Do Your Homework

A very important part of marketing is knowing who you are targeting. You need to understand who you are marketing so that you can do it in the best possible way. You also need to research the industry and see what else is out there. You need to look into the competition and you need to compare the marketing techniques of those companies.

Companies, particularly new ones, have a tendency to skimp on the research that they undertake. In fact it is proven that most companies would benefit from doing double the research that they actually undertake.

Check Out the Competition

Without actually stealing their ideas, you can learn a lot from your opposition. You want to be different, so simply mimicking them will not help. However, you can learn a lot from simply looking at and understanding their marketing methods.

Particular attention should be given to the marketing techniques of your competitors. Learn from their mistakes and make sure that you do not make the same errors.

Understand Your Clients

It may seem obvious but it is important that you know your customer. Part of researching the industry involves researching your customers so you know who you are going to market to.

Observation is key to understanding your potential buyer.
Watch how people behave with your product, or similar products. Are they enjoying the experience or does it simply fulfil a purpose? Who is using your product, does it seem to attract similar types of people, or does it appeal to a wide range of individuals?

Next, you can ask questions. Either in person or through surveys, you can ask the customers questions about what they want and how they feel about a product. You can ask questions directly related to your product and also about other products in the same field.

Do not underestimate this stage of the marketing process.
Doing you homework and knowing your industry is absolutely crucial if you are to make the most of your advertising.

Take the time to do it properly!

Writing a Marketing Plan

Everyone who is in business is only too aware of how important marketing is to their success. It is no surprise, therefore, that most companies have some plan, no matter how small, of how they are going to ensure that their marketing strategy works. Getting these ideas down on paper can be a great way of establishing and retaining focus.

What to Include in the Plan

Work out where you are starting from; it is very hard to have a goal if you do not know the starting point. Gather information about what you are offering, what your competitors are offering and more most importantly, what your customers are looking for. This information may be readily available as part of your company records.

Preparing your Tactics

Strategic Planning

Once you have the overall view, it is time to consider the individual activities that you undertake. Look at each process and decide what you are hoping to achieve from each stage. Calculate your projected returns so that it can be easier to determine whether certain approaches are successful or not.

The formal marketing plan should include information about all facets of the organization's endeavors and how they inter-relate. It should also include forecasts regarding the impact of planned developments on the growth of the organization. Progress tracking is made easier if all this data is held together in the marketing plan.

If you are trying s new or risky marketing technique, then you will want to include your plans for success. The same goes for trying a new product. You want to outline your objectives and what you hope to achieve. Your plan should have you taking it one step at a time, one goal at a time.

If you are experimenting with an untried marketing method, you'll want to attempt to plan for success as best you can.
This methodology also holds true when promoting new types of merchandise. You need to define your goals and then monitor whether they are being attained. Taking a step by step approach often works well.

Creating a marketing plan brings benefits in several ways.
Having all the major tasks down on paper makes monitoring of all parts of the organization's progress much simpler.

Nowadays, a marketing plan is not just restricted to being a paper document. Procect planning software is widely available, easy to use and ideal for keeping your marketing plan up to date.

When will you be debt free?

Getting out of debt and staying out of debt is simple. All it takes is spending less than you earn, but although the solution is simple, putting it into practice is hard for many people. The first step is assessing where you are right now.

Assessing Where You Are

Businesses regularly calculate key ratios that indicate their financial health, and so should you. Two of the most basic personal finance calculations are your net worth, which is a snapshot of your current financial situation and tells you what you're worth (or not as the case may be) your Debt to Income Ratio, which is your total debt payments compared to how much money you earn and tells you if you're carrying too much debt.

1. Get the cheapest debt possible
Get ruthless with the debt you already have. In these days of low cost credit cards, with a little bit of research you can find the lowest offers available that you are eligible for and take advantage of them. While you are paying off your debt, make sure that you are paying the lowest interest charges you can find on the debt you still have.

2. Maximum not minimum
Whatever else you do, this is the single biggest thing you can do to get yourself out of debt. Your scheduled repayment structure (worked out by the credit company and each one is different), is set up in favour of the credit company. It optimises your payments, for their benefit. You must turn this around and optimise your payments for your own benefit. The simple way to do this is to add a consistent extra amount to your monthly minimum payment on one debt at a time.

3. Re-consolidate, Restructure, Regret
Reconsolidating can be a useful tool in extreme cases as part of an overall debt repayment plan that is structured in your favour. By itself, it can be a double-edged sword that helps you look like you are getting on top of your debt. It may temporarily get you out of some of your debt, but it does nothing to keep you out of it. If you take out a personal loan to consolidate your existing debt, make sure it's low interest and keep the repayment term as low as possible, pay it off as fast as you can.

