The latest draft of proposals for a Local Enterprise Partnership to replace business support previously available from the South West Regional Development Agency and Business Link are now available at devon.gov.uk/heartofswlep.htm.

The proposed LEP has been named the Heart of South West Local Enterprise Partnership.

North Devon businesses may be interested to know that the proposals have been drawn up by 15 'business leaders', none of whom specifically represent North Devon.

It is important that North Devon businesses feed back their comments and opinions on this draft by 25 February 2011.

This month our lunch will be at the Yeoldon House Hotel, Northam on Friday 25 February at 12 midday.

The meeting format will be as usual with a relaxed atmosphere aimed at generating networking through conversation.

As usual, the price is £20, although meals need to be pre-ordered. No-shows will have to pay £20.

For details of Yeoldon House Hotel, please visit yeoldonhousehotel.co.uk.

We're hoping to see existing members and new faces.

Please contact Kevin Woodward on 0333 044 2038 or James Hellyer.

Robert Zarywacz thinks businesses who maintain their marketing will thrive

A double-dip recession would be far more interesting for the media than a sustained recovery.

This was evident on the day when the Office of National Statistics published the third quarter 2010 UK GDP figures. Many commentators had been almost rubbing their hands with glee as they predicted 0.4% growth, only to retract their words when the actual growth was double their predictions at 0.8%.

Success is 50% sentiment . . .
Unfortunately, sentiment is very powerful and can raise or reduce confidence very fast. While government cuts will inevitably mean a tough 2011, it would be very easy to talk ourselves back into recession unnecessarily.

Conversely, we could just as easily talk ourselves into recovery.

There is no logic to fickle confidence.

. . . and 50% hard work
But, as everyone in business knows, talk doesn’t run a business: hard work is needed for that.

And marketing is one area which needs to work hard for any business wanting not just to survive, but to thrive. It also tends to be one of the first activities to be cut when businesses need to reduce costs.

While cutting unnecessary costs and improving efficiency are desirable, this does not have to be at the expense of marketing, which is the fuel powering the engine of a business. There are many actions a business can take at little or no cost to keep its marketing effective.

Essential actions
> Is your marketing material current? It should be easy to update your web site, especially if you use a content management system to add or change text yourself.

> Are you using public relations? It can be as easy as picking up the phone to interest a journalist when you have a good story to tell.

> Are you publicising your successes? Many businesses sit on material that could make powerful case studies.

> Are you using social media effectively? Just changing your status once a day on LinkedIn or facebook or posting five tweets a day on twitter can help keep you in front of your customers.

Keep on marketing
Whether you have a budget to buy professional services or you manage your own marketing, this is just a small sample of many marketing activities that can generate more business.

BUSINESS ACTION
> Keep your web site up to date.
> Contact the media with interesting ideas for stories.
> Publicise your successes.
> Use social media little and often.
> Follow NDBA members on twitter, facebook and LinkedIn.

Robert Zarywacz
t: 01271 879100
e: rob@z2z.com
w: z2z.com
twitter: @robertz

Business adviser and accountant James Hellyer looks at how to keep your business in shape

Speaking to a lot of people in the North Devon business community, I have noticed a general attitude of optimism concerning the year ahead. However, there are many reasons why 2011 might herald an even harsher economic climate for the region.

The South West is more reliant than much of the country on state sector jobs. Some of these jobs may well go as part of the comprehensive spending review. That will impact on secondary spend, as those made unemployed suddenly don't have disposable incomes to spend in local shops, pubs and restaurants. Add to this the imminent increase in the rate of VAT and there's a potential double whammy waiting to hit North Devon business.

So what can you do to prepare your business for tough times ahead?

Well, now is the time to have a business and tax health check.

Business health check
There are some things every business should know about itself. Many don't because they are too busy working in the business to work on their business.

Ask yourself these questions:

> Do you know how much you have to sell each week or month in order just to break even (ie to cover your costs)? Identifying the required sales volume should be the first thing you do. > Do you know what your gross profit margin is? If it's too low, you may not cover your overheads, and even if you increase unit sales, you may just be working harder to continue making a loss.

> Do you know whether all of your product lines are profitable? Perhaps you should find out and stop selling products that don’t make you money.

> Are your prices right? One of the easiest ways to make more money is to increase your prices. Can you get the formula right so you can sell for more, but not lose customers?

