ONLINE parcel firm Parcel2Go is to set up franchises in France and Spain. The company, which works as an online comparison website for customers looking to send or receive parcels, was set up by former market trader Fil Adams-Mercer in 2002 to provide a delivery service for eBay traders.

Customers enter details of the parcels they want to send and are shown the cheapest deals from providers including ParcelForce, FedEx and DHL. All parcels are tracked by Parcel2Go to maintain the client relationship.

In the past 12 months, Parcel2Go claims to have grown 90 per cent and now has a turnover of £17 million. Sales are about £1.5 million a month and Adams-Mercer, 57, believes there is plenty of room to grow further.

He says: ‘The parcel market in the UK alone is worth £4.5 billion and we would eventually hope to have a £1.5 billion share of this.

‘However, there are many opportunities in continental Europe and we need partners to help manage this growth, so we are entering into the franchise market.’

Adams-Mercer says the business has benefited from the Royal Mail strikes last year. ‘The biggest spikes in orders have all come during the strikes. The good thing is that they didn’t fall when the strikes were called off.’

He is also expanding a niche market in the US, where he has bought a Miami warehouse that British traders can use as their ‘address’ when buying from American sites. This is because many eBay traders and American websites will not ship outside of the US because of onerous import duties. Parcel2Go arranges delivery from there.

WITH an increased focus on the need for households to become more energy efficient, Tony Billet is hoping a product he says cuts gas bills by a quarter will be a money-spinner.

Tony, 74, set up Zenex Technologies six years ago to develop energy-saving products. Its big seller is the GasSaver, a device that uses a boiler’s flue gas – which is normally expelled straight into the atmosphere – to heat incoming cold water.

According to Tony, the GasSaver, which costs £600 and can be fitted only to new boilers, could increase the efficiency of a boiler ‘to between 95 per cent and 98 per cent’. He disputes claims that modern condensing boilers are 90 per cent efficient.

‘The reality is that most are closer to 75 per cent,’ says Tony.

So far 6,000 devices have been sold and he has signed licensing deals with boiler makers Alpha and Baxi. He also has agreements with housing associations and housebuilders.

The business is backed by the Carbon Trust, which gave Zenex a grant of £80,000 to market the GasSaver, among other products.

With a turnover of £1 million and patents on nine other energy-saving products, Tony is optimistic and says: ‘People are becoming more interested in cutting energy bills, both from an environmental perspective but also because of cost. Sales are increasing every month and we plan to enter markets on the Continent in the near future.’

The Government is reviewing plans to provide financial incentives to households that install renewable heating, while next week the Government-funded Energy Saving Trust will publish a report into how efficient heat pumps are in reducing energy costs for consumers.

FEARS of a second recession are doing little to help firms access bank funding, but a growing number of companies are offering alternative solutions.

Online business-lending marketplace Funding Circle was launched last month. It aims to provide small businesses with loans from individuals without having to use banks.

Firms pay interest of six to nine per cent, depending on an assessment of the risk. This compares with 11 to 12 per cent typically offered by the High Street banks.

Loans are for £5,000 to £50,000 and are taken out over one or three years. Borrowers pay a £50 application fee and a one-off fee of two per cent of the sum raised, but the latter has been waived for an introductory period.

Lenders can choose the criteria on which they are prepared to lend, for example picking a higher rate for a higher risk investment.

The lender’s money is divided between businesses to spread the risk, with between £20 and £2,000 going to each firm. Lenders can also club together in ‘circles’ to lend to businesses with characteristics they value, for example, environmentally friendly firms.Alternatively lenders can handpick firms they want to lend to.

Two years ago, United Kapital launched its Business Cash Advance product in Britain.

Designed to provide small retailers and leisure outlets with working capital, United Kapital buys a fixed amount of future credit and debit card sales from a firm. The retailer receives 74p for every pound they have to pay back.

United Kapital then takes ten to 20 per cent from each card sale until the advance is repaid. When sales are down, the less the sum the firm needs to repay. The repayments are taken at source by the card processing company. This reduces the risk to United Kapital of borrowers defaulting. To date the business has a default rate of less than five per cent.

The average retailer takes a cash advance of £15,000 which is typically repaid over a period of between six and nine months.

Kapital says 87 per cent of firms renew the advance. It is open to those processing monthly card payments of between £3,500 and £150,000, with applicants having to supply financial information, such as bank statements.

Tracy Ayliffe runs fashion boutique Love Italy in Pershore, Worcestershire, which she set up six years ago. The shop sells clothing and accessories, such as handbags, belts, shoes, scarves and jewellery, made or sourced in Italy. Tracy, 50, makes regular trips to Turin to buy stock, which she needs to pay for up front.