4. Stop doing it
None of the tips will do you any good if you continue to add to your debt.

5. Be Honest
With yourself first. Tell yourself the truth about your finances. Be clear about your numbers. Know your financial facts. And be honest with others. Don’t try to represent yourself as wealthier than you are.

Quick Clicks: Personal Loans | Credit Cards

How to Increase Visitor Value at Your Site

What do you want new visitors to find when they click on a link and arrive at your site?

1. Do you want to present first-time visitors with something like a brochure, that has a home page giving information and links to products?
2. Would you want your new visitors to find an online catalogue that offers a variety of products and services?
3. Or, do you want your visitors to arrive at a focused, straightforward sales page promoting one specific product or service?

How you answer these questions directly affects the profitability of your web site. Here are some principles to keep in mind that will help make the traffic to your site more valuable to you in the long and short run.

Numerous market studies make one thing very clear: when new site visitors are offered too many choices, they get confused and don't buy. They leave; most of the time they never return. Your objective is to make it easy for a new visitor to become your client. Keep it simple at the beginning.

This is best accomplished in one of two ways.

One option: use a page somewhat like a brochure on which the visitor is given enough good and focused information that s/he signs up to be on your email list to receive even more information of value for fr~ee. For example, offer a newsletter, a special report, a digital download, etc. This type of site is an invitation, and is sometimes referred to as a "capture page." You follow up with your new prospects later via email to make offers of products for sale. Of course, you always include a way for people to unsubscribe from your list, as well as complying with all other CAN- SPAM Act requirements.

Possibility two: start with a single-item sales page promoting a low price-point item, the opening of your "marketing funnel." Your low price-point item will demonstrate the quality of your product or service, and you will get repeat business because you offer good value. At that point, you can introduce your new clients to a wider range of products and prices. They know you deliver, they know they can trust you, and so they'll wade through a bit of information about products that don't interest them to get to those you have that do interest them. Besides, now they are in your data-base, and you can market to them again later when you have a special promotion or a new product.

It's tempting to offer lots of products and price points right from the get-go. That might seem impressive, but it is generally not a good idea. With a first-time visitor, you've got three seconds or less to capture their attention, and a big catalogue site usually won't do it for you. Instead, use a focused and compelling headline to get their attention, and strong copy in the sales letter to encourage them to keep reading your offer.

Especially if you've paid for the visitor who has arrived at your site, you naturally want to get your return on investment (ROI). Many online business owners believe that ROI means one thing: making an immediate sale. However, savvy online business owners realize the lifetime value of their clientele is key to success, and comes from developing relationships. Online, this usually takes the form of email follow-up.

That's why you save the big beautiful catalogue site for later, after they've become your client, and they know you provide good service and a high quality product. Then, after you've established a relationship, use a catalogue site for back-end sales galore.

Now you have the rationale of when to use different types of sales pages. As soon as you're ready to create your single-item sales page or your email 'capture page,' search online for copy writing resources. These could include hiring a copy writer, using copy writing products, or writing your own copy, depending on your skills and budget.
The following list tells the nine essential elements of your page.

1. Headline
2. Story
3. Credibility
4. Benefits
5. Features
6. Bonus gifts
7. Value
8. Ordering info
9. Summary

Use this as a checklist and look around for good models of any of these elements. Use the examples you find as inspiration, but you or your copy writer will use your own way of saying it and applying it to your offer. You'll notice that copy writing is largely formulaic. If you find and follow a good formula, you'll profit from your efforts.

Good news for your inbox!

The net's self-declared spam king is seeking bankruptcy protection. Scott Richter, the man behind OptInRealBig.com and billions of junk mail messages, said lawsuits had forced the company into Chapter 11. OptInRealBig was fighting several legal battles, most notably against Microsoft, which is pushing for millions of dollars in damages.

Don't act too fast when dealing with spam - some responses might just make matters worse. Here are some golden rules:

• Don't reply, ever!
• Never buy anything from a spammer. Don't make spamming worth the effort - plus you'll get even more spam once they know you're willing to buy.
• Think twice before forwarding chain-letters or petitions. Mass-mailings like this still constitute spam and the lists of addresses on them are later used by spammers.
• Don't 'mail-bomb' the spammer who seems to have singled you out. The address included in the spam is probably forged or belongs to a mailbox the spammer ignores.

