An increasingly common question from commercial clients of all sizes is, “have I agreed to terms that were only referred to by a hyperlink that I didn’t bother to click on? Surely I had to click on something to say I agreed like I do for online purchases!?”

The answer is yes, potentially, and if you’re not careful about examining contract terms thoroughly you can be easily stuck with the terms of something you just haven’t read. Like most legal questions though much will depend on the facts of each case.

Why is this the case when it comes to supplier-buyer relationships?

There is nothing new in the fact that you can be bound by terms you don’t read provided the party relying on them has taken reasonable steps to draw them to your attention. Ultimately, you ignore any reference to any applicable terms during the procurement process at your peril.

Whether any steps taken are reasonable has always been a fertile ground for debate, but the decision in Impala Warehousing and Logistics (Shanghai) Co. Ltd v Wanxiang Resources (Singapore) PTE may shorten that debate in cases involving websites and a hyperlink to terms.

One of the many issues in the case was whether Impala’s terms had been incorporated into a warehousing contract. The first page of Impala’s warehouse certificate said it was subject to Impala’s terms. A note at the base of certificate’s first page told the reader to refer to the reverse of the page for additional conditions. On turning the page the reader was told Impala’s terms and conditions were on its website and gave the address of Impala’s home page (rather than the actual page on which the terms could be found).

In Justice Teare’s view, all this was sufficient to incorporate Impala’s terms which formed the basis of the contract in question. He said: “In this day and age when standard terms are frequently to be found on websites I consider that reference to the website is a sufficient incorporation of the warehousing terms to be found on the website.”

All very sensible and good news for sellers and suppliers looking for simpler ways to incorporate their terms. From a buyer’s perspective the decision is noteworthy not just because of that salutary quote, but also because the judge came to his conclusion notwithstanding the fact that when one visits Impala’s website and finds the terms page there are several sets on it and a buyer has thus has to choose which one applies to their transaction before they can consider them.

That suggests to me that in a B2B context a simple, live, hyperlink contained to one set of terms in an email or soft copy of a document that isn’t buried somewhere in tiny text is very likely to be effective and enforceable whether or not it’s actually clicked on.

What does this mean for suppliers and buyers?

For sellers and suppliers:

1) Consider putting your terms on a webpage (that could be “hidden” from the browsing public) and including a hyperlink to it on pre-contract documents and correspondence.

2) Don’t hide the hyperlink it needs to be suitably prominent to be effective, particularly if your terms contain any unusual or onerous provisions.

3) Make sure your terms and conditions are up to date and that your staff know both what they mean as well as if/when and how they can be varied. Take advice if in doubt reviewing terms doesn’t have to be an expensive or a major exercise and can save you from costly mistakes.

4) Exploit any IP tracing/recording functionality your website may have so you can prove someone has clicked through if needs be.

For buyers:

1) The old adage of ‘buyer beware’ is alive and well.

2) Follow up any references to terms before you place an order; this is easier than asking for them to be sent if there’s a hyperlink!

3) Train staff to review terms and quickly refer-up any that cause them concern.

4) Look for “prevail” clauses that say that the seller’s terms will apply come what may. These are unlikely to be effective, particularly if you implement procedures to deal with them.

5) Take advice on response procedures if you don’t have any.

Simon Walsh is a senior associate in SA Law‘s commercial dispute resolution team who advises businesses on trading terms.

The post How Businesses Should Approach A Hyperlink In Contracts appeared first on Real Business.

Going digital has the strong benefit of cutting out the physical labour otherwise involved, such as going from storing physical files to digital folders. The same can be said of digital communication, with many tools making passing messages as fast and convenient, or even more so, than verbal communication.

But what tools are there that help us with open digital channels between workers? In this article, Real Business will look over the many options at a workplace’s disposal for easy communication, provision of organisational project management tools, and comparisons of each.

What Digital Communication Tools Are Best For You?

Digital communication is streamlined and convenient. With a click of a button, you can communicate verbally or even bring face-to-face communication to digital platforms, as well as potentially leaving a paper trail behind for written messages. Embracing these digital tools and channels is the standard for staying efficient and relevant in today’s climate.

The tips below will help you decide what communication tool is best for you, along with the advantages and disadvantages of each digital communication type.

Phone

Phone communication remains a common method of contacting individuals. Usually, in an office, this is reserved for higher management, whose clients or business partners need a direct line to them via their mobile devices. However, plenty of office staff are also equipped with landline phones for customers to call directly into their chosen department:

Advantages:

• Immediate response – Having a direct line for real-time interaction allows for prompt resolutions.
• Complex discussions – Through swift verbal communication of ideas, you can not only resolve complex topics but also build rapport and trust with clients and coworkers.
• Attention – Phone calls tend to keep the attention of the other party more effectively than text.

Disadvantages:

• No paper trail – Unless recorded, there’s no paper trail – meaning information isn’t retained.
• Interruptive nature – Calls may interrupt otherwise important occasions, leading to rescheduling, which may sometimes be forgotten due to it being unofficial.

Email

Most people have an email nowadays, with many website registrations and other services asking for an email to send important information to. Emails are effectively a digital mailbox that bars any chance of losing correspondence.

Advantages:

• Paper trail – Emails provide a permanent record unless you opt to delete them.
• Efficient – Emails do not require recipients to be within the same time zone or available to receive, and you can even send a single email to several people at once.
• Flexible – Emails can be short and sweet, long with complex information, formal or informal etc. It’s one of the most universally recognised digital communication channels available.

Disadvantages:

• Delayed response possibility – Despite being instantaneous, it’s not a method that typically prompts an immediate response.
• Interpretation – As with all forms of written communication channels, an email’s tone amongst other things can be misinterpreted.
• Inbox burial – For email addresses that have a lot of incoming traffic, such as a business owners, some emails may be lost amid many others.

Instant Messaging

Instant messaging has become a very common way of digital communication in personal settings, and after the 2020 quarantine, the same can be said of businesses – with Teams finding great use and fortune during this period.

Advantages:

• Real-time interaction – With notifications, status updates and checks if a person has read the message or not, this type of digital communication is fairly instantaneous.
• Quick updates – Messaging is one of the few avenues where prompt informality is permissible if it serves to quickly update a situation, at least amongst coworkers.
• Flexibility – Instant message software can either be one-to-one or involve groups, as well as other features such as video calls, voice assistance etc.

Disadvantages:

• Distractions – IM’ing can cause disruptions, as it’s almost a knee-jerk reaction to want to check.
• Internal use only – There’s no way to utilise instant messages in a non-professional setting.
• Security risks – There is a lot of potential for security breaches via instant messages, making them less ideal for confidential information.

Text Messages

Text-based messages are some of the oldest digital communication methods available, available since way before phones became smartphones.

Advantages:

• Widely accessible – Whilst most have access to the internet, it’s not required for text messages, meaning it’s a very available digital communication channel.
• Direct and concise – Text messages are generally short and to the point.

Disadvantages:

• Organisational – Texting provides a paper trail, but one that’s hard to organise, considering any number can contact you and doesn’t come with contact details.
• Lack of confirmation – Anyone can claim to be anyone over text, with no confirmation of sender (unlike an email, that has an email address)
• Personal – Texting has a personal feel to it, meaning it’s not suitable for professional settings.

Video Calls And Video Conferencing

A video chat can be done via many desktop or mobile apps and has gained great prominence since the 2020 quarantine in the business realm, with even courtrooms utilising the technology.

Advantages:

• Face-to-face communication – Video calls allow you to have face-to-face communication with others, so you can see visual cues on top of audio.
• Remote location – You can attend video conferences and calls from nearly anywhere, eliminating travel logistics.
• Engagement – Virtual meetings are very involved, keeping people engaged.

