Dayoffice Card, the brainchild of former Regus sales director Matthew Stubbs, enables start-ups, SMEs, sole-traders and companies with a mobile workforce to occupy office space at more than 150 business centres across the country on a pay-as-you-go basis – keeping overheads low and productivity high.

The business enables people to buy individual days as and when they’re required, or for customers to opt for a pre-paid membership plan for a fixed number of days per month, be it two or 22.

Stubbs, managing director of Dayoffice Card, said that the business had launched at an optimum time, as financial forecasters suggest that the economy is entering credit crunch for the second time in five years.

“The past five years has seen an enormous number of start-ups launch and businesses of all sizes are examining expenditure as they undertake cost-cutting measures in order to survive the next wave. Underutilised office space represents a gulf when it comes to wasted expenditure.

“The last economic crisis led to an increase in mobile and home-based workforces as spending-savvy companies became more dependent on smartphone technology and other mobile devices

“We recognised a niche in the marketplace and Dayoffice Card was established with the aim of connecting professionals who won’t or can’t justify a full time office. Dayoffice Card is very much a cost effective solution for start-ups and SMEs that are home-based or operate a mobile workforce.  It’s especially useful for those needing a more professional environment for client meetings or to complete a project free from distraction,” he said.

Dayoffice Card already operates in London and 100 other major cities and towns including Edinburgh, Birmingham, Manchester, Leeds, Cardiff, Liverpool and Sheffield, offering prestigious addresses in the heart of each city as well as office solutions in surrounding towns and business parks.

According to the latest monthly CBI Distributive Trades Survey covering the first two weeks in January, 44 per cent of retailers saw sales volumes fall on a year ago, while 22 per cent reported a rise, giving a balance of -22 per cent. This was the lowest since March 2009 (-44 per cent), but was broadly in line with expectations (-18 per cent).

Retailers reported sales were disappointing for the time of year (-20 per cent) and orders were also down (-14 per cent), with firms expecting levels to fall again next month (-23 per cent). Stock levels remained constant, but fairly low, in line with recent months (+10). Retailers expect annual sales volumes to continue to fall in February, albeit it at a slower pace than this month (-10 per cent).

There was a mixed picture across the sub-sectors, but with most reporting a fall in sales volumes on a year ago, including hardware & DIY (-80 per cent), durable household goods (-100 per cent) and non-specialised retailers such as department stores (-34 per cent). Grocers saw a modest increase in sales (+6 per cent), following a much stronger trading period in December (+52 per cent). The non-store category, which includes online and mail-order, performed well (+50 per cent).

Ian McCafferty, CBI chief economic adviser, said:

“Shoppers have reined-in spending across the board at the start of the New Year after taking advantage of early discounting last month, which boosted pre-Christmas sales.

“Family budgets are under continuing pressure with inflation still high and wage increases modest.

“Consumers are still holding off particularly from buying big ticket items like washing machines and fridges. Online and mail order sales were the only areas that performed well in January, but growth was still down on last month.”

Among wholesalers, 59 per cent saw sales volumes rise, while 22 per cent reported a fall, giving a rounded balance of +36 per cent, exceeding expectations of -2 per cent. Sales are expected to increase again next month (+24 per cent).

Motor traders saw sales volumes fall for the 13th consecutive month (-9 per cent), and a similar decline is expected next month (-12 per cent).

The Government and private sector campaign is based on the concept that there is “a business in everyone” and that all businesses can realise their ambitions. Partners in the campaign include StartUp Britain, the Confederation of British Industry, the British Chamber of Commerce, the Institute of Directors, the Federation of Small Businesses, the Forum of Private Business, the major banks (via the British Bankers’ Association and the Better Business Finance Campaign), the Engineering Employers Federation, the Social Enterprise Coalition, the Institute of Credit Management, Microsoft, Mitie, Ernst and Young and Grant Thornton.

In further action to help small businesses get off the ground, the Prime Minister has also announced plans to make empty and under-used Government offices available to small businesses so that they can start up and grow.

There is a wealth of information and help available to SMEs – the Government and the private sector have come together to make sure that small firms and budding entrepreneurs know what is available and to expand the offer, with some of the campaign partners providing free services including workshops, web-based seminars and video tutorials on issues like finance as well as providing mentoring and access to face to face consultancy sessions.

The campaign, running nationwide throughout 2012, showcases real life small business owners who come from a wide range of backgrounds, and each has an inspiring story of how they turned their passion into their livelihood through hard work and support. Launching today, it will roll out through radio adverts, outdoor posters across the country and national and trade press.
The campaign features a new ‘Business in you’ web portal which will bring together the resources available to business owners and entrepreneurs to help them start or grow their business as well as inspire them with stories of how other people have achieved success.