Tax health check
When times are hard for your business, there are many steps you can take to accelerate tax relief or even to get HM Revenue to put cash into your bank account.

Have you discussed any of the following with your accountant?

> If your business is a sole trader or partnership with a year-end other than 5 April or 31 March, it may have early year's profits (called 'overlap profits') that have been taxed twice. Normally, you get relief for this when the business stops trading. But wouldn't you rather have that relief now? You can if you change your year-end.

> If your profits have dropped in the last year, whether due to difficult trading conditions or even capital investment, then you might be eligible for tax credits. Hundreds of millions of pounds to which people are entitled go unclaimed each year. Some of them could be yours.

> If your business has made losses, you could change its year-end to make sure you receive any tax refund due to you sooner rather than later.

> Are you claiming all the reliefs you are entitled to? For example, if your business has spent money developing or improving products or services over the last year or more, then it may be entitled to enhanced tax credits. These can cut your tax bill and even generate a refund for businesses in their early years when you have yet to pay tax.

> Have you considered the tax allowances available for plant and machinery purchases? If you were planning on buying something next year, purchasing it now, under some circumstances, could get you tax relief a whole year early.

> Have you bought commercial property or are you thinking of buying some? Again, careful planning could maximise the amount of the property that's eligible for tax relief. This is just a small sample of the topics you could be discussing with your accountant right now to ensure that your business is in the best trading and tax position possible when things begin to bite.

BUSINESS ACTION
> Identify how much you need to sell to break even.
> Ensure your profit margin is right.
> Set your prices at the right level.
> Make sure you claim all tax reliefs and tax credits.
> Consider changing your year-end to receive tax refunds sooner.

James Hellyer
t: 07736 686676
e: james_hellyer@accountant.com
twitter: @james_hellyer
Free initial business and tax health check

Stacey Pledge of B My Office in Barnstaple untangles the spaghetti of this alternative to employment

As the government's announcements of cutbacks keep coming thick and fast in a bid to manage the country's financial deficit, people running businesses are preparing for leaner times ahead. Many are looking to find ways of improving efficiency to help them weather the impending storm.

If someone in business is disorganised and not getting good value from their staff or suppliers, it can feel like an uphill struggle. Outsourcing tasks to a virtual business coordinator can offer many small businesses a suitable alternative to employing staff.

But what is a virtual business coordinator? What can they do for you? And what can't they do that an employee can?

What is a VBC?

A VBC is an experienced and qualified business owner who does the same work as a secretary, personal assistant, office administrator and project coordinator combined. VBCs utilise technology, their skills and their network of professional contacts to meet the needs of their clients.

Most VBCs offer a variety of services including:

> general administration
> database and web site development
> graphic design
> presentation preparation
> telephone answering
> credit control
> bookkeeping
> transcriptions
> and more

The Good
> No need to spend time and money on training new staff.
> No need to purchase extra office equipment (computers, software, office space).
> Business only pays for the work a VBC actually does.
> No need to worry about paying a member of staff sitting idle on a quiet day.
> No need to worry about sickness, payroll, holiday, lost days and related paperwork/red tape.
> VBCs keep themselves up to date with the latest technologies and cost-saving services so they can pass on any savings to the businesses with which they work.

The Bad and the Ugly
> VBCs often charge a higher hourly rate compared with the cost of an employee.
> They may not know the business as well as a trained employee. An employee is dedicated solely to the business and can work in-house.
> Some VBCs may not work the same hours your business operates.
> Many VBCs work from their own office and cannot provide a daily face-to-face presence.
> Possible personality clashes between current employees and VBCs.
> The virtual business coordinator may be unable to undertake all the tasks required if they don't have the skills relevant to your business needs.

The Showdown
What is most important above everything else is that a business is actively reviewing its business processes and plans, and looking to reduce costs and increase productivity.

The benefits of focusing on these areas and making positive decisions strengthen a business and make it more likely to succeed than one that remains static.

"When I start out to find somebody . . . I find him. That's why they pay me."

A line from the film The Good, the Bad and the Ugly, a statement that represents a good virtual business coordinator.

However, I would alter it to:

"When we start out to support a growing business . . . we get things done. That's why they pay us."

