Whatever the process (and of course budget) we all understand that few people will come to you [...]]]> Every company seeking customers or clients will have developed some form of marketing strategy, whether it be placing an advertisement in the local free paper, or a full blown assault using every medium known to man.

Whatever the process (and of course budget) we all understand that few people will come to you for business if they don’t know you exist, and without some effort on your part of course they won’t! But as a start-up business funds are inevitably short, and marketing on a budget is essential. Hey, even if it’s not essential, why waste money?

Marketing is often shoved to the back of the queue as a priority, usually because of its airy-fairy image and a lack of understanding. Often, if a company has any form of marketing budget it will be the first thing to go in a recession, whereas this is when it’s needed most. I’ve been involved with large companies in the past, principally in the Financial Services industry, who generally have little or no clue about marketing, and who certainly have never thought of setting aside any sort of budget to carry it out. So let’s look at one or two effective marketing solutions with the start-up business in mind:

Advertising in the Media

Why do companies like Coca-Cola still advertise? It sounds like a stupid question but think about it. We all know who Coca-Cola are, and we all know what a bottle of Coke looks and tastes like, so why bother? Well, there are obvious answers:

Competition – If Coca-Cola stopped advertising who do you think would wipe out both them and any other non-advertising competition? Correct: Pepsi. Why? Because they DO advertise.

Brand Awareness – Coca-Cola has arguably the world’s top branding, and is instantly recognisable in almost every country where it’s sold, which happens to be almost every country full stop. Even good old Santa Claus owes his red and white imagery to an early Coke advertising campaign. In his original European guise St Nick wore robes of a blue-green. If I asked you to name a sweet, fizzy, brown drink and suggested the colours red and white then you’d probably think of Coke. If I said red, white and blue, then you may think of Pepsi.

Brand awareness like this costs big bucks and would be outside of the budget of all but the largest companies.

So if you’re marketing on a budget where should you advertise? The answer depends on what it is you’re selling. If you’re selling cars or property then the local free paper always seems to keep businesses at the forefront of people’s minds. If you’re a chippy or brickie then ditto. If you’re selling a service like mine (providing bespoke seminars for professional bodies) then clearly the local rag won’t cut it. The first rule of advertising is to research your market, then search out periodicals or other media that feed that market and advertise there. In my case, trade journals, the pinks and other specialist magazines would be an ideal start. However, even a small ad may be outside of the budget of a small start-up business. So what can be done for a minimal or low outlay, and will it work?

Website

Use blogging software to produce your own website. I use WordPress for my personal blog, (PaulAnthonyDean) as it’s only meant to be a form of online rant, rather than a site which people will search for. In fairness, anyone who knows about this sort of thing will tell you that Search Engine Optimisation (SEO) is largely ineffective with blog sites, so accept its limitations in the short term at least. You can, however, fill up the website with all the information you’d like people to have, but would never have the time to tell them.

Businesses without a website are just begging not to be taken seriously, and although having your own domain name is better, we must remember that we’re on a budget here. No expertise is required to set one of these sites up, and if you’re reading this then you’re reading it on my site, so have a look around at the rest of the site and see what I mean.

Social Media

Like most of you I looked upon Facebook, MySpace and Twitter as kiddies’ time-fillers for the first couple of years. MySpace seems to have had its day to a certain extent, and is probably more useful for fledgling bands to showcase their work. The other two are a different kettle of fish however.

Facebook

The owners of Facebook have realised that business can benefit from social networking on as grand scale. It is now possible to set up a Facebook Business Page, which frankly has some limitations. Even the personal Facebook pages will allow you to set up an advert for your business, with paid advertising which works on a pay per click basis. On a personal note I have adapted my personal Facebook page to reflect my business by ruthlessly culling my family members and making it business focussed. I have cut them from my life, (in the business sense at least) and I’ve also opened it up to the public.

Twitter

In my view Twitter is the daddy of them all. The idea is that you can broadcast any message of 140 characters or fewer in real time to the whole world. Your Tweets appear, along with every other Tweet in the Tweeting universe, in the Public Time Line. Within a short while you will find that you have followers: Tweeters who have made a point of specifically looking out for your Tweets. You may follow them back, or you may already have found someone to follow all on your own. Stephen Fry, David Mitchell, Bill Bailey and Jonathan Ross are four that I follow just for amusement.