Each month, the campaign will focus on a different theme relating to start ups and growth including exporting and employment and will highlight the wide range of Government support available; from online advice on Businesslink.gov.uk through to specialist schemes such as the Enterprise Finance Guarantee that underwrites some of the cost of bank loans to SMEs.

Prime Minister David Cameron said:
”Small businesses and entrepreneurs are the lifeblood of the British economy and I am determined that we, working with the private sector, do everything we can to help them to start up and to grow in 2012. I want to encourage people to go for it and make this the year of enterprise – whether that is fulfilling their dream of starting a new business or taking the leap to grow their business, to employ more staff, or to start exporting.”

Business and Enterprise Minister Mark Prisk said:
”There are some great inspirational success stories across the UK of businesses that have started up and grown into successful local, national and international companies. We want people to follow their example, realise their own business potential and help make 2012 the year of enterprise.

“I know that starting and growing your own business can be a daunting task, but there is help available to potential entrepreneurs who have the desire to take their ideas forward. The Government is providing more opportunities for people of all ages and backgrounds to either start or grow their business, which in turn will help boost the UK economy.”

Michael Hayman, Co-Founder of StartUp Britain, said:
”Is there a business inside you? We believe the answer is yes and we want to inspire those with a dream to make it a reality by starting their own business. All around the country are people proving by their own actions that you can make it in Britain, be your own boss and create the jobs that can help transform communities. This campaign champions the courage and determination of Britain’s entrepreneurs, the people that change things, the people that have a go.”

To help small businesses get off the ground, the Government is also announcing plans to make empty and under-used Government office space available to small businesses so that they can start up and grow. Many entrepreneurs struggle to find a suitably flexible and affordable space to start their business, so this practical measure taken by the Government will support the next generation of British businesses.

There are currently over 300 buildings in the Central Government estate with space in England and the Government, working in co-operation with landlords, will offer as much as this space as possible to small businesses, giving them space to grow at a low cost. The Government will invite incubation organisations, who help new and existing small businesses prosper, to manage and allocate these spaces. These organisations will also provide the businesses with access to support and business advice.

As the UK marks 200 days until the start of the Olympic and Paralympic Games, the FSB’s ‘Voice of Small Business’ Survey Panel shows that 62 per cent of small firms believe that the Games will have no long term positive impact on their business, despite promises that the legacy of the London 2012 Games will continue for years.

Only seven per cent of small businesses believe the Games will benefit their business overall, and a quarter (25 per cent) expect a negative impact on their business.

The FSB is concerned that when the bid for the London 2012 Games went through, it was sold on the basis that is would create a long legacy for the country, yet small businesses do not believe that they will benefit from this.

With 200 days to go, the FSB is calling on the Government and Olympics Authorities to ensure that small firms are aware of how they can reap the benefits of the Games and the tourism benefits that can come from them.

John Walker, national chairman, Federation of Small Businesses, said: “It is worrying that 200 days before the Olympic and Paralympic Games are set to begin, small businesses think it will not benefit their business. This is even more worrying considering the London 2012 Games was sold on the basis of its legacy. We all know times are tough, but 2012 is a year of big events that small firms should be able to benefit from. The Government and Olympic Authorities must help show small businesses how they can reap the rewards from one of the biggest sporting and tourism events the country has seen for years.”

With late payment rife, order books down and the challenges involved in accessing traditional funding well-documented, only 31 per cent of respondents are expecting their business to expand over the next six months. Meanwhile, a worrying 20 per cent predict it will contract. Yet there was an underlying theme amongst respondents that the national media is largely to blame for the length and depth of the downturn due to its constant negativity.

Further analysis of the data confirmed that confidence is crucial, as one respondent summarised: “It would be helpful if all types of the media stopped spreading negative news. It is so depressing when it is all doom and gloom. If people feel there is hope, everyone can face the future with a more positive outlook. Now there is never any good news – everything is talked down.”

Such negativity can become a self-fulfilling prophecy that has a detrimental impact on businesses and their future investments and outlook. Given that the independent Office for Budget Responsibility has downgraded its economic growth forecast for 2012 to just 0.7 per cent, the chances of grim vision becoming a reality look increasingly likely.

This mindset has therefore resulted in business owners opting to hoard their cash rather than invest in their future, as one respondent reveals: “We should be recruiting more staff, but the economic outlook is so uncertain that we are holding back on all major decisions. If confidence is boosted, I expect strong growth for our company, if not we could be in for a very rough ride and all bets are off.”

The blame does not lie solely with the media however, with others instead highlighting limited access to funding – which is required to overcome businesses’ cash flow challenges – as a reason for the sustained downturn: “There is not enough money circulating,” explained another respondent. “Businesses are relying on bigger and bigger overdrafts where previously none were required. Small businesses cannot carry the financial burden of non-payment of bills while the banks are not prepared to facilitate credit to the level it is required.”