BUSINESS ACTION
> List what you want to outsource and clear reasons for doing it.
> Research potential virtual business coordinators, get referrals, talk to their clients, request work samples.
> Ask for a free consultation – most will offer this option.
> Consider both options of employing staff and hiring a virtual business coordinator, choosing what is right for you.

Stacey Pledge
t: 01271 344545
e: stacey@bmyoffice.com
w: bmyoffice.com

The government's spending review, reorganisation of business and community support and abolition of many public bodies are creating much change for businesses in North Devon.

On the face of it, it is natural to be concerned that, suddenly, some organisations perceived to exist to support business and the community are disappearing.

Yet a closer look at many South West and Devon organisations, both government and voluntary run, leads to asking what actual support they give to businesses in North Devon?

Out of a sample of 28 of the many organisations, agencies and bodies purporting to serve the South West or Devon, 16 have main offices in Exeter, 8 in Bristol, 4 in Plymouth, 2 in South Devon, 1 in Truro, 1 in Somerset and 1 in Wiltshire (multiple offices are included in these figures).

What connection with and relevance to North Devon do these organisations have? Does it matter?

It does to businesses based in North Devon.

South West means more than Bristol and Exeter
Sometimes there is a perception that business in the North of the county means farming, retail or tourism. Yet we have a broad mix of businesses with 22% of the workforce in manufacturing and a growing business services sector.

We have world class manufacturers exporting to every continent, hi-tech internet businesses and quality food manufacturers. Many businesses are online and network with other businesses in the area, across Devon, the region, the country and the world. They are reaching out and developing new relationships and exploiting the sophisticated networks now possible through social media. They provide products and services that were not possible five or 10 years ago and are embracing the opportunities offered by an increasing focus on sustainability.

No need for must, must, must
Yet all too often communications from these support organisations and quangos aimed at the area begin by saying “North Devon businesses must . . .”

Why must we?

How do they know what is happening in North Devon?

Perhaps they could learn something themselves from North Devon businesses. Perhaps if these organisations came out of their cities and got to know the rest of the South West outside Bristol, Exeter and Plymouth, they would have a better understanding of the county and region, and be able to provide more effective support to remote areas such as North Devon.

What do North Devon businesses want?
Our requirements are clear:

> better representation at county and regional level
> to be treated with respect

We want organisations to improve the way they communicate with the North Devon business community. That means getting to know us, our needs and especially our strengths. It means giving us the opportunity to voice our opinions and listening to them. It also means communicating with us as equals and not in a top-down, patronising tone.

That will involve educating communications and PR offices and external agencies, who, as professionals in their sector, ought to know better.

Whose fault is it?

While we are critical of some organisations, we recognise that the North Devon business community also has a responsibility to represent itself. The area has not been effective in making itself heard in the past and needs to make a bigger effort.

Our challenge is to identify the opportunities to engage with the rest of the county and the South West, and to forge new, effective relationships for the benefit of all.

That is one of the reasons why we established the North Devon Business Alliance: to fill the communications vacuum.

Need for rationalistion
As well as more effective two-way communication, rationalisation of responsibilities and activities is needed. For any issue, there is a bewildering array of initiatives from multiple organisations.

This creates confusion over which organisation to approach and which scheme is applicable. Businesses do not have the time for this, but require more coordinated support and a clear map of who provides what activity.

The area of sustainability and the low carbon economy is a good example with initiatives from Regen SW, SWRDA, Business Link and CITB-Construction Skills South West among others. Sometimes, organisations seem to compete in promoting their own schemes with the effect of creating confusion in the marketplace. This not only prevents businesses from benefitting from what could be useful advice and support, but also damages all support organisations in the eyes of the business community.

There is an urgent need for effective coordinated support at a county and regional level.

Let's work together
We welcome the opportunity to communicate, to explain our needs and cascade information to North Devon businesses. We would like more events to be held here too.

We also welcome guests to our monthly NDBA lunches to meet and get to know businesses here. And why not meet other North Devon organisations - FSB branches, chambers and networking groups?

Let's engage and explore how we can all exploit opportunities for the benefit of businesses in North Devon, the county and the region.

WHO REPRESENTS NORTH DEVON?
The confusing list of organisations serving us.

Do you know who they all are and what they do?

