Set up an e-commerce website (video tutorial)
In this guide:
- Set up a small business website
- Develop a project plan for your website
- Choose and register a domain name
- Plan your website content and structure
- Website layout and wireframing
- Different options for building your website
- Test and launch your website
- Website maintenance: options and requirements
- Measure and benchmark your website performance
- Set up an e-commerce website (video tutorial)
Develop a project plan for your website
How to create an effective website project plan and strategy for your business website design and development.
Planning is an essential part of creating websites. It is often as important as website development itself. A good website project plan can help you:
- reduce risks and possible problems during the development
- manage your time and resources better
- keep the focus on your project goals and objectives
- carry out tasks with greater efficiency
- stick to the agreed schedule and deadlines
- improve communication with web designers and developers
Website development project plan - what to include
Before you start any work on the code of your website, you will need to think about its:
- purpose - what do you want your website to accomplish (eg find new customers, generate leads, advertise your business, sell online, etc)
- users - who will use the website, how/when will they do it, what devices will they be using to access your site
- structure - how you want to organise it, eg how users will navigate through the site and how different pages should be laid out
- design - how it will look like and be used, eg elements such as logos, menu selection, etc
- content - what information (text, image, media etc) do you want to publish on the site and who will develop, populate and maintain it
- content management system - how you will add and edit the content on your website
- domain name - what will be your domain name, ie your URL, and what you need to do to register it
- web host - who will host your website and what website hosting options will best suit your needs
- development - will you choose an off-the-shelf template to build your site, use an online tool, or commission a web developer
A good website project plan should set out:
- a task list - for every step of the website creation process
- a schedule - the timeline for the completion of tasks, testing and launch
- a budget - to cover all stages of the project (ie planning, design and development costs, any bespoke functionality you might need, as well as training, annual hosting and support costs, copywriting, etc)
Aim to create clear and detailed specifications during the planning stage. You can break them down into planning, design and development sections in your plan. It may help to include charts to visualise your timeline and milestones.
Website development project documents
You can search online for free or commercial website project plan templates, including task lists, project schedules and budget plans. Other documents that you might find helpful include:
- work breakdown structure
- feature descriptions
- responsibility assignment matrix
- risk register and response plan
- project iteration and closure reviews
See also project management templates and tools.
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Choose and register a domain name
How to choose the right type of domain name for your business, and how and where to register it.
A domain name identifies a website's location on the internet. You should choose your domain name carefully, as it will effectively support your brand and business online.
Different types of domain names for business
There are many different types of domain names. They generally fall under one of two categories:
- generic top-level domains (gTLDs) such as .net, .com, .org, .biz and .info
- country code top-level domains such as .uk for the UK
Most UK companies choose to have domain names that end in .com or .co.uk. Some Northern Ireland businesses also use .ie as another option.
There are now hundreds of gTLDs available to register, eg .london, .company, .club, .eu. Think carefully about the geographical implications of your server and domain names, as they can affect local search results.
Certain eligibility rules apply to ownership of .eu domain names - read about registering and renewing .eu domain names in the UK.
What is a good domain name?
When choosing a domain name, most businesses choose a name based on the name of their business or product. Your domain name should be:
- short
- easy to spell
- easy to remember
- relevant to your business or product
You should avoid choosing a domain name that:
- misuses a trade mark that belongs to another business
- misleads users into thinking you are someone else
- contains lots of dashes (eg my-new-website-business-and-shop.co.uk) - this looks unprofessional, is difficult to remember and some search engines may consider it to be spam
How to buy a domain name?
You can register a domain name through an internet service provider (ISP) or a domain registration agent. See a list of ICANN accredited registrars, registrars accredited in the UK, or registrars accredited in the EU.
You will need to pay a small fee to register your domain name. This will grant it protection for the duration of the registration period.
Domains are not forever. You can't buy a domain name outright or permanently. You will have to renew your registration annually to keep ownership of your domain name.
It is important to understand that domain names are unique. They are allocated on a first come, first served basis, so it is possible that your preferred domain is already in use. You can check if the domain of your choice is available with registrars such as Nominet.
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Plan your website content and structure
How to come up with content ideas, and plan, prioritise and organise information for your website.
There are many ways to plan content and information architecture for a website. Depending on the size of your site, you may use one or more tools and techniques, such as:
- sitemaps
- content inventories
- content mapping
- card sorting
- paper sketches
What are sitemaps?
Sitemap diagrams are graphic tools that can help you to:
- visualise the relationships between pages on your website
- ensure the right flow between pages
- spot gaps in content
- develop your website design around content, rather than the other way around
- encourage team collaboration and allocation of content creation
- identify potential issues that could affect content creation and project deadlines
You can draw up a sitemap in a word document, on a spreadsheet, or use one of many free tools that are available online.
See examples of sitemap documents or browse online to find more.
Content inventory tool
A content inventory can help you examine the scope and purpose of each page on the site. It can be time-consuming to create but useful if you are relaunching an existing site, as it will help you to:
- record and analyse each item of content that you have
- establish how well it performs
- segment your content types and work out how best to present them
Find out more about content inventory.
What is content mapping?
Content mapping is a visual technique that can help you plan your website content. It is a method that combines:
- an analysis of your business goals
- an assessment of your audience
- your content objectives
By carrying out these activities, you can produce content maps for your site and work out which content should feature. Content mapping can help you explore and visualise your content, and its effectiveness and root it in clearly defined business goals. You can also use simple card sorting and paper sketches to organise your content according to hierarchy.
When choosing your method of content planning, consider the size and type of your website. For example, a laborious content mapping exercise may be excessive if you are building a simple brochure site.
When to start planning content?
Good website content takes time, a strategic approach and often many revisions. Make sure that you consider content early on in the website planning process to prevent delays and cost overruns during development.
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Website layout and wireframing
Understand what makes a good website layout and hierarchy – and how to achieve this with wireframing and good design practices.
A good website layout and a clear hierarchy are vital for the success of your project. They will help your users navigate your site and easily find the content or pages that they are looking for. Poor layout will provide a bad user experience and prevent your customers from accessing your information, services or goods.
As with content planning, certain techniques can help you with designing your website layout. The most common one is using wireframes.
What are wireframes?
Wireframes are a popular way of mapping out a website. They allow you to create a mockup - ie a skeleton of the site that shows the basic elements you intend to include.
These elements should include only the core layout, structure and organisation rather than the detailed visuals. A wireframe may comprise simply:
- labelled boxes that illustrate the overall navigation
- blocks of content that each webpage will contain
When developing your website structure, it's important to take account of web accessibility requirements, as well as your user's needs. Read about best practice in web design.
Benefits of wireframing
Wireframes are generally low-fidelity, basic and easy to understand. They are also quick and cheap to produce. You can draw a wireframe using Word, PowerPoint or Illustrator, or simply with a pencil and paper.
They are also typically very easy to change, and handy to share for feedback or fine-tune with your project team or web designers. Designers tend to use wireframes to show the navigation flow between the different screens. Developers may use them to get a better understanding of the core functionalities of the site.
What is a wireframe prototype?
Wireframes don't contain real content, so establishing the final layout of the screen may be difficult. However, wireframes often provide the basis for more functional prototypes.
Prototypes offer greater fidelity with regard to the design of your website. They provide more visual detail and can include user interaction functionality. A prototype should represent the final product as closely as possible.
You can use a prototype to test, demonstrate and validate the functionality of your website design. See how to test and launch your website.
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Different options for building your website
An overview of different web development options, including building the website yourself, using templates or hiring someone else to build it for you.
There are many ways to build a website. Depending on your skills and budget restrictions, you can build it yourself, use templates or 'site builder' tools, or hire a web designer to build it for you.
Do-it-yourself website
Building a website from scratch is generally only an option if you have:
- good technical knowledge, especially of HTML
- a web-building application or software, such as Adobe Dreamweaver
- staff in-house who have the skills and the expertise required
HTML is the foundation of building websites. Even if you rely on web-building tools, some degree of HTML knowledge will likely be necessary to help you carry out the project. Be realistic about the skills of those involved and seek advice from IT professionals if you need it.
Use templates or 'site builder' tools
There are many great options for using templates or online tools for building websites. This method usually allows you to:
- create a website quickly and easily
- choose from thousands of themes and designs
- customise different elements, such as navigation and page layout
- use plugins for added functionality or features of the site
All you need to do is choose your template and add your content, and your website is generally ready to go. Web design or web hosting companies typically offer different packages and template options at different prices. They are usually more affordable than commissioning a designer and can include a one-off charge or monthly/annual payments.
Commission a web designer or an agency
You don't have to have a huge budget to be able to work with a web designer or an agency.
The expertise that they will bring to the project will likely be worth the extra cost, as they will be able to guide you through the whole process - from planning and idea generation to site implementation and launch.
To make sure you're happy with the results, brief the designer carefully and agree in advance on the key issues around the project. See how to choose and work with a designer.
Legal considerations
Whatever way you choose to build your website, make sure that you follow best practice in web design. Be aware of:
- web accessibility issues
- e-commerce regulations if you are selling products or services via your website
- your responsibilities under the data protection regulations, especially around issues of consent, tracking and third-party services
Your website's privacy notices, terms and conditions, subscription forms, other opt-ins and data capture processes must all comply with the data protection rules.
Website documentation
Once you decide what way you want to build your site, you will need to:
- develop key documentation for your site (eg terms and conditions, disclaimers, etc)
- disclose certain information about your company on your website
See business websites: legal requirements.
You can also use our sample IT policies, disclaimers and notices to find free templates for your business, including our UK GDPR compliant sample privacy notice.
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Test and launch your website
How to successfully test and launch a website, carry out staff training and what to do after the launch.
Once you design and develop your website, you will have to carry out testing to make sure that it is ready to go live. These processes are known as 'implementation'. You will go through several phases during the implementation process.
Provide staff training
When you are getting your website ready for launch, you will need to train your staff on relevant procedures and maintenance tasks. You should encourage staff involvement and feedback, as staff buy-in can make or break a technology project.
Before arranging training for your staff, you should carry out a training and learning needs analysis to ensure that your training is cost-effective and worthwhile.
You should also consider setting up a cross-departmental task force to manage the implementation process. It will help with staff buy-in and help ensure the website is compatible with other business systems - for example, your accounts package or customer database.
Carry out system testing
Before putting the website live, you need to test it sufficiently. Poor testing or no testing is extremely risky. Errors that appear later can be expensive to correct - and may damage your business' reputation.
The main purpose of testing is to assess your website's:
- usability
- accessibility
- functionality
Testing should also look at the response times experienced by users and verify how the site functions under peak loads. It is also useful to see how easily users can access and navigate through the site across different platforms. See more on best practice in web design.
Plan the launch of your website
Decide whether to have a soft launch to existing customers or go public right away to as wide an audience as possible. Ahead of the launch, you will also need to plan:
- How you will market the site - both offline and online?
- Who will maintain the site - will you do it in-house or outsource the maintenance?
- Will your staff need any additional training to maintain the site?
- Who will manage customer feedback and any online orders?
Promote your website and engage with online customers
When you launch the site, you need to encourage existing customers to use it. Ensure that you promote the web address in your marketing material and that the website is accessible through search engines. Use search marketing techniques like search engine optimisation and pay-per-click and paid search advertising.
See also how to develop a digital marketing plan.
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Website maintenance: options and requirements
Businesses should keep their websites secure, accurate and up-to-date - here's why and how to do it.
Maintaining your website is crucial. As a website provider, you have the responsibility to ensure that the content of your website is accurate and up-to-date and that your visitors' data is protected from misuse.
Reviewing your website
Reviewing your website regularly is the best way to ensure that your business website is up-to-date and error-free. You can schedule a review calendar or carry out ongoing checks to manage:
- your content - including spelling and grammatical errors and out-of-date information
- internal and external links - including irrelevant links, broken links or redirects
- advertising or sponsorship banners - eg merchant's links in affiliate marketing
- compliance with advertising rules, if applicable
You can use many free and paid-for tools to help you maintain your website. These tools can identify broken links, missing images, spelling mistakes and other problems that can damage user confidence and adversely affect your search engine ranking.
Updating your website
Keep your website content as up-to-date as possible. Archive any out-of-date content and make sure that you provide something new for your users to come back to. Fresh content will also help you secure better search engine ranking. If relevant, you can use user-generated content to help keep your website engaging and up-to-date. You can integrate your social media accounts to keep your website current - see more on social media best practice for business.
Content management
If your website has a lot of dynamic content that changes frequently, consider using a content management system. This software can help with collecting, arranging and managing content on a website, an intranet or an extranet.
Website maintenance options
Four main options for carrying out website maintenance are:
- Do it yourself - use tools such as WYSIWYG ('what you see is what you get') editors, graphics software and various online validation services to maintain your site.
- Pay for ad-hoc updates - eg to your internet service provider (ISP). This is viable if the changes are relatively infrequent. However, as your site grows it will become less cost-effective.
- Use content management software (CMS) - you can use such tools on their own or as part of a general maintenance contract. Some CMS tools are free, although there are many for which you may need to pay an annual fee or monthly cost.
- Set up a maintenance agreement - with your ISP, a website developer or a digital agency. This may suit if you need to carry out regular and frequent updates to the content, monitor activities, or patch and maintain your content management software. Maintenance agreements involve a fee, usually on a monthly or quarterly basis.
Website maintenance budget
No matter how you decide to maintain your website, make sure that you fully budget for it - there will be a cost even for routine updates to your site. You will need to ensure that your website is fully backed up. You may also need an additional budget for further upgrading or redesigning of the site.
