Nobody expects Mary Berry to be able to make waves with her mind, in the same way you’d never ask Aquaman to bake you a birthday cake. We’ve all got our own skills and superpowers but it’s crucial that we also accept our limits. One of the many myths of outsourcing is that the quality won’t be as good as doing it yourself, but this isn’t always the case.

Outsourcing can often help you hire in talent which you might not otherwise be able to afford (or need) on a long term basis.

We’ll share some tips on how to hire an expert if you need to outsource tasks from your business or as part of a project.

Decide where to look

The first step in looking for an expert? Look in the right place! For example, you might go to a freelancing platform like Fiverr if you need a content writer, or use Checkatrade for a roofing contractor.

It will help focus your search, which is a starting point.

Describe what problem you’re trying to solve

Giving the solution to the problem you’re hiring someone for can suggest you already have a very particular goal in mind. If this isn’t the case, and you need their expertise to work out what the best outcome could be, describe what you’re trying to achieve and any constraints instead.

That way, it becomes their responsibility to design the solution – which is exactly what you’re hiring an expert for!

How do you know you’re hiring an expert?

So, you’ve acknowledged a gap in your skillset, and recognised you need help from somebody more qualified or experienced. How can you identify a field expert when you aren’t one yourself? As a business owner or employer, this can become a bit of a stumbling block when it comes to finding the right person.

A common example of this is SEO. You know you need it to climb the search ranks and boost your small business marketing, but you don’t know where to start. When something feels like one big mystery or a foreign language, it can then be hard to work out whether the person you’re hiring knows what they’re talking about.

Fortunately there are several steps you can take to make sure you’re hiring the right person.

Ask for references and a portfolio

This is where it’s so important to do some research! Check out their portfolio, reviews, and reputation in as much detail as you can. You might not become an expert in the field within the hour but you will at least have a better understanding of the basics.

The best way to build a character profile and get a good idea about whether somebody is the expert they claim to be is to experience what they do first hand. Ask to see some examples of past work, case studies and testimonials from previous clients or employers before committing to anything. This is particularly useful for creatives like marketing experts.

Check their qualifications and professional memberships

In some cases it’s a legal requirement that the person carrying out a particular task is accredited or qualified by a professional body. For instance, gas appliances can only be installed by a gas safe engineer.

Some professions, such as accounting, aren’t a protected industry. Unfortunately this means that anyone provide accountancy services, so make sure they have the type of qualifications, accreditations, and experience that you need. Read our guide to hiring a qualified accountant.

Get a second opinion if you need one

Outsourcing doesn’t tie you to using one firm or person forever after. If you need to get a second opinion or several quotes, then you’re well within your rights to do so!

If you do end up using someone for a larger project, why not split the job up into smaller milestones – each with their own milestone payment? That way you can get out of there if you need to, without committing too much upfront or getting tied up in a contract.

Beware of sales patter

Most genuinely experienced and knowledgeable experts will be very honest that they don’t know everything – how could they? With that in mind a few potential red flags could include:

• An aversion of “not sure but I can find out”. This raises all sorts of questions about whether they actually know what they’re looking for, or what sort of value they might be able to offer you.
• Not giving you options, or explaining what the trade-offs might be to reach a particular outcome
• They use a lot of jargon without explaining what any of it means. Okay, so you’re hiring an expert – it’s their job to understand this stuff! They don’t need to dazzle you with science.
• They don’t ask any questions at all. You might have given a supremely detailed brief, but if they jump straight into sales mode rather than asking about your own unique circumstances, then they might be selling something more formulaic than the expertise they’re claiming to have.

 
Find more business guides and resources in our information centre, including help with finding a cheap accountant.

The post How to Hire an Expert When You Aren’t One appeared first on The Cheap Accountants.

They tend to offer anything from desk space to office pods, meeting rooms, and beyond, and are often equipped with most of the kit you’d expect to find in any office.

They can often be a lifeline for self-employed workers, so in this article we’ll look at the pros and cons.

