees and an annual turnover not exceeding £6.5 million.

First, you need to find a new account, looking for some of the features above. Once you’ve found it you need to go through your payments, cancelling the ones you no longer use so they won’t be switched to your new bank account.

Then you need to get your documentation ready so your new bank can carry out the necessary security checks. Your new bank will tell you what you need, but it might include your trading address, a Companies House registration number, and other documents relating to the business and proof of identity like a passport, driving licence or bank statement. You may want to ask for documentation like statements from your old bank before switching.

Then contact your new bank, open an account, negotiate the right arrangements, such as an overdraft and choose your switch date, allowing for seven working days and making sure you don’t set up new payments during that period. Then you can ask your new bank to start the switch. Thanks to the Switching Guarantee, everything will be protected. Then you can start using your new account and start enjoying the benefits of taking control.

If you want to see all your options easily in one place, you can easily compare business bank accounts with Nerdwallet now.

Further resources

Opening a business bank account – how-to and best accounts

Half of SME owners have never switched business bank account

12 of the best digital banking platforms for small business

The post Benefits of switching to the right business bank account appeared first on Small Business UK.

If you want to maximise sales by taking payments over the phone, it is easy to do so with a virtual terminal, a device that’s connected to the internet and a merchant account.

Here, we explain what a virtual terminal does and how to use it, fees involved, regulations, and step-by-step process of taking payments over the phone.

Or, if you’re ready to get set up with a payment provider straight away, you can compare providers using the form above.

Virtual terminals

For taking card payments over the phone, you’ll need a virtual terminal.

A virtual terminal is a secure web or software application that allows you, the merchant, to take card payments without a credit or debit card being physically present.

Once you’ve entered the customer’s card details into the terminal, the data is automatically sent to your payment provider, and the cash, minus fees, is deposited in your account.

Taking card payments over the phone step-by-step

Once you have your virtual terminal set up, it’s quick and easy to start taking payments over the phone.

Say you’re on a call with the customer, they want to make a purchase, and they have their card ready – what next?

1. Open your virtual terminal and log in
2. Select ‘take a payment’
3. Ask the customer to read out their card details and enter them immediately into the correct payment fields
4. Enter the billing address for the payment card
5. Double check the details with the customer
6. Hit ‘confirm’ and whoosh, the money should be whizzing it’s way over to you in no time

Fees for taking payments over the phone

As with any card payment, there’s a fee for taking card payments over the phone, and for all virtual payments, you’re charged a card-not-present (CNP) fee.

This fee is actually higher than if you’re completing a transaction using a physical card payment machine. That’s because virtual payments expose the merchant, the customer, and the payment processor to a slightly greater risk of fraud.

Fees vary across suppliers, and different providers employ different fee structures that can make it more or less costly depending on your needs.

For example:

• Some providers charge a percentage-based fee for each transaction taken through your virtual terminal. E.g. 2.9% + 30p per sale
• Others will allow you a certain number of transactions for a monthly subscription cost, with any transactions over the limit charged at a flat rate. E.g. 200 transactions for £9.99 per month + 10p per additional transaction
• Or you could be charged on a sliding scale depending on your monthly sales volume. For example, a £8.29 monthly fee with Paymentsense will cover all transactions up to £50,000, while a £12.45 subscription will cover those up to £250,000

Which type of fee structure you choose depends on your unique requirements. If you know you’re going to make a consistent and predictable number of transactions, opt for a monthly subscription. Or, if the number and value of transactions varies wildly month-to-month, a percentage-based fee is probably your best bet.

Taking credit card payments over the phone regulations UK

Taking payments over the phone is completely safe as long as you use a trusted provider.

Any virtual terminal provider you use should be PCI DSS compliant. This stands for Payment Card Industry Data Security Standards, and is a set of strict guidelines to ensure sensitive customer information is protected during card transactions.

All major providers make it very clear that they’re PCI DSS compliant, so you won’t need to spend any effort hunting for a compliant provider.

Taking payment over the phone GDPR

It’s perfectly legal to store customer card details for future over-the-phone purchases and remain GDPR compliant, as long as those details are stored securely and not misused.

According to the European Data Protection Board (EDPB), you just need to ensure that the customer’s consent is freely given, specific, informed and unambiguous.

Next steps

If the last two years have shown anything, it’s that having the capability to take virtual payments is vital if you want to weather unforeseen circumstances. Get started taking payments today by filling in our short quiz at the top of the page.

More on taking payments 

Five tips to get started taking card payments – Andy Macauley, chief operating officer of Handepay, gives some concise pointers to taking card payments

The post How to take a card payment over the phone using a virtual terminal appeared first on Small Business UK.

UPDATED: Now that your business is ready to take payments, it’s time to think about how you’ll be processing payments. Alternatively, you might just want to change your current payment system. But how do you know which are the best payment processors for UK small businesses right now?

You’ll find that payment processors perform largely the same tasks, but it could be a single feature – or the cost – that’ll ultimately steer your final decision.

Knowing what’s on the market will help get you going, which is why we’ve compiled a list of the most widely recognised systems. But first: a quick definition.

Why getting up to speed on card payments is essential for SMEs – In this piece, in association with Boost Capital, we look at why card payment technology is crucial for small businesses to stay ahead of the curve

Setting up card payments for retail and online selling – Find out how to set up and get the most out of a POS system for your retail or hospitality business

What payment processor should I go for?

Let’s compare some of the best payment processors for UK small businesses on the market, focusing on cost, pros, cons and what kind of payments the system is best suited to.

Or, if you feel like you’re ready to decide, why not get quotes today? All you need to do is provide us with some basic info about your business in the form at the top of the page and we’ll match you with the best providers for your needs. 

WorldPay

What is it? WorldPay has specialist small business packages which you can fit to your requirements.

You can choose your equipment and pricing plan. You’ve got your pick of countertop card machines, portable card machines, mobile card machines and Pax terminals.

It can also take a variety of global payments. You can accept Visa, Mastercard, Maestro, Diners’ Club International, Discover, China Union Pay, JCB and American Express (with a separate agreement).

How much does it cost? WorldPay offers the Simplicity Payment Gateway which can be bought as a standard package or a bespoke item:

Simplicity Payment Gateway (£19.95 a month)

It has:

• Free next business day settlement
• No set-up fee
• Visa Checkout
• PayPal
• Digital payment links
• Phone payments
• Standard fraud management tools
• Support service

Bespoke

Many of the features on the other package, plus:

• Lowest transaction fee based on volumes
• Bespoke set-up available
• Advanced fraud management tools
• 24/7 support line
• Fully customisable
• Account management

Pros: Strong customer reviews on TrustPilot, can deal with all types of different payments with one merchant ID.

Cons: Auto renewal can catch some customers out unless they write to WorldPay 30 days before contract end telling them they don’t want to renew, reports of pushy salespeople.

Best for: Medium-sized businesses with consistent transaction levels all year round or more established businesses with higher transaction volumes and more complex needs.

Compare payment processor quotes

Small Business Pro

What is it? Small Business Pro is an all-in-one solution for entrepreneurs, allowing you to take payments with some of the lowest rates on the market, organise your appointments and invoices – you’ll even have the chance of winning a £2,500 grant every month.

How much does it cost?

Small Business Pro has two packages depending on the size of your business:

Sole Trader
(excluding employment disputes)

£39.99 (including VAT) per month

1 to 30 employees
(including employment disputes)

£49.99 (including VAT) per month

Pros: Save over £30 per month with an all-in-one package.

Cons: Not suitable for businesses with over 30 employees.

Best for: Construction, healthcare and beauty, coaches and freelancers, hospitality, retail and market traders, taxis and driving instructors

Zettle

What is it? Zettle by PayPal (formerly iZettle) offers up a point of sale, card reader, invoicing and an ecommerce platform. Manage your inventory, send abandoned cart emails and get a better grasp of your performance with real-time sales analytics. It has the ability to generate sales reports, do inventory management and track staff performance.

How much does it cost?

Zettle Payment Terminal (£149 a month + VAT)

• All-in-one reader and POS service
• No monthly fee
• 1.75 per cent transaction fee

It has:

• Preloaded SIM card in case WiFi is unavailable. Mobile usage covered in original policy
• Terminal with built-in barcode scanner for speed and ease of transaction
• POS app which helps to manage inventory and print receipts
• Get bank deposits in 1-2 business days
• Accepts PayPal QRC, Payment Links, Apple Pay and Google Pay

Zettle Card Reader 2 (£59 + VAT)

• Card reader only
• No monthly fee
• 1.75 per cent transaction fee

It has:

• Payment data encryption
• Is tamper-proof
• Capabilities to work with a range of POS apps
• Integrates with platforms you may already use including Lightspeed, Quickbooks and BigCommerce
• 12-month warranty

Pros: This payment processing platform has no contract and the ability to integrate with Xero and Shopify. It’s also compatible with iOS and Android, accepting Samsung, Google and Apple Pay. It has a visually pleasing design and you get deposits to your bank account in one-two business days.

Cons: The only phone support is available 9am-5pm Monday to Friday.

Best for: Food and drink, retail, health and beauty and service-based businesses that run on multiple platforms.

Compare payment processor quotes

Square

What is it? With Square, you set up an account and buy a reader online or in-store. You’ve got the option to take payments in person, over the phone, by invoice or online. The basic version comes with free real-time analytics as well as inventory and location management.

How much does it cost?