Do you know the difference between insurance products?

The first question you might ask, is, "do I need insurance?". If you are a Sole Trader then you are personally liable for debts incurred by your Business. This means not just unpaid bills, but could include court actions against you, or compensation claims. There are three types of insurance you need to consider carefully:

Public Liability Insurance
Public Liability insurance is essential if you are going into someone's home, or are organising a demonstration of the products. You may have public liability insurance in with your home insurance, but this will normally exclude business activities. If you're on a customers premises and you break something, cause a fire or flood you'll be liable. Remember that not only could direct losses (eg loss of earnings) be significant, but so could a compensation claim. These days there are plenty of legal firms offering to pursue personal injury claims on a no win - no fee basis.

Get Quotes - Get Cover Today

Professional Indemnity Insurance
PI insurance covers the liability incurred by giving advice to someone. You could be at risk if you gave what could be considered to be professional advice of the type normally given by professionals (eg Vets, Doctors, Therapists etc) and this was later found to be incorrect and as a result the customer had incurred loss or harm.

Get Quotes - Get Cover Today

Business Insurance
Could your business survive a fire or burglary? How patient would your customers be if you lost all your records/stock, or indeed the house/office you kept them in? Normal domestic insurance will not cover business losses. Business Insurance will cover the losses from your business and additional costs you incur while you put everything back together (eg temporary accommodation, replacing phone/fax/PC etc). You can use Decision Finance to source the right "Business Insurance" depending on your service or nature of business. We'll make sure you're covered.

Get Quotes - Get Cover Today

Quick Links: Business Insurance | Professional Indemnity | Landlords Insurance

Creating a Strategy

Marketing really matters to an organization. The quality of your merchandise is important but it is the promotion of the goods and the impact that this promotion has on potential purchasers that will determine its ultimate success. The first step in a successful marketing campaign is to define a strategy that is appropriate for your organization.

Take time to really think about your approach. The start of a new venture is often a very busy time, but a few hours spent considering marketing will be well worth it in the end. Firstly, decide who you are targeting and what they are likely to want to see in your product or service.

Having decided on your likely audience, decide on the best way to reach these people. Will you be using newspapers, television or radio? You could also consider using a more local approach and opting for direct mail marketing. A lot will depend on the number of people you are intending to reach. Are you mainly targeting local people or are you looking further afield?

Answering these questions is the first step towards marketing success. Having decided on the aims of your marketing you are now ready to implement a plan that will meet your needs as a business.

Creating the plan

If you are going to form a marketing strategy, you need to form an approach. There are several different approaches you can take and you might choose to use a combination of different ones. For example, you might use the informational approach. The informational approach is a great opportunity to give your potential customers information about the product. This is the way you market to a rational customer.
This is a good approach to business to business deals.

You might decide to use a single promotional method or several different strands in parallel. A common line of attack is the informational method, which gives potential purchasers details of your merchandise. This method appeals to careful buyers and often works well with business customers.

Lastly, you might want to use a mix of the two approaches.
You can use an emotional approach to reel your customers in and then you can give them some facts and statistics to help convince them. This is a very good marketing strategy for any product or service that you provide.

Basics of Marketing

Knowing what marketing actually is can be fundamental to any business, however small. No business can avoid marketing; without it, no one would know you existed. Of course, your actual merchandise or service is just as important, but without marketing, a brilliant idea is wasted.

To be a successful marketeer, you really have to understand the concept of marketing. Marketing is the science of making prospective customers into real purchasers! Even the best item in its class won't sell successfully if nobody is aware of it. Some items need less pushing than others, but sales of most artefacts will be boosted by the right kind of promotion. A sound method of marketing a product is to persuade potential buyers that they really must have it straightaway otherwise they'll miss out.

So if you are a company in need of good marketing, where do you begin? Well, there is no way to cover it all in one article but we~re going to cover the basics below.

Being aware of your customers

The most important aspect of marketing is to know your customer. You have to know who you are trying to sell to so you can understand how to market them. You need to get inside the head of your customers to find appealing ways to grab their attention and make them want your goods or services.

If you can appreciate what motivates potential purchasers, then you should be on a winner. The impression that your merchandise gives to your customer does matter. If they have positive feelings about an item they'll be much more likely to proceed with the purchase.

Customers want to know what is special about your product and why they should rush out to buy what you are selling.
A sense of urgency is crucial, as customers like to believe that they need your product and they need it now! Of course it is also important to make sure that you are selling to the right people. Some products will only appeal to one gender or age group; make sure that you focus your time and energy on your target audience.