Should I work from home or use a coworking space?

This is entirely up to you! One one hand, some freelancers and small business owners find working at home is one of the greatest perks of being your own boss.

There’s no time wasted on travelling to work, the coffee in the kitchen is your favourite brand, and you can listen to their favourite music without headphones and or anyone complaining about it. But it’s not for everyone.

The benefits of coworking

You might consider things like:

• Flexibility: Most coworking spaces will allow you to be very flexible with booking. You could even hire space on an hourly basis
• Networking: With other people working around you, from a variety of backgrounds, there are opportunities to meet other entrepreneurs. Some spaces offer business incubators for startups.
• Inspiration: Being surrounded by other people’s conversations and energy can sometimes spark new ideas and opportunities
• Access to facilities: Coworking spaces are usually stocked with all manner of fancy office kit and other resources that might be expensive to set-up privately. Meeting rooms with presentation equipment are a good example.
• Getting into work mode: Some people find it hard to get into work mode when they’re at home or conversely, find it hard to stop work and leave it behind. It can also help you get away from the well-meaning people who miss out on the meaning of ‘working’ from home, and call in for a chat.
• Mental health: Self-employment can be quite a slog at times. It can be nice to know there are other people out there who know what you’re going through.

Potential issues of using coworking spaces

Like everything in life, there are pros and cons to coworking – it all depends on your needs and personal preferences.

• Cost: Coworking spaces tend to be cheaper than hiring a private office, but working from home tends to be cheaper again. With either option, you can claim your related work expenses on your tax return.
• Concentration and background noise: You won’t have as much control over your environment in a coworking space as you do working from home. The noise of other people can be infuriating if they’re being inconsiderate
• Privacy and data: Work which involves personal data or sensitive conversations might not be suitable for a coworking space unless you use a private office

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Could a Coworking Space Be Your Ideal Workplace? appeared first on The Cheap Accountants.

Good accountants can be used as a key tool for growing your business, so here are our top five ways to get the most from them.

Give them the right information

In an ideal world your accountant would follow you around, recording and considering all of your financial transactions and advising you of the tax implications.

Fortunately, accountants generally don’t have the time or desire to stalk their clients 24 hours a day. Unfortunately, they depend on you to give them a complete and accurate summary of your financial year!

A good accountant can usually draw out the relevant information with some basic questions, but the more effort you put into the basics, the less time you’ll have to spend on getting what you actually came for – an informed opinion on how you did with your finances from a tax perspective, and advice on how to minimise your taxes going forward.

So in simple terms, your first step in getting the most out of your accountant is to create an accurate and concise snapshot of your finances.

Tap into their networks

>As a small business, it is likely that the accountant you’re using is also working for a host of other businesses. Ask your accountant if they’re willing to initiate networking opportunities between you and other clients. This could lead to business deals, partnerships or a support network of people facing the same problems as you.

Value their advice

Your accountant will have expert knowledge of not only your business but of others like it. This means they can help you uncover ways of expanding your business and reducing your costs, as well as indicating areas where you need to spend more. It’s likely that any problem you face will be familiar to an experienced accountant, so they will most likely know how to solve it. Trust them!

Never lie!

Doctors can save your life, lawyers can save your freedom and accountants can save your livelihood, so always tell them the truth. Accountants need to know every fact about your business so they can work out how much tax you pay and how your business can make the maximum amount of profit. If you lie to them about your finances, this could lead to mistakes in your bookkeeping and possibly even the downfall of your business.

Arrange regular catch ups

Accountants usually have a large number of clients, meaning you can’t rely on them to contact you all the time. You should arrange to have monthly meetings or weekly phone calls with them, allowing you to discuss any problems you have before they gets too big. If you delay speaking to them and then dump all of your difficulties on them at the end of the tax year, problems may escalate and cause a last minute panic.

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Five Ways to Get The Most From Your Accountant appeared first on The Cheap Accountants.