But Twitter can be a powerful business tool too. Firstly, make sure your Twitter profile is up to date with website address, contact number and photograph. If you’ve ever looked at Twitter you will know that those without a photo stick out like sore thumbs, and not in a good way. I offer my services to the clients of IFAs, solicitors and accountants, and therefore need to network specifically in these areas. Using Twellow (the Yellow Pages of Twitter) I searched for all three groups and identified those within sensible operating range, which in my case is nationwide. I then started to follow them, in reality a form of cyber-stalking. Within a week, 60% of those I chose were following me back, probably just out of curiosity. Some of these were undoubtedly using Auto-Follow, which just goes to show why you shouldn’t. You should try to choose your followers as carefully as those you follow, as fellow Tweeters will often look at your circle of friends and judge you by them. Successful Twittering is is a question of selectivity, as no one will want to know you if all your followers are people running porn sites.

On the other hand, maybe that bit needs thinking through a bit more…

So, after you’ve culled your followers (remember, quality not quantity) you will be left with a bespoke group to whom you can market, and marketing this group isn’t about shoving your product or service down their throat. On the contrary, it’s the last thing you want to do, at least for now. Post amusing one liners; respond to the Tweets of others; write an article for your blog and publish the link; pass on useful bits of information posted by other users (known as Re-Tweeting). Every now and again Tweet about your service and invite questions, thus creating a dialogue. Only after some sort of relationship has been formed can you venture into direct email contact.

I have just received an invitation to tender for Government training contracts from a delightful woman I was following, just because she found my Tweets amusing! But in return I’ve also pointed out a dead link in one of her Tweets, which will help her own marketing. With Tweeting it helps to offer some form of reciprocal help, and if you can’t then pay it forward.

Networking

There are two types of networking: Online and face to face.

A quick Google search on Business Networking will find you Linkedin and Ecademy, two of the largest networking forums available today. Linkedin has been the most productive for me, as has IFA Life, another online offering, and obviously specifically tailored to my market. Each of these sites requires you to fill in an online profile, which should be as full as you can make it while being sure not to be confusing about your message.

Face to face networking though is by far the most effective. For my money the premier organisation for networking is 4Networking, or 4N as it’s known, formed by the scariest character in the country, Brad Burton. This man has too much energy for one body, and should really be on medication. Research Brad for yourself and see what I mean, but don’t underestimate this man’s achievements. 4N has 30,000 members, ranging from one man bands to corporations. There are 200 groups meeting across the country and paid members can attend any of them for their fee. And talking of fees, this is the first of my marketing strategies to cost any money. For just a couple of hundred pounds it is possible to become a 4N Passporter, and use all of 4N’s networking opportunities, including the coveted 4Sight slot, where you can pass on useful business tips to your networking audience, thereby raising your profile. I attend one or two of these breakfast meetings every week and just wish I had the time to do more. If your budget just will not stretch then the 4N online forum is the best I’ve seen, and will certainly work for you if you put in the time to contribute and read what others are doing and have to say.

With this type of networking you will not only get to market your own business, but you will also meet many who can help you set up, from business cards to marketing consultants, and all in the friendliest of atmospheres. And talking of business cards…

Business Cards and Letterheads

Start-up businesses still need this stuff. Try to avoid very cheap or free business cards. They tend to look very cheap or free. Often they’re printed on flimsy card and are designed to show the world what a cheapskate you really are, so you’ll go out and spend money on decent ones. Think about how many cards you might need initially: probably about 50 until you have more people to give them to. Consider making your own, but follow this essential rule: USE DECENT CARD. I recommend 380 to 400 micron card, and my own cards were set up using Microsoft PowerPoint. Cards should of course carry your telephone number(s), email address, website and of course your Twitter handle. Yes, that’s right, your Twitter username, as clients and contacts can track you online and you can provide them with real-time interaction, that little extra when it comes to customer service. Always leave the back of your cards plain, as you’ll find people like to write on the back. I did all this with my first cards and was extremely proud of the results. Having cut 50 of them I noticed that the one thing missing and omitted from the above was my own name, despite the fact that two family members looked at the card before I did all the cutting! The second batch was much better. Enough blank card for 600 business cards cost me £11.50. Bargain!