• Chip and PIN, mobile and contactless payments in person: 1.5 per cent
• Manually entered transactions: 2.5 per cent
• Online payments with UK cards: 1.4 per cent + 25p
• Online payments with non-UK cards: 2.5 per cent + 25p

Pros: Square is an easy to use payment gateway with quick launch and a free magnetic stripe reader which accepts international cards. Invoicing and virtual terminal are also included. Integrate Xero and Synder, elect to get your money the next business day.

Cons: Reviews on Trustpilot reveal that customer service is poor

Best for: Small businesses with less consistent sales who want to start up quickly.

Compare payment processor quotes

Stripe

What is it? Stripe is a payment solution for online payments which is customisable with applications and third-party integrations.

How much does it cost? Depending on the size and sales volume of your business, you’ve got two options.

Standard

• UK cards: 1.5 per cent + 20p
• EU cards: 2.5 per cent + 20p
• Link cards: 1.2 per cent + 20p
• International cards: 3.25 per cent + 20p

Customised

You can design a custom package for your business if you have large payments volume or unique business needs. Base it on volume discounts, interchange pricing, multi-product discounts and country-specific rates.

Pros: It offers simplicity, with customised billing plans for membership and subscriptions, rolling bank transfers which can be made weekly or monthly depending on when you want to get paid. Stripe also offers integration with the mobile app, uses over 135 different currencies and customers don’t need a Stripe account in order to pay, so the process is seamless. There are no setup fees, monthly fees or hidden fees to worry about either.

Cons: The chargeback policy may lead to some aggravation. You’ll be charged £20 for any disputed transactions (from April 10, 2023).

Best for: Online businesses with access to a developer.

Compare payment processor quotes

GoCardless

What is it? Collect one-off or recurring payments with GoCardless, with a package specifically geared at small businesses.

How much does it cost?

Standard

• 1% + £/€0.20 per transaction
• 2% + £/€0.20 per transaction for international transactions

Advanced

• 1.25% + £/€0.20 per transaction
• 2.25% + £/€0.20 per transaction for international transactions

Pro

• 1.4% + £/€0.20 per transaction
• 2.4% + £/€0.20 per transaction for international transactions

Pros: Has integrations with Xero, QuickBooks, Sage and Salesforce, successfully collects 99 per cent of one-off payments and 97 per cent of recurring payments are collected first time, customisable packages, no set-up costs.

Cons: Takes a while for payments to clear, limits to how many currencies it can accept, can be difficult to track payments.

Best for: Small businesses looking for ease.

Compare payment processor quotes

Amazon Pay

What is it? I’m sure this payment system needs little explanation. Customers on Amazon Pay can make purchases using their Amazon account on eligible websites and apps and do their shopping by voice with Amazon Pay for Alexa Skills.

How much does it cost? If your monthly payment volume is under £50,000, your payment processing fee will be 2.7 per cent and the authorisation fee will be 30p per transaction.

If it’s over £50,000, then you can apply to Amazon for a payment volume discount.

Cross-border fees

Amazon Pay also charges cross-border fees for sales outside the UK of up to 1.5 per cent.

Amazon Pay cross-border fee

Currency conversion

Amazon charges a currency conversion set at 0.5 per cent above its bank’s wholesale exchange rate.

Chargeback dispute fee

If you dispute a chargeback claim not covered under Amazon’s payment protection policy, Amazon Pay charges a fixed fee of £14 + VAT to your merchant account.

Pros: Amazon Pay gets a huge boost from its name recognition – lots of people have an Amazon account. Shopping is quick and easy if the user is already logged in, but you can embed a “buy now” button on your site to make purchasing even easier. It’s also high security, offers merchant protection, and integrates with Shopify and BigCommerce

Cons: Amazon Pay can be quite a target for fraudsters. You may find your account being shut down without prior warning for security reasons, there’s no PayPal support and the transaction fee is pretty high.

Best for: Online retail businesses

Compare payment processor quotes

You can find the right card payments provider for you with takepayments.

Shopify Payments

What is it? Shopify Payments allows you to accept credit cards directly with Shopify in contactless, Chip and PIN or by swiping the customer’s card.

Offers online payments solutions and ecommerce as well as a point of sale system.

How much does it cost?

The standard prices are listed below. However, using Shopify Payments removes the commission Shopify takes on top of payment gateway fees. That’s 2 per cent on Basic, 1 per cent on Shopify and 0.5 per cent on Advanced.

Basic

• Monthly cost: £25 (£1 per month for the first three months)
• Online credit card transaction fees: 2 per cent +25p
• In-person credit card fees: 1.7 per cent + 0p in person

Shopify

• Monthly cost: £65 (£1 per month for the first three months)
• Online credit card transaction fees: 1.7 per cent + 25p
• In-person credit card fees: 1.6 per cent + 0p in person

Advanced

• Monthly cost: £344 (£1 per month for the first three months)
• Online credit card transaction fees: 1.5 per cent + 25p
• In-person credit card fees: 1.5 per cent + 0p in person

Pros: You can set up Shopify Payments instantly and try it out free for three days. Your customers can still pay through another payment system if they prefer. However, using Shopify Payments removes extra transaction fees.

Cons: Shopify also has chargeback fees of £10 per chargeback and, like Stripe, if the decision doesn’t go your way, you lose the fee.

Best for: Online retail businesses

Compare payment processor quotes

SumUp

What is it? SumUp offers card readers that can be used on-site or on the go.

How much does it cost?

No contract

Transaction fees of between 1.69 per cent and 2.5 per cent when you take a payment using a SumUp card reader but no monthly charges or contract.

• £0 monthly cost
• Card readers 1.69 per cent
• POS Lite 1.69 per cent
• Tap to pay on iPhone 1.69 per cent

SumUp One

Lower fees if you take out a cancel-anytime subscription plan.

• £19 monthly cost
• Card readers 0.79 per cent
• POS Lite 0.79 per cent
• Tap to pay on iPhone 0.79 per cent

POS Pro

• £49.99 monthly cost
• Card readers custom
• POS Lite custom
• Tap to pay on iPhone custom

Pros: SumUp’s offering has a fixed transaction rate which is lower than its competitors and no monthly fee. It also has paperless onboarding and no contractual obligations. The Air can process over 500 transactions on a single charge while the Solo card reader has unlimited mobile data and WiFi connectivity.

Cons: There’s no phone support on weekends or late evenings and their social media feeds have several complaints about poor customer service.

Best for: Remote businesses, such as freelance beauticians or food vans.

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Adyen

What is it? Adyen has the ability to take online payments and in-person with a POS system. If your customer is paying online, they can do so through the web, in-app, pay by link or subscription. It also has AI-powered fraud protection.

How much does it cost?

You’ll be charged a processing fee of €0.11 (10p) plus a fee depending on what payment method you use (MasterCard/Visa 0.3-0.4 per cent, American Express 3.95 per cent)  

Pros: Adyen has no monthly fee and no set-up, integration or closure fees.

Cons: With the fees it does charge, it’s expensive for businesses with lower volumes of sales. Plus, it’s no good for high-risk merchants (ones that get a significant number of chargebacks) as you’re more likely to get blocked. The system is not really designed for brand-new start-ups – you must a minimum of 1,000 transactions a month to keep your account in good standing. Reviews on TrustPilot say that the customer service is lacking.

Best for: Better for larger SMEs, not start-ups.

Compare payment processor quotes

Cybersource

What is it? Owned by Visa, Cybersource allows you to accept payments online, in-person and via mobile throughout the world. Automated screening helps you prevent fraud and Click to Pay allows customers to pay faster without account details or passwords, meaning more satisfied customers and a lower likelihood of abandoned carts.

How much does it cost?

Contact Cybersource directly to find out pricing.

Pros: Cybersource has payment acceptance in over 160 countries around the world in more than 50 currencies.  

Cons: Larger sales volumes incur larger fees and it’s available on a long contract. On top of that, you can’t access transactions that are more than six months old, no free trial.

Best for: More established small business who have developers.

Compare payment processor quotes

Opayo

What is it? Opayo (formerly Sage Pay) offers solutions for online payments, card terminals, phone and point of sale.

How much does it cost?

Pricing plans are split as follows:

Face-to-face payments

• Start Simple: No monthly fee and 1.75 per cent transaction fee, £29 one-off device fee
• Business Booster: From £15 per month for two card machines with a 0.99 per cent transaction fee
• Operate Smarter: £40 per month for tablet-sized terminal with a one per cent transaction fee
• Business Control: £62 per month with a 15.6″ talech Register touchscreen with a 1.2 per cent transaction fee

Payments online (also covers payments over the phone and by mail)

• Always Open – fixed: £25 per month, from 0.99 per cent transaction fee, no joining fee, 350 free transactions
• Always – Pay as you go: £0 with transaction fee from 1.99 per cent, £0.12 gateway click fee, £99 one-off joining fee
• Pros: No hidden fees, 24/7 telephone support available, quick to set up, strong customer service reviews on Trustpilot.

Cons: Opayo is more expensive than Sage Pay was.

Best for: Small businesses who want to go with a trusted name.

Compare payment processor quotes

Easily find the right card payments provider for you with takepayments.

Further reading on payments

Five tips to get started taking card payments
High risk merchant accounts: What you need to know
How to set up a POS system for your small business

The post Best payment processors for UK small businesses – 11 of the best appeared first on Small Business UK.

The moment you start selling a product or service, your company is out there in the wild. Simply by existing, your business is at risk from things like fires, floods, lawsuits, cyber attacks and so much more. Hopefully you’ll never have to deal with any of these things, but many business owners choose to protect against them just in case.

With so many options out there, it can be hard to know where to start. Commercial combined insurance can take away some of that stress, by allowing you to buy multiple types of coverage in one go. That’s why it’s called “combined” insurance, in that you can handle lots of different problems with a single policy, like an insurance Swiss Army knife.

