Essential Updates and Tools for Navigating Business, Benefits, and Financial Support

Welcome to our roundup of the latest business news for our clients. Please get in touch if you’d like to discuss how these updates might impact your business. We’re here to support you!

Evaluating a Business Idea: A Guide for Aspiring Entrepreneurs

According to the latest figures for the April to June quarter, the economy continues to grow. Gross Domestic Product (GDP) is estimated to have increased by 0.6% for the quarter. This compares with an increase of 0.7% for the January to March quarter.

Two-quarters of growth after last year's recession is encouraging news for businesses and the economy. Economic growth creates new market opportunities, making it an ideal time for entrepreneurs to develop and launch innovative business ideas.

Of course, every successful business begins with a compelling idea, but not all ideas translate into viable businesses. Whether you are considering starting a business or considering a new idea to expand your existing business, evaluating a business idea is a crucial first step that can save time, money, and effort.

In this article, we look at five areas that can help you assess whether your concept has the potential to thrive in the marketplace.

1. Market Research

Before diving into the details, it's essential to understand what your potential market looks like. This involves:

• Identifying your target market: Who are your potential customers? Please define your ideal customer profile, considering their age, income, preferences, and buying behaviours.
• Assessing market demand: Is there a demand for your product or service? As well as any personal experience and observations you might have, you could look for industry reports, customer surveys, and trends that indicate a need or gap in the market.
• Analysing competitors: Who are your direct and indirect competitors? Do what you can to understand their strengths, weaknesses, pricing strategies, and market positioning. This will help you identify your unique selling proposition.

2. Value Proposition

Your value proposition is what sets your business apart from other businesses. It answers the question: Why should customers choose your product or service over others?

Some things you could consider are:

• Uniqueness: Is your product or service unique? If not, how can you differentiate it? This could be through pricing, features, quality, customer service, or brand positioning.
• Customer Pain Points: Does your business idea address a specific problem or need that customers have? Solutions that directly alleviate pain points are often the most successful.

3. Financial Viability

Even the most innovative ideas can only succeed if they are financially sustainable. So, take some time to evaluate the business idea against the following areas:

• Initial Investment and Costs: Estimate the initial capital required to launch the business, including the cost of any product development and marketing and costs related to establishing and operating the new business. Consider the amount of time you'll need to invest; is this a worthwhile use of your time?
• Revenue Model: How will your business make money? There may be a number of different ways to generate an income, for instance, sales, subscriptions, licensing, or advertising.
• Pricing Strategy: Determine your pricing model based on cost, competition, and the perceived value of your product or service. Make sure that the price covers all your costs and allows you to make a profit.
• Break-Even Analysis: Calculate the break-even point at which your revenue will cover all expenses. This will help you understand how long it will take to become profitable.

4. Legal Considerations

There are several legal matters to consider when setting up a business, and understanding them is vital to avoiding future complications:

• Business Structure: Choosing the right business structure (e.g., sole trader, partnership, limited company) makes a difference to the tax and administrative requirements of the business.
• Intellectual Property: If you will rely on trademarks, patents or copyrights, then you will want to make sure these are secured.
• Regulatory Compliance: Depending on the industry you operate in, your business will be subject to specific regulations and licensing requirements. Identify these and determine what you need to do to comply.

5. Operational Feasibility

There are many practical aspects to running a business, so consider these as part of your evaluation.

• Resources and Skills: Do you have the necessary skills, resources, and team to execute the idea? If not, can you acquire them?
• Supply Chain and Logistics: Evaluate how you will source materials, manage inventory if that's relevant to your business, and deliver products or services to customers.
• Scalability: Can your business idea be scaled over time? A scalable business model can grow without a corresponding increase in costs.

In addition to these five areas, you may also want to consider the risks to your business idea and how you could mitigate them. You could also seek feedback from potential customers or experts.

Conclusion

Evaluating a business idea is a multi-faceted process that requires careful analysis and planning. By considering your idea thoroughly, you can increase the likelihood of turning it into a successful business.

Remember, it's better to spend time refining or even pivoting your idea now than to rush into a venture that may not be sustainable in the long run. A well-evaluated idea lays a strong foundation for business success.

As business experts, we have the tools and experience to help entrepreneurs evaluate business ideas and provide grounded and practical advice. Why not book a free consultation to see how we can help you?

Inflation Increases to 2.2% in July

The Office for National Statistics has reported that July's inflation rose to 2.2%. This marks the first increase of 2024 after inflation fell earlier in the year and then stabilised at 2% for May and June.