Managing director of Hilton-Baird Financial Solutions, Evette Orams, has urged businesses to take a thorough look at the wider options available to them: “It is clear that UK businesses – and SMEs in particular – are suffering from a distinct lack of confidence currently. This inevitably leads them to at least think twice, if not defer any decisions regarding investment in their business’ growth.”

She continued: “The difficulties firms have faced in accessing traditional sources of bank finance has served to exacerbate issues, but, by exploring other options available, owners can give themselves the best chances of growth and take measures towards safeguarding their long-term stability. Our survey found that 50 per cent of invoice finance users expected their business to expand in the next six months, demonstrating that by securing a more flexible and targeted cash flow solution businesses can set themselves up for growth.”

The new Manufacturing Advisory Service (MAS) is now available to all manufacturing businesses across England. It will be delivered by the MAC, which is comprised of Grant Thornton, Pera, WM Manufacturing Consortium Ltd and SWMAS Ltd. It has been estimated that the new MAS will help to generate £1.5 billion in economic growth, 23,000 jobs and safeguard 50,000 jobs.

Businesses interested in finding out more about the programme can find out more by visiting www.mymas.org.

Business Minister Mark Prisk said: “Manufacturing contributes half of Britain’s exports and has much higher productivity than the rest of the economy so it is essential to our plans for growth. That is why we are taking steps to ensure our industrial base is thriving as part of a strong and balanced UK economy.

“The new Manufacturing Advisory Service will play a key role, providing tailored advice to businesses helping them to grow and thrive, with a specific focus on helping SMEs improve competitiveness and unlock their growth potential.”

Karl Eddy, head of government infrastructure advisory at Grant Thornton and head of MAS, said: ”This type of programme is vital to support Britain’s businesses and economy in growth. MAC is driven by a passion for dynamic, innovative business and has proven experience in delivering advice for growth. As we drive this historically successful programme in to a new era we encourage business leaders, innovators and entrepreneurs in the manufacturing sector to contact a local adviser to find out more about how MAS can deliver real benefits for their business.”

Small manufacturing businesses will also have access to a new initiative recently announced by the Government to improve the global competitiveness of UK advanced manufacturing supply chains. The up to £125 million fund will cover the whole of England and will help to support the UK supply chain, encourage new suppliers to invest in the UK and support economic growth.

For the three months ending November 2011, results showed that just under a third (30 per cent) of firms surveyed increased turnover, 37 per cent experienced static turnover, while a third (33 per cent) experienced a decrease. This gave a net balance of minus three per cent; a very slight deterioration from the zero per cent of the previous quarter and the zero per cent of the same quarter one year ago.

This latest Business Monitor shows a slight deterioration and a slowdown in the rate of recovery. A return to recession is not indicated but expectations for the next six months have dropped.

The overall net balance for turnover for firms in the production sector in the three months to end November this year was plus nine per cent. This is better than the zero per cent of the previous quarter and significantly improved on the minus one per cent of the same quarter one year ago.

Service businesses have not experienced such benign conditions with the overall net balance for turnover for the three months ending November at minus eight per cent – well down on the zero per cent of the previous quarter and the plus two per cent of the same quarter one year ago.

Volumes of repeat business showed a deterioration from the previous quarter with the net balance on volume of repeat business at minus six per cent this quarter compared to minus one per cent in the previous quarter and similar to the minus seven per cent of the same quarter one year ago. The trend in the volume of new business is similar. An overall net balance of minus seven per cent was recorded compared to the minus three per cent of the previous quarter and the minus one per cent of the same quarter one year ago.

Export activity has plunged. In the latest three months the net balance of export activity was  minus 17 per cent – a significant fall from the plus 10 per cent of the previous quarter and a much worse level than the plus two per cent of the same quarter one year ago. Export activity appears to have been severely affected by the global slowdown and the sovereign debt crisis in the Eurozone economies.

Donald MacRae, chief economist, Lloyds TSB Scotland said: “This latest Business Monitor suggests the already muted recovery in the Scottish economy has stalled. Subdued domestic demand coupled with the global slowdown has hit both services and manufacturing sectors. There is no definite sign of a lapse into a “double dip” but every indication of an already slow recovery slowing further to the point where growth is negligible or non-existent. In the face of slowing global demand, falling business and consumer confidence in the UK and cuts in government spending, the Scottish economy is struggling to maintain growth and momentum. A more vigorous recovery awaits an uplift in both consumer and business confidence.”

Tracy Ewen, managing director at IGF, gives her rundown of the Top 10 New Year’s resolutions below.

“A new year is a time for reviewing what’s worked well and what needs to be changed for the year ahead.  With this in mind, here at IGF, we have published our New Year’s resolutions for the UK SME market, with a view to helping businesses succeed in 2012.”

