Category: Business Trends

Last year was a challenging one for businesses across the UK, as economic volatility and the political uncertainty created by Brexit took a gradual toll. This is was felt particularly harshly in the retail sector, which endured a harrowing fourth quarter that resulted in job losses, declining revenues and dwindling profit margins. This should not come as a major surprise, especially with many traditional retail brands struggling to survive in an age of digitisation and rampant e-commerce.

In terms of numbers, an estimated 84,000 jobs were slashed across the retail sector between October and November, which translates into a sharp quarterly decrease of 3%. The continued uncertainty surrounding Brexit played a pivotal role in this decline, as it made retailers more inclined to adopt a risk-averse approach to spending while also forcing many to increase their costs. After all, the vote to leave you has sent the value of pound spiralling, increasing the cost of imports and compelling brands to share these additional expenses with consumers.

Supermarkets Managed to Buck This Trend, While Discount Chains Are on the Rise

There were some retail giants who managed to buck this trend, however, with the leading supermarkets providing a relevant case in point. Cumulatively, these outlets recorded their best festive performance for four years, with Neilsen’s retail data confirming that revenues for the four-week period ending on December 31^st were up 3.3% year-on-year. This was the highest level of growth since 2012, while it also represented a huge important on the flat rate of expansion recorded at the end of 2015.

In terms of individual chain performance, the data revealed that Morrison’s enjoyed largest annual growth of the so-called ‘Big Four’ (which also includes Tesco, Asda and Sainsburys). The relative newcomer achieved year-on-year growth of 3.4% in 2016, while showcasing a noticeable spike in revenues over the festive period. Tesco also recorded respectable growth figures of 2.7%, with the UK’s former market leader coming in slightly ahead of its established rivals.

While these four major brands all performed exceptionally well given the prevailing economic climate, however, it was discount chains Aldi and Lidl who really took the market by storm over Christmas. In fact, Aldi recorded the best growth of any leading supermarket chain in the UK, with sales having increased by a staggering 17% in the four-week period during December. The brand also gained nearly one million new customers as opposed to 2015, which will drive further and more sustained growth in the future.

Lidl also saw its revenues soar by 10% during the same period, highlighting the incredible impact that discounted supermarket chains have had in a changeable and unstable marketplace.

How Have Supermarkets to Thrive While Other Retailers Have Failed?

In some respects, supermarkets benefited from a number of favourable conditions towards the end of 201. It has also been suggested that the festive growth figures were slightly skewed by abnormal consumer behaviour, as the majority of consumers left their Christmas shopping to a later date and spent more in December than they would normally do. The week up until Christmas Eve saw sales increase by 22% year-on-year, for example, with cumulative revenues for the final two weeks of December totalling a huge £5.9 billion.

There were several factors that influenced consumer’s buying habits this Christmas, with one of the most impactful being the presence of an additional shopping day. Not only this, but the relatively mild weather and sustained absence of snow also negated the need for households to shop early and stock up on produce, which delivered huge financial benefits to the major chains.

While these factors may have helped to inflate the festive revenue figures recorded by supermarkets, however, the major chains must also take credit for the way that they have reacted to a volatile economy and changing, consumer outlook. All of the major players decided to simplify their sales and promotional strategies during Christmas, for example, present more straightforward discounts that actively increased seasonal spending.

As if to reaffirm this, the percentage of festive purchases committed to promotional products fell to 27% this year, which was the lowest rate for six years and indicative of a 4% decline from 2015 figures.

Most importantly of all, however, the UK’s leading supermarkets have done a superb job of communicating price amendments and accounting for the declining value of the pound. When ETX Capital reported that the currencies value had plummeted to its lowest level for 31 years, for example, many believed that retail prices would need to increase in order to cope with the additional cost of imports. While this has been true in most retail sectors, however, supermarkets have managed of negate potential price increases while communicating clearly and openly with their customers.