BBC Devon
Beacon South West
Black South West Network
Business Link
CIBSW
Community Council of Devon
DCBC
Devon County Council
DEBI
Devon Consortium
Devon Education Business Partnership
Devon Rural Network Equality
South West Food and Drink  
GOSW
Heart FM
ITV West Country
Regen SW
RISE
South West Acre Network of Rural Community Councils
South West Forum
South West Screen
South West Tourism
SWAIN
SWRDA
Taste of the West
Visit Devon
UKTI SW

Kevin Woodward advises against trying too hard to impress online

The North Devon Business Alliance promotes the use of internet based networking as a way of maintaining contact with our members in between monthly face-to-face lunches.

It is important to maintain contact, because that is how we get to know one another, and why we start to recommend each other's services.

Networking online
I have been using the internet to make contact with new people, to maintain contact with both old and new friends and network with business colleagues.

I have been using twitter for two years now, changing my allegiance from another business networking web site. Yes, I have it linked to facebook and to LinkedIn among others, and enjoy the interaction and banter that those web sites provide, but spend most of my online networking time on twitter.

Interacting with the outside world from a home business
Like many businesses in North Devon, I work from home and often alone, and need the interaction with the outside world as a break from the intensity of what I do. I find that break is similar to the meeting at the coffee machine or photocopier that used to happen when I worked in the big corporate world on the Slough Trading Estate, nearly eight years ago now.

I have gradually built up a following of well over 2,500 and follow some 1,700 back. Not everyone who follows me is followed back, and I have my reasons as to why not, but they're welcome to follow my tweets.

This brings me to Stephen Fry - a well-known 'British Actor, Writer, Lord of Dance, Prince of Swimwear and Blogger' - he's followed by over 1.8 million and follows back just over 50,000 people, and I'm honoured to say that I am one of those that he follows back, but doubt very much whether he sees any of my tweets.

However, a local blogger and writer wrote a very interesting blog back in August entitled The Day I Dumped @StephenFry and Kept @LlamaKevin.

Yes, @llamakevin is my twitter name and I find myself the subject of a blog along with the said Stephen Fry. It's well worth a read, but it made me think why I had made that headline and not anyone else. I believe it's because I remember to be myself.

A sociable business
I am on twitter to engage socially, to spread the word about myself and my business, what I do and to increase my business income. Yes, I have done that. I have had several QuickBooks training sessions booked, I have let out my holiday cottage at least three times through the use of twitter, I have had people come look at my llamas and goats, but in the main I am myself. I talk business, I talk politics (nothing contentious), I talk sport, I talk gardening, I talk North Devon, I talk about the weather and, obviously, I talk llamas, but throughout I remember to be me.

There are many people around who try to be something they are not. Some try to be the product that they try to sell, some are full of wonderful quotes, others are constantly telling you where their web site is, but the people who get it the most are those who are just being themselves.

Just be yourself

So, if you are about to embark on twitter, facebook, LinkedIn or any of the other 100s of networking sites, remember to be yourself, because in the end that is important.

BUSINESS ACTION
> Be sociable.
> Don’t try to be something you are not.
> Don’t try to sell too hard.
> Just be yourself.

Kevin Woodward
t: 01237 451848
e: kevin@kvassociates.co.uk
w: kvassociates.co.uk
twitter: @llamakevin

Issue 2 of the North Devon Business Alliance's magazine, Business Action, is now available in print and online.

View the magazine or contact us for a print copy.

Devon County Council is inviting businesses to public meetings attended by the leader of the council to discuss how the council should spend its budget to reduce costs and save money.

Meetings in North Devon, starting at 6.30pm, will be at:

October 14: the Amory Centre, South Molton

November 16: Bideford Town Hall

Businesses who can't make these meetings can submit comments through the council's toughchoices.co.uk website.

As the public sector raises a huge amount of money through taxes generated by the private sector, this is an opportunity for businesses to voice their opinions and, possibly, influence decisions.

Whether or not opinions are actually taken into account by the council, local authority cutbacks are certain to be felt by all in the years ahead, so now is the time to engage with Devon County Council.

NDBA's monthly meeting for August will be an informal barbecue at the Pig on the Hill Westward Ho! from 2.30pm on Friday 27 August.

The cost is £10 per adult (£5 per child) with a pay bar.

While our monthly lunches usually focus on a serious business topic, this is a chance for more informal networking.

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To book a place, please call 0333 044 2038