Maslins June 2009 Newsletter

Summer's nearly upon us, take advantage!

The days are getting longer, the flowers are blooming, the birds are singing, and judging by the weekend just gone we may even have some good weather! We're now into June which can be a great time of year for businesses. Consumers have finally cleared their credit cards from Christmas spending binges, and the warmer weather makes them more inclined to go shopping on the high street rather than buying off the internet.

As a small business owner, it can sometimes be difficult to tempt customers away from the big name chains. Their great buying power, huge advertising budget and slick city centre stores can be intimidating, but there's a number of ways you can get an edge over them:

Have a passion for your product

As a small business owner, one key difference between you and the big boys is that you (should!) have a passion for what you do. You are the face of your business, and if you don't like what you sell, your customers won't buy it. When customers have a choice, tell them what your favourite option is and why. They'll be instantly sold!

Personal touch

Again, as a small business owner you're not weighed down by "sorry sir it's company policy". What does your customer want? Can you provide it? If so, unless it's hugely inconvenient, do it. Your flexibility and the way you can treat each customer as an individual is another key selling point.

Stand out from the crowd

You need to make sure it's your door they walk through, not your competitor down the road, so it's vital the outward appearance of your business is excellent. Could it do with a lick of paint, or a simple change to the layout. It's amazing what you can achieve on a small budget with a little bit of time and thought.

New types of promotion

These are generally considered "pull" strategies, and no hard sell, or big advertising budget is required. Consider whether they are appropriate for your specific business.

• Free gift with every purchase - what do you have a lot of already that may entice buyers?
• Enter a raffle - expensive prizes not required. How about a freebie of whatever you sell, or a chance to do something degrading to the business owner (always works well).
• Group promotions - discounted family deals, buy two get third free etc.
• Loyalty schemes - can be official and well organised, or perhaps just occasionally give your regular customers something "on the house" or offer them a discount to show your appreciation.
• Free samples - if the marginal cost of what you're selling is low, you have a great product/service, and repeat business is likely, then this can be an excellent way to reach new customers.

The beauty of many of the above is that you don't need to lower your prices, yet you can still make people feel they are getting a great deal. Most importantly, make sure people are aware of the special offer they are benefitting from. People love to think they've got a bargain, so reminding them of it rarely hurts.

Gather customer information

Some of the above could require customers to fill in their details. This can be valuable data for you to use in future, keeping them informed of what you are up to and upcoming promotions.

Ask your customers to recommend you

For some of you this may feel a bit uncomfortable, but when you've just provided a customer with a service they're very happy with, ask them to recommend you to friends and family. Rarely will they object to this, and customer referrals are the best form of marketing a business can get. Sure, people may recommend you anyway, but if you specifically ask them to they are more likely to.

Tax tip of the month

If you have buy to let properties:

• Remember interest on BTL property mortgages is tax deductible, whilst interest on your home normally isn't...
• ...but interest rates are typically higher on BTL mortgages than personal. Weigh up the increased interest vs tax deductibility.
• Consider whether the asset should be put (in part?) in your spouse's name if their other income is typically lower.
• Capital gains tax on assets held personally (ie not via a limited company) are typically much lower than income tax rates.
• If your rental properties are commercial, consider the availability of capital allowances inherent in the property/on improvements.
• If furnished residential, consider whether to opt for 10% wear & tear allowance or actual replacement cost.
• Any management fees, such as tenant finder fees can all be offset against rental income.

Local Event

Camden Road The Musical, now officially entitled The Vanishing Elephant runs from 8-20 June. A vast amount of time and effort has gone into this production, and it certainly shows. It promises to be one of the highlights of the summer!

The actual show takes place in a huge marquee, just off Camden Road, between Albion Road and Quarry Road. Tickets are available either from the Assembly Hall, or from the workshop at 90 Camden Road. Make sure you don't miss out, book your tickets today! Visit www.musical.camdenroad.co.uk for further details.