Disadvantages:

• Technical issues – The technological advances of video conferencing are impressive, but it still relies heavily on technical features working properly, and are subject to issues occasionally.
• Fatigue – Over time, video conferencing can be fatiguing, with the term “Zoom fatigue” being coined as a result.
• Group limitation – Larger groups tend to find more difficulty being engaged and having worthwhile discussions as opposed to smaller groups.

Social Media

Social media has emerged as a powerful digital communication channel, enabling personalities and businesses to connect with a vast audience.

Advantages:

• Wide reach – Social media platforms are usually global, and even when they’re not, they reach a massive amount of people, making them the playground of digital marketing efforts.
• Brand building – Companies effectively use social media campaigns to engage users and enhance their marketing strategies, exemplified by Spotify’s Wrapped campaign which encourages users to share personalised content on social media platforms, thus increasing brand visibility and engagement.
• Target audience – You can employ targeted messaging to capture specific demographics, improving your communication’s relevancy and engagement.

Disadvantages:

• Lack of control over message spread—Once you post information, you have no control over how far the message can spread, or even how it can be interpreted.
• Fast-paced – Not necessarily a bad thing, but when new changes can change the context of your industry at the drop of a hat, it can render even the best-laid digital strategy inefficient.

My Business Needs Digital Communications: What Digital Tools Should I Use?

What makes digital communication important is the speed and efficiency at which things get done. The following will be some pointers for what works best as a communication tool, depending on your business needs:

• Internal communication channels – Tools for coworkers to communicate with each other, keeping informed and aligned on projects:
  • Slack – An instant messaging tool for real-time communication, also can divide channels by goals, departments or topics.
  • Microsoft Teams – Teams combines chat, video calling and file storage to provide a platform for teams to collaborate and hold discussions.
  • Asano or Trello – Project management tools that allow internal communication channels, keeping tasks and progress transparent.
• External communication channels – Tools that allow you to open communication channels to clients, partners or external stakeholders, helping maintain relationships and share information.
  • Email – Ideal for formal and documented communication. Has the ability to send messages and attachments, and is considered an official communication method.
  • CRM Systems – CRM systems such as Salesforce and HubSpot allow you to manage client interactions, important for different team members to stay up to date with issues, enquiries and more to respond effectively.
  • Social media platforms – Platforms like Linkedin or Facebook are often used for customer engagement and support – a famous example is Wendys relating to customers by acting less like a corporation, and more like a normal user, using humour.

How To Use Digital Communication Tools To Harness Data-Driven Marketing?

In the digital age, data is abundant and rapidly generating, and using digital communication channels to capture and transmit this information can be the difference between failure and success for many businesses.

• Audience identification – Identifying the habits of your customers, segmenting them and creating strategies can boost engagement and sales overall. For example, using HubSpot, you could segment first-timers and high-spenders into categories, and send them different offers that may cater to them individually.
• Optimise content via engagement metrics – Using tools to identify frequency and patterns in engagement can help you make more efficient designs, products or services, and using project management tools like Mailchimp to A/B testing to find solutions.
• Real-time data with social listening – Tools like Sprout Social offer social listening features that can track mentions of brands or topics related to it, or their products. So, if a specific type of clothing, like sweaters in winter, begins trending you and your team can be notified and act immediately.

Conclusion

Overall, using digital communications enables users to work more productively together. There are many digital tools available, and many with advanced settings that allow specific, specialised actions that may be indispensable in certain industries. Make sure to check what options are available to you, and experiment.

The post Digital Communication Channels – Options, Advantages, And Disadvantages appeared first on Real Business.

A company launching a presence abroad is not as easy as Starbucks stores make it look. Their localisation team goes through great pains to research culture, history, and local tastes and adapt as necessary whilst retaining the original first Starbucks store coffee experience. But how do they manage to do this so successfully time and time again?

In this article, we will figure out how Howard Schultz, as the chief executive officer, played a pivotal role in transforming Starbucks into a globally recognised coffeehouse chain, conforming to local traditions and winning hearts and minds internationally.

How Did Starbucks Gain A Global Presence?

There are 32,000 Starbucks stores worldwide, with stores in 80 countries. In the United States alone, Starbucks operates over 14,000 company-owned licensed stores (one of which is the largest Starbucks in the world), while in China, the number of Starbucks stores has surpassed 4,000. The coffee chain also boasts a strong presence in Japan, South Korea, and the United Kingdom, among other countries. This global expansion was achieved using Starbucks’ unwavering commitment to providing speciality coffee that either starts your day or rejuvenates it.

But whilst Starbucks coffee is a draw in and of itself, this alone would never be enough to expand as fast as it did.

Adapting To Local Tastes

The secret behind the number of Starbucks stores worldwide is its ability to adapt to local tastes and preferences through adding region-specific menu choices.

For instance:

• Japan – In Japan, Starbucks offers the delightful Sakura Blossom Cream Frappuccino, a seasonal favourite that celebrates the cherry blossom season.
• India – In India, Starbucks has embraced local flavours with a range of spiced teas and coffee drinks, including the popular Masala Chai Tea Latte.
• France – Starbucks introduced the Vienesse coffee and food line, featuring items such as red fruit cake, brioche and foie gras sandwiches.

Localising The Starbucks Store Experience

Starbucks wanted all Starbucks locations outside of the USA to reflect the unique character of each market. In China, for example, Starbucks stores often feature traditional Chinese architecture and design elements, creating a harmonious blend of modernity and tradition. This approach seeks to identify and show respect to the local populace, forming ties with local communities.

Starbucks Stores By Country

The following will be a rundown on the number of Starbucks stores per major country, as well as how these company-operated Starbucks stores managed to create a lasting foothold that rapidly adds to Starbucks’ revenue.

Starbucks has 18 design centres around the world. Each one works to understand what is considered normal, design-speaking, per country – in an attempt to blend in and create a calm, familiar atmosphere. This is what they found.

Japan Starbucks Stores

The design centres found that the Japanese building design is idiosyncratic: low roofs, traditional and often with allusions to its national religion, Shintoism. To recreate this feel, Starbucks has partnered with local designers to identify the spirit of a city. Fukuoka, in Kyushu, has a Starbucks with 2000 interlocking wood blocks, to give the impression of a forest to fit with the spirit of Shintoism: honouring nature.

Japan also has a selection of localised drinks and food. It introduced green tea ‘matcha’ (ground tea leaves) frappuccinos and cookie crumble with white pudding, possibly because Asian consumers are accustomed to beverages with solids mixed in.

Initially, Starbucks launched with American foods – which to Japanese tastes were oversized and too sweet. They’ve since begun using local bread for downsized sandwiches and reduced sweetness to match the relatively low-sugar diet that the Japanese abide by.

China Starbucks Locations

Starbucks opened its first store in China in 1999, however, it did so following a very different method than it did in Japan.

The Chinese, due to successive food scandals, were more trusting of foreign food and drink brands in 1999. This means ‘localising,’ by branding itself within China as a Chinese coffee chain, would’ve potentially harmed Starbucks’s growth in the country.

China’s position as an emerging economy has created an aspirational class (similar to the one that existed in Europe around the turn of the 19th century). The Chinese bourgeoisie seek out consumables of status – which works in Starbucks’s favour as an aspiration brand. So Starbucks bumped coffee prices up to around 4 a cup, compared to around 2.30 in the UK.

After beginning and maintaining a strong foothold, however, they decided to begin to add to the cultural-themed store count in China. In one of China’s oldest cities Xi’an, they hired famed Japanese architect Kengo Kuma to design the many-tiled, geometric exterior design for the city’s Starbucks. Additionally, the Starbucks app is widely used for mobile purchases, driving in-store sales and enhancing customer experience through technology.

