With a new year stretching out ahead of us, we’re taking a moment to reflect on 2022. The UKBF members make our forums a great place to find advice from experienced business owners, so we wanted to celebrate some of the best threads.
Here’s a round-up of the best and most popular threads of 2022, covering everything from rising energy costs and the recession, to Klarna and side hustling.
In the thread, members discussed ways to save energy in commercial premises, sharing tips on how to reduce consumption and keep small businesses afloat.
Some suggested turning lights off which aren’t essential for safety, especially overnight. Newchodge added that those on a flat rate scheme should do some calculations to see if they would be better off on a different tariff.
You can also read some tips on how small businesses can cope with inflation in our guide.
fisicx said that whilst setting up a dropshipping business is “ridiculously simple” it's much harder to make any money from it. In fact, he thought that most people in this business “make money selling their system rather than using the system themselves”. UKBF founder Ozzy agreed, explaining that these types of businesses tend to make good turnover but very little profit.
Other members including UKSBD argued that it’s only as good as the logistics and delivery service of the company you’re dropshipping for. Solve My Problem pointed out that “everything looks easy from the outside, but when you are in the thick of it, it’s very different” – advice that could probably apply to more than just dropshipping!
You can read more about this in our guide to whether dropshipping is still profitable in 2022 if you want to find out more.
Justin Smith kicked things off by asking for reassurance from fellow small business owners. Many shared his concerns, while others had a more positive outlook, including MBE2017:
“Things look like they could be hard for many people, but [...] you either sit back and do nothing, or do your best to take advantage of the opportunities, because there will be plenty.
“There could be more wealth created in a downturn than any other time economically speaking, for those that have a plan.”
Karimbo responded that “it depends if consumers are resilient enough to keep spending or cave in”. They went on to say that their sales were growing despite the economic downturn thanks to more efficient marketing – we hope that strategy continued to work for them!
You can check out our 9 tips and hacks for surviving cost of living challenges as a small business if you’re looking for advice.
Most members agreed that employees would have to be covered by business insurance, with IanSuth pointing out that “some police forces have been particularly hot on it”. He also shared some useful information from insurance provider Admiral to help shed light on the topic.
Others offered suggestions of how the business could get their staff to the meeting without driving their own cars, such as booking a taxi or asking insured employees to do several trips back and forth.
Finally, MOIC suggested that employees walk the 30-minute distance to the meeting and lots of other members agreed, saying this would be much more environmentally-friendly. A whole new topic for another day…
When you come across a company that sounds too good to be true, it probably is. If you can’t find any information online and no one else has heard of them, that’s your cue to start asking questions.
In one thread, Lcd83 asked other business owners about the legitimacy of an insolvency company, which seemed to ring alarm bells for many. Insolvency practitioner Frank Wessley advised anyone struggling to talk to someone in his profession about their options, so they can make an informed decision.
japancool also noted that lots of insolvency practitioners are advertising themselves as “company rescue”, which many point out is not the case.
UKBF founder Ozzy also advised members to “tread carefully” to avoid getting caught up in any fraud investigations. He warned that “old companies with losses have a value to those looking for a little tax evasion”.
Self-employed sole trader peps1 asked the community whether they could claim therapy for PTSD, explaining that they have to limit trade to protect their mental health. Following initial responses from fellow business owners, it quickly became clear that in the UK, this is not tax deductible.
Resident accountant Nicola explained that, “as a sole trader you can only claim costs for tax purposes that are both wholly and exclusively for the purposes of your trade”. Argentum Tax concurs, adding further clarity on the specific tax legislation:
“Your therapy is not only for your work purposes; it is for your personal health and wellbeing too. Tax case law does give a very narrow meaning to those words ‘wholly and exclusively’.”
However, eteb3 offers some helpful advice to those affected by mental health, suggesting that some conditions may be classed as a disability. They advise getting in touch with disabilityrightsuk.org who can help with cases like this.
One of the first responses was from finleydesign, who advised new businesses that they may have limited options when starting out due to account criteria settings and minimum turnover requirements.
