A panel of experts on small business answer questions from BBC News Online readers.
Whether you are worried about growing your company without losing control, agonising over funding, or designing a killer marketing campaign, our panellists can help you.
Following an overwhelming response, BBC News Online is publishing a second series of answers to your questions. We have tried to include as many questions as possible.
BBC News Online will publish the next set of answers from our panel of small business experts on Tuesday, 12 August.
QUESTION
Gavin Baillie,
Northern Ireland
I am a writer who is to have a feature film made next year. If the film is made to the high expectation and specification of the Dublin-based production company, it should prove a high-profile and lucrative project. The one-word name of the film is, I believe, ideal for use as a brand name, probably for a clothing line or clothes retail chain.
I realise that I am putting the cart before the horse by thinking of the name first and then a product, however, I would like to register the brand name, should exposure of the name and associated style be as expected. I am taking steps to buy and register a .ie website of the name as a .com site already exists.
ANSWER
Simon Edwards, marketing director at Cobra Beer
You can check if your brand name is available - or not registered by anyone else - in every sector including clothing, using a free online search engine provided by the UK Patent Office:
If your brand name looks like it's available you should register it through a solicitor or trade mark agent, at which point it is always worth asking them to do a full search as any similarity to an established brand name can prove costly to sort out later.
If you don't already have a company under which to register the name, then you will need to set one up (which could be the same as the brand name) and then your company will own the name.
This is where it starts to get quite burdensome, as you will need to register your company with Companies House, perhaps through a solicitor.
An alternative is to buy an off-the-shelf company, one that already exists, and re-name it for £100-£150. But first look up:
This is where you will be able to search to see if your chosen company name is available.
If you are planning just to hold the name in the hope of selling it to someone else later, you should also bear in mind that you can only have a name registered for five years if you don't actually trade under that name.
Good luck with the film.
QUESTION
Ian Hendy, UK
We sell products such as wet and dry papers/polishing materials for the manufacture of spectacles along with equipment to make spectacles. So do many other companies. How do we encourage customers (wholesale) to buy our products as opposed to our competitors' products? Is it as simple as finding something no one else has?
ANSWER
Simon Edwards, marketing director at Cobra Beer
Firstly Ian, check to see if your customers think that you are providing the same products as your competitors. Question them to find out how your products compare - you might find that you have an advantage you didn't realise.
However, even if that's not the case, there are plenty of businesses out there offering exactly the same product as their competitors (petrol for example).
If competitive products are very similar, consumers will look at other factors in deciding which brand to buy e.g. the service they receive, location, price, added-value (such as air miles).
If your products are very close to your competitors', you will have to find another way to give your customer something different.
If you are going to differentiate yourself by service, for example, research the needs of your customers. Find out what they love and loathe about you and your competitors.
It could be something as simple as delivery convenience or accuracy of order processing that is really annoying your target market and therefore an opportunity for you to do it better.
Finding an advantage is not always simple. You will have seen how quickly the petrol companies match the prices of their competitors and how they all seem to offer similar incentives at the same time.
Advantages are often easy to copy so try to look for something that provides you with a sustainable advantage in the long-term i.e. an advantage that is hard to copy. Once you have found the point of difference, make sure you let everyone know about it.
QUESTIONS
Mathew Coleman, UK
I am setting up a new web business with my wife and I am looking at the pros and cons of having limited liability. I have been advised by an accountant that if we are to draw more then £34,000 from the business, we should go limited for tax reasons. I do not require any funding and am just trying to understand if the tax position is the only reason to go limited.
Mandy Roberts, England
What are the benefits of being a limited company? I have started a small training consultancy business, and have been given conflicting advice.
ANSWER
David Wilkinson, partner, Ernst & Young
There are important consequences beyond tax that must be considered in choosing the entity you will use to conduct your business.
Limited liability is one of these aspects and is a legal concept that seeks to separate the proprietors of a business from the liabilities of the business so that their personal assets are not at risk from creditors.
In the UK, limited liability can be achieved either by trading via a limited company or a limited liability partnership.
Legal advice should be sought in deciding the best vehicle as it will depend very much on your personal circumstances and plans for the business.
In terms of taxation, companies and partnerships are treated differently and there are many aspects that you need to consider in making your decision.
There is no 'magic' number for drawings that will make the decision for you, instead you will need to consider many things including your income from other sources, whether the business will distribute all of its profits, whether you and your wife will be employees, and you should take specific advice on this point.
While there are important tax and legal implications in choosing the right vehicle for your business, the commercial implications are at least as important and you should take advice on all of these aspects in advance of making a decision.