So even though some prices may have increased marginally, brands have been quick to educate and inform shoppers. They have also adopted a proactive approach and sought to offset these increases by reducing prices elsewhere, particularly on local produce that has been sourced from the UK. Discount brand Lidl have also capitalised on the fact that the company is German-owned, enabling it manage import costs without passing these directly onto the consumer.

Given that the cost of goods in Lidl and fellow discount chain Aldi is already exceptionally low, this means that these brands have so far been able to avoid the social and financial implications of Brexit.

The Last Word

Even accounting for the proactivity of major supermarkets and the natural advantages of internationally-owned discount chains such as Lidl, the growth recorded by these brands at the end of 2016 remained disproportionate to the economic climate. The question that remains is whether these figures can be sustained, particularly once Britain formally triggers Article 50 and leaves the EU.

The negotiations are expected to begin in March, and this will provide a stern test to the recent growth recorded by supermarkets. This is certainly a space to watch, however, particularly as the cost of imports will begin to eat away at supermarket’s profits for as long as the pound remains weak.

 

 

Describing someone as an electrician is largely a generic term used to describe what sort of industry they work in, but there are actually many different types of electricians, and it often pays to understand the difference so that you can pick the right one for the job you have in mind.

Licensed and skilled

As you would expect, a suitably qualified electrician will have recognized skills and be fully licensed to carry out electrical work.

There are however differences in the type of work that an electrician may be qualified and equipped to do though.

If you are seeking out info about solar power for example, you will want to find someone who has the necessary skills and qualifications required to install a solar energy system in your home.

Here is a look at the different types of electrician that you will encounter.

Residential work

If you are a homeowner and have some domestic electrical issues that need resolving or want a quote for a rewire, you are looking for a residential electrician.

A residential electrician is qualified to either install, maintain or upgrade the electrical circuits and equipment in your house or apartment.

The scope of their work will normally extend to doing outside lighting and other similar projects. In order to become a residential electrician, there is a minimum four year apprenticeship to complete, followed by a test to confirm their competence, before they can undertake work on their own.

If you appoint a residential electrician, you will know that they have been put through their paces and will be able to offer a professional level of competence, once they are qualified.

Commercial work

As the name implies, a commercial electrician will mainly be found working on commercial projects, such as industrial buildings, constructions sites and also mechanical electrical systems.

Although you will certainly find that a good number of commercial electricians will undertake some installation work, like installing a security system or connecting up a water heater, the scope of their qualifications, means that they will invariably be working on commercial projects rather than carrying out residential work.

There are very rigorous standards that a commercial electrician will need to adhere to, as commercial electrical work does potentially affect public safety, as the work is being carried out in a commercial building and environment.

More than seven years experience

You might also see someone being referred to as a master electrician.

Those classed as a master electrician will have completed at least seven years of experience as an electrician, or they might have completed a bachelor’s degree in electrical engineering, which earns them the right to be called a master electrician.

It may well be that an electrical contractor who is running their own business, is classed as a master electrician. A person of this stature will have managerial skills as well as experience and qualifications, and you will often find a master electrician working in a supervisory capacity, if they are not running their own business.

Wide variety of contracting tasks

You may also encounter someone who is described as a journeyman electrician.

This type of electrician operates in both the residential and commercial sectors. They will be able to carry out mechanical connections, carry out installation and maintenance of security and communications systems, and deal competently with lighting installations and power supply requirements.

A journeyman electrician will have completed a number of years of on-the-job training and this will have enabled them to acquire the appropriate license in their relevant state.

The fundamental difference between a journeyman and a master electrician is that the journeyman hasn’t yet qualified for their master’s license. This means that they may be required by state law to work alongside a master electrician, and although they will not be permitted to design any electrical system, they can install equipment and wiring.

Picking the right one

The relevance of these different descriptions for an electrician is that many will tend to specialize, so it is a case of picking the right one for the job that you have in mind.