How does commercial combined insurance work?

You could compare commercial combined insurance policies to package holidays too. By buying various types of business cover together, the idea is that you’ll save money and effort in the long run, with something that’s also tailored to your needs.

Let’s say you run a manufacturing business that makes aeroplane parts. You’ll have a factory space, where you have all your equipment, machinery and the people who work for you. You’ll probably have somewhere you store the aircraft components you’ve made too, along with vehicles to transport those finished aircraft parts to paying customers. 

Each of those areas – staff, stock, warehouse, equipment, goods in transit – can all be insured. If you wanted, you could go to different insurers to buy a separate policy for cover against each specific risk. Or you could just speak to a single provider and get everything sorted in one fell swoop. 

The actual process of taking out commercial combined insurance is like other types of business insurance. Providers will look at your business, consider what’ll need insuring and assess how risky your operation is overall, by examining things like your turnover, claims history and industry sector. Then they’ll use that information to come up with a policy that suits you, which you can work with them to fine-tune.

What does commercial combined insurance cover?

If you’re in the market for a type of commercial insurance, the chances are you’ll be able to weave it into a combined policy. So there’s a pretty broad range of coverage available, but a lot of package policies tend to include one or more of the following:

1. Public liability insurance: Coverage in case a customer or member of the public takes your business to court for a personal injury or property damage claim
2. Employers liability insurance: A type of insurance you’re legally required to have, which protects your business against compensation claims if your employees get ill or injured through work
3. Products liability insurance: Coverage which relates to the products your business makes, fixes or supplies, and insures against them being faulty and causing harm
4. Warehouse insurance: With this type of cover, you can safeguard against the theft or damage of stock held within your warehouse
5. Business interruption insurance: Insurance that covers against financial losses from a fire, flood or other unexpected events
6. Director and Officers’ Insurance: Protects senior members of the business from legal action taken against them
7. Personal accident: This cover will protect you if an employee becomes sick or gets injured at your place of work

You might also look to protect against things like loss of licence, deterioration of stock and even terrorism. The same goes for insuring your computers, other equipment, the cash you keep on your premises and so many other areas. It all depends on the line of business you’re in and what events could cause you to lose money, stop trading or end up in court. 

Why do businesses take out commercial combined insurance?

One of the main draws with combined policies is that they’re flexible. Rather than a one-size-fits-all approach, combined commercial insurance allows you to get something more personalised, with elements you can usually adapt, add on and remove as you see fit. 

Another reason businesses seek out a package policy is to save money, like buying in bulk. But it goes further than that too, by giving you peace of mind as a business owner. Having all the bases covered means your business can benefit from far-reaching protection. 

Commercial combined insurance isn’t a one-off purchase either, since you’ll be paying your premiums each month, possibly for decades to come. By bundling all of your insurance policies together, you take away the bother of dealing with multiple providers and payments. So perhaps the biggest benefit of all is that you’ll save yourself a whole lot of admin headaches. 

What kinds of businesses take out commercial combined insurance?

Since combined insurance can incorporate such a broad range of insurance coverage, it appeals to a wide range of industry sectors. It all depends on what your business does, and the type of coverage you’re after. Your need could also be influenced by your location and market reach.

That said, if you run a pretty limited operation, you may not need something so exhaustive. Commercial combined insurance works best for companies with lots of moving parts, which would benefit from grouping all of their premiums together under one umbrella. Builders and developers are a great example, since they deal with property, contractors, employees, transportation, equipment and more, sometimes in potentially dangerous working conditions. 360-degree insurance protection can be a vital part of any development project. 

But there’s many other complicated businesses that can benefit from a commercial combined insurance policy too. You might run a wholesaling business, an accounting firm, a restaurant group, or something else entirely. Whatever you do, it’ll help to speak to somebody from an insurance company first, who can help you figure out what’s right for your business.

If my business has previous claims, can I still get commercial combined insurance?

When an insurer puts together a combined policy, they’ll look at the potential risk you present to their firm. A big part of that could be the claims you’ve made in the past. 

If you have made historical claims, that’s by no means a deal-breaker – but you can do yourself a favour by showing that you’ve taken action to reduce the likelihood of something similar happening again. You might introduce enhanced security, change the way you work or improve company processes. Either way, showing that you’ve learned from the past certainly won’t hurt. 

Ultimately, the best insurance deals are a two-way street, with advice from your provider and careful thought from you. In the same way that a parent may take out life insurance to protect their family, commercial insurance is all about safeguarding. By dealing with every potential risk at once, you can put that protection in place in a far easier way. 

Find commercial combined insurance now

Now that we’ve examined why commercial combined insurance might be useful for your business, you may have realised you want to get protection or evaluate your current cover.

If you’re looking for business insurance and aren’t sure where to begin, why not use our free quote tool to find a tailored commercial combined policy that will cover all your needs.

Simply fill in our free quote-finding form and answer a few questions about your business (it takes less than a minute).  

The post What is commercial combined insurance? appeared first on Small Business UK.

Well, are there any free card readers for small businesses? The short answer is no, but there are some lower-cost options out there.

When thinking about costs, consider your monthly fees along with your transaction fees, set-up fees and any other charges that may be hidden in the small print.

We’ll be taking a look at some of the cheapest card readers for your small business and whether you’re better off renting or buying.

Should I buy or rent a card reader?

Rental

As some of the contracts below suggest, rental card readers are more suitable for seasonal or pop-up businesses.

Pros

• Can fill demand at busy times such as Christmas
• Providers are good at meeting requirements at short notice
• Rental units are more robust as they can passed between users and so are expected to be better able to handle knocks
• If something goes wrong, your provider can sort it out quickly

Cons

• There may be hidden fees such as set-up
• You have to keep the card readers in an acceptable state of repair

Purchase

Pros

• Purchasing card readers means that you have them on standby which is useful for unexpectedly busy times
• If you’re likely to use the terminal again, it’ll be worth purchasing
• No worry about extra fees beyond transaction fees
• Easier to switch between merchant service providers

Cons

• The machine may become obsolete over time and you’ll have to fork out for a new one
•  Any purchases and repairs are your responsibility         

The 8 cheapest contactless card reader deals out there

How much you pay will come down to your turnover, what card reader you have and what kind of transactions you take. Let’s take a look at the cheapest deals.     

>See also: Why businesses should go cashless: pros and cons    

Rental

Tyl by Natwest Clover Flex package

Reader price: £16.99 + VAT – hire fee waived for three months for new customers
Transaction fee: 1.5 per cent (more for American Express transactions)  
Features: Eight hours of battery life on one charge; use Tyl Portal at no extra cost; 5.99-inch glass touchscreen; fingerprint recognition

Barclaycard Flex

Ideal for start-ups and small businesses

Monthly fee: £7.50 a month (until 31 December 2024 – you must apply by 30 April) + VAT for an 18-month contract
Transaction fee: 1.6 per cent per transaction
Features: Switch between Bluetooth, GPRS, Wi-Fi and mobile data networks; up to 700 sales a day on a full charge; payments can be in your account as soon as the next working day (if they’re taken before 9pm)

Dojo Go

Reader price: £20 a month
Transaction fee: 1.4 per cent +5p if your turnover is below £150,000 and custom pricing if it’s over £150,000
Features: Receive your takings the next day; Dojo may pay up to £3,000 in exit fees to your previous provider; instant fraud detection; point-to-point encryption

Purchase

Small Business Pro

Reader price: WisePad 3 Terminal (£49 one-off cost) OR WisePOS E (£179.00 one-off cost)
Monthly fee: £39.99-£49.99 including VAT (these are membership fees for Small Business Pro)
Transaction fee: From 1.25 per cent
Features: Linked to customer management platform, no minimum spend, PCI compliant, built-in fraud detection

SumUp Air

Reader price: £39
Monthly fee: None
Transaction fee: 1.69 per cent per transaction. If you use SumUp’s business account as a payout account, you can get a 1.49 per cent transaction fee until the end of the next month you booked from
Features: Smartphone connectivity; unlimited free bank transfers on incoming and outgoing payments; process over 500 sales on a single charge

Zettle 

Reader price: From £29 + VAT
Monthly fee: None
Transaction fee: 1.75 per cent per transaction, 1.75 per cent for PayPal and QR codes, 2.5 per cent for Payment Links, 2.5 per cent for Zettle invoices
Features: Integrates with Adobe Commerce and BigCommerce as well as other platforms; sell and accept gift cards

Square

Reader price: £19 + VAT
Monthly fee: None
Transaction fee: 1.75 per cent per transaction
Features: Connect to Apple or Android device via Bluetooth; two-year warranty

>See also: Best payment apps for small businesses

Lopay

Reader price: £24 plus P&P and £49 plus P&P for additional card readers
Transaction fee: 0.79 per cent for weekly payment, 0.99 per cent next day or 1.79 per cent for instant payment. Add one per cent to the above for American Express and international payments. Add 0.25 per cent for payments via Point of Sale, 0.49 per cent for payments and 0.69 per cent for subscriptions.
Features: Choice of payments done instantly, next day or weekly; smart tipping feature; and export reports to add to your preferred accounting software

Which card reader should I buy?

Which low-cost card reader you go for is up to you but remember that factors beyond price come in here too. Think about your functionality needs such as tableside payments if you’re a restaurant or increased Amex payment fees if you take a lot of payments from customers who use American Express.  

Want to compare prices and features from all the best card payment devices we’ve listed above? Our free comparison tool can match you with the most suitable provider for your needs.