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Measure and benchmark your website performance
How to monitor and benchmark the performance of your website and use this data to improve your customers' experience.
It is important to monitor how your website performs and the way visitors use it.
Performance monitoring tools
Many websites experience slow performance, outages, content errors, transaction failures, etc. To address these problems, consider using website performance monitoring tools.
These tools can:
- measure the response times of specific transactions
- pinpoint the location of bottlenecks that slow down the website (eg an application server or a network router)
- identify the causes for slow page loading speeds (eg loading too many banners, too many high-resolution graphics files, or disk space problems)
Many of the main search engines - such as Google, Bing and Yahoo - provide tips, advice and tools to help you improve the performance of your website.
Monitoring website traffic
As part of website maintenance, you should track how users find your website and what they do once they get there. Web analytics tools can help you determine:
- how many visitors click on your pages
- the dates and times each visitor accessed your site
- the individual IP (internet protocol) address of each visitor's computer
- where (what online source) did your visitor come from - eg from search, another website or social media platform
- how many pages do they visit
- which pages they spend the most time on
- the type of browser, operating system or mobile device used by each visitor
This information can help shape your content strategy, offer valuable feedback on your marketing activities, or customise features to help address visitor needs.
You can use free services - such as Google Analytics and Bing Webmaster tools to help you monitor your website traffic, or use paid-for tools offered by your web host or specialist analytics companies. These types of tools work by adding tracking codes to your website pages that collect different types of user data, including personal data such as IP addresses.
Website tracking and data protection
Data protection laws affect how you as a website owner may use tracking software to monitor your website visitors. They also affect your privacy policy and the manner in which you can obtain consent from your users for setting the cookies.
To ensure that you comply with the data protection laws, you should:
- control how you're transmitting personal data to third parties (eg from your page URLs to Google Analytics)
- use your analytics tool features to anonymise any IP data you collect
- use pseudonymous identifiers, such as User ID, hashed or encrypted data or transaction IDs
- provide transparency about the data processing on your site in your privacy information
- follow the rules on obtaining and managing consent
Find out more about the UK General Data Protection Regulation (GDPR).
What is website benchmarking?
Website benchmarking helps you to see what other businesses are doing online and where your website stands in relation to others. This knowledge can help you better understand your position in the market and boost your competitive advantage.
You can benchmark, for example, your:
- website performance
- search performance
- usability performance
- marketing performance
Learn more about benchmarking and see how to benchmark your business performance.
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Set up an e-commerce website (video tutorial)
Watch our quick video tutorial to learn how to build your e-commerce website, what to put on it and the laws you must follow when selling online.
In the past, selling online was traditionally associated with consumer-facing retail businesses. Now, a broader range of businesses is investing in e-commerce – particularly those trading with other businesses.
Invest Northern Ireland has produced a suite of video tutorials to outline how e-commerce could work for your business, and what benefits you can expect from selling your products and services online.
E-commerce introduction
This video introduces e-commerce and outlines the topics that will be discussed throughout the tutorial including online marketplaces, building an e-commerce website, digital marketing, legal and security issues and effective market research.
E-commerce research
This video discusses the importance of laying a firm foundation for creating your e-commerce website by conducting thorough market research and looking at your competitors, your products, target market, human resources and internal processes.
Online marketplaces
This video looks at online marketplaces and outlines some common ways to get your product or service in front of your customer by using online selling platforms such as eBay and Amazon. It also outlines the first things you should consider when it comes to creating your own e-commerce website.
Digital marketing and e-commerce
This video explains the vital role of digital marketing when it comes to selling your product or service online and explores search engine optimisation, paid advertising and social media marketing, and the importance of analytics.
Legal and security issues with e-commerce
The final video highlights the legal and security measures that are required when selling online to protect your business, brand and your customers. It also covers the legislation that may be relevant to your e-commerce activity.
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Choosing computer hardware for your business
In this guide:
- Computer hardware for business
- Business benefits of new computer hardware
- Choosing computer hardware for your business
- Purchasing or leasing computer hardware - pros and cons
- Computer hardware components and specifications
- Desktop or laptop devices for business
- Printers, scanners and multi-function devices
- Choosing a network server for your business
- Hardware installation, maintenance and support
Business benefits of new computer hardware
Advantages of buying new or upgrading computer hardware for your business.
Buying new computer hardware for your business should be more than just a financial business decision.
Advantages of investing in hardware
Before buying any hardware, you should first consider what benefits it might bring to your business. This might affect what type of hardware you choose. For example, certain types of computer hardware could help you:
- reduce costs by automating routine tasks, such as record-keeping, accounting and payroll
- improve customer service or supplier relationships
- develop more effective communication within the business or with customers
- increase business efficiency and staff productivity
- increase employee morale
- expand your business offer or reach new markets - eg through an online shop
- develop a competitive advantage by implementing the right business technology
Before any purchase, it is generally a good idea to carry out a technology needs assessment.
To determine if buying new hardware could benefit your business, you should:
- list the key hardware investments you are thinking of making
- look at their individual cost/benefit relationship
This will help you to prioritise them and see which you can afford now, and which can wait. Keep in mind that the cost of hardware depends on its specification and this, in turn, is determined by some key computer hardware components.
Make sure that any hardware you choose is compatible, brings clear advantages to your business and is worth the investment. For more information, see choosing computer hardware for your business.
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Choosing computer hardware for your business
Key things to consider when you choose and buy computer hardware for your business.
With so many options available, choosing computer hardware for your business can be difficult. You will have to keep in mind:
- your current and future hardware needs
- potential compatibility issues
- security concerns
- your long-term IT strategy
Your new IT systems should support your business goals and objectives, and align with your business strategy.
How to assess computer hardware needs
To assess your needs, look at how you intend to use computers in your business. Think about, for example:
- the tasks you plan to computerise - eg record-keeping, payroll, invoicing, advertising
- your basic requirements - eg networking equipment, operating systems or software
- your business-specific requirements - eg web servers for e-commerce businesses
Different types of businesses will generally have different computer hardware needs. A personal computer may be enough for a small start-up, but a growing business may need more advanced equipment to meet its changing needs.
See how to carry out a technology needs assessment.
Your staff may also require training if you purchase new equipment that you expect them to use. You can carry out an IT training and learning needs analysis to determine what type of training, if any, your staff might need.
Compatibility
When choosing hardware, make sure that any new or replacement components are compatible with your existing computer equipment. Consider the overall costs, including if it might be cheaper to install a new system rather than upgrade the existing components.
Security
Hardware theft or loss is a potential business risk. Whether by accident or malicious intent, loss of a laptop, a mobile device or storage devices (such as hard drives) can put your business' data security at risk. You should take steps to manage IT risk in your business to protect both hardware and data against a potential breach.
Long-term IT strategy
Your IT strategy should take into account any future changes in your market, your employees and your products or services. If possible, integrate hardware refresh and software rollout strategies in your business.
When choosing new hardware for your business, it's good practice to keep a list of purchase dates and costs of hardware for accountancy, tax, warranty and insurance purposes.
Hardware life expectancy
Life expectancy for some computer hardware parts is three to five years. At some point, your hardware may fail or it may become too old to perform adequately for your needs. Many businesses work on a hardware replacement cycle of about three to four years for desktop PCs and five years for servers.
Disposal of old hardware
Before you dispose of old computer hardware, it is important to delete any confidential or sensitive data. You can do this by either:
- securely wiping the data
- removing and physically destroying the storage drives that hold this data
You should dispose of old hardware in an environmentally friendly way. In some cases, the manufacturer can arrange a free collection from you. Retailers or suppliers may charge you to dispose of the equipment.
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Purchasing or leasing computer hardware - pros and cons
How to decide if you should buy, lease or rent IT equipment for your business.
When it comes to acquiring new hardware for your business, finance is one of the key things you will have to consider. Typically, your options will be: buying outright, hire purchase or leasing.
Pros and cons of buying computer hardware outright
If you want to own the equipment outright, you can buy it in full with your own money or use a bank loan or overdraft to purchase it.
The advantages of buying outright include:
- having full ownership of the assets, which you can add to your balance sheet
- the ability to deduct or write off the value of the assets for tax purposes (in some cases)
- the ability to use or alter the equipment as you wish, since you're not tied into a contract or a leasing agreement
On the other hand, disadvantages to buying outright include:
- paying the full costs upfront, which can cause cashflow pressures
- possibly having to source a loan to cover the costs
- having to maintain or repair the equipment yourself, which can be costly or impractical
- losing value over time - hardware depreciates quickly and may become obsolete after a few years, requiring a further investment
Read more about buying equipment outright.
Pros and cons of leasing
Leasing allows you to rent computer equipment for a monthly fee. You enter a contract with a leasing provider and, at the end of the agreed term, you typically either:
- give the equipment back
- extend the lease if you wish to keep using it
Depending on the leasing company, you may also agree to buy the assets at the end of the lease. Leasing has several distinct benefits. For example:
- it allows you to use assets without actually owning them
- it doesn't tie up your funds in an outright purchase
- it minimises maintenance costs, as the lender is typically responsible for any upkeep
- it is more flexible and makes it easier to upgrade your equipment
- it is considered an operating cost, so you can write it off against profits
Leasing may be worth considering if the equipment you need is likely to date quickly or if you are looking for a short-term commitment. However, leasing over long term may not be cost-effective, as you may end up paying more than the equipment is worth.
Find more advantages and disadvantages of renting business equipment.
Pros and cons of hire purchase
Hire purchase allows you to buy IT equipment on finance, using monthly payments rather than a lump sum. Typically, the payments cover the purchase price, as well as a fee for the lender. At the end of the agreed hire purchase term, you own the asset in full.
The advantages of hire purchase agreements include flexibility and scalability. They allow you to:
- spread fixed costs over time, which is easier on your cashflow than an upfront payment
- maximise your tax relief via capital allowances - seek an accountant's advice
- have maintenance, repairs and servicing as a part of the deal
- enter into a new contract at the end of the original term to upgrade or replace equipment
As with other options, there are disadvantages to hire purchase. For example:
- the equipment's overall cost may be greater than if you'd purchased it outright
- there can also be more administration involved
- the equipment remains the property of the supplier until the final payment is settled
- by the time you pay off the equipment, it may be obsolete
When deciding if you should buy or lease your hardware equipment, it's important to take into account your needs around hardware installation, maintenance and support.
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Computer hardware components and specifications
Key components of computer hardware, and how to find the right hardware specification for your business.
PC hardware, such as a desktop computer, is the most common type of IT hardware purchased by a small business. The cost of hardware depends on its specification, which in turn is determined by some key components.
When you buy PC hardware, you need to decide what the specification of these key components should be.
Central processing unit
The processor is the driver of the computer. Processors are usually differentiated by speed, measured in gigahertz (GHz). The higher the GHz, the faster the computer will run. You should buy the fastest processor you can afford, but multicore processors with two or more cores running at speeds of 2 GHz or above will normally be enough for most business functions, eg word processing, spreadsheets and some multimedia. More CPU cores and higher speeds improve processing throughput and therefore the perceived speed of the computer.
Random access memory (RAM)
The processor uses memory to run programs. Generally, the more RAM you have, the better your computer will run when using several programs at once. Your computer should have enough memory to make the most of the processor speed. To use multiple modern software applications effectively, you should have at least 4 gigabytes (GB) of RAM and preferably 8 GB or above for more memory intense software applications, such as design, photography or video editing.
Hard disk
The hard disk stores the data you create in your business, as well as the programs you use. A typical office computer will have at least 500GB of hard disk space. Most new laptops and performance computers come with solid state drives (SSD). These drives are silent because they have no moving parts and are five to eight times faster than the standard magnetic hard disk drives used in most desktop computers. Although SSD can offer significant performance advantages, the cost per GB of storage can be two or three times more expensive for the same storage capacity. Even with a price premium for a SSD, given the performance advantage vs the overall cost of a typical desktop or laptop, in most cases including a SSD is the best approach.
You can also use external plug-ins, such as USB memory sticks and portable external hard drives, to supplement your computer's storage requirements.
Peripherals
The monitor is the computer's display screen. Most modern monitors use some form of Liquid Crystal Display (LCD) technology. Monitors are normally measured diagonally in inches - typically 22, 24 or 27 inches. Larger or ultra wide-screen monitors allow you to compare two documents on-screen. Which LCD technology you should use will depend on the cost of it, and whether you require true colour reproduction or high screen refresh rates.
The aspect ratio of a monitor is the proportion of image width to height. A common aspect ratio for monitors is 16:9 but other aspect ratios may be required for specialist purposes such as CCTV monitoring or movie editing.
The keyboard and mouse usually come as part of a bundle, but you may be able to select wireless devices that make desktops neater.
There are alternative computers to conventional desktop PCs available, such as Apple Macs. These have historically been used to support desktop publishing software but now also offer a comparable system for general office use.
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Desktop or laptop devices for business
How to choose between laptops and desktop computers for your business, and what are the advantages of PCs over portable devices.
There are two types of computers that you might need for your business: desktop PCs and laptops.
Advantages of desktop computers
If you carry out all your work in one place, a desktop computer will meet your needs and will offer the best price for a given level of performance. Desktop PCs are generally more durable than laptops - an important factor in a busy office.
Desktop computers can generally be repaired and upgraded by local computer shops using standard off-the-shelf components. This can extend their life considerably. Laptops are typically more difficult to repair and you may need to return them to the supplier or manufacturer for repairs or parts.
