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High Staff Turnover is Big Challenge for Companies

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According to a recent report conducted by recruitment website Jobs4u, one of the biggest challenge UK enterprise is currently facing is a retaining their employees.

The research revealed that – on average – high staff turnover is costing UK businesses a staggering forty billion pounds a year, with most companies losing over ten per cent of their staff each year.

The findings of the report should act as a warning for people who have recently completed the company formation process; your team are your business, approaching recruitment with haste could have some damaging consequences, from both a commercial and efficentcy point of view.

Jenny Aidow from Jobs4u comments; “ The fact that so many people are leaving their current role indicates that the job market is improving. However, the long term impact of a high staff turn over can be catastrophic for small business, especially those which have recently been formed.”

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Company Formation on the Up

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Two years ago business analysts and economists alike predicted that the company formation sector would be the biggest casualty of the recession. This was mainly due to the fact that many people believed that in a context in which finance is hard to access and consumer confidence and spending is at an all time low, people would be dissuaded from forming a company.

However, according to a recent report just under forty thousand companies have been formed over the six month and experts predict that this figure is set to rise further as the year progresses.

The survey also found that business owners are expecting an increase in consumer confidence as 2010 comes to a close and over forty per cent are forecasting growth in 2011.

Matthew Morris, the survey’s research and development manager, comments ; “ While recovery has been somewhat slower than many expected , the findings of the survey confirm that most small business owners feel very optimistic about their future.”

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UK Banks to Develop Fund to Help Company Formation

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Throughout the recession the UK’s banks have come under fire for failing to adequately support company formation and company registration. Indeed, from lending to increasing the cost of existing finance arrangement, they have been demonised by almost all areas of enterprise. But is that about to change?

When the coalition government first came into power they said that they would appoint a ‘Small Business Minister’ to deal – among other things – with the issue of lending. While that plan never came into fruition, in July they did form a task force of individuals to look into how lending can be improved.

Made up of leading banking figures from all the big banks and representatives from various government departments, the task force has now revealed that it plans to develop a fund with the specific objective of lending to small businesses and support company formation and enterprise in the UK.

The report is scheduled to be published before Christmas and will contain number key points with the objective of supporting company formation.

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Companies Looking to Recruit Again

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Once the government announced that the country was officially out of recession, many industry analysts expected the number of companies looking to recruit would increase. However, that was not the case, indeed it emerged that companies were planning to wait until market conditions improved and consolidate their existing proposition.

Yet, further to the bi-annual survey conduced by a market leading serviced office provider, it now appears that over thirty per cent of companies are looking to recruit new team members in the upcoming year.

Jeff Bridges, spokesperson for the Forum of Private Enterprise, concurs with the reports findings, he comments; “From the feedback we have received from our members, it seems that many companies who downsized recruitment during the recession are now looking to add to their existing team.”

The survey also found that over fifty per cent of businesses are more optimistic about the future than they were at the beginning of the year.

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Company Formation and Company Registration Online Media

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Company formation and company registration has never been easier with our three hour online company formation service. Online advertising has completely revolutionized the way in which you form your company, run your business and – crucially – market it.

Yesterday, the IAB ( Internet Advertising Bureau) released figures which indicated that online advertising spend had increased by over ten per cent in the first quarter of 2010 and it now account for over twenty per cent of the UK’s entire advertising spend. But if you have recently gone through the company formation and company registration process, what does this new mean for you company?

Well, in the first instance it means that the SME sector can no longer afford to ignore the power of online. We ask John Matthews, spokesperson for the FSB for his reaction to the report;

“The internet has completely changed enterprise in the UK and you only have to look back to Christmas 2008 – when online retailer had their best year ever in terms of revenue, while the high street recorded record losses – to realize how important it is for any company – either start-up or established – to have an online presence.”

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High Street Sales Increase

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Over the past two years, anyone considering company formation and company registration has been dissuaded from entering the retail sector, due to tales of decreasing consumer confidence, low margins and increasing competition. However, if recent figures are to be believed, it seems that the high street is on the up.

According to recent figures from the British Retail Consortium, high street revenue has increased for the third consecutive month, with over sixty per cent of all retailers surveyed reporting uplift throughout September.

Online saw the largest increase in sales, while independent retailers also reported an increase.

Adrian Hiles, spokesperson for the Federation of British Retailers comments; “The high street experienced uplift as a consequence of sales and the bank holiday. While this is extremely positive, retailers must be aware that revenue may be affected by planned cuts in consumer spending.”