Simply fill in our free quote-finding form, and answer a few questions about your business (it takes less than a minute). We’ll match you with the most appropriate card payment provider.

Read more

Best payment processors for UK small businesses – 11 of the best

The post Are there any free card readers for small businesses? appeared first on Small Business UK.

You’ve finally mustered up the courage to wave goodbye to your boss and are now going solo. Surely you didn’t think this would be easy, did you?

As a matter of fact, many who have made the same choice know that this is just the beginning.

This is the time for a series of decisions to be made. You can take comfort in the fact that once your company formation is in place, each step along the way will be easier.

A key decision to be made when starting your own business, or becoming self-employed for the first time, is to decide what type of business structure you want to follow.

There are a number of options, all of which have their merits and differ in legal and taxation terms – but your four key options are as follows:

• Sole trader
• Partnership
• Limited liability partnership (LLP)
• Limited company

Simon Renshaw, director of AABRS, explains what you need to know about each.

On your own as a sole trader

By opting for the sole trader route, you and your business are effectively one and the same – from both a tax and legal perspective.

This means that you are personally responsible for the business – and any debts it incurs.

The profits you make, which are sales minus costs, until April 5 of each year are declared on your tax return and classed as your personal income that year – even if it is not paid out as salary or into to your personal bank account.

Just be aware of changes with Making Tax Digital. Businesses with a taxable turnover over the VAT threshold (£85,000) must follow MTD rules. This means keeping digital records and using specific software to submit your VAT returns. Businesses with a taxable turnover below £85,000 will be expected to follow the rules for their first return on or after April 2022.

You need to follow the requirements for Making Tax Digital for Income Tax if you are self-employed or a landlord from:

• April 6, 2026 if you have an annual business or property income of more than £50,000
• April 2027 if you have an annual business or property income of more than £30,000

There are benefits associated with operating as a sole trader. They include:

• Simple set up and administration. One of the main advantages of operating as a sole trader is how easy it is to set up and run. You have to be VAT-compliant, deduct and pay PAYE and National Insurance to HMRC if you have employees and file a self-assessment tax return, but that’s where your obligations end. Bear in mind that Class 4 National Insurance Contributions (NICs) will be reduced from 9 per cent to 8 per cent and Class 2 NICs will be scrapped. Both changes come into play from April 6, 2024.
• There are fewer financial restrictions. It’s much easier to take money out a sole trader than a limited company. You can take money out of the business as and when it’s needed. That’s because your personal finances and the business’ finances are one and the same.
• There’s greater privacy. Certain information about limited companies has to be made public. Being a sole trader is different. All the details about the business can be kept private. That provides greater anonymity (for example, if you are running the business in your free time while being employed) and reduces the costs associated with filing annual accounts.
• The business is easier to close down. Closing down a limited company takes time and can be costly, particularly if it has debts. Winding up a sole trader is a relatively simple affair, although if there are debts you cannot repay then it can be problematic.

“I started my company in 2007 as a sole trader. This was the easiest of the choices at the time and meant very little work to set it up,” said Graeme Thomas, owner of Johnny F Designs. “I simply called HMRC, told them I wanted to start trading under Johnny F Designs as a sole trader, and that was it.”

A partnership: It takes two to tango

A partnership arrangement is similar to that of a sole trader but differs in that it has more than one owner.

All partners own a specified percentage of the profits, and the liabilities, so they must pay tax on that percentage.

As with a sole trader, each partner’s share of the profits is treated as their income.

There are benefits associated with running a partnership, both when compared to a sole trader and a limited company:

• Shared responsibility. Having more business owners allows the financial and operational responsibility for running the business to be shared. Tasks can be assigned according to skills and the individual workload can be reduced.
• Flexibility. Conventional partnerships are easier to form than LLPs. The internal structure is also versatile as changes can be made to the legal rights and responsibilities of partners and even to their profit-sharing ratios.
• Decision-making. Partners share the decision making which can be a beneficial as there are more brains to pick. However, it can also be problematic if not everyone agrees.

Limited liability partnership (LLP)

In a nutshell, this type of structure has some of the same characteristics of a conventional partnership, such as the internal management, tax liability and the distribution of profits, but it also provides the limited liability of an incorporated company.

Limited liability partnerships tend to be used by professional services firms such as solicitors and architects. The benefits include:

• Tax transparency. LLPs are generally not taxed as corporations, so they do not need to pay corporation tax. Instead, each member is taxed through self-assessment as a self-employed individual.
• Flexibility. The internal structure of an LLP is just as versatile as a conventional partnership, so changes can be made to the rights and responsibilities as necessary.
• Professional standing. Limited liability can enhance the professional standing of a business over and above a conventional partnership. This can be advantageous when trying to win high-value contracts.
• It’s easy to appoint new members. Unlike an LTD, there’s no share capital in an LLP. That means new members can be appointed without having to issue new shares.
• National insurance savings. An LLP do not have to register as an employer if the only people working for the company are members. That can lead to significant national insurance savings.
• Easier to make decisions. There aren’t any requirements for those involved in LLPs to make decisions by resolution or to hold board meetings or general meetings as is the case in LTDs.

Limited Company (LTD)

In the case of a limited company, the business becomes a separate legal entity entirely. This means that the company must be formed, or incorporated, and registered at Companies House.

It will also have to have certain standard legal documents that govern what it can do and what business it operates in.

The company will be owned and controlled by those who own its shares and you can allocate shares to any number of people when the company is incorporated.

You could keep all the shares for yourself, allocate some to a spouse, or sell them (‘equity’) to raise funds.

This does however require more administration, for example annual accounts being filed at Companies House and an annual corporation tax return, but these can be taken care of simply and quickly by an accountant.

Having a limited company comes with significant benefits, which include:

• Tax efficiency – due to the ability to receive income in the form of both salary and dividends
• Reduced risk – liabilities (debts) of the business are separate from that of the owner(s), reducing the risk if things go wrong
• Image – they tend to convey a more professional image of the business
• Flexibility – since equity can be sold, limited companies are easier and more flexible when it comes to raising investment and funding.

“The company was set up as a limited company so that if the business was to incur debt and go bust, my personal situation would not be impacted negatively,” said Brian Lonsdale, managing director of Smarter Digital Marketing. “I also chose this option as it allowed me to bring in another director and divide company shares up. It allows room for expansion and growth in the future.”

So now is the time to ask yourself what exactly is holding you back, and why. If you’ve already thought about it, and have spent five minutes reading this article, you must be considering this seriously.

Just weigh up the options, crunch the numbers and get on the ‘entrepreneurship’ bandwagon.

WXY is a Manchester-based social media and experiential PR agency founded by Gemma Wieczorek and Marc A Young (pictured). Created in 2018, the pair decided to form a limited company over the other options. 

Gemma: There are a number of options to choose from when setting up a business and, of course, no one-size-fits-all solution. Neither Marc or I hail from a finance background, with any discussion around money focused on clients.

We found that partnering with an accountancy firm allowed us to start having conversations around how we want to be paid and our tax obligations.

When you start a business, you just want to get cracking. However, setting up as a limited company allowed us to take a step back and sort out fundamentals. There’s certainly an element of ‘it feels more real’ when we see it black and white on Companies House, not to mention some of the key financial benefits of doing so.

I’d recommend anyone in the early stages of a business to find a great accountancy partner who will guide you through the process of setting up a limited company.

Marc: Before we formed WXY, Gemma and I worked together at an independent agency. For us, setting up as a limited company installed legitimacy into our business venture.

More paperwork might sound like a drag but for me it has driven me to ensure everything’s up-to-date as it has played on my need to be organised, which is essential.

It was an additional job that we had to do and allowed us to work together on something that wasn’t part of our previous work relationship. It also allowed us to have open and honest discussions about money, forecasting and choosing preferred suppliers.

Further reading on company structure

Setting up a business: Sole trader vs limited company – Emily Coltman of Freeagent discusses the main differences between registering as a sole trader and as a limited company

6 examples of sole traders – What jobs are best if you want to go self-employed? We look at what it takes to become a personal trainer, a gardener, a hairdresser, a private chef, a photographer or a dog walker

Checklist for going self-employed – a Small Business guide – Deciding to go self-employed is a big step for anyone. Follow this guide to going self-employed and be confident. We’ve got your back

The post Should I go sole trader, partnership or limited company? appeared first on Small Business UK.

Why do small businesses need HR?

HR develops the culture of an organisation, manages pay and recruitment and strives to maintain or improve employee satisfaction, as well has handling grievances and disciplinary procedures.

However, businesses with fewer than 50 people rarely have an inhouse HR department. Mostly they go down the outsourcing HR route, which is why there are many HR consultancies specialising in small businesses.

Whether you decide to manage HR in-house or decide on outsourcing to an HR agency depends on the circumstances and priorities for your business. Here, we break down the pros and cons of each.

A guide to outsourcing HR – Outsourcing HR makes sense for businesses that are too small to have their own inhouse manager. However, you need to be clear about what you need from the outset to avoid a one-size-fits-all approach

Pros and cons of outsourcing HR

Advantages of outsourcing HR

Here are the advantages of outsourcing HR according to Citrus HR’s Rachel Mudd:

• Cost-savings. “Outsourcing is significantly cheaper than hiring a qualified HR professional, even part time, for almost all small companies. It also fits the need better—very few small companies actually need an HR person for even one day per week, so hiring is often wasteful.”
• Access to specialist knowledge. “Outsourcing means you can keep on top of the more specialist aspects of HR, for example employment relations issues or handling a TUPE transfer. In-house professionals rarely have all that expertise themselves and have to be more generalist.”
• Legal compliance. “Good HR providers will ensure you are up to date with legal requirements for businesses, which is important, as the law changes most months, often with enormous consequences for breaches.”
• Cover for absences. “Any employee needs time off for holidays and can get sick from time to time. By using an outsourced HR service, you can ensure that you always have access to expert advice whenever you need it, which is not possible with an in-house HR pro at a small company.”
• Time efficiency. “By outsourcing these functions, employers can free up time to focus on making their business successful and profitable.”