Advantages of laptops for business
If you need to use a computer while away from your office, a portable device such as a laptop, a tablet or a hybrid tablet/laptop computer can be invaluable. They are particularly suitable for salespeople making client visits and for employees working from home or out of the office regularly.
If your workers occasionally need to work in the office, you should consider using a docking station. This will allow them to use their laptop in the office in place of a desktop PC, and connect it to the existing business network and a power supply.
Laptop theft and security issues
Laptops are easy to steal and need additional security measures such as a security cable to lock them to a desk when away from the base. Most laptops on the market are equipped with a Universal Security Slot that allows them to be attached to a cable lock or laptop alarm.
More than a third of laptop thefts occur in the workplace. You can help prevent this by:
- using docking stations that are permanently fixed to your desktops and have a feature that locks laptops securely in place
- storing laptops in a secure room or cupboards, especially if you're leaving them unattended overnight or for the weekend
If your staff is working remotely, it is important that they secure their devices appropriately and in line with your business' security policies. You will also have to manage the additional cyber risks that can arise from remote access.
Read about the various remote access security issues that can affect your business.
Mobile-enabled working
Some workers may benefit from having a smart phone, netbook, tablet or another handheld computer rather than a laptop. These devices can synchronise data such as diaries, telephone numbers and short documents with a desktop computer or via cloud services. They are ideal for workers who need to make notes while out of the office.
For more information, see mobile technology and cloud computing.
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Printers, scanners and multi-function devices
How to decide which type of printer, scanner and multi-function device fits your IT needs.
If you have several computers and peripherals (such as printers and scanners), to get the best from them, you should network them together.
Sharing printers over a network
A computer network allows you to share internet connections, data and resources within your business, improving both efficiency and speed of working.
Originally, all computer networks used fixed wiring to link PCs and peripherals. However, many businesses now have wireless networks - which are ideal for workers who need mobility - or wired networks with wireless hubs in shared spaces.
Types of office printers
Printers are essential for most businesses. There are three basic types of printers:
- Laser printers produce colour or black print and are suitable for most office printing needs. They are more expensive than other types of printers but are more economical if you do lots of printing and are relatively fast.
- Inkjet printers can carry out either colour or black printing. Some inkjet printers can produce photographic quality images. Although cheap to purchase, inkjet supplies like paper and ink make them expensive per page printed. They are also slower than comparable laser printers.
- Impact printers, such as dot matrix printers, are now rarely used except for special purposes, eg for printing forms used with accounts packages.
You can connect printers directly to desktop PCs and laptops, or share them on a wired or wireless network. Shared printers are preferable for most small offices, but some workers may need a personal printer in a secure location, particularly if they are dealing with sensitive or confidential information.
As with most computer equipment, unless you have in-house expertise, it is worth paying for a maintenance contract for your printer. Access to the right support can help reduce disruption and downtime in case of any equipment failure. See more on hardware installation, maintenance and support.
Office scanners
Scanners are used to capture images digitally. They can be useful in an office for storing content digitally that is only available in print and for extracting text from documents such as books. You can connect scanners directly to a desktop PC.
Multi-function devices: advantages and disadvantages
A small office usually needs a printer, a photocopier and perhaps a scanner. These can be combined in one multi-function device. They have several advantages:
- the total cost may be lower than the combined cost of separate units
- they save floor and desk space
- there is less to install
However, such devices may not deliver all the performance available from separate units and, if they fail, you may lose all the functions at once and will need to replace the entire unit.
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Choosing a network server for your business
What do network servers do, how they work and how to choose the right server for your business network.
Servers store data and applications that many different people in your business share and use. A typical small office with a number of desktop PCs will have one or more servers connected by a network.
Difference between a network server and a desktop PC
A small server might look similar to a high-end desktop computer, but the machines are designed for very different tasks:
- A desktop PC is designed for one person, with a simple operating system that runs single-user applications such as a word processor or a web browser.
- A server runs a specialised operating system designed to support multiple users. It is capable of running multi-user applications such as shared calendars and programs, databases, customer relationship management software, enterprise resource planning, etc.
Think of a server as a shared resource and a repository for your business information. Given its central role, its specification needs to be much greater than the typical desktop computer.
Choose the right specification for your network server
The disk storage capacity of your server needs to be large enough to keep all the current data for your business. Servers can require terabytes of storage, especially if you need to keep or share a high volume of large files, eg graphics, images, video and audio files.
Your server must be capable of rapid repair since a breakdown will halt most of your IT functions. Servers are often built so that key components such as disks and power supplies can be quickly changed. Servers that are more expensive will have redundant components, so that if one fails another will take over automatically.
A lot of data flows in and out of your server. All this data needs to pass through a special connector card to your local area network. This card, called a network interface card, needs to be fast enough to handle the flow of data. It is common to use network cards with a transfer speed of 1Gb/s or greater.
Where to store your network server
Location is a major consideration. Servers are normally kept in a secure, temperature and humidity-controlled location, often alongside your networking equipment. It is important to prevent casual access to your server because of the risk of damage to your business information, as well as physical damage from dust and other contaminants.
See more on server security.
A server maintenance contract is a wise investment, especially if you have limited in-house IT expertise. You can find information about maintenance contracts on leading hardware supplier websites. A web search for 'server maintenance' will find other possible sources.
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Hardware installation, maintenance and support
An overview of installation and maintenance issues you should consider when purchasing new IT hardware for your business.
A single computer can usually be set up and operated by someone who is not an IT expert. However, unless you have in-house expertise, you may need external help to:
- install more complicated systems such as a server-client or peer to peer network
- train your staff on using the equipment
- maintain and service your equipment regularly
You may also need ongoing support services, such as those through the manufacturer or supplier's support helpdesk. Access to a helpdesk can be either by phone or via the internet, at no cost or by subscription.
Be sure to find out what the exact charges are, how long the help lasts for and, if possible, whether the helpdesk has a good reputation.
Hardware maintenance contracts
You may also want a maintenance contract from either your supplier or an independent maintenance company. There are generally two types of maintenance arrangement:
- On-site cover, which involves someone coming to your premises to make repairs, can get your system running again quickly but may be expensive.
- Return-to-base repairs, which involve sending your equipment away to be repaired, may be cheaper, but can also be inconvenient.
Service level agreements (SLAs)
You should also establish the quality of the service. For example, check whether the engineers work to ISO 9000 standard and what quality of parts they use. For a business-critical system, you may want an SLA which guarantees repair or replacement at short notice when a fault occurs.
See more on supplier service level agreements.
You can find a lot of information about computer hardware on the internet. You may also be able to find documentation, support forums and upgrades to software on the supplier's website.
It's worth remembering that to get the most from any new technology, employees often need training and support for a new computer system. For more information, see IT skills and support for your staff.
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Potential drawbacks of CRM systems
In this guide:
What is a customer relationship management (CRM) system?
Understand what a customer relationship management system is, how it works and how it can help you turn customer data into actionable insight.
A customer relationship management (CRM) system is an IT technology that allows you to manage the business relationships you have with your customers, service users and suppliers.
What does a CRM system do?
CRM is a software or a tool that provides a central place for storing all your customer data and sharing it with other teams within your business. It allows you to create records and track the history of all your interactions with the customers, including:
- phone calls
- emails
- meetings
- presentations
- service enquiries
- leads
- purchasing habits and preferences
As well as tracking contact history, in most CRM systems you can also:
- add notes
- schedule follow-ups
- assign tasks to staff
- generate reports and sales forecasting
Why have a CRM system?
With all your information collated in one place, it becomes easier to understand and anticipate the needs and behaviours of your customers. This, in turn, allows you to:
- keep customer contact relevant, personal and up-to-date
- modify your business to better serve your customers
- identify new leads and sales opportunities
- win new business
In essence, CRM can help you to recognise the value of your customers and capitalise on improved customer relations. The better you understand your customers, the more responsive you can be to their needs. See more on the business benefits of CRM systems.
Do I need a CRM system?
Not all businesses need a full CRM system. If you are a sole trader or you typically have very few leads and no repeat business, the costs of enterprise-level CRM software may outweigh the benefits. Find tips to help you decide if your business needs a CRM system.
Even the best CRM system will need to be properly managed, if you are to make the most of its features. Without good management, significant challenges can arise - such as creating duplicate records and accumulating vast amounts of incomplete, unnecessary or out-of-date data. It's important to consider the potential drawbacks of CRM systems.
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Types and examples of CRM software
Understand the main types of CRM systems and find examples of outsourced, off-the-shelf and managed CRM software solutions.
Customer relationship management (CRM) is important in running a successful business. The better the relationship with your customers and suppliers, the easier it is to conduct business and generate revenue.
Technology can greatly help you to optimise your CRM and make your service more efficient, cost-effective and reliable.
Types of CRM systems
Different types of CRM software exist. Most are capable of performing key CRM functions - storing, tracking and sharing your customer data. However, many software solutions can also support specific business goals. For example:
- operational CRM can help better manage your day-to-day operations, such as marketing, sales and customer service
- analytical CRM can help track customer interactions or improve your customer acquisition and retention processes
- collaborative CRM can strengthen engagement across various departments, suppliers or stakeholders
See also what is a CRM system.
Examples of CRM solutions
CRM software typically falls into four broad categories: outsourced, off-the-shelf, bespoke and managed solutions.
Outsourced CRM solutions
This includes web-based CRM solutions for your business, including cloud CRM software. This approach is ideal if you need to implement a solution quickly and you don't have the in-house skills to tackle the job from scratch. It is also a good solution if you are already geared towards e-commerce. For examples of CRM systems and their features, see this comparison table.
Off-the-shelf CRM solutions
Several software companies offer CRM applications that integrate with existing packages. Cut-down versions of such software may be suitable for smaller businesses.
Off-the-shelf products are generally the cheapest option as you are investing in standard software components. The downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price. The key is to be flexible without compromising too much.
Bespoke CRM software
Consultants and software engineers can customise or create a CRM system and integrate it with your existing software. However, this can be expensive and time-consuming. If you choose the custom-tailored option, make sure that you carefully specify exactly what you want. Costs will vary, so it may be worth getting several quotes from different reputable professionals.
Managed CRM solutions
A half-way house between bespoke and outsourced solutions, this involves renting a customised suite of CRM applications as a bespoke package. This can be cost effective but it may mean that you have to compromise in terms of functionality.
Find tips to help you decide if your business needs a CRM system.
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Business benefits of CRM systems
Key benefits of customer relationship management systems that can help improve customer satisfaction, retention, acquisition and processes.
Customer relationship management (CRM) can offer significant advantages to most businesses. No matter what your industry or size - or the type of products or services you offer - customers are the single most valuable business asset. They are the main source of revenue and the foundation of any business' success.
The key to happy customers lies in understanding them. This is exactly what a CRM system helps you to achieve. If you are not sure what a CRM system does, see what is a CRM system before assessing the potential benefits to your business.
Benefits of CRM software
CRM tools can help you to identify, understand, and assist your customers. Some of the notable benefits of using CRM in business are:
- efficiencies, particularly in data management
- better collaboration and communication across departments and teams
- greater accountability
- improved customer experience
- better reporting and analysis capabilities
You may also be able to reap the financial benefits of CRMs. For example, you may be able to:
- increase sales by anticipating customer needs based on historical trends
- cross-sell products by suggesting alternatives or enhancements
- identify which of your customers are profitable and which are not
Other reasons why you need a CRM system
Most CRM software can integrate with other tools, for example, marketing automation systems. This can help you:
- interact with customers in a way that wouldn't otherwise be possible
- target marketing communications according to specific customer needs
- segment your customer base and tailor your marketing to groups or individuals
Ultimately, a CRM system can help you:
- improve customer satisfaction and retention
- maintain good reputation in the marketplace
- increase value from your existing customers
- reduce costs associated with supporting and servicing customers
- increase your overall efficiency
- reduce the total cost of sales
- oversee all interactions during the full customer life cycle
Keep in mind that implementing a new CRM can involve considerable time and expense. Carefully consider the potential drawbacks of CRM systems before committing to change.
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Potential drawbacks of CRM systems
Understand the potential challenges and risks of implementing customer relationship management systems, and how to avoid them.
Implementing a customer relationship management (CRM) solution is a great way of making the most of your business assets. However, problems in implementing a CRM can cause major difficulties for your business.
CRM costs
One of the greatest challenges to CRM implementation is cost. There are dozens of software options available and many pricing plans that go with them. To work out the actual costs of CRM software, make sure that you consider the total cost of ownership including:
- software subscription or purchase fees
- premium upgrades, eg add-on marketing or reporting features
- customisation
- IT resources needed
- hardware or software requirements
- staff training and upskilling
Other factors such as data migration and quality, and converting business operations may also affect the total costs of CRM implementation. Proper planning and careful assessment of any potentially hidden costs should help you set a realistic budget for your CRM project.
Business culture
A lack of commitment or resistance to cultural change from people within the company can cause major difficulties with CRM implementation. Customer relationships may break down and result in loss of revenue, unless everyone in the business is committed to viewing their operations from the customers' perspective.
Poor communication
To secure buy-in and make CRM work, all the relevant people in your business must know what information you need and how to use it. Make sure to communicate integration needs in advance if other teams need to cooperate on the implementation, eg payroll staff.
Lack of leadership
Weak leadership could cause problems for any CRM implementation plan. Management should lead by example and push for customer focus on every project. If a proposed plan isn't right for your customers, don't do it. Task your team to come up with a better alternative.