Decent letterheads and compliment slips can be produced using Microsoft Word and stored as a template. If you don’t like or have Microsoft products then download OpenOffice 3, which is open-source software and therefore free. It does everything the Office suite does, and in some cases does it better. As with the cards, use the best paper you can afford, rather than the usual copy paper we all generally use.

Recruitment Agencies

Ahhh… Recruitment Agents. When times are good for recruitment agents they are often bad for us. A lot of agents I’ve dealt with lack imagination and are therefore incapable of lateral thought. When there is plenty of movement in the job market they often default to job-filling mode and if you lack that single qualification from your CV you won’t even be presented for a job, whether or not you’ve been doing it for the last ten years. However, there are one or two recruitment agents who know their stuff. Ask me and I’ll tell you who, because I’ve met them. How are they useful to a start-up business? Well, they can introduce you to other people.

In my case I’ve found two agents who will refer me to IFAs in return for a cut (introducer’s fee) of any payment I end up getting from them. Another agent is being very pro-active and introducing me to his own database of IFAs, most of whom he’s in regular contact with, and is actively cold calling on my behalf, a job I hate but he loves.

As you can see, it’s possible to do a lot on the marketing front with very little outlay. I’m not VAT registered yet, so the cost of everything so far to me has been around £280, which includes full network membership and everything else I’ve talked about. If you’re VAT registered then you can reduce that to under £245. Now THAT’S money well spent!

Just launched in July 2009, Tepilo is a brand new service, created by Channel 4′s Sarah Beeny, that will change the way you think about buying, selling and now letting your home.

If you want to [...]]]> In the interests of variety, we are pleased to offer something a little different for your reading pleasure:

Just launched in July 2009, Tepilo is a brand new service, created by Channel 4′s Sarah Beeny, that will change the way you think about buying, selling and now letting your home.

If you want to avoid paying commission to an agent, or if you need an additional way to put your house on the market, tepilo.com will provide a platform to showcase your home whilst taking on board tips and advice from property expert Sarah Beeny.

Sarah’s wealth of experience and professionalism will help guide you through getting ready for your first viewing to completion day and everything in between, ensuring a smooth journey in what can be an extremely stressful period. Tepilo is an honest and empowering way to buy, sell or let your home.

Sarah has produced the following helpful tips for you to consider when considering further property purchase, and has asked me to publish them here:

The Buy to Let Market

There have been numerous articles written recently pronouncing the death of the Buy to Let market – but things seem to be changing and we’re seeing a sharp upturn it seems. This is likely down to increased demand for rentals with the shortage of affordable homes for first time buyers, and the lack of available finance, despite recent government efforts.

But beware – ideally, the rental income that your investment properties produce each month should be more than enough to cover the cost of financing, the cost of managing and maintaining them, tax, and a little bit extra for you. In the real world, that often isn’t going to happen. The rental market will eventually be created because of the affordability barrier – but there will be a lag.

Here are my top ten tips for buying to let in 2010:

1. Carry out thorough research. Check local rental conditions, analyse rental demand and determine the types of renting in your area. Look for obvious clues such as a large company relocation, the opening of trendy bars and shops, or the existence of good schools nearby and choose a property with features that will appeal to your market.
2. The most appealing rental properties are ones that are close to transport links and/or have off street parking.
3. If you plan to rent your property to professionals all of the bedrooms should ideally be doubles.
4. Think low maintenance. You want a property that will run itself as smoothly as possible
5. If you are managing the property yourself be prepared to do some hard work. A buy to let property is far from providing a hassle free income.
6. Choose a property close to home, which will enable you to pop over and sort out any problems easily. If you are not able to do this it can cost you more than a week’s rent to get someone in.
7. Bear in mind that family rental homes require plenty of space and storage
8. If you are the sole freeholder of the property, you will need to ensure that the common parts and the exterior of the property are well maintained. You may wish to spend a couple of hours a week vacuuming and polishing or employ a professional cleaning company to keep these areas up to scratch. If your buy to let is leasehold however, the responsibility for the maintenance of the exterior and interior communal areas should rest with the freeholder unless your lease specifically states otherwise.
9. Steer clear of large gardens, especially in a town property, unless you intend adding the cost of a gardener to the weekly rental and you are aiming to market your property as a family home. As any keen gardener knows it doesn’t take long for a little neglect to show.
10. Consider whether you want to let furnished or unfurnished. Sometimes there is little difference between the rents commanded by unfurnished compared with part or fully furnished properties to let. It all depends on your market and the demand in your area. Before you go looking for furniture, do your research and find the best option for you.