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Technical Jargon Confusing to Small Business

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From flexible working and digital advertising to stock management and online company formation and company registration, IT has completely revolutionized the way in which you form, run and manage your company.

However, in a survey of over six hundred small business owners, over forty per cent of small business owners admit that being confused by technical jargon has resulted in them making needless technical purchases.

The survey, conducted by business broadband provider BT Broadband, found that over fifty per cent of business owners said that they make ill-advised technical purchases ‘occasionally’, while fewer than ten per cent admit to doing it ‘constantly’.

Martin Campbell, spokesperson for the Forum of Small Business and Enterprise, comments; “The use of IT to help small businesses make there companies most cost effective and efficient is undoubtedly a positive thing. However, as the results of this survey confirm, the use of unnecessary technical jargon can be misleading, therefore before any major IT purchase is made, business owners need to ask themselves how it will add value to their business.”

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Business Banking and Company Formation Support

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Throughout the recession the banks have been the subject of much negative press: from bail outs and bonuses through to the head of the Bank of England’s comments on how banking was holding back enterprise. All in all, it has been a tough couple of years.

However, the fact remains each company formation needs a business bank account and they want your business. A large proportion of marketing budget is directed into winning new business accounts and yet despite their attempts the ‘Big Four’ seem unable to repair the damage the recession has done to their reputation.

Our preferred business banking partner, Barclays, is now positioning itself to help small businesses from the point of company formation. From their business resource centre to their local business banking mangers, Barclays is trying to help small businesses.

In addition to the above Barclays are now running a series of seminars up and down the country to help existing and recently formed companies expand their business. The seminars will be run by a number of business and enterprise experts.

For more information, visit ‘readyforgrowth.co.uk’.

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Choosing Your Company Name – Restricted Words: International

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Updated on 18/08/2014

When choosing the name for your Limited Company it’s important to check if your chosen name includes any “restricted words” and if it does, can you meet the criteria set out by Companies House that allows you to use it?

One of the most commonly used restricted words is “international”. According to Companies House:

If you wish to use this word [international] at the start of the name you will need to show at the time of registration that the major part of the company’s activities is trading overseas.

If you wish to use the word at the end of the name, you will need to show that the company operates in two or more overseas countries. If the company cannot satisfy these conditions on registration, you must confirm that it will do so within 3 months when you return the application.

Companies House mention being able to “show” that the above will occur. This simply means drawing up a document outlining this. For example:

Dear Companies House,

This is to confirm that “company name ltd” (company number) will be trading in the following countries within 3 months:

• Country 1 (which will constitute xx% of total trade)
• Country 2 (which will constitute xx% of total trade)

Signed – Company Director

If you are forming the company through Companies Made Simple our system recognises the restricted word and prompts you to fill out the template. Once completed, upload this document (as a pdf) to the supporting documents section of your company admin portal and then submit the application.

If you can not meet the criteria you will need to pick an alternative name without the restricted word.

A full list of the restricted words can be found in Appendix A, B & C here: http://www.companieshouse.gov.uk/about/gbhtml/gp1.shtml#appC

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Choosing Your Company Name – Restricted Words: Group

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Updated on 18/08/2014

When choosing the name for your Limited Company it’s important to check if your chosen name includes any “restricted words” and if it does, can you meet the criteria set out by Companies House that allows you to use it?

One of the most commonly used restricted words is “group”. According to Companies House:

The use of this word normally implies more than one company under the same corporate ownership. If the company cannot satisfy these conditions on registration, it must provide a written undertaking that it will do so within 3 months.

If the name clearly shows that the company is to promote the interests of a group of individuals, then the name will normally be approved.

Companies House mention being able to “show” that the above will occur. This simply means drawing up a document outlining this. For example:

Dear Companies House,

We wish to incorporate a new company in the above name and this letter is to justify the use of the word ‘GROUP’.

The company will hold shares in the following companies and these shares will be taken up within three months of incorporation.

The new company will have a parent/subsidiary relationship with companies named below:

Company 1

Company 2

Signed – Company Director

If you are forming the company through Companies Made Simple our system recognises the restricted word and prompts you to fill out the template. Once completed upload this document (as a pdf) to the supporting documents section of your company admin portal and then submit the application.

If you can not meet the criteria you will need to pick an alternative name without the restricted word.

A full list of the restricted words can be found in Appendix A, B & C here: http://www.companieshouse.gov.uk/about/gbhtml/gp1.shtml#ap

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