However, their time in China hasn’t been without tribulations. First of all, the country’s American cafe culture was all wrong for the Chinese, who would rarely go to a cafe alone. Market research showed that they would prefer to go in groups of up to 10 people, and this would strain western coffee stores built to accommodate single drinkers and two-person groups. Chinese stores were adapted so they could accommodate these larger groups of people.

There was also the time Starbucks launched a store within the Forbidden City, which for 400 years remained ‘forbidden,’ and only recently opened up to tourists. Starbucks was originally invited there by curators at the city to open up ways the now-museum could earn money – but it didn’t sit well with Beijingren who possibly felt it rang a little too much like capitalist imperialism.

It’s akin to someone building a Starbucks in Buckingham Palace after we had lost our monarchy.

The lesson is to be aware of and respect culture and cultural sentiments.

Saudi Arabia (Middle East)

When Starbucks launched in the Middle East it was met with immediate friction.

Because of the decency laws concerning women, the topless mermaid insignia was seen as pornographic – they changed the iconic mermaid instead into a crown on waves.

Although this wasn’t technically a design choice, it mirrors its experience in the Forbidden City in China: indicating the importance of calculating accurately cultural demands. In Saudi Arabia, Starbucks controversially segregated its stores into male and ‘family’ sections for women, adhering to the local culture of Islamic societal norms.

Eventually, Starbucks began to offer a range of iced coffee products that found immense popularity within Saudi Arabia.

France And Europe

Unlike the Chinese, who see Starbucks as an aspirational brand, the French initially found Starbucks overpriced but of lower quality, compared to their own cafe culture.

It was sort of the inverse of what they looked for on the continent. Europeans were famously derisive of American excess, take-away culture and overfamiliarity (for example, giving baristas name tags was thought to be insincere and overtly American). They left Starbucks well alone, and its European stores were underperforming.

Perhaps the crucible of Europe, an early challenge for Starbucks, strengthened its conviction in the importance of localisation. In France, it introduced the ‘Viennese’ coffee (essentially, coffee or hot chocolate with cream) as well as a food line more suited to continental, as opposed to British or American, tastes: red fruit cake, brioche and foie gras sandwiches. In Britain, Starbucks has interpreted our tastes and added scones and bacon butties to the menu.

Starbucks has also refocused its energy on mirroring local styles and honouring European history. In Amsterdam, it built stores that supported local cultural scenes, for instance building a stage for poetry in a converted bank vault at Rembrandtplein (Apple have attempted something similar in London, Paris and Berlin at least: occupying Victorian buildings as well as the Louvre).

Finally, Starbucks franchises out an increasing proportion of its stores in the UK, emulating the independent coffee stores which are appreciated in the Old World. Just over 60 per cent of Starbucks stores in the UK are franchises, compared to 41 per cent in the US.

Conclusion

The strength of the Starbucks expansion comes with having a heavily researched localisation team, especially in breaking into the East Asian market where many other foreign brands, like Home Depot and Google, to local competitors.

Their main goal of having a place to relax at the start or middle of your day remained, whilst they used their incredible research team to seek out innovative methods integrated with the values of the country in question. It shows there’s more to localisation than scouring data sheets and adding green tea flavouring to beverages. Starbucks shows a keen sense of sympathy heritage and culture (for the most part), and fans abroad have spoken with their wallets.

FAQ: How do Starbucks stores promote ethics?

The company’s mission is to “inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time.” To achieve this, Starbucks has implemented a range of initiatives aimed at reducing its environmental impact, such as using renewable energy and sourcing coffee beans sustainably.

FAQ: Where was the first Starbucks store outside of the USA?

On the 1st of March, 1987, Starbucks opened its first store outside of the USA. Howard Schultz aimed to expand the company beyond Seattle into Vancouver, Canada. He envisioned creating Italian-style Cafes, collaborating with Dave Olsen and identifying Vancouver as a suitable location. Olsen oversaw the setup, interviewed applicants and installed equipment.

FAQ: What is a Starbucks Reserve Roastery?

Starbucks stores and reserve roasteries are two different brands. Whilst one offers coffee, the other offers a unique experience of immersive spaces dedicated to the journey of Coffee from bean to cup. Each Roastery features on-site roasting, interactive brewing methods and exclusive beverages/food options.

The post How Many Countries Is Starbucks In, And How Do They Adapt To Local Tastes? appeared first on Real Business.

Capitalism has many checks and taxes to aid social welfare without hindering forward progress, but unfortunately many still fall through the cracks. Those who want to make a difference for these people have the option to set up a charity.

But what do you need when setting up a charity? In this article, Real Business will outline the legal requirements, essential governing documents, types of charity structure available and more to help you make an informed plan.

How Do I Set Up A Charity?

To set up a charity, you need to gather some foundational requirements and have a plan that will keep your charity functioning. The following steps will outline these requirements.

1. What Is Your Charity’s Purpose?

The charitable purposes of your foundation must align with one of the thirteen outlined under the Charity Commission, the governing body of UK charities:

• The prevention or relief of poverty
• The advancement of education
• The advancement of religion
• The advancement of health or the saving of lives
• The advancement of citizenship or community development
• The advancement of the arts, culture, heritage, or science
• The advancement of amateur sport
• The advancement of human rights, conflict resolution, or reconciliation, or the promotion of religious or racial harmony, or equality and diversity
• The advancement of environmental protection or improvement
• The relief of those in need due to youth, age, ill-health, disability, financial hardship, or other disadvantage
• The advancement of animal welfare
• The promotion of the efficiency of the armed forces, police, fire, or ambulance services
• Any other purposes recognised as charitable under existing charity law and the decisions of the courts

2. What Is Your Desired Charity Structure?

There are four main types of charity structures:

• Charitable Incorporated Organisation (CIO) – This legal structure is designed exclusively for charities and is registered only with the Charity Commission. It combines the benefits of incorporation (limited liability for trustees), only with reduced administrative burdens.
• Charitable Company Limited by Guarantee – A corporate charity structure that offers limited liability, registered with both the Charity Commission and Companies House.
• Charitable Trust – This charity structure is used by those managing investments or properties. They are governed by a trust deed and managed by trustees, who are all personally and legally liable.
• Exempt Charity – This charity is exempt from Charity Commission registration. It still operates as a charity, but they are regulated by other bodies, such as universities regulated by the Office for Students.

3. What Are The Requirements To Apply For Charitable Status?

To apply for charitable status, you need the following:

• Governing document – The governing document is a constitution, trust deed or articles of association that outline the charity’s rules, purpose and structure. For a governing document template, check here.
• Three trustees – A trustee is an individual who is responsible for the management and decision-making within the charity, and you need at least three or more.
• Charity name – A name which complies with Charity Commission rules, meaning it must be unique, it must not mislead or be offensive.
• Proof of income* – An annual income of over £5,000.
• Financial details – A clear plan for managing funds, such as a budget and plan for funding.
• Contact details – Contact details and address for official communication.

4. Where Do I Apply For Charitable Status?

Technically anybody can set up an organisation that they call a charity foundation and begin giving money away, but to be trusted by third parties (including donors), you have to apply for charitable status.

Application is easy. With all the requirements at hand, simply go to the charity commission page on GOV.UK and create an account there.

Once you are accepted, congratulations, you can count yourself among registered charities in the UK.

What Are Effective Ways To Raise Money For Your Registered Charity?

Whilst charity is not for profit, the money it requires to pursue its purposes must come from somewhere. There are various sources you can tap into, including regular donations, grants, fundraising events, and gift aid donations.