After being turned down for a bank loan earlier this year, Tracy contacted United Kapital. Based on her average monthly sales of £5,000, it agreed to buy £3,500 of her future sales, with Tracy repaying 17 per cent a month of all her sales.

Tracy has already repaid the initial advance and has since renewed the advance for a further sum of £3,500.
She says: ‘This is so simple I will keep using it even if access to bank finance does improve.’

Invoice factoring, through which firms can raise funds against unpaid invoices, could also be worth considering. Providers include Close Invoice Finance and Hitachi Capital.

Asset finance – where firms borrow against assets they own – may be another option. The most common form of this is sale and leaseback, when a firm sells an asset to a lender at a reduced price but retains use of it or access to it. Providers include GE Commercial Finance.

SMALL businesses are losing out on £30 billion a year in potential sales due to a lack of funding.

Nearly 20 per cent of small and medium-sized firms believe they have missed out on business opportunities in the past year as a direct result of being unable to secure finance, according to research by finance provider GE Capital.

Its survey of 500 small businesses paints a gloomy picture, with nearly half of those questioned predicting that access to funding will become even more challenging next year, due to recent changes in the credit market.

Nearly 30 per cent of firms in the South-East said their business had lost out, the highest of any region. Not surprisingly, the building and construction industry was worst hit, with one in four owners saying they had lost potential sales as a result of limited funding.

John Jenkins, chief executive of GE Capital, says: ‘Despite a perceived shift in economic conditions, firms are missing out on opportunities. It is vital for the economy that over the coming year businesses secure the right amount and type of funding early to avoid missing further opportunities.’

The scheme aims to encourage enterprise in those parts of the country traditionally dependent on public sector employment.

Treasury Minister David Gauke exclusively told Financial Mail: ‘We must build up private sector employment in these areas. We need businesses to grow.’

The scheme will apply to any start-up in the areas concerned that has been or will be created in the three years since George Osborne’s June 22 Budget speech.

For such a firm, the first year of employer National Insurance Contributions (NICs) will be waived for the first ten employees, up to a maximum of £5,000 per worker. It is thought the scheme will create at least 800,000 jobs.
Gauke urged qualifying firms to contact Revenue & Customs to claim, warning: ‘There is some procedure in place to stop existing firms rebadging themselves as new, but we want to encourage eligible companies to take advantage of this NICs holiday.’

The scheme covers all areas apart from Greater London, the South-East, Bedfordshire, Hertfordshire and East Anglia – where the private sector is strong. The Revenue estimates 400,000 businesses could take advantage of the scheme.
Public sector job losses are expected after the comprehensive spending review on October 20.

Hundreds of entries were received for the awards, which celebrate the benefits of remoting working, and the judges selected the winners based on the individuals or companies that demonstrated how remote working had created the greatest positive impact on their work life.

Mick Hegarty, strategy and commercial director, BT Business said: “It is estimated that 3.5m people work from home and BT Business research shows that 55 per cent of the UK’s employees are working from home more often than they did before in the current climate. These awards highlight some of the best examples of how remote workers are helping the environment, increasing business productivity and improving quality of life. The commitment of these fantastic award winners coupled with technology that enables flexible working means that even more people can now work in this way and get more out of their working and home lives.”

Paula Wynne, Founder of Remote Employment and organiser of the Remote Worker Awards, said: “It has been a highly rewarding experience to see the wide variety of talented people who embrace flexible working and seeing just how many companies champion it. It’s been such a pleasure reading the variety of entries and choosing such deserving winners.”

The categories and winners of the Remote Worker Awards (more details can be found at remoteworkerawards.com):

The BT Home Business Award: Becci Coombes-Burr, Billingshurst, West Sussex
Girls Travel Club is an online boutique specialising in travel accessories and gifts for women. It began as a small internet home business, after Becci returned from travelling around the world and couldn’t find anyone catering for the women’s travel and outdoor market. Run from a charming Second World War Anderson Bunker in Becci’s garden, Girls Travel Club’s ethos is to sell what women need for travelling, with an emphasis on stylish design, practicality and ethical credentials. It now has excellent web and press presence, employs three people and is growing in size and strength every day.

Working in partnership with many credible women’s safety organizations, Becci is also a recommended adviser on the Foreign Office’s Gap Year site and has supplied equipment to the Department of International Development for peace-keeping missions. The judges were impressed with Becci’s determination and fortitude, and believe Girls Travel Club is an excellent example of a successful internet home business born out of expediency, necessity and the motivation of its founder.