6 HR software tools you can use for small business – Streamlining your HR functions is key to running an efficient business. Here are seven HR software tools that can help you do just that

Disadvantages of outsourcing HR

• Less control. Outsourcing is less personal and could result in feeling a loss of control. An employee may find it easier to approach a colleague they work with regularly
• Culture disconnect. An organisation’s culture stems from its HR strategy. If the HR team is external, this may create a disconnect between its strategy and the employees
• Worries over data protection. By outsourcing HR, you’re entrusting a third party with your data

Top 10 HR tips – Donna Obstfeld of DOHR takes you step-by-step through the staff onboarding process and explains why, in today’s post-Covid workplace, regular HR appraisals feed in to communicating the company culture you want to promote

Pros and cons of an inhouse HR team

Pros to having an inhouse HR team

• Easier to find the right talent. “In-house recruiters are there to ensure the small business can get the right talent that sticks around, helping SMEs to grow in the most organic [and cost efficient] way possible,” says Anna Moore of Pollinate’s HR team. “Our own in-house recruiter has been with us from the beginning and has made a massive impact across the business, working closely with hiring managers, line managers and candidates to ensure we get the right fit, resulting in an annual staff turnover for 2021 at an impressively low 12 per cent.”
• More personal. Employees can hold a face-to-face meeting at any time, building trust and engagement between an organisation and its staff.
• Quicker resolutions. Having a member onsite should, in theory, allow for discussions to escalate quickly and for any issues to be resolved efficiently.

How to decide on HR policy for your small business – An HR policy sits alongside your marketing strategy and financial policy when it comes to day-to-day operations. But it’s so much more than just a set of rules and regulations, it’s a document which defines your business

Disadvantages of having an inhouse HR team

• It can be expensive. Depending on the size of your business, hiring employees can be more expensive than outsourcing.Of course, you might think about hiring someone in-house to be your HR manager. According to HR outsourcing firm Peninsula, if you do decide to hire a full-time HR manager, the average national HR manager salary is £43,000. This compares to around £1,200-£3,600 per year for fully outsourced HR management, including health and safety, payroll, etc.
• An employee may have a heavier workload. By having a small HR team, each individual will have a wide range of responsibilities, from payroll management to recruitment. When this is outsourced, the third party will have experts in each area.
• Access to HR systems. The chances are, the software you have in-house will not match the capabilities of systems used by outsourcing HR agencies.

7 of the best HR consultancy companies in the UK – Want to outsource your HR but don’t know who to go to? We’ve got a round-up of some of the best HR consultancy companies in the UK

This article was originally published in May 2022.

More on small business HR

Small business HR – everything you need to know – HR starts the moment you hire your first employee. There are plenty of resources and organisations out to help run your HR systems smoothly. But you should see HR as an opportunity, not a burden

The post Outsourcing HR v inhouse HR management appeared first on Small Business UK.

What is HR?

Human resources (HR) in its literal sense means the workforce of an organisation. Its responsibilities, however, are wide ranging.

As your business becomes more established and your team grows, HR will involve managing recruitment, onboarding, developing workplace culture, managing benefits, managing employee relations, and training. The main aims of the department is to ensure the business is compliant with laws, support productivity and improve or maintain employee satisfaction.

Taking on your first employee

The turning point for any small business is taking on your first member of staff, which is where HR first enters your business life.

Even if you’ve only got one staff member, you need to be mindful of HR protocols and procedures – otherwise you could find yourself in front of an employment tribunal defending yourself against one aggrieved employee.

At its most basic, HR involves telling your employee what’s expected of them, hours to be worked and where, holiday entitlement, payment procedure and sickness policy. That could either be written down in an employment contract or a staff handbook.

The truth is that many business owners are frightened by hiring because of the potential risks but done right employing staff will take your business from surviving to thriving.

Top 10 HR tips

HR specialist Donna Obstfeld has written exclusively for SmallBusiness about the top 10 things to be aware of successfully managing employees in your business.

Top 10 HR tips

How to decide on an HR policy for your small business

Having an HR policy for a microbusiness may sound grandiose but writing down your HR policy gives you an opportunity to articulate the very purpose of your business – enthusing staff, even if it’s just a handful of people, about the vision for your business. What’s the journey you’re on?

An HR policy sits alongside your marketing strategy and financial policy when it comes to day-to-day operations. But it’s so much more than just a set of rules and regulations, it’s a document which defines who you are, your core values.

How to decide on an HR policy for your small business

A guide to outsourcing HR

Outsourcing HR makes sense for businesses that are too small to have their own inhouse manager. Businesses with fewer than 50 employees rarely have an HR team. Instead, a senior manager who may have had some HR experience in the dim-and-distant past may have been seconded to the role. Not only does this leave your small business vulnerable to legal challenges when HR procedures have not been rigidly followed, doubling up like this takes away time from his or her day job.

Or, if you yourself are handling HR, it takes time away from running your business and eats into your own productivity – one of the biggest challenges facing any small business.

With the ongoing cost-of-living crisis, rising inflation and spiraling wage bills, companies will be looking to save money where they can.

Outsourcing HR v inhouse HR management

Outsourcing whole or parts of the HR function can be a cost-effective way of reducing overheads, while benefitting from expert skills.

However, you need to be clear about what you need when approaching an outsourced HR company from the outset to avoid a one-size-fits-all approach.

Whether that’s achieved through an in-house team or outsourcing depends on your business’s priorities.

Outsourcing HR v inhouse HR management

How to choose an outsourcing HR provider

Start with their experience (and which sectors their clients are in). You’ll know you’re on to a winner if they’ve had numerous previous clients in your industry, with extra points if they’re larger and better-known.

Similarly, having proof of qualifications reassures you of their competence and what they can offer you.

Think about how their services align with your business growth strategies and growth forecast over the next year.

Next up, hunt for any hidden fees. Do they charge extra or impose financial penalties for leaving the contract early? The firm may seem cheaper upfront but, like the worst budget airlines, they can really give you a swift kick with those sneaky charges.

While you’re there, check the clarity of the payment and contract terms. Flexible payment should be available (paying as a one-off or on a retainer). It’s all the better if they can offer you a free trial – working on a smaller project, for instance.

Even though they’re not known as the money maker, you need to have a return on investment from your HR. It won’t necessarily be in monetary terms either – think increased productivity, lower turnover and decreased absence. Ask what ambitions your HR supplier has and how long a timespan they need to establish these.

It’s even more important that they understand your company culture. If they don’t, they run the risk of making the wrong decisions on your behalf. Or worse, they hire the wrong staff, causing you all manner of long-term problems. Again, a free trial option is beneficial here.

7 of the best HR consultancy companies in the UK

Want to outsource your HR but don’t know who to go to? We’ve got a round-up of some of the best HR consultancy companies in the UK.

It’s all well deciding that you need to outsource your HR, but which consultancy should you plump for?

With such a wide range of companies offering largely similar products, it can be difficult to know exactly which one to choose.

We’ve profiled 7 of the best HR consultancy companies in the UK to inform your decision, listing the key features of each provider.

citrus HR
Peninsula
Workplace HR
HR Solutions
Avensure
Moorepay
Adviser Plus

7 of the best HR consultancy companies in the UK

Lastly, remember to take professional references from your chosen supplier – two or three is ideal. Once you’ve agreed to work together, be clear about what’s included in your deal and that it can be changed at a later stage to suit the needs of your business.

6 HR software tools you can use for small business

It may be that you don’t want to outsource your HR but take a more do-it-yourself approach using online HR software.

The case for HR software tools has grown as more businesses shift towards a hybrid or remote working model.

Plus having HR software in place can help to increase productivity, provide working insights, more benefits for employees.

An HR tool – also known as HR management tool – can mean a whole platform or it can be one component such as recruitment or absence management software.

Every small business has differing needs. We’ve listed some of the best HR software tools below, giving you a run-down of key features and integrations which can work with your existing software.

6 HR software tools you can use for small business

HR is an opportunity for your small business

Remember, HR starts for any small business the moment you take on your first employee. Whether you set out your statutory obligations in an employment contract or take the time to write a staff handbook is down to you.

As you grow, you may think the most cost-effective solution will be to outsource your HR to an external provider, as opposed to hiring a fulltime HR director.

Or you could take a hybrid approach and do most of the small business HR paperwork yourself but use HR software to ease the workload.

Whichever way you go, think of HR as helping you define the purpose of your small business, not just a burden, and one of the planks which execute your strategy alongside finance and marketing.

This article was originally written in May 2022 by Tim Adler.

More on small business HR

A guide to outsourcing HR – Outsourcing HR makes sense for businesses that are too small to have their own inhouse manager. However, you need to be clear about what you need from the outset to avoid a one-size-fits-all approach

The post Small business HR – everything you need to know appeared first on Small Business UK.

As most people are aware, if you’re thinking of starting a new business or already run one you can claim expenses on some of your costs.

This is a great way to help out entrepreneurs and give them a better chance of success. Why?

Because businesses pay tax on their profits, so when they claim expenses that amount is removed. So they pay tax on a much lower amount.

If you’re diligent you can save yourself a pretty large chunk of money.

