However, a more accurate way to look at this is mismanagement of customers. The more customers a business has, the more it takes in every month.

Many companies that go out of business have not even considered using their most valuable asset: their customer database.

Think of a customer database as a bucket with a hole in the bottom. As new customers are received, they go into the bucket, but at the same time, there are customers leaking out of the hole in the bottom. The proportion of those leaking out to those being added to the bucket is the key to growth, stagnancy, or loss. To state the obvious, if more customers leak from the bucket than are added each month, the business goes down the drain.

So how to plug that leak?

First of all it must be accepted that the bucket is leaking. Failure to face that one reality leads to business failure.

Most businesses that don’t do CRM and are successful are picking up a lot of new customers every month, and losing less than they pick up. A 10% annual growth is still possible for businesses like that.

But imagine what would happen if they could plug the leak of customers who don’t order again…

The math involved is simple: For a business with 1000 orders a month, gain 100 new customers  and lose 80 a month, and it has grown by 2% that month. If it does that over a year it’ll have grown by 24.3%. At the end of 12 months it will be taking 1243 orders a month.

However, if CRM is used to keep in touch with the customers, send them special offers, a newsletter, surveys, coupons etc., and it manages to lose just 20 customers a month less, it will have 54% growth at the end of a year. At the end of 12 months, just by plugging a simple leak, it will be taking 1540 orders a month.

The cost of retaining an existing customer is a tiny fraction of that of obtaining a new customer, and with online CRM systems available such as MailCustomers, there is simply no excuse for watching expensively acquired customers slip out of the bucket where they will go to a competitor for the same product they could have got from you, if you had only reminded them that you existed.

It doesn’t mean they can’t still ‘think big’, but they may have to make it big without the help of a business angel or a supporting bank.

The good thing is that online, the enterprising start-up can make a big impression fast, and utilising highly targeted adverts through Facebook and other social networking sites, can bring in customers from Day 1.

John Bremner, Partner in The ResponseControl Group, gives the following tips:

• Use your ideas. Most people don’t, so those who do have an instant advantage.
• Don’t put your eggs all into one basket. Sometimes you need to throw a few balls in the air and see where they land.
• Long-term success is more important than short-term profit. Aim to keep customers once you get them.
• The web is the great equaliser. Don’t upset even a single customer.
• Supply the best product and you can charge at least as much as the best of your competition.
• Don’t start a price war – you will just devalue what you sell, and you will always find people willing to undercut your lowest price.
• Move faster than the competition. Make decisions fast, and implement them fast. Big companies can’t do this, and that’s where fast moving entrepreneurs can take the lead.
• Always keep developing, and learn from your mistakes.
• Avoid ‘meetings’. You’ll end up having meetings about meetings. Just do the thing.
• Take a tip from Google, and don’t be evil…
• When you start to be able to hire staff, surround yourself with smart people who can do things you can’t, and pay them well.
• However small you start, aim to be big. Reinvest your profits and keep developing.
• Pay your bills promptly and make sure people do the same to you.
• Delegate server and web hosting to an experienced firm. You can upgrade later, when your profits justify it.
• Keep working and make it happen. Thinking big and being all excited about the future is one thing. Making it happen is another. It’s been put this way: If you talk the talk, walk the walk…

Much of these increases were a direct result of the growth within the services sector, where a growth of 1.3% was seen in the first quarter. There was also, it seems, a big helping hand from the construction industry, who have recovered from their difficult start to the year and standstill projects due largely to the weather are now back on track.

It seems that the only industry that has suffered a significant loss was the travel industry due to the volcanic ash that grounded many flights and forced cancellations to many thousands of holidays.

http://www.bbc.co.uk/news/business-10737352

“The scale of this cuts is extreme, the bank’s recovery plans are already well on course to deliver 30% higher than forecast savings,” said Cath Speight, national officer at the Unite union.

The government owns 41% of Lloyds Banking Group.

The group, which is 41% state-owned, has forecast that it would make a profit this year, despite making an operating loss of £6.3bn on bad loans in 2009.

Lloyds also said it had struck a deal to allow Halifax customers to pay in cash and cheques at the 12,000 Post Office branches.

The 265-strong network of Halifax agencies compares with the 475 that operated in 2005.

Leaked Treasury documents had suggested last week’s Budget could increase unemployment by up to 1.3 million.  Labour’s acting leader Harriet Harman said the Budget would push many people into “abject misery” but PM, David Cameron said that unemployment was forecast to fall “every year under this government”.

Mr Osborne announced real terms cuts across all government departments of 25% over four years – except health and foreign aid which are ring-fenced.

He did not say how many public sector jobs were expected to go – but the government has previously insisted that the bulk will come from not filling vacant posts, rather than by making redundancies.

At the same time, the government is predicting that 2.5 million jobs will be created as a result of private sector growth by 2015.

Story Source: BBC News

The new rates will see low paid workers aged 21 and over receive £5.93 per hour an increase of 13 pence per hour. The NMW will rise to £4.92 per hour for 18-20 year olds, increased from £4.83; and £3.64 per hour for 16-17 year olds, increased from £3.57.

Measures also coming into effect from October 1^st will see all apprentices receive a NMW for the first time. Previously young people serving apprenticeships have been exempt from receiving NMW if under 19 or aged over 19 but in the first year of the apprenticeship.

Welcoming the new rates, TUC General Secretary Brendan Barber said: “We welcome the new Government’s decision to confirm the recommendations of the Low Pay Commission.

“The minimum wage has been a great success, and if this announcement means that this is an area that will see continuity rather than change it will win wide support.”

Addressing an audience in central London, the Liberal Democrat Leader said: “Public sector workers deserve a decent income when they hit retirement; no one doubts that. But the current situation is not fair.

“Private sector workers have already seen final salary schemes close, while returns from defined contribution schemes fall.

“So can we really ask them to keep paying their taxes into unreformed gold-plated public sector pension pots?“

Commenting on new figures from the Office for Budget Responsibility which project public sector pensions will jump from £4billion a year in 2010/11 to £9billion a year by 2014/15, Mr Clegg said: “We cannot ignore a spending area which will more than double within five years.”

Mr Clegg went on to concede that the public spending cuts which his party pledged to delay in their own election manifesto will now have to go ahead much earlier than hoped because of unexpectedly poor economic forecasts.

JP Morgan has been hit with a record fine by the Financial Services Authority today for failing to separate the cash of clients and company cash.  The company has been fined a record amount of £33.3 million when it was discovered that cash balances kept by clients of its large future and options business from the companies main funds of  JPMorgan Chase Bank.

Investors in London also suffered a fall in confidence with the FTSE 100 about 2.6% lower, while in New York the Dow Jones index opened 2.5% down.

Investors are favouring the safest assets outside Europe. The spread between the bund and 10-year Treasuries narrowed 6 basis points to 54 basis points. Japanese 10-year securities yielded 148 basis points less than the bund from 147 basis points yesterday.

Conservatives especially have long been opposed to the information packs.

“Today the new government is ensuring that home information packs are history,” said Housing Minister Grant Shapps.

“By suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront.

“We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate,” he added.

The change in the Hips requirements could mean redundancies among home inspectors, many of whom are self-employed. Those working in the house sales industry however have welcomed the move.

Story Source – BBC news