The Microsoft Remote Worker Award: Shirley Pickford, Oakenholt, Flint
Remote working gives both Shirley and her employer, Anglia Ruskin University, based in Cambridge, superb benefits. Exploring the use of new technologies and social media to work with staff and students has increased Shirley’s productive work time. Remote lecturing has its rewards communicating and collaborating with people, regardless of geographical location. The support of Anglia Ruskin University has been crucial in developing an approach that is successful for Shirley and her students.

The Lexmark Home Worker Award: Andrea Dalziel, Harefield, Middlesex
Andrea’s strong work ethic impressed the judges who found her to be a worthy winner after she literally transformed her work and personal life by working remotely. Despite her disability, she works from home for her employer, Naked Nutrition, while taking care of her three children. Not to be taken lightly, Andrea also advises others thinking of working from home to ensure they separate their home and work lives as much as possible to avoid the normal, everyday distractions that go on in the house.

The PCG Freelancer Award: Jane Rimmer, Binfield
As an IT industry marketing veteran, Jane decided to set up a marketing consultancy business that would enable her to maintain a better work life balance and remain at the forefront of new technology innovation.  She has achieved both and has gained a bevy of clients over the past five years.

The Babyworld Parentpreneur Award: Amanda Allerton, Dusky Corsham, Wiltshire
Amanda’s Dusky Moon gives families a better night’s sleep. Using their parenting experience, friends and business partners, Amanda and Venetia, create innovative, luxurious sleep products for under 7s. Their first product, Dream Tubes, a revolutionary soft bed guard is sold in 150 UK outlets and 35 countries.

The Arise Be Your Own Boss Award: Deborah Andrioli, from Stratford-upon-Avon
Deborah, a former PR and Marketing Manager for The Press Association, gave up her job three years ago, to care for her two young children, one of whom has Asperger’s Syndrome and has founded an after-school club for children with autism in her local area. As a woman of great determination, who will use her media skills to promote and grow her own business, she is now keen to establish her own venture and can’t wait to get ‘stuck into her community magazine’.

The Lucent Vision New Internet Business Award: Victoria Bell, Stoke-on-Trent, Staffordshire
The judges found Victoria to be an all-rounder as she has a diverse range of skills including marketing, advertising, PR and website development. Her BA (Hons) degree, along with her passion and intelligence will ensure she channels her energy into making her own business a success. Victoria is self-motivated and so keen to create her own website, she took it upon herself to learn a new skill and teach herself Adobe Dreamweaver and html coding. Victoria is a worthy winner who will pursue her dream of owning her own business at all costs.

The BlackBerry Remote Employer Award: Amanda Potter, Coulsdon, Surrey
Amanda is Managing Director of Zircon Management Consulting, an entrepreneurial Business Psychology Company specialising in Talent Assessment, Development, Coaching and Engagement Consulting. Established in 2000, Amanda draws their expertise from a team of 140 remote consultants to deliver creative solutions for their clients. Amanda’s choice to run Zircon as a remote business was due to cost, environmental friendliness and a flexible lifestyle for her growing work force. The judges gave credit to Amanda and her team for proving that having a remote work force enables companies to improve business productivity with an eco solution, whilst giving their team the opportunity to have autonomy and a positive lifestyle. Zircon have grown year on year and also encourage new Graduate Psychologists who come into the business by offering them interim roles and placements.

The Helen O’ Grady Special Award: Janine van den Berg from Harrow, Middlesex
Janine’s background in the arts and in particular acting and singing, made her an excellent candidate to operate a Helen O’Grady Drama Academy. Her passions for children and the theatre, along with her business experience, provide her with all the necessary credentials to be a most successful Academy owner. Janine will bring energy, enthusiasm and a positive approach to running her own business.

When I started out in marketing over 26 years ago, it was drilled into me by my elders and betters that successful small businesses that achieve the coveted status of becoming a successful brand, don’t simply focus on adding the small and stylish touches to what they offer.  They start by getting the basics absolutely spot on.  They constantly review their products and services and the way in which they are delivered to ensure they are more than fit for purpose; that they’re precisely what their target customers need and desire.  It is this constant cycle of reviewing, changing and rolling out new or improved products and services that propels them into the elusive spotlight reserved for brands that are in demand.

This good advice has stayed with me. When I’m working with a small business, one of the first things that we do is to put their products and their services under a critical spotlight.  It’s a process that encompasses talking to their clients too, finding out at a grass roots level exactly what they think about the business – good, bad and indifferent.  Whilst this may seem like a dose of commonsense if you’re running a small business, what I would say is that in my experience many small business owners overlook the basics, preferring instead to chase the marketing miracle they think is waiting for them at the end of the rainbow.

Let me illustrate the importance of getting the basics right with an example that inspired me to write this article.