So, what can you claim for?

The main categories of business expenses

Business travel mileage

Mileage Allowance Payments (MAPs) are what you pay your employees for journeys made for business purposes. You’re allowed to give employees a certain amount of MAPs each year before having to report it to HMRC – this is known as the ‘approved amount’.

Work this out by multiplying your employee’s business travel for the year by the rate per mile for their vehicle (see below).

If your employee uses more than one vehicle, calculate it all together.

Tax rates per business mile

Anything above the approved amount needs to be reported on a P11D form. After that, add anything above the approved amount to the employee’s pay and deduct and pay tax as normal.

Anything below the approved amount doesn’t have to be reported to HMRC but your employee will be able to get Mileage Allowance Relief on the unused balance of the approved amount. You can also make separate optional reports to HMRC of any such unused balances under the Mileage Allowance Relief Optional Reporting Scheme (MARORS). Contact HMRC to join the scheme.

Home office equipment

Another fairly well-known option is claiming for things like office equipment and consumables like printer ink that are essential to the running of your company. Note that these expense claims are not suitable for people working from home.

Claim items that you would normally use for two years or less as an allowable expense. This can include:

• Phones (Landline), mobile phone, fax and internet bills
• Postage
• Stationery
• Printing
• Printer ink and cartridges
• Computer software your business uses for less than two years
• Computer software if your business makes regular payments to renew the licence (even if you use it for more than two years)

If you run a limited company, there is a way to claim on some more equipment.

For example, if you have a laptop, you can purchase it off yourself through the company. That will make it a company asset and therefore it’s cost as a claimable expense.

On top of that, you’ll get money straight from the company personally tax-free.

Clothing and entertainment

Your employees can also claim for clothing (such as hiring a smart suit for an event or for uniform) and the annual staff party as long as the cost per head doesn’t exceed £150.

Rent and bills

If you run your business from home, you can also claim on rent, mortgage and bills too by charging some of the costs through your company, although there are some limitations.

The amount of rent you can claim is all based on the space dedicated to actual business.

For example, if you have an office you only use for business which takes up 10 per cent of the square footage of you flat, you can claim 10 per cent of your rent as expenses.

If you work in a room for half the time and use it as a normal room the other half of the time, you’d only be able to claim 5 per cent of the rent back.

In regard to bills, they work in a similar way and need to be divided between those used when doing business and not.

If you work from away from home, you can claim expenses on:

• Rent for business premises
• Business and water rates
• Utility bills
• Property insurance
• Security

Training courses

You’re able to claim allowable business expenses for training that gives you the knowledge and skills to better run your business. This includes refresher courses.

The course must be able to help you run your business. However, you cannot claim for training courses that help you to start a business or expand into a new area of business – this includes anything related to your current business.

Marketing and subscriptions

On the marketing front, you can claim for

• Advertising in newspapers and directories
• Bulk mail advertising
• Free samples
• Website costs

However, you can’t claim for entertaining clients, suppliers and customers, nor can you claim for event hospitality.

On top of that, you claim for trade or professional journals and trade body or professional organisation membership. You can only claim on the latter if it’s related to your business. You cannot claim for payments to political parties, gym membership fees and donations to charity. That said, you may be able to claim for sponsorship payments.  

Capital allowances

Another area to keep an eye out for is capital allowances, broadly known as ‘plants and machinery’. This includes things like:

• Machinery
• Fixtures (fitted kitchens, bathroom suites, fire and CCTV systems)

You can’t claim for the expenses on some of these things and so instead you must claim for a capital allowance. It can be quite a complicated area though. In most cases, you can deduct the full cost of these items from your profits before tax using the annual investment allowance.

Business expense trackers

If you want to simplify your company expense process, there’s a number of software tools that could help make life easier for you and your employees.

Compare providers now to find the perfect option for your business.

There are plenty more things that you can claim expenses for and HMRC have a full list here.

If you do want to claim, obviously you’re going to need proof of these expenditures. Make sure you keep track of all your invoices, receipts and papers and store them somewhere safe.

Keep them well ordered as well to save a lot of time in the future.

One final thing to keep in mind is that HMRC can come back and request proof of expenses up to six years after they’re claimed.

So, if you’re thinking about discarding your papers once HMRC have accepted your accounts, think again. If you’re unable to give proof when asked later on, you could be asked to pay the money back.

Further reading on business expenses

Navigating business expenses as a limited company – Emily Coltman, chief accountant at FreeAgent, gives some tips on negotiating the minefield of business expenses

How to take control of your business expenses – Cash is the lifeblood of business, yet too often entrepreneurs spend more money than they need to, putting a strain on cashflow. Here’s how to do a better job of controlling your business expenses

Claiming mobile phone expenses as part of your business – What’s the standard policy for mobile phones expenses? Can you claim back anything from the tax man for business mobile phone usage?

The post What expenses can I claim through my business? appeared first on Small Business UK.

The worst happens: you log on and find that your website, and other essential functions, are gone. But what do you do if you lose your domain?

This can happen because your domain has been hijacked, it’s expired or there could be complications during a transfer.

In this article, we’ll be exploring what can happen if you lose your domain and how to recover if it happens to you.

First, let’s run through some definitions.

Domain: An address that you use to access a website
Registrar: Where you register and renew domains
WHOIS: A place where you can find out the information around people, groups or organisations who own a domain name
SSL: Now replaced by Transport Layer Security (TLS), SSL/TLS is an encryption security protocol. You’ll recognise it as ‘https’ at the start of a URL rather than ‘http’

What can happen if you lose your domain?

If you lose your domain, you’ll lose access to your website (and possibly your emails) as well as experiencing a drop in search engine rankings, orders and potential new customers.

Pedram Mershahi, co-founder of Kloris CBD, talks to Small Business about how a verification email from Google turned into a nightmare for his business.

For background, Google Domains has been sold to Squarespace. The announcement was made in June 2023, affecting 10m domains. Unless users change their domain, they will be transferred over to Squarespace. 

I have two email addresses registered with Google for my Google Domains account. A validation email (below) was sent to my secondary email on December 29, 2023 – right between Christmas and New Year – and went straight into my spam folder. They then suspended our account on January 17, 2024, without any further communication with us.

Having regularly checked our Google Domains dashboard and primary emails (all Google-based), there wasn’t a single notification to say there were any issues. In fact, all of their systems have been showing that our Google domain is verified and fully operational.

They should not shut down business domains and emails without contacting a company through their main websites or domain portals and dashboards. Because, crucially, shutting down business domains and emails of independent companies has the very real danger of sending businesses bankrupt very quickly. This obviously means people losing their jobs. We have full time staff wages that we are responsible for, not to mention a host of freelancers and external supplier contracts to honour. 

For the past seven days (up to January 24, 2024), we’ve been going back and forth with Google. We had to move our domain from kloriscbd.com to kloris.co. We received a ‘Congratulations! You’ve got your domain’ and our primary emails back from Google on January 23, 2024, but we had effectively been wiped off the face of the internet as a business.

How it’s affected our business

Hard-earned rankings are the main ongoing issue now. Five years of work to build up our ranking has been undone in less than a week, as we’ve lost all the domain authority that we’ve built. With our email being down, we have also lost some wholesale customers. Google’s incompetent infrastructure in this acquisition has threatened to ruin a number of people’s livelihoods. If this sale has affected 10m domains then we cannot be the only business this has impacted so negatively. They must take responsibility for that. 

It’s been incredibly stressful too. The insomnia has been the worst thing – I have epilepsy and sleep deprivation is the biggest trigger for seizures.

I can easily say the last seven days have been the hardest – and not just for me. It’s put a strain on my partners Kim and Matt, who co-own the business. This stress has put a huge strain on the entire team, especially with young families to look after.

We’re waiting on another email back from Google [at the time of publication] to see what they can do to restore our rankings and presence in search engines, but we fear it will be another automated email, which means more time (and earnings) lost. 

They (Google) seem untouchable. They would say it’s your fault or your responsibility to check your spam folders. We couldn’t even access our primary email account because it was blocked from accessing much of the information they had requested, so it really is a crazy scenario that they expect businesses to navigate through. 

Help from the community

Our customers and community have been so supportive. Customers have stepped up and helped us through social media support as well by buying our products, tagging their friends and sharing messages of support. We are genuinely overwhelmed by how kind our customer base have been. 

To help rebuild, we’ve offered 20 per cent off orders, plus free gifts, for customers who use a discount code. 

The advice I would give small businesses is to remember to check the spam, even on your secondary email accounts. A big issue is that a lot of Google emails look like phishing emails, so you have to really check and check again. 

Small Business approached Google and Squarespace for comment but they have yet to respond.  

However, in a response to an information request from us, founder and CEO of Trio CEO, Conor Gillivan, got in touch.

One of my clients nearly missed important deadlines during this process because important emails landed in their junk folder as their domain transfer was pending. We luckily caught the issue in time. My recommendation is to monitor communications through the changeover vigilantly. Also, confirm your contact and payment details are up-to-date in your Squarespace account. Take the opportunity to review your domain and DNS settings as well.

Squarespace has stated pricing for existing domains will hold steady for one year. Considering my years of experience assisting businesses online, I expect the technical domain handoff process to go smoothly for most. 

What to do if you lose your domain unexpectedly

We’ve asked some of the experts what you should do if you lose your domain.

Huw Ramsey, technical director at Kaweb

A domain name dropping off the gird can be extremely stressful – especially if it’s business critical – and what domain isn’t these days?