You may well find that a general electrical contractor has access to a list of suitably qualified electricians that are competent and permitted to carry out the required work. Ask for proof of licensing if you are unsure and check that they have the required level of liability level of insurance.

Hopefully, understanding the difference between each type of electrician, will help you to pick the right one and get the job done with the minimum of fuss.

Charles Barker is semi-retired now, but worked as an electrician all his life since entering the trade as an apprentice at 16. He discovered his enjoyment of writing soon after he realized he had so much extra time on his hands, and spends his free days writing, doing odd-jobs around the house and spending time with his grandchildren.

Digital technology has changed our lives beyond recognition. It helps us when we need relevant information fast.We now do things differently because of our smart phones and tablets and computers. The difference is how we communicate ideas and how we search for relevant information. If, for instance, you are looking for a place to have dinner in a new city, your smartphone can give you a much more accurate description of the types of restaurants that serve the type of cuisine you like than a human being could provide.

While we are aware of how much digital technology has improved our home and office lives, we may be less aware of how it has transformed entire industries. One industry in particular that has been radically affected has been the the field of healthcare.  Medicine, which thrives on accurate information, now uses digital technology, to create a seamless stream of information about a patient’s medical history. Today, electronic health records (EHR) have transformed how health care is delivered. Now information about a patient’s medical is available wherever it is needed by any medical professional who needs it. Gone are the days when patient’s paper files had to be delivered by mail or when medical records had to be constantly corrected because of outdated information.

Besides its use in hospitals and clinics, EHR is also important for healthcare companies that provide ancillary support like insurance coding, medical billing services, lab services, and so on.

Compliance with Health Regulations

However, since there are many rules and regulations when it comes to health laws, it can be challenging to keep track of compliance issues, especially if you are just starting a medical practice. Consequently, it is often necessary to use a healthcare compliance company that offers new medical practices meaningful use consulting services. For instance, if upon graduation from medical school, you opened up a specialized clinic to treat knee osteoarthritis pain, you would need some guidance before going live with your electronic health records. You would need to know if you are meeting State and Federal regulatory compliance and if the risk level of your health care practice falls in line with new HIPAA regulations. Failure to meet healthcare standards specific to your practice can result in high-cost penalties and fees.

Improved Healthcare with EHR

Electronic Health Records improve the quality of health care, as well as making health care much more convenient for both patients and providers. EHR improves diagnostics and outcomes and improves care coordination. It also improves medical practice efficiency and provides cost savings.

A health care practitioner benefits by getting quick access to all a patients records to provide more efficient health care. It also becomes easier to interface with labs and to make decisions based on accurate and up-to-date medical information. Meanwhile, those responsible for coding and billing can work with legible documents that have complete details. This may not seem like much of a breakthrough in healthcare, but coding and billing departments have always been burdened by the task of deciphering doctor’s illegible handwriting and hastily compiled documentation!

How Patients Benefits from EHR

Besides getting better treatment based on their physicians working with accurate records, patients also benefit in many ways. They know when to see a physician again for followup treatment because they are given timely reminders by the clinic. They are relieved of the tedium of filling out the same forms every time they visit a medical office. And they enjoy the convenience of their electronic prescribing delivered to their pharmacy by their healthcare provider’s clinic before they get there.

EMR is not EHR

There is often confusion between an Electronic Medical Record (EMR) and an Electronic Health Record (EHR), and those unfamiliar with the digital advances in medical technology use the terms interchangeably. When a patient visits a physician or other provider at a clinic, standard medical information is gathered. This is their EMR. However, all the records gathered about a patient by different providers constitute their EHR. This is a far more comprehensive medical history of the patient. This body of information can be created and managed and consulted by authorized providers across many health care organizations.

A New Chapter in Quality Health Care

According to Healthit.gov, the reason EHR improves the quality and convenience of health care is because “access to complete patient health information is essential for safe and effective care. EHRs place accurate and complete information about patients’ health and medical history at providers’ fingertips. With EHRs, providers can give the best possible care, at the point of care. This can lead to a better patient experience and, most importantly, better patient outcomes.