If you use a car for your business

Car insurance is a legal requirement for every driver, but did you know there are special considerations if you drive for business as well as leisure or commuting?

Using your own car for business purposes

Car insurance is issued based on what you use the vehicle for, so if you don’t already have business use on your policy, make sure you either upgrade your personal car insurance to cover business purposes too, or get business car insurance.

If you have an accident without it, you might not have cover – and that can be both very expensive and a legal issue.

It’s also worth checking the car’s contents are adequately covered, too. If not, you could lose a fortune in stock or equipment should anything happen.

Company vehicles

Vehicles used solely for your business, be they cars or vans, will need commercial car insurance. It’s not the same as business car insurance!

If you run your business from home

Running your business from home can be a great way to save costs – and you’ll be able to claim the portion of household bills which relate to your business as an allowable expense! In some cases it might be a matter or practicality anyway – such as an Airbnb host who lives ‘above the shop’ as it were. Just make sure you have the correct insurance in place to cover any activities taking place there.

Buildings and contents insurance that covers business use

You need to make sure your buildings and contents insurance is adequate. When getting a quote for buildings and contents, you’ll be asked to if your building is only used for domestic purposes.

Don’t be tempted to say no if that’s not true, particularly if you have expensive equipment or stock in your home. Answer yes if you:

• Have any regular business-related visitors to the property (more than once a month, advises GoCompare)
• If you or anyone else run a business from the property
• If you have paying guests staying there

Many standard policies will cover limited business use with little or no extra fees, but check what protection you’re getting and consider business insurance if you’re not getting adequate cover through a standard policy.

Protecting your business against claims

There are different types of insurance available which can help your business if anyone needs to claim against it. This type of policy can sometimes become mandatory depending on what sort of business you run.

Public liability insurance

Public liability Insurance protects you against compensation claims and the legal fees involved in defending against them. These claims could be from customers, clients, or anyone else who feels your business has been responsible for injury or damage.

Examples might be a customer who trips on an uneven step and breaks their ankle, or damage that occurs to someone else’s property while you’re having work done or moving bulky stock.

It should also cover the actions of yourself and any employees when you’re on someone else’s premises, but always check exactly what’s covered.

Professional indemnity insurance

This is sometimes confused with public liability insurance – not helped by the fact that some companies offer a joint policy!

Professional indemnity insurance covers you against claims from customers or clients who have been adversely affected or financially disadvantaged by taking your advice or using your services.

This could be anything from the fire or flood resulting from electrical or plumbing work you’ve undertaken, to losing money because a service you supplied was delayed or inadequate.

Lawyers, accountants, and financial advisors must have this type of insurance by law.

Product liability insurance

This may sometimes be covered by your public liability or professional indemnity insurance. If it’s not, and your business sells products, ensure you take out product liability insurance.

This covers you against claims arising from injury to members of the public or damage to their property caused by products you make or supply. An example might be a small child choking on part of a toy that’s come loose.

If you have employees

Employers must have adequate insurance – it’s a legal requirement.

Employers’ liability insurance

The minute you employ someone, even on the most temporary or casual basis, you must have employers’ liability insurance in place.

This insurance will cover your business for claims and legal fees if an employee seeks compensation after being injured or taken ill because of their work.

The Health and Safety Executive (HSE) is responsible for enforcing this law and if you don’t have cover in place, they can fine your business up to £2,500 per day that you don’t have insurance in place (and even close you down).

You should display your employers’ liability insurance certificate in a prominent position and you’re legally required to keep a copy of it for a minimum period of forty years. You’re also obliged to show it to the HSE if requested. Failure to comply with either of these conditions above can result in a fine of up to £1,000.

Protecting your business premises

You might need insurance for your premises and contents, even if you’re a tenant rather than the owner.

Business building and contents insurance

This is necessary to cover your business against damage to premises or the loss of tools, materials, stock, packaging, furniture, appliances and IT equipment. Make sure you take the time to realistically value everything you would have to replace, not just the obvious bulk or high value items.