Trying to implement CRM as a complete solution in one go is tempting, but it may prove a risky strategy. It may be better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. A pilot may incorporate all the necessary departments and groups but is small and flexible enough to allow adjustments along the way. Find more tips to help you create your CRM strategy.
Finally, don't underestimate the volume of data your CRM project may generate. Make sure that you can expand your systems if necessary. Carefully consider what data you collect and store to ensure that you only keep the necessary information. Follow the relevant data protection laws and comply with the UK General Data Protection Regulation (GDPR).
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Decide if your business needs a CRM system
Six signs that will tell you if you need a customer relationship management system for your business.
If your business sells, markets or provides services to customers, it is likely that you need a customer relationship management (CRM) system.
Reasons you may need a CRM system
Consider replacing spreadsheets and handwritten notes with a more efficient CRM system if any of the following is true:
- Your customer information is scattered in more than one location. You're keeping spreadsheets, notes and casual records, and there is no central repository for all this data. You have no single view of your customers' contact information, orders, queries and general interactions.
- You're losing track of data. You're searching through miscellaneous documents, multiple hard drives and random folders, and none of the information is secure or organised. You realise you're missing valuable data on your customers.
- You have no remote access to your data. You're restricted to viewing it from a certain office or machine, which is causing problems when you're travelling or away from your desk, meeting customers and sourcing new prospects.
- You have no visibility of what your sales team are doing in or out of the office. You can't tell what customers they are approaching and how they are performing. You have no way of keeping your sales staff accountable and ensuring that they meet their goals.
- You struggle to create meaningful and actionable sales or customer service reports. You miss cross-sale and up-sale opportunities, and chances to target prospects. You struggle to identify the best leads and convert them into opportunities.
- Your processes are rigid and unable to scale. Your productivity falls as your workloads increase, and you find yourself wasting time on tedious or repetitive tasks that could otherwise be automated.
A CRM system gives you visibility into your sales and marketing activities and allows you to deliver a better overall customer experience. If you're still not sure if you need it, check out these business benefits of CRM systems.
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How to find the right CRM supplier
Key questions to ask potential suppliers when choosing a customer relationship management solution.
For many businesses, customer relationship management (CRM) can be a large investment. It is therefore vital to choose your supplier carefully. Making the wrong choice could be expensive and even jeopardise your business.
Questions to ask a CRM supplier
Before implementing a solution based on CRM technology, you might want to ask any potential suppliers the following questions:
- How long has the supplier been established?
- What are the specific costs associated with the product, ie a one-off purchase price, an annual renewable license, a charge per user etc?
- Does the supplier offer any form of evaluation software that allows you to try before you buy?
- How much do they charge for technical support?
- Does the supplier provide consultancy and, if so, at what rates?
- Is the system scalable? If your customer base grows, will the system expand to cope?
- Can the supplier recommend any third-party developers that make use of their core CRM products?
- Is there an active, independent user group where you can freely exchange experiences and ideas?
- Can the supplier provide references for businesses in your industry sector that use their software?
- Do they offer training in the CRM solution and, if so, at what typical cost?
Read more about choosing the right suppliers and find out how to choose an IT supplier for your business.
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Create your CRM strategy
Understand the importance of a customer relationship management (CRM) strategy and why you should create one for your business.
Building a successful customer relationship management (CRM) system isn't just about choosing the right technology. You will need to put in place the right strategy for implementation.
CRM strategy development process
To plan your CRM strategy, you should:
- Set your vision - Agree a clear, impactful and actionable statement that your team can rally around.
- Define your strategy - Decide on actions that will help you achieve your vision. Eg, offering superior after-sales service or innovative products.
- Define your objectives - Review and optimise your business objectives and processes to align them with the new CRM system.
- Lead your team - Provide training to help them develop the necessary skills and proficiencies before the new CRM goes live.
- Choose metrics - Define what metrics you wish to measure to track success, and how you will use them to prompt corrective measures.
- Think long-term - Find the best ways to implement, measure and maximise the technology, and integrate it with other IT systems.
CRM implementation plan
Once you've developed your CRM strategy, plan the implementation of the new system. This can generally take place in stages:
Stage 1 - Collect information
Capture the information you need to identify your customers and categorise their behaviour.
Stage 2 - Store information
Collect and store this information centrally. Some businesses use a relational database - see more on types of database system.
Stage 3 - Access information
With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format.
Stage 4 - Analyse customer behaviour
Use data mining tools to analyse data and identify patterns or relationships. That way you can begin to profile customers and develop sales strategies.
Stage 5 - Market more effectively
Use CRM to understand which customers generate the most profit. Learn about their needs and preferences, and reward and target your most valuable customers.
Stage 6 - Enhance the customer experience
Complaining customers can take up a substantial amount of staff time. If the CRM system allows you to identify and resolve customer issues quickly, your staff will have more time for other enquiries.
Remember - if you are collecting, using and processing personal information (of customers or staff), you must comply with the UK General Data Protection Regulation (GDPR).
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Email and internet acceptable use policy
In this guide:
- Benefits of email and the internet
- Using the internet for business
- Advantages of using internet in business
- Types of e-commerce business models
- Promoting your business online
- Using email for business communication and marketing
- Advantages and disadvantages of using email for business
- Internet and email security issues
- Email and internet acceptable use policy
Using the internet for business
Reasons for using the internet in business, main considerations and common pitfalls businesses should be aware of.
If you plan to use the internet for business purposes, there are some key issues to consider. Your choices will affect how you exploit the opportunities available and how your customers interact with you.
Connecting your business to the internet
Dial-up internet is no longer available from major telecom suppliers. Most businesses nowadays use a business internet connection delivered through their phone line (either standard or superfast fibre) or a mobile connection (available from mobile phone networks).
Using the internet for business purposes
Businesses generally use the internet for several reasons:
- researching competitors
- buying or selling products or services
- monitoring and measuring customer interest
- finding new customers
- promoting their business online
Most modern-day businesses would struggle to operate, advertise or communicate with their customers without the use of the internet.
Do you need a website for your business?
Many businesses benefit from having at least a basic website that offers contact details, location, products and services, prices or rates, etc. However, not all businesses necessarily need a website. Think carefully about your objectives. Typical reasons to have a website include:
- building brand awareness
- reducing costs
- selling your products and services
- improving customer support
- showcasing work
Consider what customers want from your site, and how you can attract them and encourage them to return. Think about how you can use your website to create an online community around your product or service. Find out how to set up a small business website.
If you decide to have a website, you should choose your web hosting solution carefully. Most businesses use an internet service provider (ISP) or a third-party host.
Disadvantages of using the internet for business
Although there are many advantages of using internet in business, there are some potential pitfalls to keep in mind. For example:
- consumers may be wary of buying products or services online
- communication between you and your customer may feel impersonal
- competition may copy your ideas or online success
- conducting business on the internet is subject to several laws
Read more about the common e-commerce pitfalls.
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Advantages of using internet in business
Using internet in business can increase your profits, reduce costs and help you work more productively.
There are many advantages to using the internet in business. It can help you to work more effectively and productively, and grow your business more quickly.
Key benefits of using the internet in business
Your business can use the internet to increase:
- profits
- visibility
- customer base
- customer support options
- opening hours (since the internet is 'on' 24 hours a day)
- cost savings
- networking opportunities
- research capabilities
- marketing options, including digital communications and automation
- workplace and business efficiency
- operational flexibility and productivity, eg remote working or outsourcing
- data storage and management capabilities, eg through the cloud
- access to a diverse range of business tools and applications
See more on using the internet for business.
Using the internet to manage corporate networks
Use of the internet is essential if you want to build secure corporate networks, such as:
- extranets - where your customers or suppliers can access information like stock levels, delivery times or progress reports
- virtual private networks or VPNs - where you can safely share resources and confidential information between staff or with selected outsiders (eg customers and suppliers)
Read more about the benefits of intranets and extranets and advanced computer networks such as VPNs.
Using the internet to outsource your IT
Some businesses make use of the internet to outsource different jobs or tasks. Rather than doing things in-house, you can use the labour, expertise and technology of other businesses. For example, you may outsource your:
- data storage
- e-commerce functionality
- website maintenance
- IT support
- accountancy or payroll processing
By outsourcing your IT, you can reduce capital expenditure on IT hardware, software and training, reduce maintenance costs and easily scale services as and when you need them. Read more about the advantages and disadvantages of outsourcing.
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Types of e-commerce business models
Basic e-commerce models are business to business (B2B) or business to consumer (B2C), although other models exist.
The internet can open up new e-commerce opportunities for your business to buy, sell or exchange goods or services online. It is important to understand the different types of e-commerce models that exist and find the one that best suits your business.
Seven types of e-business retail structures
The primary e-commerce models broadly cover two main categories:
- business to consumer (B2C) - selling products/services directly to consumers
- business to business (B2B) - selling goods/services to other businesses
Other models cover different types of business relationships, including:
- consumer to consumer (C2C) - where consumers pay a commission to buy and sell items
- consumer to business (C2B) - where a sole proprietor may be serving a larger business
- business to government (B2G) - for businesses whose sole clients are government
- government to business (G2B) - for government sales to private businesses
- government to citizen (G2C) - for government sales to the general public
B2C e-commerce model
A B2C model focuses on selling goods and products directly to individual customers. It typically requires one of two things:
- a website with an online shop front
- using an online marketplace
Consumers can browse your products online, decide to make a purchase and proceed to an electronic checkout where some form of payment processing will take place. This will typically be via a merchant account set up through an acquiring bank, which is capable of processing credit and debit cards, or a payment processing provider.
See more on accepting online payments.
B2B e-commerce model
A B2B model operates by providing products from one business to another, through either online auctions or e-marketplaces.
Online auctions are computerised versions of traditional auctions where buyers set the prices and bid against each other. For example, an online auction might specialise in services for buyers and sellers of chemical feedstocks, chemicals, plastics, and related products. There are two main types of online auctions:
- forward auctions - lots are sold to the highest bidder
- reverse auctions - suppliers compete on price and the lowest bid wins the business
E-marketplaces specifically for B2B usually offer discounts for large quantities of goods. These are websites where buyers and sellers trade goods and services online. Online marketplaces vary according to the size and number of companies using them and the type of commodity traded. For more information, see e-marketplaces, online auctions and exchanges.
5 most common e-commerce business models
There are many ways you can run an e-commerce business. Some are easier to set up than others. They generally fall under five categories:
- dropshipping - where you sell items on your website that someone else manufactures and ships to your customer
- wholesaling and warehousing - where you buy products in bulk and store them in a warehouse (usually for B2B market)
- white-labelling - where you have a contract that allows you to put your brand on the product as if you are the manufacturer
- manufacturing - where you're paying to have the products created for you and you fulfil the order yourself
- subscription-based - where you rely on a subscription model that delivers your products to customers at regular, scheduled intervals
Read more about planning for e-commerce.
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Promoting your business online
Low-cost ways to promote and market your business, products or services on the internet.
Online promotion is vital for almost any modern-day business, especially for start-up businesses, those launching new products or services, or businesses with a limited marketing budget.
How can you promote your business on the internet?
There are countless ways of promoting your business online. Many are free or low-cost, while some may require finance. Here are some of the most common ways of marketing your business on the internet:
Create a website
A website will allow customers to find information on your business or buy your products and services 24/7. Setting up a website doesn't have to be complicated or expensive. Many web service providers offer free (though often limited solutions) or simple, guided steps to help you create your site. See how to set up a small business website.
Create quality content
Content is arguably the most important thing on your website. Good content can convert your site's visitors into customers, boost your image, increase your visibility through search engines and enhance your relationship with customers, suppliers and the public. Follow best practices for content marketing.
Optimise for search
Visibility in search results is key to your online success. Search engine optimisation (SEO) can help you improve ranking for your website for keywords relevant to your business, products or services, making your offering easier to find. SEO techniques are varied, but the main ones tend to focus on website design and structure, keyword selection, quality content and links.
Use social media
Social media networks can help you syndicate, distribute and promote content to generate traffic to your website or boost interest in your business. They can help you create a community around your brand, extend your business reach and engage with your potential customers with relative ease and little cost. Read about social media best practices for business.
Use email marketing
Reach out to your customers by creating and sending them regular content (eg newsletters, offers, updates, etc) to help drive traffic to your website and increase customer engagement. Email marketing can be a quick and cost-effective way of promoting your website and business online.
Use paid advertising
Pay-per-click and paid search advertising can help you promote your business, products or services by placing ads on search engines, other websites or social media networks. Options include display advertising, social media advertising, affiliate marketing, paid search and others.
You can use other digital channels such as online PR, viral and mobile marketing as part of the marketing mix to help drive traffic to your website.
Benefits of having a digital marketing plan
A planned, targeted digital marketing campaign can reach customers at a much lower cost than traditional marketing methods. Digital marketing also provides you with trackable, measurable results, so that you can see how effective your campaign has been and how customers respond to different campaigns. See how to develop a digital marketing plan.
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Using email for business communication and marketing
Different ways you can use email to enhance your business operations, including marketing and communications.
Email is a powerful, low-cost communication tool that businesses are using to promote their goods and services, improve customer experience and work more efficiently.
Why are emails important in business?
Email is a highly effective form of business communication. Four primary uses of email in business include:
- internal company communication
- external communication, eg with business partners, suppliers, stakeholders, etc
- customer support
- marketing to customers
Importance of emails in customer service
Email can greatly improve customer service. Encouraging customers to contact you by email can benefit both parties - they do not have to wait on the phone or call during working hours, and you do not have to respond immediately, which can free up staff from answering the phone.