However, others shared their experiences with Klarna and reported very few problems. Dillon Lawrence Ltd said that they found Klarna’s onboarding experience much easier than Clearpay’s, with “less stringent requirements”. japancool agreed, claiming no issues when setting up with Klarna as a new business.
TSK reported problems when trying to work with ClearPay, whilst Guy Incognito recommends SplitIt as another option. fisicx suggests PayPal too, arguing that it’s still “a hugely popular form of payment”.
You can read more about the different ways to receive payments in our recent article the best ways to accept and receive payments.
Trevor Andrews advised side hustlers not to give up their day job straight away, especially if they have no savings. He also noted that ecommerce has become much more competitive but that founders shouldn’t give up – if they think they’ve found something, give it a go, or regret it.
MEB2017 agreed that it is hard to make a profit from ecommerce because “you’re basically competing with the whole world”. However, they did share other ideas such as match betting, whilst others suggested Uber delivery driving.
Matt Rumbelow advised taking a step back to think about whether you have any particular skills that could be applied to a new venture. Other members argued that seasonality is important, or encouraged budding side hustlers to start with a clear set of objectives and a simple plan.
Let us know if there’s anything we missed or share your thoughts on our round-up via the Discussion thread or find it at the top of the page.
Here’s a round-up of the best and most popular threads of 2022, covering everything from rising energy costs and the recession, to Klarna and side hustling.
1. The rising cost of energy
Unsurprisingly, the thread about the rising cost of energy in the UK was our most popular of the year. Hundreds of people from the UKBF community took to the forum in search of advice on how small businesses can survive the price hike, and shared their experiences with the community, too.In the thread, members discussed ways to save energy in commercial premises, sharing tips on how to reduce consumption and keep small businesses afloat.
Some suggested turning lights off which aren’t essential for safety, especially overnight. Newchodge added that those on a flat rate scheme should do some calculations to see if they would be better off on a different tariff.
You can also read some tips on how small businesses can cope with inflation in our guide.
2. Reviews on dropshipping
Dropshipping has long been a popular topic on our community forums, and 2022 was no different. Mcdougal asked the community whether it would be worth investing in a dropshipping course and was met with much scepticism from UKBF members.fisicx said that whilst setting up a dropshipping business is “ridiculously simple” it's much harder to make any money from it. In fact, he thought that most people in this business “make money selling their system rather than using the system themselves”. UKBF founder Ozzy agreed, explaining that these types of businesses tend to make good turnover but very little profit.
Other members including UKSBD argued that it’s only as good as the logistics and delivery service of the company you’re dropshipping for. Solve My Problem pointed out that “everything looks easy from the outside, but when you are in the thick of it, it’s very different” – advice that could probably apply to more than just dropshipping!
You can read more about this in our guide to whether dropshipping is still profitable in 2022 if you want to find out more.
3. Recession – surviving the inevitable
Unsurprisingly, the looming recession was another popular topic and one that will inevitably continue into the new year. But what did members have to say about the worst recession since the 1930s?Justin Smith kicked things off by asking for reassurance from fellow small business owners. Many shared his concerns, while others had a more positive outlook, including MBE2017:
“Things look like they could be hard for many people, but [...] you either sit back and do nothing, or do your best to take advantage of the opportunities, because there will be plenty.
“There could be more wealth created in a downturn than any other time economically speaking, for those that have a plan.”
Karimbo responded that “it depends if consumers are resilient enough to keep spending or cave in”. They went on to say that their sales were growing despite the economic downturn thanks to more efficient marketing – we hope that strategy continued to work for them!
You can check out our 9 tips and hacks for surviving cost of living challenges as a small business if you’re looking for advice.
4. Business insurance
Not all threads were full of doom and gloom about the state of the global economy. One very popular discussion covered whether or not business insurance is required for staff members driving to an off-site company meeting.Most members agreed that employees would have to be covered by business insurance, with IanSuth pointing out that “some police forces have been particularly hot on it”. He also shared some useful information from insurance provider Admiral to help shed light on the topic.
Others offered suggestions of how the business could get their staff to the meeting without driving their own cars, such as booking a taxi or asking insured employees to do several trips back and forth.