SME New Year’s Resolutions

• Plan, plan, plan! Prepare cashflow projections for next year, next quarter and, if you’re on shaky ground, next week. An accurate cash flow projection can alert you to trouble well before it strikes;
• The key to managing cash shortfalls is to become aware of the problem as early and as accurately as possible. Financial services providers are wary of borrowers who have to have money today. They’d much prefer lending to you before you need it, preferably months before;
• Cashflow problems can often be self-inflicted. Companies which send out incorrect invoices often find that their customers end up returning an invoice and requesting a new one. Make sure all your invoices are correct before they’re sent out to ensure your customers have no excuse for not paying;
• Make sure you have a robust process for chasing up your invoices;
• Balancing credit terms vs cashflow needs is something many businesses struggle with. Be sure to tell your potential customers upfront about your credit terms – before you provide your product or service;
• Know your customers! Some of your customers will pay on time every time – others will be perennial late payers. The more information you have about the customer, the easier your payment collection process will be;
• Don’t always associate higher sales with better cashflow. If large portions of your sales are made on credit, when sales increase, your accounts receivable increase, not your cash. Meanwhile, inventory is depleted and must be replaced. Because receivables usually will not be collected until 30 days after sales, a substantial increase in sales can quickly deplete your cash reserves;
• Consider using an invoice finance provider. These are financial services businesses that can pay you today for invoices you may not otherwise be able to collect on for weeks or months;
• You may be able to raise cash by selling and leasing back assets such as machinery, equipment, computers, phone systems and even office furniture. However, you could lose your assets if you miss lease payments;
• If your cash flow has become stable and predictable, you can consider investing your excess cash. You can earn additional interest income, as well as have the necessary cash to dip into during tough times.

The research surveyed small business owners to find out what they expected from the Christmas period in terms of sales and their customers expectations. The results show that:

• 89 per cent predict that difficulty managing their finances will be a major concern for shoppers in the holiday period
• 83 per cent expect their customers will have to rely on credit cards for purchasing

Despite this expectation around card payment preference, less than half (48 per cent) of those surveyed currently accept cards and 76 per cent think that shoppers will be frustrated if they’re not able to pay by this method. In order to meet this demand and start to compete in this sector, a fifth (20 per cent) of those surveyed will look to start offering customers the ability to pay by card in the next six months.

Small business owners are also feeling increasingly pressured by their competitors coupled with it becoming increasingly challenging to capitalise on consumer spending, as demonstrated by the following findings:

• 77 per cent of those surveyed predicting greater levels of competition this Christmas
• 86 per cent of respondents predict that shoppers will go online to avoid crowds this festive season
• As a result, despite 42 per cent of those surveyed not currently trading online, 32 per cent are making plans to trade online in the future.

Jayadeep Nair, VP small business for Streamline commented: “Christmas is always seen as a profitable time of year but with recent reports of a double dip recession, it’s no surprise that many small business owners have concerns about their customers’ willingness to spend this holiday season. However, Christmas can still offer many opportunities, small businesses just need to adapt. Offering consumers preferred methods of payment, competitive pricing, increased promotional spend and a good atmosphere can all help to drive sales. Those business owners who are looking to expand their services next year, whether that is online or offering card payment facilities, are all moving in the right direction. To be successful small businesses must respond to customer demand.”

Tim Breedon will be supported by a panel of experts drawn from the business and finance community, who will examine the challenges facing businesses in diversifying their finance. The focus will be on debt and credit products, looking at a range of finance choices, old and new, from corporate bonds to ‘crowd-funding’.

Business Secretary Vince Cable said:

“Businesses across the UK are still in many cases unhappy with the way they have been treated by banks.

“We have secured a rise in new lending from the biggest banks this year and credit easing is designed to provide another immediate boost. But I want to see as much competition in the market as possible and for businesses to have access to a wide range of finance sources.

“There are exciting innovations emerging that provide alternatives to bank lending. Businesses are selling bonds directly to their customers, missing out the middle-men. And peer-to-peer lending has opened up opportunities for savers to invest directly in the fortunes of UK businesses. I want to investigate and dismantle any barriers to these and future innovations.

“Tim Breedon is a highly capable and well-respected figure in finance and I look forward to working with him in the coming months as he takes forward this important work.”

The Taskforce was announced as part of the credit easing package in the Autumn Statement. It will report to Government ahead of the 2012 Budget statement.

UK businesses have been heavily reliant on banks to raise finance. The majority of smaller and mid-sized businesses rely solely on bank loans to raise finance. Only around 10 per cent of these businesses seek asset-based finance and fewer than 5 per cent choose bond or mezzanine finance.

The Taskforce will work with businesses, lenders, investors and providers of alternative finance to examine structural and behavioural barriers to raising non-bank finance. It will set out what steps are needed to ensure businesses can access a wider range of alternative finance sources.