 

According to a report conducted by the Kauffman Foundation, supporting women-led businesses could have a huge positive impact on the economic growth of the U.S. Over the last few decades, more women have started to enter the workforce, and they began to outshine males in degrees. This led to women helping the U.S. economy by creating huge economic gains.

However, many have said that the annual economic growth of 3 percent has slowed down with the Kaufmann report suggesting that this could hit a low of 2 percent in the next few years. What’s the answer to boosting this growth again? Women.

Room for Growth

In the U.S., a third of businesses are owned by women but these tend to have fewer employees and lower revenues. And within high-growth firms, founders are made up of less than 10 percent of women. However, due to this huge under-representation, women are provided with great opportunity for improvement and growth.

Speaking about the findings, the author of the report, Alicia Robb, said that there could be a significant impact on the economy through employment, payroll and revenue if more women are given the opportunity to take part in entrepreneurialism, particularly in the high-growth area. However, in order to encourage women entrepreneurs, it’s vital that people understand what factors could be holding them back.

Learning the Art of Failing

There are hundreds of success stories out there, in the media, on Facebook and in Google searches. However, many women entrepreneurs put their success down to the fact they learned about failure. Why? Because they’ve learned from their mistakes to help fuel their next venture, and they’re more likely to do this than their male counterparts, the report suggests.

But, compared to men, women aren’t big risk takers, which means they aren’t making these mistakes from which they can learn from. Robb comments that failure is taken more personally by women, in most cases. That’s why it’s important that women realize that to be an entrepreneur you have to take risks, even if they don’t always work out. To launch and grow a business, there are going to be failures and errors, and you may hit 90 no’s before you hit 10 yes’s but this is all part of parcel of the entrepreneurial journey.

Hearing More from Role Models

The report also suggested that women need inspiring by more role models to encourage them to start up their own business and take this to the next level. An entrepreneur’s success relies on mentorship, Robb says, and due to the lack of women leaders who can provide women with advice and encouragement, this can be a huge disadvantage.

Robb feels as though showing women what they can achieve gives them the opportunity to see that they can accomplish great things and that they are allowed to dream big. She suggested that to solve this problem, it should be partly down to the encouragement for more women to invest in companies as well as starting their own.

Reducing the Financial Gap

Even though 14 percent of women had venture capital funding and 31 percent had angel investors, 80 percent still had to rely on their own savings as their main source of funding, which makes it even harder for women to save for their business ideas.

As they require the funding to get their feet off the ground to fund things like technology marketing solutions, finances play a huge role in the success of a business. And as vast amounts of external capital are required for growth-orientated companies, this explains why getting to the next level is proving too difficult for many women-owned firms.

Various studies have demonstrated how significantly smaller amounts of outside equity and financial capital are being invested in women-owned companies as they grow. In the Kauffman study, nearly a third of these types of firms had one employee – the owner. Just 15 percent had over five employees.

By providing women with better access to venture capital, bank and angel financing, Robb believes this will encourage more growth. Babson College’s study found that of the $50.8 billion invested from 2011 to 2013 by venture capitalists, just 3 percent went to a company who had a female CEO.

For future economic growth, it makes sense to tap into this grossly underused resource of female entrepreneurs. However, in order to do this, there are a number of issues that need tackling first to prevent these women from being held back from achieving their successes.

About the Author:

Christopher Hartley started his business when he was 19. Now an angel investor, he also runs business courses and gives career talks at local schools alongside his article writing.

Being a small business owner in the UK has arguably never been as challenging as it is today. At the same time, there are more exciting opportunities than ever for entrepreneurs to realise their dreams. But it costs money to act on these types of dreams – to start, build, maintain and expand a business. For most business owners, one of the chief challenges throughout the life of their enterprise is finding working capital that will allow them to boost their profits and grow their business. There are many legitimate sources for that capital, but there are also predators, some of whom are actively targeting small businesses. It’s important to know the difference between the good guys and the bad guys.

