Monday, 2 May 2011

Enterprise research

    Which business accounts does free business banking apply to?

    Free business banking applies to both our Business Current Account – Small Business Tariff(turnover below £1 million) and Business Direct (turnover below £500,000).

    What is not available within the free business banking period?

    • During the free business banking period, no credit interest is payable
    • This free business banking offer is not available, if your estimated annual turnover is £1million or above.

    What happens at the end of the free business banking period?

    You will automatically move on to the tariff of your chosen account. However, you will also have the opportunity to select a different account, if your business banking needs have changed.

    Standard Account ServicesDescriptionFree Banking
    Account Maintenance FeeA monthly charge applied only when there has been activity on the accountFree
    Automated CreditsAn electronic credit paid into your accountFree
    Bill PaymentA Bill Payment which is debited to your account via a branch or telephone banking service and credited to a recipientFree
    Branch CreditsCredits paid in over branch counter (containing cash and/or cheque activity)Free
    Branch Cash InAdditional charge for cash paid in at branchFree
    Branch Cheques CollectedAdditional charge for cheques paid in at branchFree
    Branch Counter WithdrawalCash withdrawal over the counter (i.e. when cashing a cheque)Free
    Branch Cash OutAdditional charge for cash withdrawal over branch counterFree
    Cash Machine WithdrawalCharge for debit associated with a cash withdrawal from a self-service machine (i.e. one debit per withdrawal)Free1
    Cash Machine Cash OutAdditional charge for cash amount withdrawn from self-service machineFree1
    Cheques PaidCheques writtenFree
    Debit CardA Debit to your account following a Business Debit Card PaymentFree
    Direct Debit Paid/UnpaidA Direct Debit payment made from or returned to your accountFree
    Internal TransferA sterling transfer from one of your accounts to another of your accounts in the same nameFree
    Internet Bill PaymentA Bill Payment made through Business Internet BankingFree
    Other DebitsOther types of debit applied to your account (excluding Faster Payments, Electronic Fund Transfers, Priority Payments and Worldpay payments)Free
    Standing OrderA Standing Order payment made from your accountFree

    How viable is your business idea?

    1. Where did your business idea come from idea?
     a) I spotted a gap in the market and now I want to fill it
     b) Someone else - other people are already doing the same thing
     c) It's my hobby, so making a living out of it will be great
    2. How certain are you about what you intend to do?
     a) Fairly, I think it will work out all right
     b) Very, but I'm prepared to make changes to increase my chances of success
     c) It's all still a bit up in the air to be honest
    3. How original is your idea?
     a) I've come up with some improvements to an existing product that is successful
     b) My idea is totally new - it's never been tested
     c) I'm simply copying other businesses - it seems to work for them
    4. Have you tested the appeal of your idea?
     a) My mates thought it was a good idea the other night in the pub
     b) I've discussed its with a professional business adviser
     c) I've asked potential customers what they think, most of whom said they would buy from me
    5. Have you checked whether any regulations apply?
     a) I don't have any experience, I'm going to get some professional advice
     b) Because of my knowledge and experience, I already know
     c) No, I'll deal with any problems when they come up
    6. Do you know who your customers will be?
     a) Absolutely, in fact, I've already got some lined up
     b) I've not thought about that... Anyway, my product will appeal to everyone?
     c) I've got an idea of the types of people who will want what I'm offering
    7. Who will do your selling?
     a) Selling? Customers will come to me
     b) I'll be doing the selling, I've got a lot of experience
     c) I'm not very confident, I'm going to use an agent or employ someone
    8. And what about your competitors?
     a) I'm aware of some of the businesses I'll be up against
     b) I've done a lot of research and know exactly who my competitors are and what they offer
     c) Competitors? I'm not interested in what others do
    9. What will give you an edge over your competitors?
     a) My product is better than theirs
     b) I'm fully committed to meeting my customers' needs
     c) I'm going to undercut their prices
    10. Where are you going to get the money to start your business?
     a) I'm hoping a lender will take a chance on me... I'll probably get a grant, too
     b) I'll use my own savings and borrow some from family and friends
     c) I'll put up most of the money, I can offer security on a loan to cover the rest
    11. Have you worked out how much it will cost to get your business off the ground?
     a) Yes, in detail, and I've added some extra to account for unforeseen costs
     b) I've a rough idea how much it will cost
     c) Erm, no I haven't...
    12. How much are you going to charge?
     b) I've got a good idea what the going rate is
     a) I have worked out all my prices on a cost-plus basis
     c) I haven't worked out any prices yet, we'll see
    13. How much is each customer going to spend with you?
     a) Not much, but there are lots of customers out there, so it'll add up
     b) Each sale will be high value, but a typical customer won't place more than one order a year
     c) As long as I keep my customers happy, I'll get repeat business, so each customer will continue to buy from me over time
    14. How much money do you need the business to generate?
     a) I've got enough personal money to tide me over for a few months until the business is established
     b) I need to make some money, but I can cut my living expenses back and take a part-time job if necessary
     c) The business needs to support me and my family right from the off
    15. How long do you expect it to take for sales to build up?
     a) I've got some prospects already, so it shouldn't take long
     b) Gradually, over the first six to twelve months
     c) I'm expecting a deluge of sales as soon as I start

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