Desks, the fridge, the stationery cupboard; everything would have to be replaced if a fire occurred at your property, so make sure that if the worst happens, there will be enough money to start again.

Business interruption insurance

If you can’t work because vital equipment has been destroyed or stolen, or because your premises have been damaged, then you’re going to lose money. Business interruption insurance will help you recoup that lost income.

 
Insurance can be costly and with so many other costs to consider, it can be easy to put off getting the cover you need. But bear in mind you’re taking a huge risk—and that just one compensation claim or burglary at your premises could be enough to bring your business to its knees. Don’t take the chance! Get the cover you need now.

The post Insurance Policies your Small Business Needs appeared first on The Cheap Accountants.

Repeat business is cheaper than finding new clients

Client retention is cheaper and more cost effective than client acquisition for almost any business. Marketing to new clients tends to be more expensive in order to get on their radar in the first place, and it will often be a longer process with more obstacles to get through to win them over.

It’s much easier (and therefore cheaper!) to convince someone who already knows what you can do to hire you again, than it is to convince a stranger to hire you for the first time.

Even if the nature of your work means your client won’t need you for the same job again, there are other ways you might be able to extend the relationship. For instance, if you supply and install bespoke fitted wardrobes, are there other joinery projects you might be able to offer?

Encourage client referrals

Familiarity is a valuable thing to tap into. People trust recommendations and reviews – particularly from someone they trust because it’s an independent person and therefore an unbiased opinion. You might:

• Offer a referral incentive which rewards the client
• Give out a discount code for any friends and family they refer within a set time-frame
• Send a link for them to leave a review somewhere like Google or Trustpilot

Communicating well with your clients

Making the client relationship more enjoyable means there’s less stress on both sides. The easiest way to do this? Communicate well, and consider the language you use. You want every contact point to reinforce the value you provide – rather than the transactional nature of what you’re doing!

Keeping in touch throughout the duration of a project can be very reassuring for clients, and in turn helps them feel more positive about your work. For particularly long or ongoing projects, it might help to schedule some catch-up times at the beginning so you keep each other up to date.

Giving them a variety of contact options is also helpful. Some clients will prefer to talk to you on the phone, but others will want to use instant messaging. Clients will appreciate little things like this tailored to their needs, and make them more likely to choose you again in the future.

Ongoing pricing considerations

If you work in any business for long enough, you’ll eventually need to increase your prices.

Working out what to charge is tricky at the best of times, and you obviously might be reluctant to put any existing clients off. There’s always a chance that’s going to happen, but your current clients are also likely to be less price sensitive if they know that you provide value for what you charge.

The best thing to do above all else is to produce quality work on time as this will put you in the best position to ask for repeat business or help in return for your services.

Find more help and resources for your business in our information centre. Looking for an accountant? Compare online services!

The post Maintaining Client Relationships To Build A Stable Income appeared first on The Cheap Accountants.

If you’re considering buying into a franchise, there are some key areas to look into before making any sort of investment. In this article we share our top tips, and the warning signs to watch out for during the consultation period. We also have a separate article which goes into more detail about paying tax as a franchisee.

Look into their past

It’s often worth doing background checks on the majority of people you do business with, especially if money is changing hands.

Make sure you’ve researching your potential investments heavily before you sign anything. A good start is to simply search for them online and see what their reputation is like.

Dig deep to see if there have been any legal problems, commonly occurring customer complaints, dodgy PR, or financial struggles. All of these could indicate that you’ll struggle to operate under their brand.

While you’re unlikely to find a company with a perfectly clean record, it’s important that you know what you’re getting into. Customer complaints happen at every business, but is there a pattern that could become a problem for you?

Missing information

If they’re glossing over the fact that important data is missing, or they promise to get it later once the paperwork has gone through, it could be a sign of much more worrying problems.

What are they hiding? You don’t want to find out the answer to that question when it’s too late.