Some tips include:

• Put politics aside – Humanitarian efforts should have no political leaning. You may well have plenty to say about Eurozone bailouts and Whitehall’s search to differentiate between its elbow and posterior but leave it out of your charity entirely. Not only can it polarise donors, but it’s also against charitable purposes.
• Long-term over the short term – People are more likely to give little amounts to charity, and not often. That’s why it’s better to pick a plan that will spread the word wide, and stay consistent. Make sure you also update people on how much the public benefit of the charity has paid off. Foundations not only allow business people to give something back, but they also allow them to use their entrepreneurial eyes for long-term sustainability.
• Go digital – Give your charity a presence on social media platforms and track figures to update the world on ongoing fundraising efforts. This sense of progression has been proven to increase engagement.

What Are Some Alternatives To Setting Up A Charity?

If all this sounds like a bit too much effort, there are alternatives:

• Charitable foundation – a charitable foundation. There are virtually no overheads, and donations can be dispensed to charities already operational on the ground. A CAF is effectively a bank account into which you make a single donation each year, and you then get a chequebook which you can use to make donations to charities. As for administration fees:
  • £5k to £25k – If you invest £25,000 per year or less, only a couple of forms need to be filed with the Charity Commission. It’s important to note that all registered charities must comply with these administrative requirements based on their income levels.
  • £25k to £250k – All paperwork and submissions must first be looked over by a competent individual
  • £250k to £500k – As above, but the competent individual has to be qualified ie: an accountant
  • £500k+ – Accounts must be properly approved by an independent auditor.
• Community Interest Company (CIC) – A Community Interest Company is a company that is designed to benefit the community. It makes it easy for a tax return because it’s just a single payment each year, so a client doesn’t have to go through mounds of paperwork to fill in their tax return and it doesn’t involve any of the work in setting up and running your foundation. You can even set up a CAF in your name, or a foundation’s name, or choose to keep it anonymous. You might also explore partnering with an existing charity to reduce administrative burdens and leverage established resources.

The post How To Begin A Charity Or Foundation appeared first on Real Business.

Since the finalisation of Brexit, rules for trade between Great Britain and the European Union have changed. Ever since the 1 January 2021 all businesses based in Great Britain need an EORI number to import and export goods from or to the EU. This number is required by customs authorities before your goods can be imported or exported in order to legally trade.

If your trade business is just starting out, then getting your head around EORI numbers can be tricky. Even if you have been trading for years, the way you do trade will likely have changed since 2021. EORI numbers don’t need to be complex and once you understand them, they are easy to apply for and use. We have put together the ultimate guide to help you navigate these requirements.

What Is An EORI number?

EORI stands for Economic Operators Registration and Identification number. An EORI Number allows you to trade between countries. Until January 2021, Great Britain was part of the European Union so an EORI number was not required. That has obviously now changed since Brexit and all businesses exporting or importing between Great Britain and other countries need an EORI number. An EORI number is required when making a customs declaration.

An EORI number is your business’s unique identification number to help customs identify your business and goods. It was brought in on 1 July 2009 to replace the Traders Union Reference Number System but has only become mandatory in Great Britain since Brexit passed in 2021.

This unique code will need to be quoted on a number of forms and official documents, so it is important that you understand what it is. Different types of EORI numbers are also issued depending on the country where your business is based and on your VAT classification.

Although it may seem like yet another hoop to jump through in establishing an international trade business, the introduction of the EORI number will actually make trade easier and safer. The system was put in place to properly implement security measures set out by the European Parliament. It has also been noted that most established traders have been calling for a common numbering system that is unique to users but valid throughout the EU for quite some time. This makes customs handling much easier, and if you’re a business that will import or export freight, it streamlines the process.

Mandatory identification codes for traders have been in place for years, but they have not always been universal, making identification difficult. The universal use of EORI numbers is set to improve trade.

What Does EORI Number Stand For?

EORI is an acronym for Economic Operators Registration and Identification. It is a unique and universally recognised identifier for your business.

As an economic operator within international economics, importers and exporters need to be identifiable and need to be registered for customs and tax purposes. The EORI number consists of the country code of the issuing member state (in Great Britain that would be GB) followed by a code or number that is unique to that member state. In Great Britain the GB is followed by a 12 digit unique number.

Every UK business requiring an EORI number will have an EORI number starting GB, followed by this unique 12 digit code.

Is An EORI Number The Same As A VAT Number?

No. Although your EORI number will be linked to your VAT number (if you have one), they are not the same thing.

When you register for a VAT number you will be given the option to register for an EORI number at the same time. Once you have completed this application, HMRC will link all future imports. If your business start date was after the introduction of the EORI system, the application process for VAT and EORI will be linked.

If you have a VAT number but plan on trading with the EU, then you will need to apply for an EORI number through HMRC if you don’t already have one. The registration process usually takes a few days so make sure you don’t start trading until registration has been completed. If you do start to move goods without an EORI number you may find your goods detained and may have to pay fines, return fees, and storage fees.

Who Needs An EORI Number?

The EORI number is specifically for trade between countries. If you import or export goods then you will need an EORI number. Both individuals and businesses can register.

Specifically, you will need an EORI number if you move goods between:

• Great Britain (or the Isle of Mann) and any other country
• Great Britain and Northern Ireland
• Great Britain and the Channel Islands
• Northern Ireland and countries outside the EU

You do not need an EORI number for moving goods between Northern Ireland and the Republic of Ireland.

You will also need a EORI number if you:

• Have appointed someone else to handle customs for you
• Make customs declarations
• Use customs systems such as CHIEF or ICS NI
• Apply for a customs decision

For companies that are part of larger firms, holding groups, or businesses, the EORI number must be issued to them and not the subsidiary company. Application and registration will need to go through the parent company and details passed on to any subsidiaries working for them.

You should note that the EORI number is only for goods, not for services. If your company offers digital services across borders you will not need an EORI number. However, if your business starts to trade physical goods at any time, you will need to make sure you have registered for an EORI number in time to have your number before your goods reach their destination.

Even if your company is not usually a trade company, or if you normally don’t import and export outside of Great Britain, you will still need an EORI number if you plan to trade outside of Great Britain. This applies to special order, small shipments, and one-off arrangements. Make sure you know what you need and have registered before making your trade arrangements.

Personal parcels and shipments do not require an EORI number.

What Are The Types Of EORI Number?

There are three types of EORI number and the type you need depends on how your business trades and whether you are or aren’t already VAT registered. You can register for an EORI number if you are a:

• VAT registered business
• Non-VAT registered business and importing
• Non-VAT registered business and exporting

You will need different information depending on which type of EORI number you are registering for.

There are also differences between EORI numbers registered to different member countries. If you are trading out of Great Britain, you will need an EORI number that starts with GB. For trade between Northern Ireland and The Republic of Ireland, you will need an EORI number that starts with XI.

If your business will be making certain other declarations or customs decisions in an EU country then you may need an EORI number from an EU member country. You will need to contact the customs authority in the EU country you are trading from in order to get the relevant number.

Businesses established in multiple EU countries who import or export from those countries will need to apply for the relevant EORI number from the country where the business is based. Remember that this could mean multiple EORI numbers if your company is large and diverse. These EORI numbers will also not be issued through HMRC and you will need to follow the correct channels in the necessary country to apply for their EORI number.

How Do I Find My EORI Number?

After you have applied for your EORI number you will receive an email from HMRC within a few days with your EORI number. Getting the number can take up to a week, with trade by air (rather than ship) usually taking longer to register. Bear this in mind when registering for your number.

Before you register, you can also check if your business already has an EORI number. If you are VAT registered you would have been given a VAT number. This may or may not be linked to an EORI registration.

To check if your VAT number has a linked EORI registration, use the GOV.uk service page to check your VAT number. You will need to add GB to the beginning and 000 to the end. For example, if your VAT number is 123456789 then you would type in GB123456789000.

Is An EORI Number Mandatory?

