|
Your EnterQuest Bulletin - Issue 201
 |
| Thought for the week: "Great things are not done by impulse, but by a series of small things brought together." Vincent Van Gogh |
|
In this week's issue:
If
you have any questions about your business idea or target market, or need help tracking down a grant, subsidy or business support
in your local area, then send an e-mail with your query and location to the EnterQuest
information team and we'll do our best to help.
Send
your question to enterquest@cobwebinfo.com.
 |
To
access over 800 factsheets, guides and small business reports, go
to www.scavenger.net. |
The wisdom of chicken entrepreneurship
There are plenty of reports and predictions in the media at the moment (globally, not just in the UK) about enterprise and entrepreneurship, and the number of people who would like to start their own business.
And there's one aspect of this business start up phenomenon that's worthy of special attention.
Chicken entrepreneurship.
No, we're not referring to the number of people taking up KFC franchises, or entrepreneurs breeding flu-resistant poultry.
We're talking about people who start up a business but are too 'chicken' to give up their current employment. They're being entrepreneurial because they have a firm idea or vision for their venture, but are afraid to risk everything by going the whole hog and quitting work completely, not for a while anyway.
They are 'spare-time' start ups, and there's a heck of a lot of people doing this.
When you look at this logically, these so-called chicken entrepreneurs are actually not that daft when you consider why they choose to approach their start up this way.
For example, when you consider that something like 50% of new ventures fail within 12 months, and up to 80% eventually go under inside three years, these people are taking a very sensible approach to the risk involved in starting up a business.
If you dive head first into a new business idea too soon, you could potentially be risking it all too early, with the result that you lose everything very quickly. Chicken entrepreneurs don't do this, because they pay more attention to the risk and spend more time preparing properly before devoting their entire time, energy and resources into their enterprise.
These spare-time enterprises actually increase their chances of success for the following reasons:
- They dip their toes into the water first before diving in.
- They spend more time making all the necessary preparations.
- They are more likely to test their ideas or products in the market first.
- They make contacts and join networks at a very early stage.
- They build up some credibility before they start up full-time.
- They tend to be considered more favourably by lenders and funders over people who just 'go for it'.
- They benefit from their work experience, especially if it's in a related field.
The downside of retaining your full-time job while starting a business in your spare time is that it will certainly take you longer to get the business established, and you'll be spending your evenings and weekends 'working' on your new venture or idea so it may prove difficult to get the right balance.
However, provided you aren't ripping off your current employer by starting up in their time, if it's possible to work around your other commitments, you'll enjoy the stability, security and salary of your existing job, while you slowly but surely get your ideas and your start up act together.
Chicken entrepreneurs also tend to be successful because they start up in a business field that they know something about, such as a hobby or special interest, or in the line of business where they work. And they spend their early start up time wisely learning basic business skills and developing their business acumen in areas like marketing, admin, finance and law.
They also do more research and prepare everything more thoroughly.
As a matter of fact, this 'look before you leap' approach is also good entrepreneurship practice for any owner-manager of an established business who is looking at the viability of a new product, market or franchise. By being chicken, and approaching a new idea or development with a degree of caution, the risks and rewards will be more effectively considered.
A major proponent of the virtues and advantages of chicken entrepreneurship is US entrepreneur and self-made millionaire, Michael Masterson, whose best-selling book Seven Years to Seven Figures devotes a lot of attention to this approach for starting up and developing a successful business.
What must you include in a statement of employment?
All employees are legally entitled to receive a written statement setting out the main terms and conditions of their employment. You must provide this to a new recruit within two months of them starting to work for you.
The statement of employment has to be in writing and must contain certain specified elements. As well as this being a legal requirement, it's in your interests to record the main terms and conditions of employment as soon as you can when you take on someone new, since written evidence is much easier to rely on in court if any problems arise.
The statement has to include, by law, certain specified particulars. At a minimum, it must include:
- The names of the employer and employee.
- The date when employment began.
- The amount of pay and how often it will be paid (for example, weekly or monthly).
- Hours of work.
- Holiday entitlement.
- Job title.
- Place of work.
The above information has to be provided in one single document and instalment, known as the 'principal statement'. Other particulars must also be provided to the employee, but this can be done by referring to other literature, such as your staff handbook. These other particulars include:
- Entitlement to sick leave and sick pay.
- Details of pensions and pension schemes.
- Details of disciplinary rules and disciplinary or dismissal procedures.