It's important, however, to follow the right etiquette when providing customer service over email. Keep communications prompt, professional and helpful. If applicable, consider using features such as auto-replies, receipt confirmations, support ticketing and tracking systems, to help you manage your customer service.
In business, the benefits of emails are undeniable. Email is a quick and easy, low-cost and easily documented means of communication. See other advantages and disadvantages of using email for business
How to use emails in marketing?
Email marketing allows you to send quick, cost-effective targeted messages to your customers. You can segment your marketing list and tailor your email messages based on customer preferences.
Unlike other forms of marketing, recipients can forward emails easily and quickly to their colleagues or friends. Encouraging them to do so is known as viral marketing.
Email marketing is effective because it is a personal, time-sensitive interaction. When creating your email campaigns, you should:
- use customer segmentation to target your campaigns
- make the 'call to action' clear and place it 'above the fold' in the email
- create both HTML and text versions to ensure cross-platform compatibility
- avoid using spam to increase deliverability
- avoid over-using, as it is likely to get deleted as irrelevant or unwanted
- evaluate your campaign's success
Find out more about email marketing.
You must only send emails to those people who have agreed to be contacted, ie those who have opted-in to receive your marketing messages. Read more about email marketing and privacy law.
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Advantages and disadvantages of using email for business
Understand the key benefits and downsides of using email for business, and how to use email technology more effectively.
Email is an important method of business communication that is fast, cheap, accessible and easily replicated. Using email can greatly benefit businesses as it provides efficient and effective ways to transmit all kinds of electronic data.
Advantages of using email
Email can increase efficiency, productivity and business readiness. Using email in business is:
- cheap - sending email costs the same regardless of distance and the number of people you send it to
- fast - an email should reach its recipient in minutes, or at the most within a few hours
- convenient - your message will be stored until the recipient is ready to read it, and you can easily send the same message to a large number of people
- permanent - you can keep a record of messages and replies, including details of when a message was received
One of the main advantages of email is that you can quickly and easily send electronic files such as text documents, photos and data sheets to several contacts simultaneously by attaching the file to an email. Check with your internet service provider if there is a limit to the size of email attachments you can send. Some businesses may also limit the type and size of attachments that they are willing to receive.
You can further increase your efficiency by setting up your email software to:
- automatically create entries in your address book for every message you send or receive
- respond to incoming emails automatically, eg to confirm receipt of an order, or to let people know that you are on leave or out of the office
Disadvantages of using email
Despite the benefits, email can pose certain risks that are worth being aware of, such as:
- spam
- viruses
- data storage issues
- data protection issues
Unsolicited email can easily overwhelm your email system unless you install a firewall and anti-spam software. Viruses can spread through email attachments or links, and other internet and email security issues may arise, especially if you're using the cloud or remote access. Electronic storing space can also become a problem, particularly where emails with large attachments are widely distributed.
The less formal nature of email can lead to careless or even libellous remarks being made which can damage your business. Equally risky is sending emails by mistake, where an email can go to the wrong person accidentally, potentially leaking confidential data and sensitive business information.
To minimise these risks, you should create and implement an email and internet acceptable use policy for your business and take steps to minimise the likelihood of business data breach and theft.
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Internet and email security issues
Understand the threats to your business from the internet and email usage, and ways to safeguard your business.
Although the internet and email bring a range of business benefits, they also pose a number of potential security threats.
Common email vulnerabilities
Some of the most common email security threats are:
- malware
- spam and phishing
- social engineering
- malicious unauthorised access
- unintentional acts by authorised users
You should fully consider the possibility of malicious and fraudulent attacks by hackers, as well as the impact that viruses and denial-of-service attacks (ie attempts to disrupt your web or network services) could have on your IT systems.
Email security safeguards
Securing an email system is the responsibility of your business IT department and/or your email administrator. However, anyone who shares business information via your email network should be aware of the threats and risks involved.
Common safeguards for protecting IT systems include:
- Authentication - techniques to identify and verify anyone seeking to access an e-commerce system.
- Access control - user restrictions to ensure users only access data and services for which they have been authorised.
- Encryption - techniques to scramble data and protect information stored on a computer or transmitted over a network.
- Firewall - hardware or software security devices that filter information passing between internal and external networks. A firewall controls access to the internet by internal users and prevents outside parties from gaining access to systems and information on the internal network.
- Intrusion detection - products that monitor system and network activity in order to spot if someone is trying to gain access.
- Anti-virus software - tools to detect viruses and prevent access to infected files.
- Staff awareness - keeping staff aware of typical scams used to extract personal or sensitive information.
You should protect all of your organisation's domains, including where your organisation uses common cloud email providers, such as Google G Suite and Microsoft Office 365.
See a list of common cyber security measures and read more about cyber security for business.
Create a good security policy
An IT security policy should outline how you plan to protect your IT assets. It should emphasise:
- the measures you will take
- their importance to your business
- the responsibilities of your staff
For example, your policy should state that staff should regularly change passwords they use to access your email or IT system, not write them down or share them with anyone else.
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Email and internet acceptable use policy
An acceptable use policy can help limit risks and data breaches, ensure compliance and protect your business reputation.
An acceptable use policy is a written document that sets out practices and restrictions regarding the use of company technology. It describes what employees can and can't do when using corporate computers, networks, websites or systems.
Why might you need an acceptable use policy?
Effective use of the internet and email can bring significant benefits to your business. However, unregulated use of technology can cause serious issues, such as employees:
- wasting time surfing the internet
- sending personal emails
- clogging up the system with large attachments
- exposing your IT systems to cyber threats, eg viruses, phishing emails, etc
- sharing sensitive business information externally without authorisation
- breaching data privacy laws and regulations
An acceptable use policy can help you limit exposure to cyber risks and data breaches, ensure compliance and protect your business reputation.
What is included in an acceptable use policy?
An acceptable use policy should include:
- a general statement regarding the safe and fair use of email and the internet
- code of conduct setting out acceptable user behaviour, eg what websites the users may visit, how they should log on to the network, etc
- details of unacceptable uses, eg violating the privacy of others, accessing or downloading offensive or indecent materials, infringing copyright, libelling or defaming other persons using the business' email system, etc
- guidelines around 'netiquette', ie using appropriate language when emailing
- consequences of breaching the policy
Your acceptable use policy should also state under what circumstances - if any - you might monitor staff email and internet use, and how you will carry out such monitoring. Read about staff security and monitoring employees.
The policy should be easy to read, concise and say clearly if you allow staff to use the internet and/or email for their purposes.
Download our email and internet policy checklist (DOC, 13K).
Sample acceptable use policies
You can write your acceptable use policies or customise our sample documents for your business:
For an acceptable use policy to be efficient, you should make staff aware of it, implement monitoring systems and set boundaries for site browsing, downloading, installing of software, data leakage, etc. You should update your policies regularly to meet the changing legal requirements, technologies and threats.
Disciplinary action for breach of acceptable use policy
Serious breaches of the acceptable use policies may result in disciplinary actions - and possibly even dismissal.
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Do you need payroll software?
In this guide:
- Payroll software
- Do you need payroll software?
- Different types of computerised payroll systems
- Payroll software: what it can and can't do
- Payroll software features
- Advantages and disadvantages of payroll software
- Choosing a payroll software supplier
- Advantages and disadvantages of outsourcing your payroll
- Payroll software security and data protection
Do you need payroll software?
Not every business needs payroll software - here's how to determine if you need a computerised payroll package for your business.
Not every business needs payroll software. If your headcount is small and the calculations you need to carry out simple, you may be comfortable processing your payroll manually. However, if you employ more than a few people, automating your payroll can save you valuable time and money, and even improve your payroll accuracy.
Manual payroll vs computerised payroll
Manual payroll involves working out calculations for each pay period entirely by hand and keeping records on paper. This process is relatively cheap but tedious to prepare and liable to human error. It typically becomes more difficult to manage as you grow and employ more staff.
Computerised payroll uses software with built-in capabilities that allow the user to carry out routine payroll tasks more efficiently. It enables you to gather all payroll-related information in one place, electronically, and automate processes such as wage calculations, deductions, tax returns, reports, etc. See payroll software: what it can and can't do.
If you decide to run payroll yourself, you need payroll software to report to HM Revenue and Customs (HMRC). See more on choosing a payroll software supplier.
Should you get payroll software for your business?
Whether you should get payroll software or not depends largely on the size of your business and the type of calculations you need to carry out. It may be worth getting payroll software if you need to speed up your payroll calculations, keep on top of rates and allowance changes or avoid computational errors.
Many businesses choose to automate their payroll. However, bear in mind that using payroll software makes you dependent on your computer system. If you're switching from manual to automated payroll, take steps to protect and back up your data and IT systems regularly.
You can typically buy payroll software on its own, or as part of a wider business management system.
Payroll software costs
If you only have a few employees and you decide to purchase payroll software, keep in mind that the costs may be greater than the advantages. The total cost of ownership of the new system may not always be obvious and may include:
- the initial purchase costs
- fees for system implementation, upgrades and maintenance
- labour costs for staff involved in setting up or running the system
- consultant or supplier fees
- annual subscription costs (covering any regulatory or rate updates)
Outsourcing your payroll activities to an accountant or a payroll specialist may help you save time and reduce some of the costs. Read about the advantages and disadvantages of outsourcing your payroll.
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Different types of computerised payroll systems
Different types of computer payroll systems, including basic payroll packages and fully featured online or cloud-based payroll.
Computerised payroll systems make managing payroll considerably easier. They enable you to automate your processes, minimise potential mistakes and cut down time and resources needed for payroll administration.
If you're not sure if you should automate your payroll processing, see do you need payroll software.
Types of automated payroll systems
Many different types of automated payroll systems exist. They typically fall under two main categories:
- payroll software that you install on your computer
- online or cloud systems that you access via a web browser over the internet
A simple, standalone payroll software will usually tie your payroll management to a single computer. The functionality of such software may be limited. For example, it may carry out the calculations but not produce payslips, so you may have to supplement it with manual processes or use other applications.
Free small business payroll software UK
Businesses with fewer than ten employees can download free payroll software from HM Revenue and Customs (HMRC). The software has some limitations, but it allows you to perform most payroll tasks, including working out the tax and National Insurance for your employees and sending this information to HMRC.
Use the latest version of the HMRC's Basic PAYE Tools.
If you're looking for other software options, HMRC has tried and tested several free small business packages - see their list of free payroll software for small business.
If you're using payroll software on a single computer, keep your machine secure and properly backed up, otherwise you may risk losing your valuable data.
Online payroll and cloud payroll software
An online or cloud-based system stores your data remotely, so you can access it easily from different locations using a secure login. Most online systems will automate the whole payroll process for you, taking care of things like:
- National Insurance and pension deductions
- tax calculations
- producing payslips for staff
- keeping up with legislation
- generating year-end tax returns
See what payroll software can and can't do and read about payroll software features.
Integrated payroll management
Payroll management often overlaps with the running of accounting and human resource (HR) processes in business. For example, you may want to:
- transfer pay run data from your payroll system into your accounting software
- check and transfer timesheet data from payroll to HR
When choosing a new payroll software, make sure that it is compatible and works well with your existing systems.
Depending on your business needs, you could also consider integrating payroll with related systems, eg through enterprise resource planning software. This could help you reduce costs and eliminate duplication of paperwork, data and efforts across various departments in your business.
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Payroll software: what it can and can't do
Understand what payroll software can and can't do, its capabilities and inputs required for pay rates, deductions and hours worked.
Payroll software can do many pay-related calculations. However, you will still need to input and maintain certain data for each of your employees.
What does payroll software do?
Any payroll software will take over the routine calculation of ordinary payroll requirements such as tax and National Insurance contributions (NICs). It will also calculate the NICs that you have to pay as an employer. It will allow you to pay people at monthly or weekly intervals, as appropriate.
Payroll software will also:
- calculate student loan and other deductions
- produce payslips for your employees
- produce payment reports to allow you to pay employees, showing the amount to be paid to each employee
- keep records of payments and deductions
- produce year-end reports and documentation for you and your employees
- produce the necessary figures or documentation when an employee leaves
What payroll software can't do
Payroll software will automate most of the calculations, but there will still be administrative work for you to do in terms of inputting relevant data into the system.
You will have to:
- enter employee's details when they start their employment
- make changes when their rates of pay increase or decrease
- change tax codes when notifications are received
- enter details of hours worked and overtime
There are also many possible deductions from pay such as employer loans and pensions. Even if the software can automatically calculate some or all of these, you will still need to key in the details for each employee to whom they apply. You will have to update this information when appropriate.
Read more about payroll software features.
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Payroll software features
Features and functionality to consider when choosing payroll software, including multi-user capability and reporting options.
Most payroll software offers certain basic payroll features to help you pay your employees correctly and on time. For example, payroll processing, tax management, tax form preparations, direct deposits, etc.
Depending on the software, extra features may be included as part of a customisable or enhanced payroll package, to help you manage different aspects of payroll effortlessly and reliably.
Various payroll periods
Weekly and monthly pay intervals are standard in most payroll software. If your business has other requirements, make sure that you chose software that can adapt to different intervals (eg fortnightly, quarterly or annual). Some software can support multiple pay schedules, allowing you to customise your pay schedule based on your employees' needs.
Multiple user operation
Smaller businesses may only require support for a single payroll operator at a time, but you should check that multiple-user operation is available in case you need it in the future. If you intend to grow your business, choose a payroll system that is easily scalable and customisable according to your changing needs.