QUESTION
Cameron Hogg, France
My wife and I are seriously considering starting a ski chalet in the French Alps and would like to know if we can register as a UK business with a French office, or do we have to fall completely under the French regime? Although we both speak good French, we would also like to know if there is any advice available in English for a small business in France.
ANSWER
Liz Barclay, presenter of Radio 4's You and Yours
You can get information about setting up a business in any country abroad from the UK's Department of Trade and Industry (DTI).
In your case you can take either route, although having talked to some Scottish people I know running their own business in France, the feeling seems to be that the French authorities are more helpful to you if you come fully under the French regime.
The organisation to talk to is the Association de Professions Liberales. They can advise on the pros and cons, all the registration documents (of which there are many) and the tax considerations.
There's a small annual charge for membership of the association but for that you have the comfort of knowing that if anything crops up, they can help. There will be one in your region.
QUESTION
Lynne A,
UK
My partner, who is in his mid-thirties, was made redundant some months ago. He has yet to find work, despite his skills, training and experience as his chosen field (design) is notoriously ageist.
He is now wondering whether his best course is to retrain for a completely new career, or to start a business at home, to which I can contribute my administrative skills as required. Which option is likely to be more satisfying?
ANSWER
Liz Barclay, presenter of Radio 4's You and Yours
This is a question for a life coach rather than a business adviser. Setting up you own business can be very satisfying and fulfilling, but it can be very lonely and isolating and is very hard work.
Does he have an idea for a business? Is he passionate about it or it is only a way to make money? Does he need the structure of an organisation around him with colleagues and systems he can rely on for support, or can he manage without that?
If you start a business you need family and friends to be firmly behind you offering help and support. You also need to be prepared to put everything back into the business for the first few years, rather than taking money out for homes and cars. If you think you can cope with all that, research the idea. If not, think about retraining and perhaps talking to a life coach about options open to you.
QUESTION
Philip Doyle,
UK
I currently work for an owner-managed business. One of the owners has quite a disorganised way of working which impacts on staff motivation, client relationships and makes it very difficult to grow the business. What would your advice be to try to solve this situation in a small business without risking bad feeling and ultimately jeopardising my own position?
ANSWER
Professor Nigel Nicholson, London Business School
This is about managing up. You need to figure out what it must be like to be your boss, and get into a dialogue with him that helps him see what other people's experience in the business is like, including your own.
Do this in a spirit of positive exchange, vertical team-building and problem solving for the benefit of the business. It is not about him changing to accommodate you, but people finding ways to ensure what needs to happen gets done. It's all about conversations and trust.
QUESTION
Syed, Switzerland
It is always difficult to find financial backing from banks, particularly when the business plan is the only supporting document. What points must be considered for successful financial backing from banks or other institutions when submitting the feasibility study?
ANSWER
Peter Ibbetson, head of NatWest Business Banking
When presenting your proposition, ensure that you are well prepared and that you know the facts and figures.
Be open and realistic in your assumptions and if appropriate take advantage of professional help in preparing your financial forecasts.
A potential backer will need to be assured that your idea is well planned, and that you have identified your market place and the resources required in order for your plan to work.
The lender may also look for security as insurance against anything going wrong and you should be prepared with information on assets you hold.
QUESTION
Elena Souto, UK
I've invested all my money in a venture selling bras. However, I know there's a market there and I'm doing very well. Now I'm doing a new business plan to open up a shop. Rather than get angel funding at this stage I am looking for a DTI loan, but they only give you 70%. Can I use the money I have already invested as the 30%, or will I need to find alternative funds for the 30%?
ANSWER
Peter Ibbetson, head of NatWest Business Banking
The DTI loan you refer to is the Small Firms Loan Guarantee (SFLG) scheme. This facility makes it possible for small business that have viable business propositions but are unable to raise conventional bank finance - due to either a lack of security and/or a lack of track record - to borrow money from approved lenders.
SFLG was revised in April 2003 and now offers a guarantee of 75% for all new loans. This guarantee is provided to the lender and in return for the guarantee the borrower pays a premium of 2% per annum on the outstanding balance of the loan to the DTI.
If you are asked for a contribution this will have to be in the form of new available funds towards the new proposition rather than money already invested in the business.
I would recommend that you seek early advice from your Business Manager, local Business Link or Enterprise Agency which will be able to advise on the various funding options available to you.
There may be alternative grants and finance schemes available locally which may be more appropriate.
The opinions expressed above are those of the panel of experts, not the BBC's. The advice is not intended to be definitive and should be used for guidance only. Always seek professional advice for your own particular situation.
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