If you import or export goods of any size or number then an EORI number is mandatory.

There is no cost involved in applying for an EORI number, but there are significant costs you may face if you start trading without the necessary registration and documents. Make sure your company is protected by registering for an EORI number if you plan to import or export.

Do I Need An EORI Number If I’m Not A Business?

If you are sending or receiving parcels in a private capacity, then you do not need an EORI number. This includes any posted or couriered items, providing they are not for business purposes and you are not engaging in trade. Personal and private goods will need to be shipped through a third party and they will be responsible for ensuring they have the correct documentation for your goods to clear borders.

For people who are self-employed, sole traders, or in partnerships, even if you do not call yourself a business, if the goods you are importing or exporting have business purposes then you will need an EORI number. This applies to any trade or sale, even if it is one-off.

What Happens If You Don’t Have An EORI Number?

Without an EORI number you are not permitted to import or export goods.

An EORI number allows your goods to pass through customs, so without one your goods will be stuck at the border and you won’t be able to access them. This is particularly pertinent if you use sea or air freight to move your goods.

The longer your goods stay at the border, the more expenses you will incur as you will need to pay for the storage (also known as demurrage) of your goods while they are detained. You will also likely experience problems for your business because delays will hold up transactions and cash flow.

Although you are unlikely to face any kind of monetary fine, you will probably incur heavy fees for any return shipping, customs clearance, and storage. Considering that an EORI number is free, you can save yourself a lot of time and hard work by ensuring your EORI number is in place before you start shipping.

Can I Get An EORI Number If I Am Not VAT Registered?

You can get an EORI number even if you are not VAT registered. EORI numbers are required for all trade, whereas VAT numbers are only required once you are trading above a certain threshold – in the 2024-2025 tax year, that threshold is £90,000 in turnover. If you are importing or exporting goods at all and do not have a VAT registration you will still be required to register for and hold a valid EORI number.

Registering for an EORI number if you are not VAT registered is simple though, so you don’t need to worry about it becoming a problem. You will be able to follow the same process as you would for the standard EORI number application.

There is a slight distinction, however, if you are not VAT registered. You will need to state whether you are non-VAT registered and an importer, or non-VAT registered and an exporter. You should also wait until after your first shipment to register as you will need carrier and tracking information to complete your application form. Keep this in mind for your first shipment as it might mean some storage fees when your goods arrive and a possible slight delay before you can access your shipment.

How Do I Apply For An EORI Number?

The good news is that applying for an EORI number is quite straightforward and HMRC has tried to make the process as easy as possible. All UK applications are handled online by HMRC and you will need to fill in an online application form based on the type of EORI number you need. The whole process should take less than 10 minutes provided you have the right information on hand.

If you are VAT registered, you will need to provide:

• Full name
• Position
• Contact details
• Government Gateway ID and password
• VAT number
• VAT registered name
• VAT address for permanent business establishment

If you are not VAT registered and are importing, you will need to provide:

• Business name
• Business address
• Contact details
• Business status
• Description of goods being imported such as the quantity and value
• Supplier details
• Freight or courier agent
• Method of import

If you are not VAT registered and are exporting, you will need to provide:

• Business name
• Business address
• Contact details
• Business status
• Description of goods being exported such as the quantity and value
• Supplier details
• Freight or courier agent
• Method of export

You will also need a government gateway user ID which would have been issued when you first registered as a business. If you don’t already have a one, you can create one when you start the process.

Sole traders or individuals applying will also need their national insurance number.

You may need your UTR (Unique Taxpayer Reference) or if your company is registered in the Companies House Register, you will need to provide the start date of your business as well as the SIC – Standard Industrial Code.

If you skip any information or fill in the wrong details your application will probably be rejected. Make sure you have all the relevant up-to-date information available when you apply to be sure your application process is quick and easy.

This is the process for a GB EORI number. If you also need an XI EORI number for trade with Northern Ireland, then you will need to apply for your GB EORI number before applying for your XI EORI number. HMRC provides an enquiry form that can be filled out after you have already received your GB EORI number that allows you to apply for your XI EORI number as well.

Do EORI Numbers Expire?

EORI numbers do not expire and you will only ever need to apply once per business. The only reason for needing to apply for multiple EORI numbers is if your business expands into other countries and you are required to hold EORI numbers issued in those member countries.

Where Can I Find Help With My EORI Number?

If you are struggling with your application, have specific questions for HMRC, or need to update information, HMRC have provided various ways of contacting them.

• Use the online form to get specific advice about your EORI number
• Use the provided phone number between 8am-6pm, Monday-Friday to ask more general questions. Call HMRC on 0300 322 9434
• If you would prefer to write, you can contact HMRC at: HM Revenue and Customs – CITEX Written Enquiry Team, Local Compliance S0000, Newcastle, NE98 1ZZ

You can contact the HMRC EORI team to:

• Ask general or specific questions related to your application or EORI number
• Update company details including contact details, registered names, or your VAT number
• Let them know when you register for VAT for the first time
• Let them know you no longer use or require your EORI number
• Remove your company details from the public records EORI database

The post What Is An EORI Number: The Ultimate Guide appeared first on Real Business.

Writing back in 2013 for Real Business, Chris Outram, founder of OC&C Strategy Consultants, and an expert in strategic planning and the strategic planning process in general, helped put together a guide exploring the pitfalls in strategy that can turn any strategic plan into a disaster.

Strategic plans fail all the time. That’s just a fact of life. But with proper strategic analysis and working closely with key stakeholders to allocate resources, rallying behind business leaders, and taking into account the external environment and it’s potential impact on operational efficiency, you can adapt when strategies fail and ensure that the implementation process is as smooth as possible.

Companies struggle to get their strategic priorities in order all the time, but Chris’ advice rings as true today as it did back then, so we’re refocussing our efforts in helping business leaders implement new strategic initiatives to ensure they stay ahead of the competition and avoid some of the most common pitfalls in strategy.

Below is Chris’ advice from 2013. Following his advice can improve your business plan, financial performance, and help align efforts of everyone in your organisation as they move towards common business goals.

Pitfalls To Avoid In Business Strategy

In business, even the most robustly designed and painstakingly planned strategies can fail. Even worse, it is often the blindingly obvious that can trip you up. This is relevant for any business, of any size, in any sector.

Here are my top ten pitfalls leading to strategic failure and what senior managers need to avoid in order to make their strategy work in practice.

Top Pitfalls Of Strategic Management

1. Short Termism

Marks & Spencer fell prey to this in the late 1990s when it announced its target of becoming the first UK retailer to generate annual profits of £1bn. It had the desired effect on the share price. Unfortunately, there was a high price to pay. As the company geared its operations towards profit, a lack of investment in sales and infrastructure started to erode the company’s long term hold on its markets. Value-based rivals made off with the family silver and a profit warning followed in 1999. It was 2008 before M&S once again delivered a profit of £1bn.

Succumbing to short-termism is a major risk, whatever size your business. For SMEs and entrepreneurs, it can be a pressure to focus on short-term results in order to impress stakeholders, backers and prospective employees. It is essential to prioritise long-term investment over short-term margins and to stay on track.

2. Ignoring External Trends

A failure to pay attention to short term external trends for instance, not properly tracking customer needs and understanding competitor moves/motives, will trip up even the best strategies.

Research in Motion, the makers of the pioneering Blackberry, failed to respond to very clear market trends. By not moving beyond their traditional corporate sector, and their failure to both innovate and understand the app market lost them their position as the market leader.

On the other side of the coin, Zara, the fashion retailer, is a business precisely in tune with its market. Zara’s ability to divine changes in taste among its clientele and then to satisfy them in a matter of weeks is legendary. They do this by continuously tracking market trends and customer preferences, monitoring the media as well as their own sales, and delegating the right people to spot trends. All of these tactics can and should be part of a business’ strategy, whatever size.