We hope you’ve found this article useful, and if you have questions for Sarah, her advice page can be found HERE

A colleague of mine has just been introduced a businessman, head of an established business, and with a great record of achievement in his industry. However, times have changed and business isn’t all it could be. Time, therefore, [...]]]> What follows is a semi-hypothetical scenario. No names have been mentioned to protect the horrendously guilty.

A colleague of mine has just been introduced a businessman, head of an established business, and with a great record of achievement in his industry. However, times have changed and business isn’t all it could be. Time, therefore, to take a new look at marketing.

At Crimson Leaf we work on the premise that the company website is the hub of any 21st Century marketing campaign, particularly the blogging function. The public is directed to the blog by means of various social media, advertising and word of mouth. The blog is kept updated, relevant and should showcase the work that the blogger produces.

On carrying out an initial assessment, the client was asked to comment on one or two aspects of marketing. Answers are paraphrased below:

Website:

I don’t believe a flash website ever got me any business in the past.

Facebook:

I’ve got a Facebook page for personal use.

Linkedin;

I’m on Linkedin.

Twitter:

It’s a sort of kiddie’s form of Facebook.

Blog:

What’s a blog?

Taking the answers in order it’s worth making the following observations:

While a flash website may not have generated past business it’s worth noting that this man did not have one. He had a non-optimised online business card which was last updated in 2006. Even if the site had been outstanding but not successful, we would have to try to analyse why not. A good site that no one reads may not get you business; a bad site will certainly lose you business.

The personal use Facebook page is closed to public view. The client was unaware of the fact that Google ranks Facebook highly, and having a business page with his connections supporting him would significantly raise his profile.

The client stated he was on Linkedin, the business networking site. Having examined his entry it is clear he was telling the truth. However, he has not bothered to fill in his profile, provide a biography, or even advise the world what he does for a living. He has one connection on the site. He has not even filled in the name of his business.

Twitter – Increasingly businesses are using Twitter to provide improved customer services to their clients. Tweeting provides a channel for feedback and the provision of company news, as well as providing a personal identity for a corporate entity. People buy people.

The client is unaware of the term “blog” and upon further questioning did not see the need for it, nor the real point of it.

At the head of this article I said the case was semi-hypothetical. In fact the majority of what has been written does apply to one client, and only one aspect comes from another.

No wonder business is booming!

One company doing a great job is Redbrick Enterprises, run by Emma Jones. Emma also runs Enterprise Nation (http://www.enterprisenation.com), a [...]]]> Those who know me also know that I am a great supporter of anyone who helps small businesses, and I have friendly contact with a number of “rival” marketing businesses around the country.

One company doing a great job is Redbrick Enterprises, run by Emma Jones. Emma also runs Enterprise Nation (http://www.enterprisenation.com), a brilliant website for those who run businesses from home. The website carries an abundance of useful stuff and, despite what follows I heartily recommend the site.

Surprising then, that I should highlight one article for doing such a bad job.

I was recently directed to the article, titled “Start a home business for under £500”. As this is exactly what I’ve done with Crimson Leaf, and as I run seminars and coaching on this very subject, it was inevitable that I should rush to the site to see if their approach was similar to mine. What I read when I got there shocked me greatly, as the article was possibly the most superficial and misleading I’d ever read. Here’s some background, taken directly from the site:

Enterprise Nation is the home business company. Founded by Emma Jones in 2006, the company hosts the UK’s largest website for people starting and growing a business from home, runs the Home Business Awards, produces the annual Home Business Report and advises Government on the topic. Emma has just authored her first book Spare Room Start Up – how to start a business from home that was Waterstones business book of the month on publication and is a best-seller on Amazon.

