Expanding business Q&A

Three out of four UK based companies are planning to expand their businesses, with 80% planning to expand in the UK. Alistair Reid, Director: Business Services of Enterprise North East Trust provides information and advice on issues relating to expanding businesses.

Q My business has been in existence for five years and whilst it has always done well I would now like to undertake a period of aggressive activity in an attempt to significantly grow the company. What should I consider in order to determine whether this is viable or not?

A In order to grow your business you must understand it. You should carry out a SWOT analysis to review your business’ strengths and weaknesses as well as to enable you to understand any opportunities and threats which are facing your business. The information should enable you to consolidate your strengths and opportunities and also to resolve your weaknesses and avoid any potential threats.

You should also consider undertaking a gap analysis. This form of analysis is used to evaluate both the current and the desired business positions. Carrying out analysis on the gap between the two should enable you to formulate a strategy of how to get to the desired position.

Q I currently have 15 employees. I have recently been awarded three short term contracts. In order to fulfil my contractual obligations I need to deliver each of the contracts within a specific timescale. Whilst this is too much work for my current employees to handle because they are short term contracts I can not afford to employ new staff on a full time basis. What do you advise?

A As the work you have secured is to take place over a short period of time you should consider employing someone on a fixed term contract. A fixed term contract is one that either lasts for a specific period of time which is determined in advance or ends with the completion of a specific task. Employing additional personnel on such a basis should ensure that you are able to meet your contractual requirements without the need to recruit permanent staff. You should note that fixed term employees have access to the same employment rights are their permanent employees.

Q Now that my business has increased in size I am no longer feel able to complete all of the HR and payroll functions. I have looked for a part time member of staff to fill this role but without success. Can you suggest a way forward?

A There are a variety of business support functions which can be bought in giving the entrepreneur access to expert advice and services as and when required. Business support functions such as payroll, PR services, employment law, book keeping and accounting services can all be outsourced; you should consider whether or not you would be better outsourcing your HR and payroll functions as this would give you the backup of a team of professionals rather than one part time employee.

Enterprise delivers business support and advice through the Business Gateway service which is supported by Scottish Enterprise. Telephone 01224 289725 for any aspect of business advice or visit www.enetrust.com.

Ends

Picture caption: Alistair Reid, Director: Business Services of Enterprise North East Trust provides information and advice on issues relating to expanding businesses.

For further information contact:

Lyndsay Aitken
Tricker PR
9 Victoria Street
Aberdeen
Telephone 01224 646491
Direct Line 01224 654086
Mobile 07780 680751
Email laitken@trickerpr.com

Note to editors:

1. Three out of four UK-based companies surveyed are planning to expand their businesses, with 80 percent planning to expand in the UK, according to a survey of property managers by the CBI and property advisers GVA Grimley.