3. Overconfidence Based On Existing Success

Even in difficult and challenging markets, companies can overestimate the value of their business model, customer base and ways of doing things.

Blockbuster is a clear example of a business that failed to move with the times and saw its business model collapse on both sides of the Atlantic.

The message here is simple: you need to be ruthlessly honest. Otherwise, you may wake up one day and your business is gone.

4. Failure To Respond To Structural Changes In The Market

Refusing to acknowledge that structural changes are real can also lead to flawed strategic responses. When something new comes along, the answer is usually to move early, no matter how painful it might be.

One of the more notable and public examples of this is Kodak a pioneer and dominant force in the photographic film market until relatively recently. In 1976 it held a 90 per cent share of photographic film, and Kodak actually pioneered digital photography technology in the mid-1990s but actively chose not to pursue this line of innovation because of the threat posed to the core photographic film business.

The rest is history. Kodak has failed to turn a profit since 2007, and in February 2012 filed for bankruptcy. A sad end to a masterful brand.

Kodak failed to follow one of the basic rules of strategy: if you are going to be cannibalised then it is, on balance, better to cannibalise yourself!

5. Failure To Employ The Best Possible Team

Putting up with a sub-par or mediocre team will make your strategy unachievable or sub-optimised at best. Companies should prioritise going after the best people and then motivating them to do extraordinary things. Focussing on management is usually the best place to start in any strategy.

6. Failure To Focus

However seductive proliferation and diversification are, a failure to ‘stick to the strategic knitting” will take you off course. The key to avoiding this pitfall is to learn to say no. For example, Adidas added numerous brands and product lines in the early 1990s that clouded the company’s focus on sportswear. Failing profits followed, and it took a new management team to turn the company around and return it to its core purpose and build it into the world class brand that it is today.

7. Inability To Foster Belief In The Strategy

A failure to passionately and consistently reinforce the strategy will undermine it and belief in it will wane. Remember: memories of strategic announcements are short, but memories of strategic failure are long.

Getting people to buy into your strategy makes it easier to implement, and to implement well. Communication is therefore critical, and keeping it simple but convincing pays dividends.

8. Inability To Translate The Strategy Into A Corporate Purpose

Increasingly, enterprises need an enduring purpose to inspire and motivate their people. The whole team needs to know that what they are doing matters to the company (and increasingly, to society). But how do you get employees to “buy in” to the proposition without having to “buy” their loyalty with high pay and expensive benefits?

Instilling a sense of purpose has an enormous commercial benefit. Take Starbucks and Gap as great examples of brands that make an effort publicly to treat their employees with respect, provide career progression and emphasise links to the community, making them appear positive places to work. All of which are cheaper than offering five-figure bonuses – and also make us buy a lot more coffee and t-shirts for double the price offered elsewhere.

9. Failure To Instil A Sense Of Pace

There are countless examples of companies lulling themselves into a false sense of security about the speed at which they move. There is little upside, if any, in delaying once you are convinced that a certain reality is true. In terms of bad news in particular, it is usually the case that the sooner you announce it, the better. Act earlier – bad news seldom improves with age.

10. Failure To Create Accountability For Results

The heart and soul of execution is accountability it is this which motivates people to follow through on their commitments. It is essential with any plan that it is clear who is responsible for what, and that accountability is tied to results, not activities. This is essential because, while activity within an organisation is unceasing, it is only results that really matter.

Chris Outram has been a strategy consultant for more than 30 years and the founder of OC&C Strategy Consultants. His book, “Making Your Strategy Work; How to go from Paper to People is published by Pearson and is available now at Amazon.

Final Thoughts

Chris’ 10 pitfalls to avoid in strategic planning is the key to ensuring continuous improvement as a business in an ever-changing environment. If you want desired outcomes, then you have to ensure your strategy aligns with these outcomes and strategic goals.

But failing to plan can lead to poor decision making. A positive attitude is always a good thing, and you ought to have confidence in your ability as a business owner and leader, but you also need to be aware that things can change in an instant in business.

Now that we’ve discussed some of the common pitfalls of business strategy, you should be able to embark on a planning session that actually yields a strong strategic plan that serves your business effectively and ensures continued success in your industry.

The post 10 Pitfalls In Strategy appeared first on Real Business.

Public relations (PR) is about how an organisation is represented to the public, and received by them. PR is used to influence the media landscape through communication strategies that work toward the end goal of being received in a positive light, not just to communicate trust but to prevent ill will.

What are the five key skills of public relations? In this article, Real Business will highlight the most important skills in the trade according to public relations specialists, that will put you well on the path to becoming a PR professional.

1. Create Media Relations

News comes from media outlets, meaning it’s crucial to build and maintain strong media relations with journalists and other influential characters. Journalists can convey cutting messages through their writing skills to large audiences, and if they can shine a light on your company that differs from the rosy exterior your brochure illustrates, you may find yourself receiving negative publicity.

The media most definitely has its critics, but it will always be more trustworthy, and much more noticeable, than an advertisement singing your virtues. Furthermore, the content creation skills and crisis management ability of a journalist are far beyond what most companies can handle, which will only enhance your chances of weathering a PR storm.

The following is how to create media relations:

1. Identify targets – All halfway successful businesses know their target audiences. Find the media outlets that best cater to this audience, and research the specific journalists that have good followings, and may be compatible with your brand.
2. Build relationships – Don’t pitch stories – engage with the journalist via social media posts, share their work, etc. Build a working relationship and treat the journalist more like an external employee than a partner.
3. Craft compelling pitches – Tailor your pitch to each journalist and outlet, almost like a reverse job interview. Your company has to be newsworthy, or your story does. There’s no in-between.

The results will pay dividends; potential clients are much more likely to be drawn to you when they see others (established media or other companies) speaking well of you than when it is through your self-promotion alone.

2. Target Your PR Campaign To Specific Audiences

PR’s ultimate goal is to enhance the brand image so that clients are more inclined to take up your services or products. It’s for that reason that you ensure your PR campaigns are efficient, specifically targeting your target audience. The reason for this is simple – it aligns with your business goals.

Generalising your PR campaigns is a mistake. Messaging is one of the most important skills in the business world specifically because appealing to specific interests, concerns, and problem-solving solutions means you have a better chance of resonating and catching a person’s attention. Furthermore, all PR campaigns have allotted resources, and all resources within a business should be used with efficiency to maximise returns.

You will need to employ strategic thinking. Start by asking yourself the following:

• Who are you trying to reach?
• How do they consume media?
• What do they read?
• What are their pain points?

Answering these questions will help to focus your campaign on developing a targeted message that will resonate with your target audiences, whilst also allowing you to implement tracking and measuring processes.

3. Relevancy Is King

Information nowadays is fast-paced with quick turnover times. Viral videos, hashtags, and trending topics all direct interest away from generalised spheres. This is why social media proficiency is required for PR professionals to stay relevant and effectively engage their audiences.

A public relations specialist will spend a good deal of their time following trends that are relevant to the industry they are working for. This allows them to leverage social media by creating relevant, engaging content. A user needs to know right away that what they are seeing is relevant and not old, meaning that not only does the content have to be new, but PR specialists must also ensure they engage on these social media platforms to give an air of presenteeism.

Ensure you:

• Monitor Conversations – Track hashtags, keywords and mentions via social media skills. See what is new within the industry, and capitalise on it by appealing to customer interests or problems.
• Share real-time updates – Sharing news of points of interest will keep it relevant, and allow you to gauge the levels of interest.
• Engage with audiences – Audiences and customers love a responsive organisation, so long as it is to the point and informed. To them, it’s another form of good customer service and convenience.