Within a few months the site had a readership of 390,000, and (you’ll have to trust me on this one) that’s pretty damn good. So a great pedigree then. The article is essentially a shopping list. Originally published in 2006 it provides you with the following list of start-up essentials:

Laptop  £369.98

Broadband £14.99 (month one)

Desk  £29.90

Chair £13.99

Business cards £49.00

Website & hosting £6.50 (month one)

Total   £484.36

Leaving you enough change to buy a bottle of bubbly to celebrate your sensible investment that will give you a higher rate of return than that open train ticket to London.

Emma goes into detail on the purchases: Laptop by Acer; Website through Yahoo; Desk from Ikea etc.

My objection is quite straightforward: Too many small businesses think that converting their spare bedroom to an office and printing business cards is the same as setting up a business. Within a short time they realise that setting up a business really means finding customers or clients.

Most homes have a PC these days, so is a laptop necessary until money starts to roll in? Might there already be a chair in your house that you could use to sit on? You get my point.

So let’s not create the impression that starting a business is all about creating a comfortable working environment for yourself. Building a business is hard work. It’s about networking, advertising, honing your customer proposition, identifying your market, establishing your margins and delivering your services. All of which can STILL be done for less than £500. Contact us to find out how.

Phil has a solid foundation of experience in [...]]]> Phil has an excellent reputation for competently and creatively designing and delivering high energy and fun packed training programmes across a varied range of subjects. His use of humour and his easygoing yet professional approach makes him a very popular consultant with delegates and clients alike.

Phil has a solid foundation of experience in retail and sales management along with 10 years of training & development management, co-ordination and consultancy. This experience was gained by adding valuable contributions to organisations such as: The Burton Group, Jaeger Men’s & Ladies Wear, Time Computers, Time Talk and Magnet Retail & Trade.

More recently Phil has been having a positive influence with many clients such as:

MFI Retail Ltd, Initial Washroom Solutions, North East Ambulance Service, Somerfield, The NEC Arenas Group, Bath Building Society and many more.

His flexibility and versatility make him a very busy training consultant who is in high demand. Phil also has a well balanced approach with excellent people skills and commercial awareness.

Style

Phil truly believes in delivering EXCELLENT training experiences that not only teach but inspire people to be the best they possibly can be. He is committed to constantly improving his own performance to ensure he can positively influence everyone he meets. He effectively delivers theoretical based training with a practical and pragmatic approach, as he strongly believes that a whole lot of theory is of no use without a whole lot of action.

Phil’s Real life

Phil is a passionate and proud family man who lives near Bristol with his wife and two children who are a constant support and source of positive energy.

Phil has an FA junior coaching certificate and has a keen interest in many sports including football, golf and rugby, although his football and rugby playing days are far behind him now.

Qualifications

 Qualified member of the Chartered Institute of Personnel & Development (CIPD)
 Qualified in Occupational and Psychometric testing (SHL)
 Qualified to facilitate ILM Approved Development Programmes
 Qualified member The Institute of Learning
 Working towards a certificate in Coaching Practice

Additional Experience

 Lecturer at City of Bristol College
 Registered Training provider with GWE Business West

Recent Projects

Phil has established an excellent reputation for himself in the world of training and development consultancy all over Great Britain and Ireland. He has worked with a wide range of clients and subjects.

Phil’s objective is not to be pigeon-holed as just an excellent retail sales trainer; this objective has driven his client portfolio and gained him valuable and varied experience.

North East Ambulance Service

Phil co-wrote and delivered a cutting edge Leadership programme for paramedics and senior managers in the north east of England. This was the first time they have used an outside training consultancy as this project was all about influencing key management behavioural and cultural change. The 5 day intensive programme has received excellent feedback from paramedics and senior management. It was so successful Phil has been invited back to follow up the training with some development workshops. Phil has been working with this client for 3 years now, helping to develop the behavioural elements of managing people effectively.

The NEC (Arenas) Group

Phil was a key member of the project team that delivered a modular leadership programme to managers at the NEC. The programme was delivered over 5 modules and required a high level of energy and versatility to achieve the required training objectives. Phil established an excellent working relationship with his groups who all gave positive feedback about the training and Phil’s style of delivery.

GWE Business West

Phil has recently designed & delivered bespoke training programs & open training courses in negotiation skills, focusing on positive behaviours to influence decision makers.