A new generation of predatory lenders

The National Association of Commercial Finance Brokers (NACFB), a financial trade organisation, has issued a warning for small businesses, cautioning that business owners who are desperate for loans are being targeted by dozens of dishonest new lenders. What makes this problem worse is that there are currently no rules in place to protect them from being fleeced.

The NACFB said that within the past two years it has rejected 40 new lenders that were petitioning to access its nationwide sales force of brokers who advise small firms on finance. This is a significant rise from the previous two-year period, during which only five lenders were turned down. The organisation rejected these lenders either because they charged outrageously high interest rates, refused to reveal their source of capital, or could not demonstrate a track record.

Adam Tyler, chief executive of the NACFB, said that many of the lenders in question were looking to take advantage of small businesses that had been turned down for funding by traditional high street lenders. He noted that because small businesses are doing better in the wake of the overall improvement in the economy, they are seeking more capital. If the banks won’t help them, they have to get the money from somewhere. Mr. Tyler said that some of the lenders targeting small businesses are as bad as the worst of the payday lenders in consumer credit.

Exacerbating the situation is the fact that whilst individuals and sole traders are protected by consumer credit regulations against lenders who charge exorbitant fees, limited companies are not. If they are left high and dry by a lender they have practically no recourse.

The takeaway lesson here, then, is: borrower beware.

When seeking a loan, arm yourself with knowledge

Not every lender targeting small businesses is a scammer, of course. And even though many legitimate lenders do charge higher interest rates to business owners with less than stellar credit or an insufficient history, that doesn’t make them a bad choice.

Most business owners will have to borrow money at some point; it’s just part of doing business. But it is important to find a reliable business lender who will offer fair rates as well as a straightforward loan agreement with no surprises. Ideally you want a loan provider that charges as few add-on fees as possible, such as origination, early repayment or arrangement fees.

In general a business must be in operation for a certain period of time – usually a minimum of six months – before being approved for a business loan. As well, there may be certain minimum revenue requirements. Eligibility factors vary according to lender, as do the amount you can borrow, the ways you can use the funds, and the terms. It is very important to do your homework and compare lenders. Knowledge is power, as the saying goes.

But all the knowledge in the world, or on the World Wide Web, can’t really provide a clear look into the future, and questions about the UK’s economic future have quite a few business owners on edge.

The future is an open book

Though some of the latest opinion polls in advance of the European Union referendum have shown that Brexit is gaining momentum, many people remain uncertain about exiting the EU. That’s because we’re in “uncharted territory”, according to Dr. Angus Armstrong, Director of Macroeconomics with the National Institute of Economic and Social Research. Dr. Armstrong explains that no country the size of the United Kingdom has ever left such an integrated economic union, so there is really no precedent on which to look back and from which to draw lessons. And small businesses are a key battleground in the Brexit war. After all, Britain’s small and medium-sized businesses make up 99 percent of businesses in Britain, employing 15.6 million people – about half of those working in the private sector.

Some business owners lament what they see as costly and unnecessary regulations imposed by the EU. They view Brexit as a break for freedom and new opportunities. Others, however, are uncomfortable with the uncertainties, which would likely hit smaller businesses harder than others, mainly by making it tougher for them to get loans because during times of stress, banks are reluctant to offer loans they consider to be riskier. Moreover the UK’s central bank, the Bank of England, has said Brexit would weaken the pound, increasing the cost of imported goods and fueling inflation. These projections have understandably made many business owners nervous.

Regardless of the outcome of the referendum, the challenges for small business owners won’t magically disappear, and among those challenges is the ongoing quest for capital. There will always be dodgy lenders targeting businesses and individuals that are desperate for money, but there are plenty of good lenders as well. Knowing the difference can help you keep your business on track for future profits and growth.