4. Become A Thought Leader In The Industry

Thought leaders are individuals or groups who are considered the “authorities” in certain fields or industries. They act as a conduit between knowledge and the customer, being able to use their knowledge and unique insights to inform or even entertain, thereby becoming a “friend” to the audience. It’s a critical skill for this reason, as it places the power in the hands of a company and blurs the lines between a person bound by policy and regulations, and a person on the internet.

Thought leaders tend to visit various channels, whether it be speaking engagements, blog posts, social media or research publications. Over time, you can:

• Build credibility – Being consistently right and breaking down complicated subjects into digestible chunks will build your credibility over time.
• Media attention – Journalists and media outlets prefer to speak to thought leaders for interviews, quotes and expert opinions.
• Influence industry trends – Thought leaders have the power to shape narratives in their field, pushing it one way or another.

Doing this requires expertise in the field, meaning you must develop knowledge in your chosen area. It takes a heavy commitment to a subject, as well as extensive communication skills.

5. Make It A Conversation

You don’t want to come across as speaking to your audience; all your communication should serve the purpose of opening up a dialogue between your business and the public. This is called interpersonal communication. Social media outlets such as Twitter, Facebook, your blog, etc. are not merely soapboxes on which to advertise, but are excellent platforms to interact and converse with your audience.

Here you can gauge their interest and opinion towards your services or ideas and, correspondingly, show them that you’re interested in what they have to say. And when they do respond, you must engage – even someone retweeting something you say on Twitter may be worth following up.

Effectively, what we’re saying is that PR should be a lifelong conversation between a business and the audience as to why your industry is fantastic and that you are the best one to solve their problems.

Conclusion

These are five important PR skills to master to enhance your brand image. Nonetheless, they are far from the only ones. Remember, PR is about more than simply attending press releases and saying pretty words – it involves a lifelong mission toward ensuring your company has the cleanest and most authoritative image possible.

The post Five Key Skills In PR: Elements Of Public Relations appeared first on Real Business.

Teamwork is the primary reason humans have managed to advance in our technology, but due to our nature, successful teamwork can be hard. There is a multitude of factors that every team member has to acknowledge and act towards, and there are many barriers that can make it hard to overcome teamwork challenges.

Real Business has put together this article to ensure that ambitious, involved and long-term thinking business owners and management can be aware of the best practices to take to unlock the full potential of your team and have the tools to overcome teamwork challenges that often crop up in the workplace.

How To Overcome Teamwork Challenges – 10 Common Issues

1. Lack Of Trust

A key building block of human interaction is trust. When you’re in an environment where you know you can trust your peer, you’re able to communicate effectively. Communication breakdowns come from the symptoms caused by a lack of trust, such as self-centred competition, lack of self-awareness, and typically a lack of interest in what goes on around you.

Google released a groundbreaking study named “Project Aristotle” to identify areas in which a business has to excel to result in the entire team performing highly. They found that a key building block of high-quality productivity is psychological safety, a state of mind where you feel as if your mental state is not at risk of being adversely affected. By creating a company culture that ensures that a team member or their teammates won’t be punished or otherwise penalised for taking risks, sharing ideas, offering feedback and admitting mistakes without negative consequences, you can foster this state in your own employees.

Building trust means incentivising people to know each other professionally and personally. By opening up the path of friendship amongst teammates, you are on yo

ur way to establishing that all parties are there to further the ends of the workplace. Working towards a common cause is one of the best ways to pursue a united team.

2. Conflict And Tension

Conflict between teammates within a work env

ironment is a huge problem. It creates an air of antagonism that most people do not want to be around, and in the worst cases, it can lead to the alienation of a team member, or even several. What follows is a breakdown in communication, the formation of cliques and the general reduction in productivity. To overcome teamwork challenges like this, immediate and swift action has to be taken.

A 2022 study by the Society of Human Resource Management (SHRM) found that workplace conflict is a significant contributor to employee stress. Unresolved conflict was found to be linked to many negative consequences, such as absenteeism, presenteeism, employee performance and employee turnover.

3. Poor Communication Surrounding Work

Sometimes, acting to improve company culture isn’t enough to overcome communication issues. Effective teams employ effective communication, not necessarily just face-to-face, but also through software that allows for easy collaboration. Below are some ideas, but none will work if you don’t mandate their use, and make them a common part of daily work life:

• Instant Messaging – Instant messaging platforms offer real-time communication, sidestepping distance between teammates and allowing for a paper trail. Slack is one of these platforms, and studies have shown its widespread use has resulted in a massive decrease in email usage and an 85% improvement in communication effectiveness (Colorlib: Slack Statistics “How Many Companies Use Slack?”). This is due to its intuitive interface, organised channels and seamless integration.
• Collaborative Software – Some software enables high levels of collaboration through chats, video meetings, file storage and modular app integration. Providing clear communication channels that can encompass the whole workplace through this software is fantastic because it allows for meetings with other team members and clients like a remote team, making you highly versatile. By far, the number one program for this need is Teams – which blew up in popularity during the 2020 Quarantine.
• Workload Management – With software that allows for project management, you can track the progress and requirements of various tasks within the workplace in one display. Monday and Notion are two examples of this. They are centralised hubs the entire team has access to.

Again, tying into the first point – ensure that all communication efforts are done without fear of consequence. Research reveals that 80% of workers use collaboration tools for work-related tasks, and 70% believe these tools improve their work quality and productivity (Gartner, 2023).

4. Low Engagement

An effective team is one with high levels of engagement. Team encounters through meetings, social applications etc. are the main ways to improve teamwork. Low engagement usually coincides with less intuition and contribution, which in turn will lead to less productivity within the workplace.

This is where the business owner’s leadership skills will come into play. First, there will need to be a rundown of how each person’s work affects the business. For example – good SEO will result in good rankings. The many pieces that go into SEO strategy should be highlighted, in this example. Incentives also play a huge role – ensuring that professional development within the workplace is available will result in better training, more impact on the bottom line, and, of course, pay increases.

A study named “State of the Global Workplace” by Gallup in 2023 ensured that organisations with higher employee engagement experience 23% higher profitability than those with low engagement. Employees come to get paid and work to live – by tying them closer to the company by investing in that desire, they will begin to put energy into the business. Ensure you’re on the same page at all times.

5. Lack Of Transparency

A lack of transparency in the workplace means a lack of open communication or intentional withholding of information. Information sharing between employees and management, in particular, is highly important for a business to thrive. Failure to ensure open communication of goals or other such information can lead to a feeling of alienation and uncertainty. When you leave team members to make their conclusions, then the business goal naturally becomes misaligned.

Leaders must ensure that honesty is established within the team to overcome teamwork challenges. This is best done through social settings, whether before lunch or during team meetings. Simply by keeping the team up to date on the future of the business.

Slack found that 80% of workers want to understand how decisions are made in their workplace, and 87% of job seekers look for transparency in a future workplace (Rahaman, 2023). The ability to answer hard questions and assure your team of the future and long-term plans is key to keeping everyone feeling stable in their role. Poor leadership may be the cause of this, either on behalf of the business owner, or even the management.

6. No Long-Term Thinking

Businesses all have short-term goals, but the long-term is equally as important. Not having a long-term goal essentially means that you’re in a reactive state to anything that may open up opportunities down the line. Business changes all the time, and the very way we live has changed thanks to both smartphones and the developments/concessions made during the 2020 quarantine.

This ties into the last point. Poor leadership through failing to illustrate the overall goal of the business means that fewer people will use initiative to plan for advantages in the future. Ambitious goals, targets and roadmaps lead to a sense of pursuit amongst the team and make them more likely to be flexible, and take initiative.