Bath Building Society

Phil designed and delivered a bespoke development programme for this building society chain. The 3 modular programmes were focused on Branch Staff delivering Customer Service Excellence.

La-Farge Plasterboard

Phil Designed and delivered an interactive and enjoyable Train the Trainer programme for this client. The delegates thoroughly enjoyed the experience and have gained the confidence to deliver their own in-house training programmes.

Somerfield

Designed and delivered an innovative training programme. This programme included short, high impact training sessions involving head office and call centre employees. Topics Include:

 Positive Thinking
 Building Relationships
 Creative Thinking
 Making Your Point

The response from these fun and interactive sessions has been excellent with follow up sessions now oversubscribed as they are so popular.

Initial Washroom Solutions

Designed and delivered training sessions for this client across its UK network of Plants and Service Centres. The training focused on three major initiatives.

 Leadership Development
 One to One Business Coaching
 Outplacement Support

MFI Retail Ltd

Phil has been working with this major British retailer, designing and delivering interactive and informative training workshops on a number of subjects, including:

 Team Building
 Effective Communication
 Customer Service

Other Clients

British Car Auctions. Laser-scan. CPL Petroleum. Mondi Packaging. Littlewoods Shop Direct. Mainline. DAKS of London. Blooms of Bressingham. Networks First. Betfair Malta. Solsoft.

Howard is a flexible [...]]]> Following a notable career in the Civil Service Howard has worked as a consultant within the Public Sector for the past 14 years. The areas of which he has experience include a wide range of events including: Performance Appraisal systems; Competency Based Interviewing and Selection; Presentation Skills and Retirement Planning.

Howard is a flexible and enthusiastic trainer with over 20 years experience in direct face-to-face training delivery as well as designing Events and Training Material in both general and specialist areas. During this period he has trained staff and managers in management and interpersonal skills, facilitated development programmes and managed training contracts within the Public Sector.

Howard has facilitated a successful change management programme to introducing effective management communications improvements, as well as regularly running events improving staffs’ ability to deal with difficult and aggressive customers.

Howard is an enthusiastic and flexible Management and Skills trainer with extensive experience of individual training and development in the public sector. Operating from first line to senior manager level, with 20 years middle management Howard offers relevant direct personal experience to support the learning and development process.

Outside the work situation Howard attempts to play golf, but generally enjoys the views from the hilltop course where he plays, more than his attempts at being Tiger Woods. Travel (usually to somewhere sunny) is high on his list of relaxing pleasures. If food and drink (beer and wine) are available they come high on the list of experiences, which are to be enjoyed as frequently as they can be afforded.

Here are Howard’s key competencies:

Analytical Skills: Howard demonstrates excellent analytical skills in developing and designing training programmes to meet the needs of clients, ensuring that programmes not only meet their needs but also reflect the culture, providing outcomes which support and improve their business performance.

Selection Interviewing: He also delivers highly effective events, enabling delegates to apply clear specific criteria to the recruitment and selection processes, ensuring that candidates who clearly meet the business requirements are recruited or selected. The improved communication skills of focussed questioning, effective listening and evidence testing provide improved business performance.

Presentation Skills: Howard improves communication skills through the development of highly effective presentation techniques, to focus on the message and deliver it with clarity and appropriate impact. This ability improves confidence and a creative approach in the business environment.

Briefings and Submissions: He has developed and delivered a programme to meet the needs of policy staff who provide support to Ministers in the field of Briefings and Submissions; a communications area that requires delegates to learn analytical, communication and presentation skills, research, as well as developing personal confidence.

Handling Conflict: Howard has front line experience of dealing with potentially violent customers and has used this experience to train front line staff in how to deal with conflict and confrontation, improving personal safety and customer service satisfaction.

Telephone Skills Training: With the importance of the telephone as a business tool, Howard has considerable experience in training staff how to ensure that it is an effective tool for communication and helped them to develop effective techniques for ensuring that customers are dealt with appropriately, including handling difficult callers.

Performance Management: A key area for any business is ensuring that staff perform at optimum levels. Howard has extensive experience in training managers to assess and agree performance requirements, including setting objectives and targets, addressing unacceptable performance and measuring key work achievements.