I recently stayed in a bed and breakfast establishment that was not my first choice, but due to unforeseen circumstances it had to be.  The owner, when showing us our room spent what seemed like an inordinate amount of time telling us about the fresh milk in the fridge, not to mention the filtered water and the complimentary fruit basket.  We were duly shown the earl grey tea bags, the choice of CDs and given a detailed account of the organic breakfast that would be waiting for us in the morning.

All wonderful stuff… had it not been for the fact that the exceptionally cramped accommodation was most definitely a triumph of style over substance.  The bed to put it mildly had seen better days with a mattress that was long past its sell by date.  The curtains didn’t join in the middle and so we spent most of the night squinting as the glare from the streetlight invaded our room. The portable television which was several years old was placed at such an angle that it was impossible to watch it without developing neck ache and to add to this ignominy, the shower alternated between freezing cold and red hot.

Reflecting on this experience, it was apparent that the B&B owner had focused on getting the small touches right to the obvious detriment of ensuring that the basics were delivered to a high standard.  It’s a lesson that we can all learn from.  Stand in the shoes of your customers and look at the landscape through their eyes.  Be critical.  If this particular B&B owner had actually spent a night in this bedroom she may have arrived at the conclusion that change was needed and it wasn’t just about filtered water and fruit baskets!

He secured the investment for his arts and antiques valuation website on this week’s BBC 2 Dragon’s Den (watch it here) in return for a 40 per cent share of the business.

Users of ValueMyStuffNow.com post photographs of items with a brief description and Patrick says they are guaranteed an evaluation from his team of 40 arts and antiques experts within 48 hours.

Victoria-based Patrick van der Vorst says: ‘With the help of my Dragon investors I can put my service on the map both here and in the USA where there is very keen interest in memorabilia, art and antiques. My vision of offering inexpensive valuations to all is about to be realised.’

Theo Paphitis says: ‘The service is ideal for use by the antiques trade, serious collectors and keen punters alike. We know from programmes like the Antiques Road Show that many people haven’t a clue about the value of their treasured possessions and ValueMyStuffNow goes a long way to protect them for selling at too low a price.”

Deborah Meaden adds: ‘Patrick’s credentials are superb and he has instant access to specialists who between them have over 975 years of combined experience. Most of them have worked for Sotheby’s or Christie’s and each has specialist knowledge, from art to sports memorabilia to wine.’

www.ValueMyStuffNow.com

And as a welcome to our new site  – FMWF.com/smallbusiness – visitors who complete our online questionnaire can win a  CASE OF CHAMPAGNE. The draw will be made in September and the lucky winner will be announced in Financial Mail on September 12th.

The unrivalled Enterprise coverage in Financial Mail each Sunday is now complemented by online news, regular columns from Enterprise Editor Helen Loveless and Enterprise Correspondent Vicki Owen, invaluable advice on employment law from Peta Fluendy and the entertaining story of the trials and tribulations of a small business owner by Saira Khan, star of The Apprentice.

So tap into all that’s new for SMEs by visiting the site – and book your winning ticket for a case of champagne.

For a copy of the survey, please click here: Enterprise Zone Survey

Please send your responses to enterprise@financialmail.co.uk or write to Enterprise Zone Survey, Financial Mail on Sunday, Room 445, 2 Derry Street, London, W8 5TS.

Click here to join Financial Mail’s Enterprise Zone LinkedIn group

Commercial lending to small firms organised through brokers has risen by 17 per cent, though overall lending is still less than half what it was at the peak in 2006.

Figures from the National Association of Commercial Finance Brokers show that many small business owners are still struggling to access funding, in the difficult economic climate. In the year 2009 to 2010 brokers arranged more than £7.5 billion of commercial finance to small and medium-sized firms, up from £6.39 billion in 2008 to 2009. But this compares to a peak of £19.1 billion of loans to small businesses arranged through intermediaries in 2006 to 2007.

The amount of money lent through invoice financing increased last year for the third year running, rising from £831 million in 2008 to £892 million in 2009.

Buy-to-let lending arranged through brokers also rose slightly last year, following two years of huge falls.

Adam Tyler, chief executive of the NACFB says: ‘We have continued to see the SME community struggling to raise funding. Despite many lenders protestations that they are lending more than ever these figures show that funding for more businesses is still very hard to access.

‘Businesses do want to borrow and they do want to grow. The increase in invoice finance for the third consecutive year shows that brokers are looking for a cost effective alternative for their clients as overdraft limits are reduced and costs increased.’

He adds: ‘Around 90 per cent of small businesses bank with the four main high street banks, but when it comes to borrowing small firms should not be restricted to these lenders.

Members of the NACFB act as intermediaries to small businesses and currently arrange around a quarter of lending to smaller firms for premises, equipment,vehicles and cashflow.