A rise was anticipated as energy prices are decreasing less than a year ago.

This increase means inflation has risen above the Bank of England's target. However, the Bank had expected this, and many economic forecasters predict that inflation will remain above 2% for the rest of the year.

Encouragingly, service inflation dropped from 5.7% to 5.2% in July. This larger-than-expected drop is primarily due to a decrease in restaurant and hotel pricing. This may be attributed to the temporary impact on pricing caused by Taylor Swift's concerts and the stabilisation of price increases that were implemented to cover the minimum wage uplifts.

The rise in inflation indicates that prices are still under pressure, so business owners need to continue carefully budgeting their costs and reviewing pricing strategies to maintain profit margins.

See: ONS Consumer Price Inflation Latest

Extending Child Benefit Payments: What You Need to Know

As GCSE results day approaches on 22 August 2024, many families are considering the next steps for their school-leaving children. Suppose your child plans to continue in approved education or training. In that case, extending your Child Benefit claim before 31 August is essential to make sure you get all the financial support.

When Can You Extend Your Child Benefit?

Child Benefit can continue if your child, aged 16 to 19, is enrolled in full-time non-advanced education or approved unpaid training. This includes:

• Non-Advanced Education: A level or Scottish Highers; International Baccalaureate; T levels; NVQs up to level 3; and Home education can be started before the child turns 16 or after 16 with a special educational needs statement assessed by the local authority.
• Approved Unpaid Training: In Wales: Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme; In Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work; and In Scotland: the No One Left Behind programme.

You can extend your Child Benefit payments if your child continues their education via one of these routes.

When Can't You Extend Child Benefit?

You cannot extend Child Benefit if your child is entering full-time employment, starting an apprenticeship that's part of a job contract, or enrolling in a course not classified as non-advanced education.

How to Extend Your Child Benefit Payments

You must inform HM Revenue and Customs (HMRC) to extend your claim by 31 August 2024.

Fortunately, the process is straightforward and can be done online via GOV.UK or the HMRC app. You'll need a Government Gateway user ID and password, which you can easily set up if you don't already have one. Have your National Insurance number or postcode and two forms of ID ready to register.

So far, more than 270,000 parents have successfully extended their claim digitally. This method updates your records immediately and saves you the hassle of waiting on the phone.

If you cannot handle the claim online, you can still contact HMRC by post or phone.

Don't Miss Out

Child Benefit can be a significant financial help, offering up to ￡1,331 annually for the first or only child and ￡881 for each additional child. Missing the deadline means your payments will stop.

Even if you've opted out of receiving payments due to the High Income Child Benefit Charge, keeping your claim details up to date is essential. You can opt back in quickly if your circumstances change.

What if Your Child Changes Their Mind?

Suppose your child decides not to continue with their education or training. In that case, you can quickly inform HMRC online or via the app. Your Child Benefit payments will be adjusted accordingly. You can also check your claim status, view payment details, and manage your claim through the app or online portal.

Act Now

With the 31 August deadline fast approaching, extend your Child Benefit claim.

If you need any help with your claim, please feel free to contact us. We would be happy to help!

See: GOV.UK - Extend Child Benefit for Your Teen by 31 August

New Tool Available to Help Create Privacy Notices

The Information Commissioner's Office (ICO) has launched a new tool to assist small businesses in creating bespoke privacy notices that safeguard individuals' information rights.

By law, businesses must explain why they hold people's information and how they use it. This ensures that customers, suppliers, staff, and volunteers are informed about what will be done with their personal information.

Many businesses choose to display this privacy notice on their website.

The new tool is designed to help businesses across various industry sectors create tailored privacy notices. It includes specific business sections for finance, legal, insurance, education and childcare, health and social care, retail, and manufacturing. Charities and volunteer organisations can also benefit from the tool.

The tool can generate two different types of privacy notices: one for customers and suppliers and another for staff and volunteers.

Businesses that already have a privacy notice in place can use the tool to ensure it is up-to-date.

To use the privacy notice generator, visit: ICO - Create Your Own Privacy Notice.

Don't Miss Out on Winter Fuel Payments: Check Your Eligibility for Pension Credit

As a pensioner, you may have been dismayed that Winter Fuel Payments are now restricted to those receiving benefits and Pension Credit. Previously, this payment was provided to all pensioners. Still, recent changes have made it means-tested and tied to eligibility for Pension Credit. Read More...