During 2008 more than 270,000 new businesses started up in the UK. Today over 219,000 of those are no longer around. While cutting business insurance cover during tough economic times may reduce companies’ overheads, it also puts them at greater financial risk.

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According to recent Trades Union Congress findings, nearly 3.5 million UK citizens work from home. Without adequate business insurance cover in place, home business owners run significant financial risks. If a client is injured on site or causes damage to a home business’ property the business owner may not be covered under their existing home insurance policy. Adequate home business insurance is therefore vital.

Every year almost 4,000 British citizens die in accidents in the home and 2.7 million turn up at accident and emergency departments seeking treatment. Many home based business operators own their homes and assume that their home insurance covers their business activities. This is generally not the case.

A reliable home business insurance policy can protect home and business owners from the financial implications of a visitor, an employee or a client sustaining an injury on the business premises. If the home is frequented by clients and workers, public liability and employer liability policies may be needed as well.

From independent contractors to owners of small home based businesses, the right insurance is an essential element to every business plan. Home business insurance policies cover losses incurred as a consequence of clients visiting the home - whether due to injury, theft or damage inflicted to the property and equipment of the business.

Home business insurance typically covers office equipment such as computers, fax machines, telephones and office furniture. Towergate’s home business insurance is designed specifically for home based businesses and protects both home content and business valuables with a single policy.

According to recent research Britons’ second homes are more likely to be targets of vandalism, squatting and burglaries if they are unoccupied. Approximately 10% of UK holiday home owners don’t have a home insurance policy, placing them at risk financially.

Financial news publisher Fairinvestment.co.uk recently reported that approximately 10% of UK holiday home owners did not have an unoccupied home insurance policy in place for their secondary properties.

Citing research conducted by a prominent UK insurer, the report revealed that up to 160,000 unoccupied properties are also underinsured, placing their owners at risk financially.

Unoccupied properties are typically inherited homes, property in the process of being renovated or second homes awaiting sale. Although these assets might not be in use, having adequate unoccupied home insurance in place is vital.

Empty houses tend to fall into disrepair over time, especially if regular checks are not conducted. The harsh weather conditions in the UK also contribute to maintenance problems. Frozen water pipes can burst, and unless the problem is addressed immediately repair costs could sky-rocket.

The London Fire Service estimates that one in every 10 call-outs they receive is to extinguish a fire in an empty property. Asking neighbours in the area to keep an eye on the property and informing the local neighbourhood watch that the property will be uninhabited is therefore advisable.

Vacant properties are generally seen to pose a high risk to insurers as they are more likely to become targeted by burglars. Squatters are also more likely to move in and cause damage, and a long period of neglect can lead to the property losing value.

It is imperative that property owners find the right insurance cover for unoccupied second properties. While some insurers won’t supply unoccupied home insurance, UK insurance provider Towergate specialises in insuring unoccupied homes.

Marketing is just for big businesses, right?

As many business owners will testify, launching a new business and getting it up and running is demanding in itself. But letting your customers know that you exist in the first place, and telling them about your products and services, often presents a further challenge for business owners.

Research shows that a significant number of businesses do think marketing is very important in order to grow their customer base. However, whilst some companies only attribute marketing to 'larger' companies with big budgets and dedicated departments, others, particularly smaller companies with only a handful of staff, find that it is the business owner themselves that often assumes the role of marketer. In fact, our research shows that for 71%^ of businesses, this was the case. This can often be a daunting task, but there are common-sense marketing basics relevant to all businesses regardless of size and budget.

When most people think of marketing they think about big-budget advertising and sales, and whilst these may be elements of a company's marketing strategy, it's always worth reviewing what is known as 'the marketing mix' before looking into the specifics of how you wish to promote your business.

The Marketing Mix (4P's)

The marketing mix is a phrase used to describe the different elements that a business owner must consider when bringing a product or service to market. Whilst most of these may have been considered when setting up the business, it is always worth reviewing all of the elements (commonly known as the 4P's) regularly, as internal and external factors may mean that these have to be reassessed e.g. a new competitor in the market.

Product

A company should be sure that there is a demand for the product (or service) that they are offering. This may sound obvious, but many businesses have historically failed when they have noticed a gap in the market, only to discover that this gap existed as the product/service was not actually required in the first place. A business owner must also consider how their product or service differs from the competition. This may not always lie in the physical aspects of a product, but may be in the superior customer service that a company provides or the warranty or additional benefits.

Price

It's really important to think about your pricing strategy from the outset, taking into consideration how price sensitive your customers are as well as the prices offered by competitors for similar products or services. Setting a price may also impact on the perception of your product/ service; higher than average prices tend to be indicative of quality and luxury for example. Of course, the product or service should back these assumptions up to ensure that customer expectations are met.

Place

Business owners will have no doubt thought about the distribution of their offerings as the business was launched; be it through owning a shop, by trading online, or trading over the phone. That isn't to say that a business can't look at new distributions channels over time - particularly if there are trends indicating that customers are using other methods to purchase similar products in the market e.g. trade fairs or networking events.

Promotion

You've got a great product/service that you know there is demand for; you've set a price that you think is most likely to bring business through the door, and you've established the right channels to enable a customer to purchase from you. Promotion is all about letting your customers know about these other three elements. Before deciding which marketing channel(s) to use, it's important to bear in mind where you are most likely to reach your target customers. There is little point in putting advertisements in a newspaper or magazine that your customers don't read. Some of the channels you could use to promote your goods include:

• Advertising - this may include placing an advert in a local paper, listing in an online directory or sending out flyers to potential customers.

• Website - trends are showing that consumers across many industries are purchasing more online so even a simple website could prove to be a new avenue for customers to access your products.

• PR - A successful public relations campaign is often the cheapest way to attract attention. This could be as simple as writing a press release for a local paper.

Understanding the basics of marketing is important for businesses across all industries, regardless of size, as it helps to re-align the focus to the end-customer and creates product awareness - ultimately impacting the success of the organisation as a whole. 

^Total sample size was 582 SMEs. Field work was undertaken between 8 and 10 June 2009. The survey was carried out online.

Visit Premierline Direct for more information on business insurance. View original article here: “Marketing is just for big businesses, right?”

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