The most important thing is to always remember your customer and think like your customer so you can market to them in the best way.

Pump Up Your Web Sales Using Auto-responders

A web site with no traffic is not a business asset; it's a liability. The cost in money and time to create and maintain a web site is just the beginning. There is the further investment of resources to get traffic. With the goal of profitability in mind, the central question a web site owner must address is how to maximize the value of visitors once you get them to visit the site. One important element of the strategy is to make use of an auto- responder.

A brief definition of an auto-responder: by email, an auto- responder sends an immediate reply when a person buys something online, sends to a specified email address, or fills out a website form. The content of the auto-response message could be information, an electronic receipt, an e- course, and so forth. When people go online, they are often searching for information, and auto-responders gratify them with instant delivery of material they've requested.

When the visitor requests information, they give their email address for its delivery (by auto-responder). You have thus been given permission to follow-up with the prospect, and that is what makes auto-responders an essential marketing tool.

How can an auto-responder facilitate follow-up with prospects? You can automatically contact the prospect after the initial reply if you have properly set up an opt-in and an auto-responder series. The messages in the series are all pre-written, and pre-programmed to be sent out at intervals that you've determined~. so that the auto- responder in effect is a sales force working for you round the clock, on auto-pilot. You set it up one time, and it works for you over and again.

What is the best content to present in an auto-responder series? Each set-up would contain messages relating to the initial request for information made by the prospect.
Example: a visitor at a site about dieting fills out a form requesting a special report (a page or two in length) describing some effective foods and food combinations that inhibit blood sugar from turning into fat. The prospect gives their email address to receive the report, and the auto-responder tied to the form sends the fr~ee information immediately. Furthermore, the visitor learned at the site that in addition to the special report, they will receive further weight loss suggestions and encouragement in a series over the next few days or weeks, whatever time frame is suitable for the type of products in question.

How are sales boosted by an e-course or auto-responder series? The email component of online marketing is very important, and sending only one email message to your prospects is simply not sufficient. Conventional wisdom about marketing in any area is that the majority of people don't take action on a new advertising message unless it has been put before them from five to seven times. They need repetition, and any business that hasn't got a system for timely and consistent follow up from five to seven times is losing money.

What is the recommended ratio of information and marketing in the auto-responder series? Always keep in mind that the visitor isn't interested in your objectives. They only want to know what is in it for them. They've given their email address mainly because they want to get information, not so they can read your advertisements.
So give them what they want:

• Accurate and useful information on a particular subject.
• Earn their trust. Then, you can tell about how your products and services could benefit them.
• Keep the ratio of information to marketing at a maximum of 75% to 25%.
• If you don't give good content, prospects won't keep opening the emails in your series.
• Make it a win-win.

They get good information and you get a well qualified prospect thanks to your auto-responder messages.

Tax News

We have included an article this month which highlights the dangers of missing filing and payment deadlines regarding submission of year-end payroll returns to the Inland Revenue. There are also articles covering Civil Partnerships and Venture Capital Trusts.

Out with the old, in with the new
Welcome to the April newsletter. I hope you it interesting. Many thanks to those of you who have passed on the names of business contacts, friends etc. who require accountaing and tax advice. We are always happy to help them.

The Budget already seems a distant memory but now that the Finance Bill has been published the detail behind the headlines and Chancellor's soundbites is becoming apparent. With the current tax year drawing to a close and the new tax year providing new allowances etc. the Finance bill will provide more information on the closing of loopholes and opportunities to save tax. More on this in future newsletters.

Business Rates
You may be aware that businesses are shortly to receive their business rate bills in the next few days. Recent revaluation of business premises by local authorities has led to a huge increase in rateable values particularly in wealthy areas. This increase disproportionately hits small business owners. However, small firms with a rateable value of less than £10,000 can apply for discounts, up to 50% for values less than £5,000. If you fall into this category I would urge you to take advantage of these rebates.


Venture Capital Trusts
Venture Capital Trusts or VCT's were introduced by the Finance Act 1995 to increase the supply of finance to small unquoted higher risk trading companies.

VCT's are broadly similar to investment trusts - must be listed on the Stock Exchange and can invest up to £1 million per year in each qualifying company in their portfolio.

VCT's offer investors attractive tax concessions.

Subscribers of new shares in VCT's can claim tax relief on their investment provided the shares are held for at least three years.

The rate of income tax relief allowed was increased from 20% to 40% for the two year period starting on the 6 April 2004.

There is a maximum annual investment for which income tax relief is available of £200,000. (This applies from 6 April 2004.)