Reporting capabilities
Some basic end-of-year reports are included as standard in most payroll software. You should choose software that has flexible reporting and supports online filing - consider features that allow you to handle RTI submission, generate expenses and benefits reports, prepare and print P45, P60, P30 and P32 forms, etc. Other features may allow you to create reports for payroll history, paid time off, deduction analysis and more. You may be able to use template reports from the software or build custom reports, if you need them.
Payslips
All payroll software will tell you the amounts that you need to pay to employees and HMRC, but check that you can use this information in a way that meets your requirements. For example, you may want the software to create and print payslips for you, or automatically email payslips to employees on a specific date. You may want features that allow you to customise digital paystubs, send payslips in different formats or let staff view their payslips online.
Pension scheme automatic enrolment
Some payroll packages include automatic enrolment functionality, allowing you to set up your pension scheme, enrol employees, process opt-out requests, issue communication, make contributions, view reports and more.
Employee management
Fully featured payroll software may also include functionality to help you calculate and record holiday entitlements, track sick leave or provide self-service to allow employees to request or book annual leave online. Some packages may also be able to keep records such as job position history, previous employment history, education and academic qualifications, references, skills and competencies and training records.
Integration capability
Most payroll software can integrate with another accounting or HR system, which can be highly useful and desirable. For example, time-tracking integration can automatically import employee hours from payroll into an HR system. Expense integration can help you automatically synchronize expenses with payroll. This helps to minimise the need for duplicate data entry, and allows you to streamline processes and prevent errors. For integration to work, a payroll product must be compatible with the related system.
Some businesses may prefer to process payroll via their accounting software. However, keep in mind that payroll modules of accounting packages may not always provide all capabilities of a dedicated payroll solution. See payroll software: what it can and can't do.
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Advantages and disadvantages of payroll software
Compare the pros and cons of computerised payroll over manual processing to help you decide which method is most suitable for your business.
Payroll is a business-critical operation for every organisation. You must pay your staff accurately and on time to avoid low morale, poor performance and possibly even reputational and legal difficulties. A good computerised payroll system can help you carry out your pay run with greater speed, efficiency and confidence.
Advantages of payroll software
Many businesses choose to use payroll software over manual processing, as it can help them to:
- work out payroll calculations and deductions quicker
- generate accurate payslips
- calculate bonuses, expenses, holiday pay, etc with minimum effort
- send returns to HMRC and print P45, P60 and other forms for employees
- automate certain tasks, such as year-end reporting
- reduce the burden of compliance
- remove the need to understand complex tax legislation
- store data such as payslips and annual reports in a secure, easily accessible system
Payroll software can also provide additional data and analysis to make payroll information more useful to your business. See do you need payroll software.
Linking payroll software with time recording
You can link payroll to timesheet systems that record employee attendance or time worked. This allows you to automatically transfer information about hours worked into the payroll system and make payroll calculations much simpler.
Using payroll software for reporting
By using basic payroll data, together with data on attendance and hours worked, payroll systems can provide a wealth of reports. This allows in-depth analysis of staff costs for the business as a whole, across departments and even individual jobs and contracts.
Storing personnel records
Most organisations will also keep other data about employees, such as records of annual leave. By getting payroll systems that record these additional types of information you can avoid the need for a separate software package.
Using payroll system to plan future costs
As payroll packages can provide forecasts, you can use these to plan staff costs and budgets by entering hypothetical numbers to see the exact total cost of an employee.
Depending on your business needs, you may find other payroll software features more useful.
Disadvantages of payroll software
Payroll software, like any other IT system, can have certain weak points. Potential problems may arise around the issues such as:
- data security, loss or theft
- cyber security and fraud
- information access, quality and control
Read about payroll software security and data protection.
Other limitations with payroll software often arise around costs. Full featured software will generally be more expensive than manual payroll systems. It will also require computer equipment, resources and skilled operators. If you don't have these in-house, you will need to invest money into producing them.
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Choosing a payroll software supplier
How to choose a payroll software provider and understand the different factors, including electronic filing, operating costs and software updates.
Payroll software is complex and it is essential that you choose a dependable supplier. You will want to choose a supplier who is successful, financially viable and can provide excellent references.
HMRC-recognised software
UK businesses with less than ten employees can use free payroll software from HMRC.
If you have more than ten employees, you may benefit from investing in a fully functional computerised payroll system. HMRC tests payroll software to check it can report PAYE information online and in real time (RTI). You can choose from free payroll software and paid-for software that has been tested and recognised by HMRC.
Electronic filing
Most employers now have to file end-of-year and in-year returns online. Electronic filing of HMRC returns and payments saves time and trouble. Suppliers should provide electronic filing for all forms that must be filed electronically.
Payroll software updates
As well as the purchase costs, you should also consider costs in operating, supporting and updating the software. You will have to pay an annual subscription for updates on rates and legislation changes. Check how much the subscription costs, and how and when you will get access to updates.
Find out how long the supplier continues to provide updates. Some suppliers only provide updates for a few years, so you may need to upgrade to a newer version of the software.
Some suppliers have experienced problems with updates introducing bugs that haven't been caught by testing. Check that, when updates are applied, you can roll them back in the event of any problems.
Payroll software support
Because of the critical nature of payroll operations, excellent support is a must. If a software problem occurs on payday, you must be able to resolve it immediately. Check the levels of support your supplier offers, as well as the associated cost and response times.
See how to choose an IT supplier for your business.
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Advantages and disadvantages of outsourcing your payroll
Understand the benefits and risks to your business of outsourcing your payroll to an accountant or a specialist payroll company.
Managing payroll services in-house often requires an individual, or a team, with a thorough knowledge of the PAYE tax system. If your business doesn't have these skills in-house, you can organise your payroll by outsourcing it.
What is payroll process outsourcing?
Payroll outsourcing involves hiring an external company or an individual to handle all payroll functions. The level of services you can outsource varies. Some suppliers provide a basic service; others provide the full package including liaising with the HMRC and maintaining full compliance so your business never has to deal with payroll.
Typically, businesses outsource payroll to:
- an accountant or bookkeeper
- a specialist payroll company
If you're considering outsourcing payroll to someone else, you should weigh up the pros and cons.
Advantages of outsourcing payroll
Attending to payroll demands a great deal of time and expertise. Outsourcing your payroll to a specialist can help:
- free up precious time to focus on your core business
- reduce the need for training in-house payroll staff
- remove the expense of buying and maintaining a costly payroll system
- minimise the chance for errors, omissions or late payroll tax filings
- stay compliant with your tax obligations and PAYE responsibilities
As with all outsourcing, you should balance the advantages against the potential pitfalls - in this case, the financial costs and the risk of communication errors, particularly for complex payrolls.
Whether payroll outsourcing will be cost-effective for your business depends on the complexity of your payroll requirements.
Disadvantages of outsourcing payroll
The costs of outsourcing payroll can be high, especially for a young business. There is a certain degree of risk if communication lapses - for example, if you don't advise the payroll specialist of a staff member starting or leaving.
Outsourcing will also mean losing control of some of the key elements of your business, eg:
- you may not have instant access to payroll if it has been outsourced
- you won't always be able to check it when you want to, or add anything that's missing
- you will have to hand over confidential and sensitive staff information
Read more on the advantages and disadvantages of outsourcing.
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Payroll software security and data protection
Find out how to safeguard your data if you're using payroll software and what data protection means for payroll.
Handling payroll requires processing vast amounts of personal data relating to your employees, including names, addresses, bank account details, social security numbers and salary information. This is all sensitive information, which the law requires you to protect from accidents, misuse, loss and prying eyes.
Does data protection law affect payroll?
Because it involves processing personal data, payroll is one of the key HR areas affected by data protection laws. The UK General Data Protection Regulation (GDPR) requires you to:
- document the personal data you hold, where it came from and who you share it with
- minimise, if possible, the amount of data that you hold - only keep what is essential and for no longer than necessary
- review and amend, if necessary, privacy notices to ensure that they comply with the new regulations
- control access to payroll information using appropriate safety measures
- safeguard and comply with specific data subject rights, eg the right to be informed, the right to access personal data, etc
- in some cases, appoint a data protection officer
The UK GDPR also requires you to implement technical and organisational measures to safeguard the personal data you hold. These measures may include, for example:
- secure workstations, servers and storage space
- encryption protocols
- specific security policies
- confidentiality clauses to establish best practices for data protection
If you're using payroll management software, some of its features (such as password-protection, access control, secure storage, etc) may help you to comply with some aspects of the security requirements under the GDPR.
Find out more about the security principle under the UK GDPR.
Protecting your payroll data
A risk assessment can help you determine if the users, processes and systems you have present a risk to your payroll data. Once you identify potential risks, you can create internal controls and policies to address them. For example, you could:
- Manage access to the payroll system - restrict to necessary staff only. Use timeout features to log employees out of the system after a period of inactivity.
- Segregate duties within the payroll team - if possible, have at least two people manage the payroll process. This can help avoid conflict of interest and minimise fraud risk.
- Use peer review and/or approval process - it helps to validate data input and changes. Only make actual payments with appropriate authorisation.
- Run and review payroll control reports, eg for system access, new hires, leavers, new bank accounts, etc. This can help identify potential issues and reveal any discrepancies early, such as mistakes in inputting hours, rates of pay and other data, and or fraud.
- Implement a data retention policy and ensure payroll operators adhere to it.
- Classify data according to sensitivity and agree procedures on encryption, transfer, etc.
- Use and regularly update security measures such as firewalls, antivirus and patches.
If a single person runs payroll in your business, have a back-up plan in case that person becomes unavailable. For example, your business' accountants could provide emergency cover.
Keep back-up copies of the payroll data, ideally stored off-site with appropriate security, eg in a fireproof safe. You may find it practical for security and continuity purposes to run payroll software on a dedicated computer to avoid any disruption caused by the failure of other software.
If you keep paper-based information, such as payslips, you must consider their physical security. Destroy any trial runs and tests, such as payroll reports, to prevent accidental access to sensitive data.
Taking note of the UK GDPR, you may want to consider moving from printed payslips to a digital alternative. This could help you consolidate your employee data in one secure place where you can control access to sensitive documents.
Read more about risk management and IT risk management best practices.
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Responding to a Freedom of Information request
In this guide:
- The Freedom of Information (FOI) Act
- How the Freedom of Information Act affects businesses
- FOI exemptions: absolute and qualified
- FOI and commercially sensitive information
- Manage the risk of disclosure of confidential information
- Use FOI to your business advantage
- Responding to a Freedom of Information request
How the Freedom of Information Act affects businesses
Find out how the Freedom of Information Act may affect your business if you provide goods and services to public bodies.
If your business deals with public or regulatory bodies (eg through grants, licences or tenders), the Freedom of Information (FOI) Act can affect it in a number of ways.
Does the Freedom of Information Act apply to private companies?
The FOI Act will apply to your private sector business if:
- the information you share with a public body is subject to an FOI request
- the information you share is published under the public body's publication scheme
What is a Freedom of Information (FOI) request?
Under the FOI Act, anyone has the right to request any recorded information held by public authorities (eg government departments, local councils, health authorities etc) or by businesses that carry out public functions (eg privatised utility companies).
This right applies to all information held - not just the public body's official documents. It can apply to your business' intellectual property and confidential information, if this type of information is on their record.
If you contract with a public body, any information you share with them may be subject to a Freedom of Information request.
How can FOI disclosure affect your business?
If the public body receives an FOI request and decides they need to disclose information that relates to your business, this may have a significant impact on your commercial or other interests.
A public body will normally take reasonable steps to contact and consult with a third party regarding the release of the information. This is typically known as 'third party consultation'.
Exemptions to FOI disclosure
Not all information is liable to be disclosed under the law. Certain types of information, for example, financial records or contract details, may be exempt from disclosure if they prejudice someone's commercial interest.
Exemptions may also apply to requests for third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
See more on FOI exemptions: absolute and qualified.
When passing information to regulators and public authorities, it is worth being aware of their Freedom of Information obligations and the possible risk of disclosure.
HelpAlso on this siteContent category
Source URL
/content/how-freedom-information-act-affects-businesses
Links
FOI exemptions: absolute and qualified
Overview of the Freedom of Information exemptions and the right of public bodies to withhold information from disclosure.
Public authorities may refuse a request for information under the Freedom of Information (FOI) Act under certain conditions. For example, if:
- it would cost too much or take too much staff time to deal with the request
- the request is vexatious
- the request repeats a previous request from the same person
In addition, the FOI Act has a number of exemptions that allow withholding information and, in some cases, refusing to confirm or deny if the information is held.
Some exemptions relate to a certain type of information, eg information on government policies. Other exemptions can apply if harm would arise, or be likely to arise, from disclosure.
Absolute exemption under the FOI Act
Public authorities can withhold information that falls under an absolute exemption without considering if there is a public interest in disclosing it. For example:
- security matters
- information prohibited from disclosure by other legislation
- if disclosure would result in a breach of confidence that would be actionable
Most exemptions are not absolute. In most cases, public authorities will have to consider public interest before deciding to release the information.
Qualified exemption under the FOI Act
If a public authority believes information falls under a qualified exemption, it must apply the public interest test.
This test requires a public authority to disclose the information unless it considers the public interest in withholding it outweighs that of disclosing it. Find Information Commissioner's Office guidance on the public interest test.
Examples of qualified exemptions include:
- commercial interests
- sensitive business information
- trade secrets
Find out more about the grounds on which you can refuse a request for information.
Read more about the FOI and commercially sensitive information.
