Adventures In Micro-Business: From first aid to keeping your firm afloat

Each month Professor Russell Smith answers your queries

Q. What first aid equipment should I have in my shop?

A. The law places a duty on employers to provide adequate first aid equipment, facilities and personnel for their employees although this requirement doesn't extend to provision for "non-employees" such as members of the public in your shop. Exactly what you provide will depend upon the "risk assessment" that you should undertake. The Health and Safety Executive (HSE) recommends that employers consider the public when undertaking a risk assessment and their extremely good website ( www.hse.gov.uk) has a wealth of information and guidance that you should review.

Q. I have recently developed some new products in my business. Is it true that I can claim tax relief on R&D costs?

A. Certain Research and Development (R&D) costs associated with science and technology businesses can qualify for R&D tax relief – see the Business Link website ( www.businesslink.gov.uk) which has an interactive tool to assess whether your business costs will qualify.

Q. I have a problem with absenteeism with one of my employees. How should I tackle this issue?

A. It is always best to talk with the employee concerned in order to see firstly if there is a problem at work that is leading to absenteeism – for example bullying by another employee. If the problem lies with the employee then you need to establish whether this is a short-term issue or potentially an ongoing problem. Employees always value a sympathetic and understanding employer who is willing to be flexible over the short-term. If the problem is likely to persist then you will need to either change the terms and conditions of employment by mutual consent with the employee or implement your disciplinary procedures.

Q. What is the difference between a marketing plan and a business plan?

A. All business owners should prepare a business plan with an associated budget called a cash flow forecast. The business plan should define what you intend to do and how you intend to do it, while the cash flow forecast predicts what money you expect to earn and what you expect to spend. Monitoring your actual performance against what you predicted – especially in financial terms – underpins good management. Marketing is vital for all businesses and should form part of your overall business plan with an associated marketing budget. See www.businesslink.gov.uk for further information about business planning and marketing plans.

Q. My business is only just keeping its head above water – are there any simple ways to boost sales?

A. Review your "marketing mix" of product, price, place and promotion. Can you add to your range of products and services? Can you offer products at a range of prices? Is the place that customers buy your products optimal for them? Are your marketing messages reaching your audience? It's easier to make repeat sales than find new clients – contact your existing customers with special offers/details about new products.

Questions please

Please send your questions to Russell Smith at independent@businessboffins.com. Selected questions will be answered each month. Answers are for the general guidance of owner-managers only; always seek professional advice.

Professor Smith is the founder of Oxford-based Business Boffins Ltd which, in collaboration with Oxford Brookes University Business School, delivers support programmes to small businesses nationwide. Independent and Independent on Sunday readers can enrol on the university-accredited programme at a discounted rate; forfurther details see www.businessboffins.com/independent.