The first thing to do is establish who the registrar is for the domain – this is the body that secures the domain and renews it. Logging in to their control panel (if you have access) or contacting them and asking them for more information on its status will help ascertain next steps. The domain type will dictate what to do next as different domain types have unique processes as to what happens should they expire, for example. Performing a WHOIS search online, via tools such as https://whois.domaintools.com/ will give you more information as to the Registrar and Name Servers (which may help you track down who has access to the domain in order to renew).”

“The first thing to do is establish who the registrar is for the domain”

Huw Ramsey

Peter Wood, chief technical officer at Spectrum Search

First and foremost, communication is key. If your domain, including email, is suspended, it’s crucial to promptly inform stakeholders using alternative communication channels. Whether it’s through social media, temporary email services, or even traditional methods like phone calls, maintaining transparency with your customers, partners and employees, this can mitigate the reputational damage.

Simultaneously, initiate a domain recovery process. Contact your domain registrar immediately to understand the cause of the suspension. It could range from administrative oversights, such as expired registrations or unattended policy violations, to more complex issues like security breaches. Understanding the root cause is pivotal in formulating an effective recovery strategy.

If recovery seems prolonged, securing an alternative domain through a reputable provider is a prudent step. This, however, is more than a stopgap solution; it’s about ensuring business continuity. When selecting this alternative domain, it’s essential to choose a name that’s intuitive for your current users, thereby minimising confusion and maintaining brand recognition.

From a technical standpoint, leveraging automation and AI (artificial intelligence) can be a game-changer in these scenarios. Integrating AI and ML (machine learning) tooling can significantly streamline and accelerate recovery processes. Automating certain aspects of your digital infrastructure can not only aid in swift domain transition but also bolster your overall digital resilience.

Finally, this incident should be a catalyst for a thorough review of your digital assets and security policies. Implementing robust security measures, regular back-ups and a comprehensive disaster recovery plan is imperative. As someone who has extensively worked with emerging technologies, I cannot over-emphasise the importance of proactive risk management in safeguarding your digital presence.

“It’s crucial to promptly inform stakeholders using alternative communication channels. Whether it’s through social media, temporary email services, or even traditional methods like phone calls, maintaining transparency with your customers, partners and employees can mitigate the reputational damage”

Peter Wood

Chelsea Hopkins, social media and PR manager at Fasthosts

First of all, check if you have some form of back-up of your site so that when you do get your domain back or find a new provider you can get back online as soon as possible – this is one of the many reasons why having your site backed up is extremely important. 

If you still have email access, have a look through to see if you’ve missed any emails from your provider that could indicate what’s gone wrong. This could be anything from an upcoming renewal date or a message that a domain is set to expire if you’re renewing manually – the vast majority of web hosts won’t suspend or delete your domain without prior warning.

If you do end up with no option of recourse and have to find a new provider, don’t rush into it, however tempted you may be. Do your research to make sure you’re getting the right deal for you and your business, as the long-term issues that could arise from choosing the wrong provider can far outweigh the short-term losses of not panic buying.

“Check if you have some form of back-up of your site so that when you do get your domain back or find a new provider you can get back online as soon as possible – this is one of the many reasons why having your site backed up is extremely important”

Chelsea Hopkins

Danielle Holmes, co-owner of Black Nova Designs

This is a very common occurrence unfortunately, and in reality, there is no coming back from it if you lose access especially if it’s not in your company name. You can occasionally request domain access by proving your identity to the registrar, which can take up to six months to validate.

The way to fix this is to always buy the domain name yourself or from a supplier that puts the domain in your name – always. 

You purchase domains yearly or sometimes biannually so it’s easy to lose access or log in details – keep them safe, or buy from a trusted supplier.

The domain is the hub of everything: emails, website, newsletters, CRMs, everything. It’s imperative that it’s registered in the company name from the beginning as rectifying these issues are time consuming, difficult and can be costly. 

“You purchase domains yearly or sometimes biannually so it’s easy to lose access or log in details – keep them safe, or buy from a trusted supplier”

Danielle Holmes

Vance Tran, co-founder of Pointer Clicker

Another crucial step is to check domain marketplaces and search engines to see if your domain has been registered elsewhere in the interim. If found, the next best thing is to contact the new owner to explore negotiation with the intention to regain control.

Backordering the domain is also a smart tactic if it’s still available. This essentially puts you in line to purchase it if the new registration falls through.

For the long term, closely review any contracts with website developers regarding ownership obligations to avoid unintended transfers. Just as important is self-managing registration, using strong security measures to prevent unauthorised access that could lead to loss.

Most importantly, let’s not do a do-over: set calendar reminders well ahead of renewal dates so re-registration stays top of mind.

“Check domain marketplaces and search engines to see if your domain has been registered elsewhere in the interim. If found, the next best thing is to contact the new owner to explore negotiation with the intention to regain control”

Vance Tran

If you lose access, speak to your contacts

In short, contact your registrar if something goes wrong. Unfortunately, as Kloris CBD’s case demonstrates, you may be directed to web guides and find it near-impossible to speak to an actual human. For this reason, it’s essential to have website and email back-up in case your systems falter.

Remember that your community are around to support you as well. Let customers know what’s happening via your social media accounts, lean on fellow small businesses for advice and let your loved ones know what’s going on so that they can lend an ear.

If you’ve been affected by something like this or have any issues that you would like Small Business to investigate, please email anna.jordan@stubbenedge.com.

Read more

Choosing the right .co.uk domain name for your business – The right domain can help you attract potential customers and succeed online. And a .uk domain shows that you’re based in the UK and are a reputable business

Different domain endings – do you need to buy them all? In partnership with the UK Domain, we ask whether you really need to buy all of the domain name endings for your small business website

Why should you have a custom domain? – In partnership with the UK Domain, we tell you why you should go for a custom domain name

The post ‘We’d been wiped off the face of the internet’ – what to do if you lose your domain appeared first on Small Business UK.

Fake news and misleading or unreliable claims are creating serious problems for businesses. It is estimated that online misinformation costs the global economy $78 billion (£61 billion) a year. And, according to research carried out in 2022, bad or misleading advice costs small UK companies an average of £9,225 each. At a time where many small businesses are under heavy financial pressure, that’s money that could be better spent on growing a business. It could even tip the balance between a business’s success or failure.

As well as the online maze of misinformation, small businesses also face many other challenges and opportunities. The way consumers buy goods and interact with companies is changing rapidly in the digital age. How the UK does business with other parts of the world has also seen large scale structural changes. And of course, companies now need to contend with doing business in the era of net zero and climate change mitigation.

Against this ever evolving, disruptive backdrop there is a need for reliable, accurate and up-to-date guidance that can help small businesses avoid costly mistakes, stay on the right side of the law, and thrive in their chosen sector.

Business Companion is a free online resource that helps businesses do exactly that. Written by experts in consumer protection law, and backed by the Department for Business and the Chartered Trading Standards Institute (CTSI), Business Companion is regularly updated to reflect changes in legislation, and it’s constantly expanding to cover more business types.

Over the past year as part of its ‘Business in Focus’ series, Business Companion has published guidance on topics ranging from alternative dispute resolution (ADR) to consumer vulnerability, delivery charges, net zero, domestic energy saving, holiday parks, selling online and hazardous materials. Other topics include expert advice on renewable energy and starting an online business.

Written in clear, concise English and designed for busy traders and companies in search of information that can be accessed quickly, Business Companion sets out the facts about things like contracts and cancellations, marketing claims, complaint handling, best practice and much more.

Guidance is provided in a variety of formats, including web pages, downloadable PDFs and video explainers, in addition to other handy resources like checklists and useful links for further reading. Quick guides give the top-line facts about what the law says, while in-depth guides are designed to explore topics in detail, including case studies and more technical explanations of how the legislation applies in specific circumstances.

Avoid the rumours, uncertainty and potential damage caused by unreliable information, and visit Business Companion today to find out how it can help you do better business.

All the guidance can be accessed here.

More on legal advice

8 legal considerations when setting up a business – One of your first legal steps will be to register your business and choose your structure

The post Business Companion: a reliable voice in the misinformation age appeared first on Small Business UK.

Instagram is one of the most popular social channels out there and, over the years, small business profiles have seen real success on the platform.

Any small business can produce imagery (it’s actually a lot easier than you think!) and reap the rewards that Instagram offers.

One of the first steps to getting started with Instagram is setting up an Instagram business account. This is different to setting up a personal account, so this guide will help you get your professional account up and running. For more details on all of these steps, check out this article.

1. Sign up to Instagram

You’ll need to download the Instagram app from your phone’s app store (it’s best to use a mobile device to access Instagram). If you already have a personal account, you can sign in and choose the “Add Account” option.

Follow the instructions and sign up using your phone number, email address or Facebook login. You’ll also need to enter your name and create a password. Don’t worry if you use your personal name here, you can always change this later on.

As Instagram and Facebook are both owned by Meta, you can create an Instagram account if you have a Facebook account.

2. Set up your profile

Next, you’ll be guided to set up some of your new profile including:

• Username: It’s important this relates to your business and is recognisable. If it’s available, using your business name is best practice.
• Profile picture: Keep this simple and use your business logo so your brand is instantly recognisable on the platform. The ideal profile image size is 320×320.

3. Switch to a business profile

To transform the Instagram account you’ve just created to a business profile, you’ll need to head over to your profile by clicking the profile icon in the bottom right hand corner.

Next, click the small cog in the top right-hand corner and go to the ‘accounts and privacy’ option. Click on ‘account types and tools’ and choose the ‘switch to professional account’ option.

