MDHUB Seminar - February

MDHUB Seminar – 11th February 2009
Marketing your company during a recession

The seminars are monthly informative sessions delivered by MDs and based on their practical experience of their subject. We are pleased to announce that on the 11th February, Kate Burgess from KBC Public Relations & Marketing Ltd will be our guest speaker. She will be bringing her associate Neil Edwards of The Marketing Eye.

In addition, experts will be able to answer individual questions, develop open discussions, followed by valuable speed networking opportunities.

The seminar will take place at the Royal York Hotel, Brighton, 3pm. If you have not already confirmed your attendance to this event please reply to this email: editor@mdhub.co.uk or call 01273 311220.

Seminars come free with MDHUB 100 & 250 membership but cost £30 for non-members.

Finance and things

A good session yesterday on raising finance - one thing that came through clear and strong is that at the sub £500k level Angel investors are the best option, and don't be afraid to approach people you think might be interested in your business.

If you are aiming to raise finance make sure you have your business plan ready and updated so that you can react quickly - it will be the first thing you are asked for.

On things in general - still the same mixed messages - a few companies tightening belts but others actively looking at opportunities to expand at home and abroad. But we are firmly in the "Decision in January" time where nothing will happen this side of Christmas on bids/tenders.

Remember to check your clients and potential clients - look at where the money is and position yourselves to get your share - the government has apparantly shortened it's payment terms and there are projects with committed funds to be spent, look out for those opportunities.

Keep talking to your existing clients, let them know that you are around and want to do business - in fact ask them how you can do more business with them - it's already worked for one Hub company in the last month.

The Banks - again

Another couple of meetings with banks this week.

For rock solid asset backed (60% of value) loan they are generally looking for a minimum of 2% margin and typically now on LIBOR not base - so with LIBOR only falling to 3.38% on Friday after the base rate cut you're looking at 5.58%. For unsecured money (still needs a minimum directors' guarantee) rates quoted are anything from BASE + 5% - Base + 12%.

The shift to LIBOR is not too suprising, remember this is the rate at which banks lend to each other (when they do) and also the government money into the bank is reported to be lent at 12% so they are being squeezed.

Best news is if you are a vet - the banks will probably lend you 100% of your cost for a new surgery at probably a margin of 1.5% over LIBOR or even base. The banks have always loved the white coat professions and things haven't changed there.

News from Hub members still mixed - some reporting strong sales, others getting through pitches but implementation not until the new year, others finding things tighter. The main message is people are holding onto cash so get tight on your debtors and remember historically January is the worst month for insolvencies so review your clients carefully.

On a final positive note - the best thing to do at the moment is remind your customers you exist and are still around foir business - make that phone call that you have been meaning to do, they'll appreciate it.

A niche and the DiMA:S

Interesting conversation amongst some of the HUB 250 MDs this afternoon about the need (or not) for smaller companies to strengthen their identification with a niche in their market. Overall feel was probably yes - in the face of broader base competitors buying in business but with a strong feeling that business was there to be won particularly from London based competitors at a decent price.

And talking of a niche - Brighton and Hove's not so small niche as the primary city for digital media was enhanced by an excellent inaugural Digital Media Awards: South at the stunning, if slightly cramped, All Saint's Church in Hove. An enjoyable evening with some well-deserved award winners and a great example of the talent in Brighton & Hove and beyond. Congratulations to Phil Jones, his team at Wired Sussex, Midnight Communications and the supporters and sponsors. It should help convince the doubters (and there still are some) to back Wired Sussex's campaign to make the area renowned for its creative digital skills.

I spent the evening in the, as always entertaining, informative and occasionally raucous, company of the Nixon McInnes types who sadly missed out on the Blog award. FTL! I guess this time chaps.

Well the answer is "we are still in the business of lending money" but strong message is for the right deal and with the right (i.e. strong) security at the right (i.e. higher) price. Let me know of any experiences you might be having.

BBC confirms VAT thought

I'm glad to see that the BBC have picked up the news of the potential VAT rise even though it's now being heralded as a mistake. As a sad beancounter this news had already been hawked around the trade press and I still say they will probably do it - whoever "they" are by that stage.

Any news from the banks? - RBS are saying that they are still lending and I'm meeting them tomorrow so I'll keep you posted....

Chancellor rides to the rescue of business?

or does he?

Widely touted and leaked package to "kick start the economy". From a quick glance it looks like the best news for smaller business is the delay to the increase in the corporation tax and a promise to allow us to spread tax payments to help cashflow, not sure what the second one means but the phone lines to the Revenue will already be red hot and I wonder if a certain Revenue employee will now hold off on action against a client struggling to pay PAYE?

The VAT adjustment won't help too many b2b service companies as it is just a pass through except for things like entertainment and car purchases where it can't be reclaimed. I guess it may help the retail sector to subsidise their discounts.

Watch out for the government's favourite stealth tax - National Insurance - will be going up for employers and employees from 2011. Don't bet against VAT following once it gets back to 17.5%.

The Chancellor says that the economy will recover in early 2010 - will it?

We are still getting very mixed messages some members are still seeing good business and in fact 3 recently reported October as their best months of the year.

Will it make much difference to you? What are the best bits?