FOI and data protection
Exemptions may apply to FOI requests that involve revealing third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
Read more about the data protection principles under the UK GDPR.
HelpAlso on this siteContent category
Source URL
/content/foi-exemptions-absolute-and-qualified
Links
FOI and commercially sensitive information
How to protect your trade secrets and commercial interest from FOI requests if you share information with public bodies.
The Freedom of Information (FOI) Act only covers public sector organisations. However, it can also affect private companies dealing with public authorities.
If you are a public sector contractor, or you provide goods and services to public bodies, your business' sensitive information may be subject to an FOI request.
Under the FOI Act, information that may affect a business' commercial interests may be exempt from disclosure.
What are commercial interests?
A commercial interest is anything that affects your business' ability to work competitively. When deciding if releasing information would prejudice, or have the potential to prejudice, someone's commercial interests, the public authority should apply the test of prejudice.
Prejudice to commercial interests
To determine if disclosure would cause prejudice to commercial interests:
- you must be able to identify a negative consequence of the disclosure
- this negative consequence must be significant
- you must be able to show how the disclosure would cause the negative consequence
- there must be at least a real possibility of the negative consequences happening, even if you can't say it is more likely than not
To decide if they should disclose commercial information, a public authority will often need to exercise its judgement. It can seek the views of the business concerned, although it still makes the final decision.
Trade secrets and the FOI
If certain information falls under the category of trade secrets, it could also be exempt from disclosure under the FOI Act.
The FOI Act doesn't define the term 'trade secret'. The term can cover, for example:
- technical information - such as an invention, a manufacturing process, a recipe, design drawings, etc
- business information - such as supplier lists, costs information, pricing or product development plans, etc
To constitute a trade secret, information should require the highest level of secrecy and not be:
- generally known
- widely disseminated
- simply confidential, but confer a competitive advantage to the owner
For trade secrets, the FOI Act provides an exemption under Section 43.
HelpAlso on this siteContent category
Source URL
/content/foi-and-commercially-sensitive-information
Links
Manage the risk of disclosure of confidential information
How to protect your business' confidential information if you share it with public bodies subject to an FOI request.
The Freedom of Information (FOI) Act relates to public sector bodies. However, these organisations regularly engage with private sector companies in the provision of goods and services. This creates a situation where any information your business shares with public authorities may be subject to an FOI request and is potentially at risk of disclosure.
Risk of FOI disclosure
Types of information at risk of disclosure under the FOI Act include, for example:
- information you give to regulators in reports, annual returns, investigations, etc
- public tenders or contracts information
- your responses to public consultations
- information relating to planning procedures and proposed developments
Public authorities could also hold confidential or commercially sensitive information on your business, eg your financial records or contract details. This sort of commercially sensitive information may be exempt from the FOI Act.
How to manage the risk of FOI disclosure
You cannot entirely avoid the risks associated with passing information to public authorities. However, you can lessen them in a number of ways. For example:
Label information as 'confidential' or 'restricted'
If the information is confidential or commercially sensitive, think carefully if it is necessary to disclose it. If it is, make it clear by labelling it 'confidential' or 'restricted'. Submit it separately to the rest of the less-sensitive information to reduce the risk of accidental disclosure.
Keep in mind that the exemption that applies to confidential information is a very narrow one and that it only applies in very limited circumstances. It will not automatically apply to all documents marked 'confidential'.
Consider consultation rights in contracts
Try to establish consultation rights in your contract, ie the right to be informed before the public authority makes any disclosure. This may give you a chance to take action to protect your business before the information goes public.
Don't rely on blanket confidentiality clauses. Look at terms and conditions for dealing with public authorities and try to minimise the impact of the Act.
Consider FOI training and devise procedures
Train your staff on FOI requirements, data protection and the potential risk of information disclosure.
Set clear internal policies and procedures for the release of information to public authorities. Record the information you share with them and review it regularly. Consider assigning FOI responsibility to an individual staff member or team.
If someone makes an FOI request, public authorities will have to release this information (subject to a number of exemptions).
While FOI can present a certain risk for your business, it can also provide an opportunity to gain useful information. For example, information about procurement criteria, decisions, previous contracts and even competitors.
Find out how to use FOI to your business advantage.
HelpAlso on this siteContent category
Source URL
/content/manage-risk-disclosure-confidential-information
Links
Use FOI to your business advantage
Use Freedom of Information requests to find and access information held by public bodies that could benefit your business.
Public sector organisations may hold information that is relevant to your business or industry. For example, this can be information on their procurement processes, previous bid proposals or existing public contracts, and even information on your competitors. You have the right to request this information under the Freedom of Information (FOI) Act.
You may not get all the information you ask for - FOI exemptions would apply if disclosure would result in someone's personal details or commercial secrets being revealed.
Requesting personal information
Before you make a request for information, you should check if the information is:
- already in the public domain
- available elsewhere, eg through a public body's publication scheme or their website
You should not make requests for your own personal data under the FOI Act provisions. Instead, you can make a subject access request under the data protection legislation.
How to make an FOI request
Any request you make for information under the FOI Act must:
- be made in writing
- include your name
- include a postal or email address to which the public authority can reply
You should also be clear about the type of information you require, and the format you would prefer to receive it in. See how to access information from a public body.
What happens after you make an FOI request?
Public authorities must respond within 20 working days of receiving your request. They may:
- give you the information you asked for
- tell you if they don't have the information
- tell you if some other authority holds the information
- transfer the request on your behalf
- offer to give you the information for a fee (rules apply)
- refuse to give you the information by applying an exemption and explain why
- tell you if they need more time to consider your request
- treat all FOI requests in an 'applicant blind' and 'purpose blind' manner, ie without reference to the identity or the motives of the requestor
If the public authority needs to consider the public interest in disclosing or withholding the information, they may tell you that they need more time to respond. In such cases, you should receive a response within a maximum of 40 days from the date of your request.
Find ICO's guidance on time limits for compliance under the FOI Act.
HelpAlso on this siteContent category
Source URL
/content/use-foi-your-business-advantage
Links
Responding to a Freedom of Information request
What to do if your business receives a request for information under the Freedom of Information Act.
Unless you provide services to or on behalf of a public authority, it is unlikely that your private sector business will have to deal with requests under the Freedom of Information (FOI) Act. However, if you hold information on behalf of a public authority, this could potentially come under the FOI Act.
It is unlikely that you will receive an FOI request directly. If you do, you should consult with the public authority that you're working with to discuss the reply.
The public authority may ask you to assist with a request if it relates to the information you hold. In this case, you should support them by providing any information you have that they may need for their reply. The public authority will offer you advice and direction on what they need.
If you're asked to assist with an FOI request, it may help to understand more about the public authority's duty to respond, how they handle requests under the FOI Act, and the time limits they have to meet.
HelpAlso on this siteContent category
Source URL
/content/responding-freedom-information-request
Links
Use FOI to your business advantage
In this guide:
- The Freedom of Information (FOI) Act
- How the Freedom of Information Act affects businesses
- FOI exemptions: absolute and qualified
- FOI and commercially sensitive information
- Manage the risk of disclosure of confidential information
- Use FOI to your business advantage
- Responding to a Freedom of Information request
How the Freedom of Information Act affects businesses
Find out how the Freedom of Information Act may affect your business if you provide goods and services to public bodies.
If your business deals with public or regulatory bodies (eg through grants, licences or tenders), the Freedom of Information (FOI) Act can affect it in a number of ways.
Does the Freedom of Information Act apply to private companies?
The FOI Act will apply to your private sector business if:
- the information you share with a public body is subject to an FOI request
- the information you share is published under the public body's publication scheme
What is a Freedom of Information (FOI) request?
Under the FOI Act, anyone has the right to request any recorded information held by public authorities (eg government departments, local councils, health authorities etc) or by businesses that carry out public functions (eg privatised utility companies).
This right applies to all information held - not just the public body's official documents. It can apply to your business' intellectual property and confidential information, if this type of information is on their record.
If you contract with a public body, any information you share with them may be subject to a Freedom of Information request.
How can FOI disclosure affect your business?
If the public body receives an FOI request and decides they need to disclose information that relates to your business, this may have a significant impact on your commercial or other interests.
A public body will normally take reasonable steps to contact and consult with a third party regarding the release of the information. This is typically known as 'third party consultation'.
Exemptions to FOI disclosure
Not all information is liable to be disclosed under the law. Certain types of information, for example, financial records or contract details, may be exempt from disclosure if they prejudice someone's commercial interest.
Exemptions may also apply to requests for third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
See more on FOI exemptions: absolute and qualified.
When passing information to regulators and public authorities, it is worth being aware of their Freedom of Information obligations and the possible risk of disclosure.
HelpAlso on this siteContent category
Source URL
/content/how-freedom-information-act-affects-businesses
Links
FOI exemptions: absolute and qualified
Overview of the Freedom of Information exemptions and the right of public bodies to withhold information from disclosure.
Public authorities may refuse a request for information under the Freedom of Information (FOI) Act under certain conditions. For example, if:
- it would cost too much or take too much staff time to deal with the request
- the request is vexatious
- the request repeats a previous request from the same person
In addition, the FOI Act has a number of exemptions that allow withholding information and, in some cases, refusing to confirm or deny if the information is held.
Some exemptions relate to a certain type of information, eg information on government policies. Other exemptions can apply if harm would arise, or be likely to arise, from disclosure.
Absolute exemption under the FOI Act
Public authorities can withhold information that falls under an absolute exemption without considering if there is a public interest in disclosing it. For example:
- security matters
- information prohibited from disclosure by other legislation
- if disclosure would result in a breach of confidence that would be actionable
Most exemptions are not absolute. In most cases, public authorities will have to consider public interest before deciding to release the information.
Qualified exemption under the FOI Act
If a public authority believes information falls under a qualified exemption, it must apply the public interest test.
This test requires a public authority to disclose the information unless it considers the public interest in withholding it outweighs that of disclosing it. Find Information Commissioner's Office guidance on the public interest test.
Examples of qualified exemptions include:
- commercial interests
- sensitive business information
- trade secrets
Find out more about the grounds on which you can refuse a request for information.
Read more about the FOI and commercially sensitive information.
FOI and data protection
Exemptions may apply to FOI requests that involve revealing third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
Read more about the data protection principles under the UK GDPR.
HelpAlso on this siteContent category
Source URL
/content/foi-exemptions-absolute-and-qualified
Links
FOI and commercially sensitive information
How to protect your trade secrets and commercial interest from FOI requests if you share information with public bodies.
The Freedom of Information (FOI) Act only covers public sector organisations. However, it can also affect private companies dealing with public authorities.
If you are a public sector contractor, or you provide goods and services to public bodies, your business' sensitive information may be subject to an FOI request.
Under the FOI Act, information that may affect a business' commercial interests may be exempt from disclosure.
What are commercial interests?
A commercial interest is anything that affects your business' ability to work competitively. When deciding if releasing information would prejudice, or have the potential to prejudice, someone's commercial interests, the public authority should apply the test of prejudice.
Prejudice to commercial interests
To determine if disclosure would cause prejudice to commercial interests:
- you must be able to identify a negative consequence of the disclosure
- this negative consequence must be significant
- you must be able to show how the disclosure would cause the negative consequence
- there must be at least a real possibility of the negative consequences happening, even if you can't say it is more likely than not
To decide if they should disclose commercial information, a public authority will often need to exercise its judgement. It can seek the views of the business concerned, although it still makes the final decision.
Trade secrets and the FOI
If certain information falls under the category of trade secrets, it could also be exempt from disclosure under the FOI Act.
The FOI Act doesn't define the term 'trade secret'. The term can cover, for example:
- technical information - such as an invention, a manufacturing process, a recipe, design drawings, etc
- business information - such as supplier lists, costs information, pricing or product development plans, etc
To constitute a trade secret, information should require the highest level of secrecy and not be:
- generally known
- widely disseminated
- simply confidential, but confer a competitive advantage to the owner
For trade secrets, the FOI Act provides an exemption under Section 43.
HelpAlso on this siteContent category
Source URL
/content/foi-and-commercially-sensitive-information
Links
Manage the risk of disclosure of confidential information
How to protect your business' confidential information if you share it with public bodies subject to an FOI request.
The Freedom of Information (FOI) Act relates to public sector bodies. However, these organisations regularly engage with private sector companies in the provision of goods and services. This creates a situation where any information your business shares with public authorities may be subject to an FOI request and is potentially at risk of disclosure.
Risk of FOI disclosure
Types of information at risk of disclosure under the FOI Act include, for example:
- information you give to regulators in reports, annual returns, investigations, etc
- public tenders or contracts information
- your responses to public consultations
- information relating to planning procedures and proposed developments
Public authorities could also hold confidential or commercially sensitive information on your business, eg your financial records or contract details. This sort of commercially sensitive information may be exempt from the FOI Act.
How to manage the risk of FOI disclosure
You cannot entirely avoid the risks associated with passing information to public authorities. However, you can lessen them in a number of ways. For example:
Label information as 'confidential' or 'restricted'
If the information is confidential or commercially sensitive, think carefully if it is necessary to disclose it. If it is, make it clear by labelling it 'confidential' or 'restricted'. Submit it separately to the rest of the less-sensitive information to reduce the risk of accidental disclosure.
Keep in mind that the exemption that applies to confidential information is a very narrow one and that it only applies in very limited circumstances. It will not automatically apply to all documents marked 'confidential'.
Consider consultation rights in contracts
Try to establish consultation rights in your contract, ie the right to be informed before the public authority makes any disclosure. This may give you a chance to take action to protect your business before the information goes public.