High pressured sales pitch

If the high-pressured sales pitch leaves you feeling a bit uncomfortable or rushed, you wouldn’t be alone. Plenty of people will be turned off a sale if there’s a huge sales pitch.

Surely if the opportunity is that great, it doesn’t need a desperate sounding sales pitch that tries to push you into a quick decision.

Bold claims

Watch out for businesses that have only been running a year or two but already boasting they have hundreds of successful franchisees. There’s something that doesn’t sit right there.

Either they’re exaggerating or something else is going on. If they have so many franchisees, are they likely to have the capacity to support you as much as you’d like?

Training program isn’t great

While negotiating for a franchise, you should ask as many questions as possible. One of the key benefits of having a franchise is the support you (should) receive from the company.

A good franchise business will have a thorough training program to get new franchisees up to speed and a solid support system in place to ensure success.

If it sounds like you’d be dropped in the deep end once you sign the papers, then it might be worth looking elsewhere for something a bit more stable and structured.

Blaming franchisees

If the franchise company is quick to blame their franchisees for poor results, this is a bad sign. It means that franchisees might not be well respected in the company and will not be receiving much help once they sign the papers.

Changing methods

Any franchise company that boasts they’re always changing the methods and concepts of the company is a warning sign. You don’t want to have to change every five minutes to catch up to the latest new idea. It’s good to be adaptable, but not if that means a lack of focus and forward planning.

Whether you decide to open a franchise or not, make sure you research everything you can about the company, how they’re doing, how people react to their brand and how they present themselves.

Are you thinking about opening a franchise? Are there any other clear warning signs you’ve come across? Please let us know what you think.

The post Should You Buy That Franchise? 7 Signs You Should Hold Off appeared first on The Cheap Accountants.

But that doesn’t mean your business shouldn’t and can’t appear to be professional. Here are our seven tips for a professional approach that will stand you in good stead however big and successful your business becomes.

Have an attractive online presence which is easy to find

Not every business needs a huge online presence, but it can often help to have one if you want potential customers to be able to learn more about you without having to go too far.

This might consist of social media accounts, or even profiles on various review sites, such as Trustpilot. Have a think about how you respond to any negativity though – online spats are not professional!

Have a professional email address (if you need one at all)

Your business will almost always need to offer ways for customers to talk to you. If this means handing out an email address, you probably shouldn’t use the one you created when you were a cool fourteen year old.

SeriousProfessional@Business.co.uk tends to be more reassuring than some examples we could think of.

Remember that first impressions count

If you or your employees come face to face with the public, you should all ensure you’re smart and polite. Uniforms may not be necessary or appropriate, but name badges with a job title included are a good idea.

Similarly, if customers or clients come into your business premises, everything should be neat, tidy, clean, operational and fully compliant with health and safety regulations. Trailing cables, dusty surfaces and malfunctioning toilets aren’t going to win you any customers.

Register and advertise widely

At first glance, this may not seem related to professionalism, but if clients see your name appear on local listings, online business searches and in print, it will give your business an air of legitimacy and people will be reassured by their – and everyone else’s – familiarity with your business name.

Provide great customer service

Be dependable. If you offer services, ensure appointments are properly booked, kept and run on time. If you offer goods, make sure you’re offering quality products, deliver them on time and offer swift refunds or exchanges if there’s a problem.

Answer customer queries and complaints quickly, whether by email, phone or via social media. People are quick to take to social media if complaints aren’t dealt with swiftly or appropriately.

Consider VAT registration

While you may not be obliged to register for VAT, registering voluntarily can sometimes be a good idea. It’s best to discuss the implications with your accountant, who will know the ins and outs of your business. Having your VAT number on your paperwork can help with that appearance of professionalism, and some suppliers will only deal with VAT registered companies.

Keep paperwork and payments under control

Send quotes and invoices promptly and be sure to include (and adhere to) a payment terms policy. Make sure you pay your bills on time too; word of mouth can be a negative as well as a positive!

Keeping track of your finances and invoicing doesn’t need to be difficult, and there are free accounting software solutions out there.