Equality and Diversity: Interpretation and practical application of equality and diversity legislation is vital for any business and has considerable involvement over a period of years in the training of managers who apply the principles and practice of equality and diversity within the workplace. Howard enables them to feel confident in their ability to ensure the procedures and practice are correct and how to address the complex issues which can arise when employing diverse workforces.

Build [...]]]> Unemployment figures have been accelerating upwards as the economic environment deteriorates and are predicted to go higher for the remainder of the year, leaving the spectre of redundancy looming large for many people. However, for anybody worried about their job security, there are a few practical steps that can potentially cushion the blow.

Build an emergency fund

Holding three months’ income in readily available funds will provide some breathing space in the event of redundancy. This should be in an instant access savings account or ISA but do check the small print – banks frequently penalise savers for taking money out of a savings account through loss of interest. An emergency fund is particularly important for families where there is only one breadwinner.

Assess your outgoings

Keeping track of expenditure can highlight potential problem areas. You may find you have old direct debits for things you no longer need – insurance payments on long obsolete mobile phones, for example. See if you can switch to cheaper utility providers, better value car insurance or credit cards with lower interest rates. Set a budget and then make sure you stick to it.

Pay off debt where possible

Reducing debt can significantly cut your monthly outgoings. Start with the most expensive debt first, which is likely to be credit and store cards. Banks will also charge heavily for overdrafts, even when they are arranged, and personal loans can be cheaper. It is worth checking the rates for all debt and, if you can’t pay it off, switching to cheaper types of debt. Mortgages will usually be the cheapest debt – so although it is worth paying down mortgage debt, it should be a lower priority than unsecured debts.

Delay large purchases

This is not the time to start a kitchen refurbishment or loft conversion. Keep new purchases to a minimum and consider putting planned expenditure on hold. With house prices falling, refurbishment may not add value the way it did only a couple of years ago.

Check your insurance situation

Unemployment cover can be bought on its own or with policies such as income protection, and protects in the event of longer-term unemployment. The cost will vary depending on when the payments kick in and the level of income needed. Insurers have policies in place to ensure that people don’t take it out in the knowledge they may be made redundant imminently. There is usually a qualifying period and the insurer will not provide a policy if there is already a specific risk to the policyholder’s job.

WORRIED ABOUT REDUNDANCY?

If the worst happens and you do lose your job;

Check your financial rights

Everyone is entitled to statutory redundancy, even if the company goes bust. For those who have been employed for more than two years, this is one week’s pay (subject to a statutory maximum – currently £350 per week) for every year of employment. For those over 41, this increases to 1.5 weeks pay for each year, subject to the same statutory maximum. Some companies will pay out more than statutory redundancy.

Check your employment rights

Companies need to follow the proper procedure when making someone redundant and, if they do not, you may have reason to claim for unfair dismissal.

Check what you are entitled to from the Government

Claiming benefits is not a long-term solution, but can offer a temporary respite.

Invest any lump sum wisely

While it is tempting to dip into capital for living expenses, it may be worth investing a lump sum to generate an income. While this may be less than you are used to, it will provide some breathing space to find alternative employment. Alternatively, use the sum to pay down debt and reduce your outgoings.

Maximise your tax benefits

Statutory redundancy payments are tax-free and a total of £30,000 paid on termination can be tax free. The remainder can also be free of tax if it is moved into a pension. This is a suitable option for those nearing retirement. A lump sum of 25% of a pension pot can be taken as a lump sum from 55, so it may only mean tying the money up for a few years.

Ensure you claim any insurance entitlement

It may sound obvious, but it is time to dust down the files and root out any insurance policies you may have forgotten about. Unemployment insurance and income protection will kick in after a certain number of months, depending on the policy. Payment protection insurance has proved poor value, but if you already have historic policies in place, you may also be able to claim.

Look at your mortgage repayments

You may have a number of options depending on the flexibility of your mortgage and it may be possible to take a payment holiday. This will either lengthen the term of your mortgage or increase your payments when they resume, but can give you up to a year with no mortgage repayments. You may also be able to reduce repayments by changing the length of the mortgage or switching to interest-only.

Consider alternative sources of income

Could you rent out a room in your house perhaps ? Under the rent-a-room scheme, you can earn £4,250 per year tax-free. Also, you may be able to take short-term, part-time jobs or raid the attic for things to auction.