The importance of long-term thinking is underscored by research conducted by the Harvard Business Review, which found that companies with a long-term orientation tend to outperform their short-term-focused counterparts in terms of revenue growth, profitability, and market share (Barton & Wiseman, 2014).

7. Poor Team Dynamics

Good planning, high resources, and heavy initiative within collaborative environments can still result in poor performance if the team dynamics are not up to snuff. This can be anything from interpersonal conflicts, misaligned goals or even simply a missing piece that would otherwise guarantee success.

The catch-all solution is to foster psychological safety through active listening via management, who should have valuable insights. Their direct superiors will be able to find the problem, and when it’s highlighted, it’s best to approach it in a constructive, empathetic manner.

8. Poor Changes Via Management

Changes are necessary, but some changes can lead to dissatisfaction. Thankfully, this is an easier challenge to conquer. Effective communication is essential for managing change successfully, as well as an openness to change.

Be aware of the change curve, the four predictable stages of change are:

• Denial/Resistance
• Emotional
• Hopeful
• Commitment

Have management monitor the reactions and progress through each change. Some may jump right to a commitment with no issues, but those who struggle to pass through may signal that adjustments are needed.

9. Working In Silos

Team members working in silos is a reality for many teams. Team members may sit side by side without really working together. Try to foster an environment where everybody knows the roles of their team members, as well as their impact on their work or vice versa.

This is a simple yet critical component. For example, if you have an overtime contract that several people are involved in, it’s important to ensure that all of them are working on it according to a schedule of sorts. After all, it’s in their best interest, and if one person can decrease the productivity and effectiveness of the work, all will suffer, or at least feel as though their efforts will be in vain at no fault of their own.

10. Not Following The Same Vision

A team leader, manager, or owner must have one thing to ensure the full function of their workplace – vision.

All businesses have a target audience they’re chasing to further their productive ends and make a profit, but there must always be several stages beyond that which could potentially land the business in the big money. This is, in reality, the goal of all businesses, and ensuring that you project your pursuit of their ambitions will make people believe they are possible – because they are.

Conclusion

There is much overlap between the common challenges of teamwork within businesses, and all of them tend to have similar solutions – unity. By ensuring that everyone in the team is valued and that their efforts are recognised and rewarded, you will embolden them to take their skills to the next level. Furthermore, many businesses do not do this, and employees understand this fully. Demonstrating that you can, and will, will cement their loyalty.

The post Ten Common Team Challenges And How To Overcome Them appeared first on Real Business.

In the UK, Small to Medium-sized Enterprises (SMEs) constitute a significant portion of the business landscape. Making apprenticeships work in SMEs in critical. The lifeblood of our economy, these establishments are fast adapting to the ever-changing market dynamics. One of the ways in which SMEs are proving to be visionary is through embracing apprenticeships. Given the skyrocketing tuition fees, more astute students are eyeing apprenticeships as an alternative pathway to a successful career. As employers, we must recognise this trend and create conducive environments for these aspiring professionals.

The University Dilemma

Historically, university education has been considered the gold standard for career progression. However, with university tuition fees and living costs on the rise, many smart students are reconsidering this path. The prospect of graduating with a colossal debt is increasingly unattractive. Moreover, university degrees do not always guarantee relevant skills or employment.

Apprenticeships as the Smart Alternative

Apprenticeships offer practical on-the-job training, often with a side of classroom learning. This blend of experience and education can be tailored to meet the specific needs of an SME. For the learner, it is a chance to earn while learning, build a professional network, and gain valuable industry-specific skills.

Making It Work: The Employer’s Role

For SMEs, making apprenticeships work is an investment in the future. Here’s how we can optimise this opportunity:

1. Tailored Programmes: Develop apprenticeship programmes that align with your business objectives. Identify the skills that your business needs, both now and in the future, and tailor the training accordingly.
2. Mentorship and Support: Assign mentors to the apprentices. These experienced members of your team can provide guidance, support, and feedback, helping the apprentice to grow within the context of your business.
3. Invest in Quality Training: Partner with training providers that have a track record of delivering high-quality education. This ensures that the apprentice gains the theoretical knowledge needed to complement their practical experience.
4. Financial Planning: Leverage the government incentives available for hiring apprentices. The Apprenticeship Levy and additional grants can significantly reduce the costs associated with training.
5. Long-term Vision: View apprenticeships as a long-term investment in talent. Nurturing apprentices can lead to loyal, skilled employees who are likely to stay with your company for a longer period.

In conclusion, the landscape of education and employment is undergoing a significant shift. Apprenticeships are emerging as a viable alternative to traditional university education. As SMEs in the UK, embracing and optimizing apprenticeships is not just a wise move, but an imperative one in cultivating a skilled and dedicated workforce for the future. Let’s make apprenticeships work for both the apprentices and the enduring success of our enterprises.

The post Making apprenticeships work in SMEs appeared first on Real Business.

So you’ve built up your business and reached that stage in life where you question if it is still right to continue. Why and when you should consider exiting your business is critical on both a business and personal level and in this article we explore these reasons to support your decision.

Why might you chosse to exit your business

There are a wide variety of reasons why you may be contemplating an exit for your business. Exit considerations stem from a number of different motivations including:

• Retirement or health issues;
• Realising cash value to secure financial wellbeing;
• To accelerate the growth of the business;
• Unlocking cash for new investment opportunities; and/or
• Responding to one or more unsolicited approaches;

Each of these motivations requires different strategies to be put in place so forward planning is imperative. The decision to exit is a very personal one and there are no right or wrong strategies; but being prepared will benefit you in all instances. Many people deliberately or by chance, slow down in later life and businesses and colleagues may not love youfor that. Whilst you may once have been the hungriest worker on the block, perhaps it is time to pass over the mantle. Perhaps financially you can maintain a shareholding and gain more financial reward watching someone else progress your start.

Good preparation will not only broaden your options in the long-term but will also allow you to shape the business for your desired exit route and help identify and prepare an appropriate successor should you wish. The goal will always remain the same; you want to achieve the best possible price from a purchaser that offers the best fit with your business.

From the outset, it is vital that all shareholders are in agreement regarding the exit strategy. Any differences of opinion need to be ironed out early on to prevent problems arising when the plan is put in action.

Your long-term plans for the business also need to be clear from day one, especially if you are looking to find a partner to accelerate growth. They will want to know how long you intend to stay with the business so a considered and credible response is essential.

When is the right time to exit your business.

The optimal timing of an exit will depend on several planets aligning: your businesss trading position, the appetite among buyers and investors and the shareholders objectives. These need to be coupled with your own personal position.

If your business has delivered several years of healthy revenue and profit growth, has visibility of this being sustained in the medium term, you can be sure of buyer interest; striking while the iron is hot is key.

The development of a clear exit strategy is vital even when a sale is not imminent. Being prepared to exit puts you in a much stronger position for when the opportunity arises. It also gives you time to explore the different exit routes available to you and lay the foundations for a successful process.

That being said, a strategy will ready you for a sale but it will not ensure that buyers or investors pay a premium, especially if your business has unresolved issues. In order to achieve the highest possible valuation, the best time to exit is when your business is in a position of strength. To determine this, several key factors need to be considered:

• Can the business continue to prosper without you
• Have you considered your replacement
• Are you in a position to simply sell-out
• Do you have a good, defensible market position
• Does your company have the ability to scale
• Are your products or services clearly differentiated in their markets
• Have you enjoyed two or more years of sustained revenue and/or profit growth
• Do you have good visibility over the current years financial performance

If the answer is yes to these questions, maybe now is the time to set the exit wheels in motion.

Tom Phipps is a director at Livingstone London

Related: Steve Dolton has been through five exits as CFO, most recently with National Accident Helpline. He shares his 8 steps to preparing a business for sale.

The post Why and when you should consider exiting your business appeared first on Real Business.