Professional, dependable companies will gain clients or customers by word of mouth and online recommendation, and they’ll retain them too. So, make sure your business looks, sounds and appears professional – and that it really is. Happy, confident customers are repeat customers!

 
Compare online accounting software in our information hub.

The post Seven Ways to Make Your Business More Professional appeared first on The Cheap Accountants.

What does tax avoidance look like?

This can vary, but it can include things like using complex company structures to separate businesses which would otherwise be linked. This can help a company or group of companies minimise tax by moving profits around or sharing losses.

There are other tactics too, such as disguising income by labelling it as a ‘loan’, and then the other company simply writing it off (which again is good for its own tax bill).

The danger of tax avoidance schemes

It can be difficult to know whether you’re getting good tax advice or being encouraged to join an avoidance scheme! Unfortunately, the result of joining such a scheme may leave you facing HMRC and result in you receiving a much larger bill – with penalties and all manner of legal trouble.

There are some indicators of tax avoidance routes that you should look out for, such as:

• The tax savings seem to good to be true, and it’s suggested you could earn a great deal without paying much tax at all
• The route your payments take to reach you seem extremely complex, and might go through multiple accounts, or multiple companies
• There are charges for joining the scheme, or the scheme has charges that are payable up front
• Transactions are labelled as ‘loans’ or something else which doesn’t reflect their actual nature
• Sales-like tactics to drive urgency for joining – “don’t miss out”

Practical tips for dealing with tax avoidance schemes

The first step is to hit pause! Some schemes are listed by HMRC as ones to avoid (which is ironic, considering they’re involved in tax avoidance), so it’s worth starting there.

It’s also useful to ask yourself if the scheme’s selling points make any real sense in terms of tax law. There are lots of tax allowances and relief schemes which are perfectly legitimite, but the promise of earning many thousands of pounds without paying tax should often be a red flag. You could ask the scheme provider to supply more information, or even the legislation which makes it acceptable.

HMRC and avoidance

HMRC take a very dim view of organised tax avoidance if it’s not in the spirit of the legislation. Some loopholes, such as diguised working, have been closed with the introduction of new rules (IR35 in this case) and this makes the tax system more secure.

Avoidance costs the compliant majority around £5 billion a year, and HMRC is constantly introducing tough new measures to tackle it. If you are unsure about a scheme, or want to find out more about legitimate tax planning, consult a reputable tax adviser.

Check your tax advisor is qualified

The term ‘accountant’ isn’t a protected title in the UK, so anyone can refer to themself as one – which is why it’s crucial to check they’re appropriately qualified!

The post What is Tax Avoidance? appeared first on The Cheap Accountants.

What can an accountant do for my business?

Accountants are often a valuable resource for a business. As well as expertise around tax planning and compliance, a good accountant can also help you with:

• Financial forecasting and planning
• Lease negotiations
• Cash management and cash flow
• Setting up bookkeeping systems

Read our guide to learn more about accounting services you might find useful for your business.

Finding an accountant that’s right for you

The best advice is to work with someone who really understands your business and its ambitions. A starting point for finding an accountant is to ask contacts in your industry for recommendations and referrals, but it’s incredibly important to keep an open mind. What works well for one person might not be right for another!

It’s tricky to hire an expert in an area you’re not familiar with, so your screening process should help you work out if they’re going to be a good fit.

Do they understand your industry?

An accountant who already has experience working with clients in your industry might be able to ‘hit the ground running’, as it were. Any good accountant will take the time to understand where your pinch points are, but someone who already has this knowledge might also be able to get you moving in the right direction more quickly.

Some industries, such as farming, are particularly specialised in terms of tax rules and allowances, so you might need an accountant who concentrates on this area, rather than general small businesses.

Other sectors, such as contracting, will have considerations around the Construction Industry Scheme or IR35 to think about, so a good awareness of this will be invaluable.

Don’t be afraid to ask any potential accountant about their experience in your sector, and to highlight any particular rules and regulations you should be aware of.