Don't rely on blanket confidentiality clauses. Look at terms and conditions for dealing with public authorities and try to minimise the impact of the Act.
Consider FOI training and devise procedures
Train your staff on FOI requirements, data protection and the potential risk of information disclosure.
Set clear internal policies and procedures for the release of information to public authorities. Record the information you share with them and review it regularly. Consider assigning FOI responsibility to an individual staff member or team.
If someone makes an FOI request, public authorities will have to release this information (subject to a number of exemptions).
While FOI can present a certain risk for your business, it can also provide an opportunity to gain useful information. For example, information about procurement criteria, decisions, previous contracts and even competitors.
Find out how to use FOI to your business advantage.
HelpAlso on this siteContent category
Source URL
/content/manage-risk-disclosure-confidential-information
Links
Use FOI to your business advantage
Use Freedom of Information requests to find and access information held by public bodies that could benefit your business.
Public sector organisations may hold information that is relevant to your business or industry. For example, this can be information on their procurement processes, previous bid proposals or existing public contracts, and even information on your competitors. You have the right to request this information under the Freedom of Information (FOI) Act.
You may not get all the information you ask for - FOI exemptions would apply if disclosure would result in someone's personal details or commercial secrets being revealed.
Requesting personal information
Before you make a request for information, you should check if the information is:
- already in the public domain
- available elsewhere, eg through a public body's publication scheme or their website
You should not make requests for your own personal data under the FOI Act provisions. Instead, you can make a subject access request under the data protection legislation.
How to make an FOI request
Any request you make for information under the FOI Act must:
- be made in writing
- include your name
- include a postal or email address to which the public authority can reply
You should also be clear about the type of information you require, and the format you would prefer to receive it in. See how to access information from a public body.
What happens after you make an FOI request?
Public authorities must respond within 20 working days of receiving your request. They may:
- give you the information you asked for
- tell you if they don't have the information
- tell you if some other authority holds the information
- transfer the request on your behalf
- offer to give you the information for a fee (rules apply)
- refuse to give you the information by applying an exemption and explain why
- tell you if they need more time to consider your request
- treat all FOI requests in an 'applicant blind' and 'purpose blind' manner, ie without reference to the identity or the motives of the requestor
If the public authority needs to consider the public interest in disclosing or withholding the information, they may tell you that they need more time to respond. In such cases, you should receive a response within a maximum of 40 days from the date of your request.
Find ICO's guidance on time limits for compliance under the FOI Act.
HelpAlso on this siteContent category
Source URL
/content/use-foi-your-business-advantage
Links
Responding to a Freedom of Information request
What to do if your business receives a request for information under the Freedom of Information Act.
Unless you provide services to or on behalf of a public authority, it is unlikely that your private sector business will have to deal with requests under the Freedom of Information (FOI) Act. However, if you hold information on behalf of a public authority, this could potentially come under the FOI Act.
It is unlikely that you will receive an FOI request directly. If you do, you should consult with the public authority that you're working with to discuss the reply.
The public authority may ask you to assist with a request if it relates to the information you hold. In this case, you should support them by providing any information you have that they may need for their reply. The public authority will offer you advice and direction on what they need.
If you're asked to assist with an FOI request, it may help to understand more about the public authority's duty to respond, how they handle requests under the FOI Act, and the time limits they have to meet.
HelpAlso on this siteContent category
Source URL
/content/responding-freedom-information-request
Links
FOI exemptions: absolute and qualified
In this guide:
- The Freedom of Information (FOI) Act
- How the Freedom of Information Act affects businesses
- FOI exemptions: absolute and qualified
- FOI and commercially sensitive information
- Manage the risk of disclosure of confidential information
- Use FOI to your business advantage
- Responding to a Freedom of Information request
How the Freedom of Information Act affects businesses
Find out how the Freedom of Information Act may affect your business if you provide goods and services to public bodies.
If your business deals with public or regulatory bodies (eg through grants, licences or tenders), the Freedom of Information (FOI) Act can affect it in a number of ways.
Does the Freedom of Information Act apply to private companies?
The FOI Act will apply to your private sector business if:
- the information you share with a public body is subject to an FOI request
- the information you share is published under the public body's publication scheme
What is a Freedom of Information (FOI) request?
Under the FOI Act, anyone has the right to request any recorded information held by public authorities (eg government departments, local councils, health authorities etc) or by businesses that carry out public functions (eg privatised utility companies).
This right applies to all information held - not just the public body's official documents. It can apply to your business' intellectual property and confidential information, if this type of information is on their record.
If you contract with a public body, any information you share with them may be subject to a Freedom of Information request.
How can FOI disclosure affect your business?
If the public body receives an FOI request and decides they need to disclose information that relates to your business, this may have a significant impact on your commercial or other interests.
A public body will normally take reasonable steps to contact and consult with a third party regarding the release of the information. This is typically known as 'third party consultation'.
Exemptions to FOI disclosure
Not all information is liable to be disclosed under the law. Certain types of information, for example, financial records or contract details, may be exempt from disclosure if they prejudice someone's commercial interest.
Exemptions may also apply to requests for third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
See more on FOI exemptions: absolute and qualified.
When passing information to regulators and public authorities, it is worth being aware of their Freedom of Information obligations and the possible risk of disclosure.
HelpAlso on this siteContent category
Source URL
/content/how-freedom-information-act-affects-businesses
Links
FOI exemptions: absolute and qualified
Overview of the Freedom of Information exemptions and the right of public bodies to withhold information from disclosure.
Public authorities may refuse a request for information under the Freedom of Information (FOI) Act under certain conditions. For example, if:
- it would cost too much or take too much staff time to deal with the request
- the request is vexatious
- the request repeats a previous request from the same person
In addition, the FOI Act has a number of exemptions that allow withholding information and, in some cases, refusing to confirm or deny if the information is held.
Some exemptions relate to a certain type of information, eg information on government policies. Other exemptions can apply if harm would arise, or be likely to arise, from disclosure.
Absolute exemption under the FOI Act
Public authorities can withhold information that falls under an absolute exemption without considering if there is a public interest in disclosing it. For example:
- security matters
- information prohibited from disclosure by other legislation
- if disclosure would result in a breach of confidence that would be actionable
Most exemptions are not absolute. In most cases, public authorities will have to consider public interest before deciding to release the information.
Qualified exemption under the FOI Act
If a public authority believes information falls under a qualified exemption, it must apply the public interest test.
This test requires a public authority to disclose the information unless it considers the public interest in withholding it outweighs that of disclosing it. Find Information Commissioner's Office guidance on the public interest test.
Examples of qualified exemptions include:
- commercial interests
- sensitive business information
- trade secrets
Find out more about the grounds on which you can refuse a request for information.
Read more about the FOI and commercially sensitive information.
FOI and data protection
Exemptions may apply to FOI requests that involve revealing third party personal data. Under the UK General Data Protection Regulation (UK GDPR):
- if someone's FOI request relates to another person's personal data, the public body will need to consider the fairness, lawfulness and necessity of disclosing such information
- if disclosure would not be fair or lawful or would be disproportionate, the information will be exempt
Read more about the data protection principles under the UK GDPR.
HelpAlso on this siteContent category
Source URL
/content/foi-exemptions-absolute-and-qualified
Links
FOI and commercially sensitive information
How to protect your trade secrets and commercial interest from FOI requests if you share information with public bodies.
The Freedom of Information (FOI) Act only covers public sector organisations. However, it can also affect private companies dealing with public authorities.
If you are a public sector contractor, or you provide goods and services to public bodies, your business' sensitive information may be subject to an FOI request.
Under the FOI Act, information that may affect a business' commercial interests may be exempt from disclosure.
What are commercial interests?
A commercial interest is anything that affects your business' ability to work competitively. When deciding if releasing information would prejudice, or have the potential to prejudice, someone's commercial interests, the public authority should apply the test of prejudice.
Prejudice to commercial interests
To determine if disclosure would cause prejudice to commercial interests:
- you must be able to identify a negative consequence of the disclosure
- this negative consequence must be significant
- you must be able to show how the disclosure would cause the negative consequence
- there must be at least a real possibility of the negative consequences happening, even if you can't say it is more likely than not
To decide if they should disclose commercial information, a public authority will often need to exercise its judgement. It can seek the views of the business concerned, although it still makes the final decision.
Trade secrets and the FOI
If certain information falls under the category of trade secrets, it could also be exempt from disclosure under the FOI Act.
The FOI Act doesn't define the term 'trade secret'. The term can cover, for example:
- technical information - such as an invention, a manufacturing process, a recipe, design drawings, etc
- business information - such as supplier lists, costs information, pricing or product development plans, etc
To constitute a trade secret, information should require the highest level of secrecy and not be:
- generally known
- widely disseminated
- simply confidential, but confer a competitive advantage to the owner
For trade secrets, the FOI Act provides an exemption under Section 43.
HelpAlso on this siteContent category
Source URL
/content/foi-and-commercially-sensitive-information
Links
Manage the risk of disclosure of confidential information
How to protect your business' confidential information if you share it with public bodies subject to an FOI request.
The Freedom of Information (FOI) Act relates to public sector bodies. However, these organisations regularly engage with private sector companies in the provision of goods and services. This creates a situation where any information your business shares with public authorities may be subject to an FOI request and is potentially at risk of disclosure.
Risk of FOI disclosure
Types of information at risk of disclosure under the FOI Act include, for example:
- information you give to regulators in reports, annual returns, investigations, etc
- public tenders or contracts information
- your responses to public consultations
- information relating to planning procedures and proposed developments
Public authorities could also hold confidential or commercially sensitive information on your business, eg your financial records or contract details. This sort of commercially sensitive information may be exempt from the FOI Act.
How to manage the risk of FOI disclosure
You cannot entirely avoid the risks associated with passing information to public authorities. However, you can lessen them in a number of ways. For example:
Label information as 'confidential' or 'restricted'
If the information is confidential or commercially sensitive, think carefully if it is necessary to disclose it. If it is, make it clear by labelling it 'confidential' or 'restricted'. Submit it separately to the rest of the less-sensitive information to reduce the risk of accidental disclosure.
Keep in mind that the exemption that applies to confidential information is a very narrow one and that it only applies in very limited circumstances. It will not automatically apply to all documents marked 'confidential'.
Consider consultation rights in contracts
Try to establish consultation rights in your contract, ie the right to be informed before the public authority makes any disclosure. This may give you a chance to take action to protect your business before the information goes public.
Don't rely on blanket confidentiality clauses. Look at terms and conditions for dealing with public authorities and try to minimise the impact of the Act.
Consider FOI training and devise procedures
Train your staff on FOI requirements, data protection and the potential risk of information disclosure.
Set clear internal policies and procedures for the release of information to public authorities. Record the information you share with them and review it regularly. Consider assigning FOI responsibility to an individual staff member or team.
If someone makes an FOI request, public authorities will have to release this information (subject to a number of exemptions).
While FOI can present a certain risk for your business, it can also provide an opportunity to gain useful information. For example, information about procurement criteria, decisions, previous contracts and even competitors.
Find out how to use FOI to your business advantage.
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Use FOI to your business advantage
Use Freedom of Information requests to find and access information held by public bodies that could benefit your business.
Public sector organisations may hold information that is relevant to your business or industry. For example, this can be information on their procurement processes, previous bid proposals or existing public contracts, and even information on your competitors. You have the right to request this information under the Freedom of Information (FOI) Act.
You may not get all the information you ask for - FOI exemptions would apply if disclosure would result in someone's personal details or commercial secrets being revealed.
Requesting personal information
Before you make a request for information, you should check if the information is:
- already in the public domain
- available elsewhere, eg through a public body's publication scheme or their website
You should not make requests for your own personal data under the FOI Act provisions. Instead, you can make a subject access request under the data protection legislation.
How to make an FOI request
Any request you make for information under the FOI Act must:
- be made in writing
- include your name
- include a postal or email address to which the public authority can reply
You should also be clear about the type of information you require, and the format you would prefer to receive it in. See how to access information from a public body.
What happens after you make an FOI request?
Public authorities must respond within 20 working days of receiving your request. They may:
- give you the information you asked for
- tell you if they don't have the information
- tell you if some other authority holds the information
- transfer the request on your behalf
- offer to give you the information for a fee (rules apply)
- refuse to give you the information by applying an exemption and explain why
- tell you if they need more time to consider your request
- treat all FOI requests in an 'applicant blind' and 'purpose blind' manner, ie without reference to the identity or the motives of the requestor
If the public authority needs to consider the public interest in disclosing or withholding the information, they may tell you that they need more time to respond. In such cases, you should receive a response within a maximum of 40 days from the date of your request.
Find ICO's guidance on time limits for compliance under the FOI Act.
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Responding to a Freedom of Information request
What to do if your business receives a request for information under the Freedom of Information Act.
Unless you provide services to or on behalf of a public authority, it is unlikely that your private sector business will have to deal with requests under the Freedom of Information (FOI) Act. However, if you hold information on behalf of a public authority, this could potentially come under the FOI Act.
It is unlikely that you will receive an FOI request directly. If you do, you should consult with the public authority that you're working with to discuss the reply.
The public authority may ask you to assist with a request if it relates to the information you hold. In this case, you should support them by providing any information you have that they may need for their reply. The public authority will offer you advice and direction on what they need.
If you're asked to assist with an FOI request, it may help to understand more about the public authority's duty to respond, how they handle requests under the FOI Act, and the time limits they have to meet.
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