Finally, MOIC suggested that employees walk the 30-minute distance to the meeting and lots of other members agreed, saying this would be much more environmentally-friendly. A whole new topic for another day…
5. Mystery insolvency companies
This is another topic that comes up a lot in our forums, with plenty of members looking for confirmation as to whether or not companies are “legit”.When you come across a company that sounds too good to be true, it probably is. If you can’t find any information online and no one else has heard of them, that’s your cue to start asking questions.
In one thread, Lcd83 asked other business owners about the legitimacy of an insolvency company, which seemed to ring alarm bells for many. Insolvency practitioner Frank Wessley advised anyone struggling to talk to someone in his profession about their options, so they can make an informed decision.
japancool also noted that lots of insolvency practitioners are advertising themselves as “company rescue”, which many point out is not the case.
UKBF founder Ozzy also advised members to “tread carefully” to avoid getting caught up in any fraud investigations. He warned that “old companies with losses have a value to those looking for a little tax evasion”.
6. Health deductibles for sole traders
As mental health becomes less stigmatised, more business founders are recognising the importance of looking after their wellbeing. We covered this in our article which shares five ways to support your wellbeing, but what did members have to say about tax deductibles for mental health?Self-employed sole trader peps1 asked the community whether they could claim therapy for PTSD, explaining that they have to limit trade to protect their mental health. Following initial responses from fellow business owners, it quickly became clear that in the UK, this is not tax deductible.
Resident accountant Nicola explained that, “as a sole trader you can only claim costs for tax purposes that are both wholly and exclusively for the purposes of your trade”. Argentum Tax concurs, adding further clarity on the specific tax legislation:
“Your therapy is not only for your work purposes; it is for your personal health and wellbeing too. Tax case law does give a very narrow meaning to those words ‘wholly and exclusively’.”
However, eteb3 offers some helpful advice to those affected by mental health, suggesting that some conditions may be classed as a disability. They advise getting in touch with disabilityrightsuk.org who can help with cases like this.
7. Payment plans
Payment plans including Klarna and Clearpay have become increasingly popular of late, so it’s not surprising that small business owners have been discussing which is best for them. In the thread Klarna or Clearpay?, Marksw76 asked the community for their experiences.One of the first responses was from finleydesign, who advised new businesses that they may have limited options when starting out due to account criteria settings and minimum turnover requirements.
However, others shared their experiences with Klarna and reported very few problems. Dillon Lawrence Ltd said that they found Klarna’s onboarding experience much easier than Clearpay’s, with “less stringent requirements”. japancool agreed, claiming no issues when setting up with Klarna as a new business.
TSK reported problems when trying to work with ClearPay, whilst Guy Incognito recommends SplitIt as another option. fisicx suggests PayPal too, arguing that it’s still “a hugely popular form of payment”.
You can read more about the different ways to receive payments in our recent article the best ways to accept and receive payments.
8. Side hustle ideas
Starting side hustle has grown in popularity over the last few years, but how can you be sure what’s going to take off in 2023? IBOverland asked just that in one of our forums, and wanted thoughts from the UKBF community on the best side hustle ideas, including ecommerce.Trevor Andrews advised side hustlers not to give up their day job straight away, especially if they have no savings. He also noted that ecommerce has become much more competitive but that founders shouldn’t give up – if they think they’ve found something, give it a go, or regret it.
MEB2017 agreed that it is hard to make a profit from ecommerce because “you’re basically competing with the whole world”. However, they did share other ideas such as match betting, whilst others suggested Uber delivery driving.
Matt Rumbelow advised taking a step back to think about whether you have any particular skills that could be applied to a new venture. Other members argued that seasonality is important, or encouraged budding side hustlers to start with a clear set of objectives and a simple plan.
What was your favourite thread of 2022?
So now you know – these were the UKBF community's most talked about topics of 2022. Is this what you expected to see on the list, or are there others you think should have claimed the top spot?Let us know if there’s anything we missed or share your thoughts on our round-up via the Discussion thread or find it at the top of the page.