Are they easy to understand?

Tax regulations contain a lot of technical language. Find an accountant who can explain complex tax topics in an accessible and simple manner. A pro who helps you to understand financial topics will also be helping you to understand and manage your business in the process.

Can they handle your business needs?

Depending on the size, ambition and complexity of your business, you may require a strong team to dedicate themselves fully to your business’s needs and work directly with you on high-level business planning. Make sure whoever you choose is able to handle your present and future accounting requirements.

The acid test? If you’ve found the right accountant, six months in you’ll no longer be wondering if you need one and asking what they can do for you!

How to work with your accountant

Your accountant will normally go over the basics with you right at the start of your relationship, but it’s useful to know what you should prepare. We’ve put together a short summary of what you’re likely to cover with them.

• Deductible business expenses: A good accountant will carry out a full review of all your spending when they complete your accounts. This will help them make sure you claim for any costs as a business expenses. It’s also a good indicator of efficiency in the business. For example, if you’re spending too much on the ‘nice to haves’ when the business would benefit from prioritising something else.
• Upcoming changes to regulations: Most accountants will spend time familiarising themselves with new tax regulations – it’s their job! Good accountants will contact you when there are changes to tax regulations that will affect your business, informing you of any way in which you can use those changes to your advantage, or if they will affect you in other ways. Making Tax Digital is a good example!
• How your business’ legal structure affects your tax filing: The way you register your business has a big impact on how and when it pays tax, so check in to make sure you’re using the one which best suits your circumstances.

Working with the right accountant on a long-term basis can lead to faster growth and ongoing financial success, as well as less stress. It may require time, money and effort to get right, but in the long term it’s a business investment – and one you won’t regret.

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Find, Hire and Work With a Great Accountant appeared first on The Cheap Accountants.

So how can small businesses build customer loyalty?

Helping the customer feel special

It’s easier than ever for customers to jump between brands whenever it suits them, so unless you’ve got the local town locked down and you’re the only provider of whatever it is you do then you’ll probably find yourself work harder to keep clients on board.

At the core of this is the customer experience and the nature of your customer service.

Whereas a big business inevitably has set protocols and procedures that allow little room for individuality, you can escape this and offer more.

For example, if you’re a local business with local customers, emphasise this. Get to know your customers individually, from their names to their purchase habits. Always demonstrate you are listening and that you value their custom.

Rewards for customer loyalty

Think what you can offer that sets your customer’s experience above that of your competitors. Examples include free gifts or loyalty card systems. Remember, people love a freebie. Use rewards right and you can use it as a means to building customer loyalty.

You could even encourage them to share their experiences in exchange for a referral reward. That way, you both benefit from your growth.

Encourage customer reviews

Getting reviews from your customers can be incredibly useful for a number of reasons. It helps you identify reoccurring issues in your services or products which you might otherwise never have found out about, but they can also be used as a marketing tool to potential customers.

Just make sure you respond to any negative reviews politely and swiftly!

Involve your customers as much as you can

The defining part of the services small businesses offer is the individualised service you can provide. It might be easier to for you to listen to the individual voice of one customer than it might be for a bigger company. If you combine this with making your customers feel they have input power, you’re on to a winner.

What this approach does is demonstrate that you actually care about putting your customers first. Again, this is critical if you’re running a small local business.

For example, if you run a café, hold a fundraising event for a local charity that people can get involved in. Extend this approach to actively seeking your customer’s opinion, from suggestion notes to feedback on work done. Use your social media accounts to start discussions.

Never take customer loyalty for granted

Don’t rest on your laurels, and never take customer loyalty for granted. Even the seemingly most loyal customer can become fickle.

Especially as your business grows and develops, continue to put the customer experience at the heart of everything you do:

• Be reliable and consistent
• Communicate well
• Follow up where appropriate, and show clients you value them as much as you did the first time you did business with them

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post How Small Businesses Can Build Customer Loyalty appeared first on The Cheap Accountants.