No income tax is payable on dividends from ordinary shares held in VCT's.

No capital gains tax is payable when individuals dispose of their ordinary shareholdings in VCT's.

Up to the 6 April 2004 it was possible to defer capital gains tax on gains reinvested in VCT shares. From the same date that concession is no longer available.


Payroll - avoiding penalties and interest payments.
April sees the beginning of a hectic period for payroll managers. During April and the following three months a series of deadlines occur regarding returns to be made to the Inland Revenue for the year to 5 April 2005. Late payment of any outstanding tax or national insurance will trigger interest payments, and late filing of returns will in most cases trigger a penalty or fine.

Please note that not only must you file returns on time, but you must also ensure that the returns are completed correctly. A common cause for rejection of the P35 annual payroll return is that P14's show incorrect national insurance numbers. In particular use of TN temporary numbers will be rejected from 2004-2005.

We have set out the major filing and payment events as an expanded tax diary, with a note when interest and penalty payments will be applied.

All dates are 2005:

April 19 - Payments for month 12 PAYE and Class 1 NIC's to be paid by this date. (If you pay your dues electronically this date is extended to the 22 April)

April 19th is also the last day for payment of all outstanding PAYE or Class 1 NIC's for the year to 5 April 2005. (Interest will be charged on any payments received by the Inland Revenue after this date)

May 19 - The payroll form P35 and P14's must be filed by this date - employers late in filing this form may receive a penalty.

May 31 - Last day for giving form P60 to your employees who were employed by you at the 5 April 2005.

July 6 - Last day for giving employees a copy of the form P9D/P11D. These forms set out details of any benefits in kind which you have provided for your employees during the tax year ending 5 April 2005. This is also the last day for filing form P11D(b) with the Revenue - this is the return that sets out the amount of Class 1A NIC's due for the year to 5 April 2005. Penalties will be charged for returns filed after the 19 July.

For those contacts and clients who look after their own year end payroll filing, please get in touch if you would like any practical help or guidance.


Civil Partnerships
From 5 December 2005 same-sex couples can choose to be treated as married couples for tax purposes.

If an election is made under the provisions of the Civil Partnership Act 2004 same sex couples will achieve a legal status to be known as a Civil Partnership.

Essentially the parties to a Civil Partnership will benefit, or suffer, from the following married couple tax advantages and disadvantages.

(Bullet points prefixed by "-" denotes a disadvantage, prefixed by "+" denotes an advantage)

Capital Gains Tax.
- partners will qualify for just one principal private residence.
+ no gain no loss treatment on disposals between partners of chargeable assets.

Inheritance Tax.
+ partners will qualify for a spousal exemption - transfers of property from one partner to the other on the first death will be totally exempt for Inheritance Tax purposes.

Settlements.
- partners will be subject to a tax charge if they try and transfer income from a higher rate taxpayer to a lower rate taxpayer.

Stamp Duty and Stamp Duty Land Tax
+ partners who dissolve their Civil Partnership will qualify for the exemption offered to married couples when a marriage is dissolved. i.e. certain transfers of shares and property can be made without a stamp duty or stamp duty land tax charge.

Child Tax Credit.
- same-sex couples can presently base a child tax credit application on the sole income of the applying partner. If the same couple make an election for a civil partnership to apply, both incomes will be taken into account in a child tax credit application.

Payroll - electronic filing year end 5 April 2005
Please don't forget that employers with more than 250 employees must file their year end payroll returns electronically.

Smaller employees with less than 50 employees have until the year ending 5 April 2010 to sort out electronic filing.

There are financial incentives which the Revenue are offering to firms who register early for e-filing.

Interestingly there is a provision in the 2005 budget which denies these incentive payments to firms who are simply registering to claim the cash payment. We shall have to see how these restrictions are applied in practice!

Visit our Personal and Business Tax Accountancy section if you need any help with your online filing.

Tax Diary April/May 2005

1 April 2005 - Due date for corporation tax due for the year ending 30 June 2004.

19 April 2005 - Last date to pay any outstanding PAYE and Class 1 NICs for 2004/05 to the Revenue. (If you pay your tax electronically the due date is 22 April 2005).

1 May 2005 - Due date for corporation tax due for the year ending 31 July 2004.

19 May 2005 - PAYE and NIC deductions due for month ending 5 May 2005. (If you pay your tax electronically the due date is 22 May 2005)

31 May 2005 - Ensure all employees have been given their P60s.

Quick links: Personal and Business Tax Accountancy