You’ll be prompted to choose the best option for your business profile between a creator (most suited to influencers) and business (best for retailers and businesses). You’ll then be guided through some of the business features, have the option to connect your Facebook page, and choose industry categories which are most relevant to you.

Once you’ve confirmed your business details are correct, you have successfully created an Instagram business account!

4. Completing your profile

Before you start posting, there are a few important settings to look at to complete your setup:

• Profile name: If you set up Instagram using your personal name, you can change this by selecting “edit” on your business’ profile page.
• Bio: Take some time to complete your bio, providing a description of your business and adding your website address.
• Action buttons: One of the perks of having a business account is that you have the options to add additional buttons to your profile. Under public business information, click Action buttons. Select the action and click ‘done’.
• Public profile: Make sure your new profile is public so people can start finding your content straight away.
• Additional settings: Enable two-factor authentication to protect your account. It’s also a good idea to set preferences for your notifications, so you can be alerted when people follow you and comment or like your content. It’s also worth heading over to ‘Insights’ where you’ll be able to access data around your post performance and followers.

You can find more details and helpful video links for these steps in this guide.

To make the most of your new Instagram profile, take some time to create and develop a marketing strategy for the platform. This online guide will help you create your own strategy and get started on the platform including guidance on stories, going live, hashtags and influencer marketing. View the guide here, where you’ll also be able to download an interactive checklist to help you get started.

When you’re ready to start posting, check out this guide to writing great Instagram captions and learn more about making the most of social media for your business in this dedicated content hub.

This article was brought to you in partnership with The UK Domain.

Read more

Instagram Stories: How you can use video and photos to build your business

The post Your 4-step guide to setting up an Instagram business account appeared first on Small Business UK.

What is a merchant cash advance?

A merchant cash advance, or MCA, is short-term funding for businesses which accept debit and credit card payments. Merchant cash advance lenders provide businesses with an upfront sum of money and the advance is paid as a percentage of their ongoing future credit card sales. Your business repays the MCA using a percentage of its card transaction sales, plus fees.

One attraction is that you don’t need to offer up assets for security, such as property or inventory, to access funding.

How much can I borrow?

Broadly speaking, you could borrow up to 150 per cent of your monthly card sales. A lender wants to see that you have been trading for a minimum of three months and have a card transaction turnover of at least £10,000 per month.

Typically, lenders will advance from £2,500 to £300,000 conditionally linked to turnover.

Fast business funding and loans – Worried about cash flow for your small business? Need cash fast? Find out more about fast business funding and who the key providers are

How does a merchant cash advance work?

First, once you have decided how much you want to borrow, you and the lender agree the percentage repayment corridor of debit/credit card sales.

Typically, you should expect a range of between 10 per cent and 18 per cent of each sale to repay when you make a sale.

Unlike other forms of traditional business lending where a company repays a set amount each month to repay a loan, the MCA is paid off as and when you make sales.

So, if your business has a slow month on sales due to seasonality or just general poor sales, you are only expected to pay back in line with the corridor on those sales. A conventional loan would expect fixed repayments regardless.

Pro tip: One difference between an MCA and a traditional business loan is that there is no benefit to early repayment. The total repayment amount has already been agreed.

The amount you borrow is deducted daily, weekly or monthly as a percentage of your company’s sales, plus interest, until the amount is repaid in full. The higher the number of debit or credit card purchases, the quicker the advance can be repaid.

How long does a merchant cash advance last?

Repayment timescales for MCAs typically range from three to 18 months.

What you can use the money for

• Renovation and refurbishment
• Purchasing stock
• Working capital
• Marketing and advertising
• Business expansion

Borrowing money to pay for stock: inventory finance, credit cards, loans and more – We explore the options that are available to help you cover the costs of your stock as well as the pros and cons

What kinds of businesses is it best for?

Cash advances are best suited to small businesses looking for a cash injection within 24 hours. Lenders may require you to have been trading for a minimum of three months and have a card transaction turnover of at least £10,000 per month.

Any business that accepts credit card payments is suitable; however, it is best suited to businesses that make heavy use of card machines, such as retail, hospitality or tradesmen, if they carry a handheld machine.

How long does it take to apply for a merchant cash advance?

Once you have submitted an online form and three months of merchant statements, draw down of funds can take on average 2-3 days.

Who are the merchant cash advance companies in the UK?

Here are some of the popular merchant cash advance companies in the UK:

• 365 Business Finance
• Amazon
• Capify
• eBay
• JustEat
• Liberis
• Momenta Finance
• Merchant Loan Advance
• Nucleus Commercial Finance
• PayPal

365 Business Finance

Cash advance amount: £10,000 to £400,000

Collection rate: 5-16%

Term: There’s no fixed term

Speed of decision: Under 24 hours (and funding can be under 48 hours)

365 Business Finance offers merchant cash advances to small businesses that have been trading longer than six months and says it has a 90 per cent approval rate. Repayments are taken as a small percentage of credit and debit card sales and stop automatically when the loan has been fully repaid. However, if your monthly card sales don’t currently exceed £10,000, you’ll need to speak to a representative before being approved.

Amazon

Cash Advance Amount: £500 to £2m

Collection rate: 5-20%

Term: 6 to 9 months

Speed of decision: 24 hours

Amazon launched its merchant cash advance offer in July 2023, aimed at the 100,000 UK small businesses that sell through the platform. The actual money is lent by YouLend, which also has branded offers through eBay, Just Eat, Shopify and others. Amazon says it has a 90 per cent acceptance rate. Only businesses that have a minimum of three months’ trading history can apply.

Capify

Cash advance amount: £5,000 to £500,000

Collection rate: circa 15%

Average repayment term: 9 months

Speed of decision: same-day approval and funding within 24 hours

SME Lender of the Year at the 2023 Credit Awards, Capify has helped thousands of businesses realise their growth ambitions over the past 15 years. You must have at least one year of trading history to qualify for a Capify merchant cash advance and take at least £20,000 in monthly card payments.

eBay

Cash Advance Amount: £500 to £1m

Collection rate: 5-20%

Term: 6 to 9 months

Speed of decision: 24 hours

The actual money is lent by YouLend, which also has branded offers through Amazon, Just Eat, Shopify and others. eBay says it has a 90 per cent acceptance rate.

Just Eat

Cash advance amount: £500 to £1m

Collection rate: 5-20%

Term: 6 to 9 months

Speed of decision: 24 hours

The actual money is lent by YouLend, which also has branded offers through Amazon, eBay, Shopify and others. Just Eat says it has a 90 per cent acceptance rate.

Liberis

Cash advance amount: £1,000 to £1m
Collection rate: 15-20%
Average repayment term: 12-18 months
Speed of decision: within 24 hours

Liberis has arranged £1bn worth of finance for 26,000 businesses. Founded in 2007, Liberis also offers a white-label service to brands including Barclaycard, Global Payments, Tide and WorldPay. If a borrower wants to renew, they are usually referred straight to Liberis.

Momenta Finance

Cash advance amount: £10,000 to £150,000

Collection rate: 10-15%

Term: flexible and top-ups available after 4 months

Speed of decision: funds received within 24 hours

Applicants must have a minimum six months of trading history and take a minimum of £10,000 a month through card terminals. Business cash advance loans are calculated at 120 per cent of monthly card takings up to a maximum of £150,000. They have supported more than 2,000 SMEs with £150m worth of lending.

Merchant Loan Advance

Cash advance amount: £3,000 to £300,000

Collection rate: 10-25%

Term: 4-18 months

Speed of decision: “On average 5 days after your application”, but it can as quick as 24 hours.

Merchant Loan Advance is FCA and ICO registered and was established in 2014, It has lent over £7 million to SMEs to date at an average amount of £16,000 per advance. Typically, the company works with businesses that have been trading for a minimum of three months and are turning over £3,000 in monthly card takings, but they will try to find solutions if you are a start-up or the company does not meet these requirements.

Nucleus Commercial Finance

Cash advance amount: £3,000 to £300,000

Collection rate: n/a

Term: 3-12 months

Speed of decision: same day

Nucleus Commercial Finance, which has lent over £2.8bn to SMEs to date, offers up to 200 per cent of monthly card transactions. You must have been trading for a minimum of four months though with at least one director based in the UK, with a minimum of £4,200 in monthly card takings and 10-plus card transactions a month. Other caveats include your having to be a homeowner for security if you want to borrow more than £75,000, and businesses registered in Scotland only being able to borrow up to £40,000 — not £150,00 as in England and Wales.

PayPal Working Capital

Cash advance amount: £1,000 up to £125,000 for first time applicants; up to £185,000 for subsequent applicants

Collection rate: 10-30%

Term: variable

Speed of decision: PayPal will usually let you know if you’re approved straight away. If approved and you accept, your funding will be transferred to your PayPal account within minutes

PayPal launched its PayPal Working Capital product back in 2014. As of January 2022, over 52,000 businesses have secured £1.9bn in funding with PayPal Working Capital. Depending on eligibility, you could receive business funding equivalent to up to 35 per cent of your annual PayPal sales, up to a maximum of £185,000. To be eligible to apply you must have held a UK PayPal business account for at least three months before applying, and process at least £9,000 a year in PayPal sales annually. When it comes to repayment, your business needs to meet the minimum repayment threshold every 90 days, plus the fixed fee which you know upfront.

“Accessibility and flexibility has a lot of appeal to business owners who are stretched in so many directions to keep their businesses up and running,” PayPal told Small Business.

More on business funding

Best small business loans in the UK – We explore whether a loan is the right finance option for you along with some of the best small business loans in the UK market

What is a working capital loan for your business? – An explainer on this sort of finance that is designed to cover short-term operational needs

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