Other rules also apply if your employees carry out work abroad, and there are specific procedures to follow if you want to change particulars of employment for any of your staff.
Acas publishes a practical example of a written statement of employment, and you can also check out our useful factsheet for a more detailed explanation of what statements of employment must include.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
-
What's your excuse? An online Chinese shop is making money selling excuses, with everyday excuses costing the equivalent of 80p each, rising to £8.40 for an excuse to end a relationship. A marriage proposal costs more than £100. The enterprise is called Tuofu, which translates as "bring fortune to people".
-
Witch way to find funding? Witches in Romania have been presented with some new business opportunities since the country joined the European Union (EU) - they're being employed to come up with spells to help their clients win EU funding. Far from being frowned at, witchcraft is a recognised profession in Romania. A grant spell and charms will set you back about £40.
Most popular UK grocery brands
The 'Top 100 Grocery Brands' report published by Checkout Magazine has revealed that big-brand food and drinks remain popular with UK consumers. The report surveyed 74,000 grocery multiples, co-ops, multiple off-licences, independents, symbol groups and multiple forecourts across the UK, but excluded alcohol and cigarettes from its rankings.
The top ten most popular grocery brands are:
1) Coca-Cola
2) Warburtons
3) Walkers
4) Hovis
5) Cadbury Dairy Milk
6) Nescafé
7) Andrex
8) Lucozade
9) Kingsmill
10) Robinsons
Staple food items such as bread feature highly in the survey, while soft drinks, crisps and chocolate retain popularity despite increasing warnings about the need to eat more healthily. However, the report notes that products including reduced fat, sugar and calories are increasingly in demand as 'healthy option' versions of big brands become the fastest-growing product lines in the grocery market.
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know the meaning of the word 'supplant'?
a) to model or shape in a certain way
b) to replace or supersede
c) to assume or estimate
d) to grow or develop
Answer at the end of the Bulletin.
The following topical business issues have been recently reported in the media. Did your radar pick them up?
1) Which announcement could see a rise in the cost of sending business mail in the near future?
a) Anti-junk measures may charge businesses more to send marketing mail
b) Post Office closures mean delivery and collection services will cost more
c) Prices for non-recycled printing paper are to rise in a new green initiative
d) Royal Mail wants to increase stamp prices by 6p to cover its costs
2) Which Internet giant has announced plans to compete with Microsoft by launching a cheap suite of business software applications?
a) eBay
b) Google
c) Apple
d) Yahoo!
3) Which type of goods has seen a significant boost in demand of late, according to a major industry body?
a) Organic goods, such as fruit and vegetables
b) Eco-friendly and energy-saving goods, such as low-energy light bulbs
c) Fairtrade goods, such as coffee and bananas
d) Animal-friendly goods, such as free-range eggs
Answers at the end of the Bulletin.
Law on software piracy is to tighten up
The Federation Against Software Theft (FAST) has welcomed the announcement that trading standards officers will be given new powers to check businesses' compliance with software licensing laws from 6 April. The new powers will be granted under an amendment to the Copyright, Designs and Patents Act 1988. The move was a key recommendation in the Gowers Review of Intellectual Property. It'll mean more surprise raids at markets and car boot sales, and more prosecutions of those who flaunt the regulations.
Convenience stores are looking local to compete with supermarkets
Convenience stores that want to compete with supermarket giants should look to local produce, according to the man behind Londis and Budgens. Chris Martin, the chief executive of Musgrave - Londis' and Budgens' parent company - has said that convenience shops need to mark themselves out from the "blandness" of the supermarkets by matching their products to the demands of their local community. Musgrave is selling off Budgens stores to independent retailers who will stock the Budgens brand and source products requested by local shoppers.
Check the speed of your broadband connection
Broadband connections across the UK are getting faster - but not everyone is able to download as quickly as their service provider would have them believe. Thinkbroadband.com says the average UK download speed is 2Mbps, up from 512Kbps in 2004. However, its survey found that many users who have been sold up-to-8Mpbs services are getting nowhere near that speed. Thinkbroadband.com has developed a tool for testing the speed of your connection.
Trade fairs and exhibitions directory
Trade Fairs and Exhibitions UK is an online directory that lists over 600 trade fairs and exhibitions. You can search the directory by subject, venue, organiser and date to find a suitable event at which to showcase your products and services, or to find out about the latest offerings from your competitors. Event listings covering everything from art and clothing to pharmaceuticals and manufacturing feature on the site.
New online health and safety toolkit
An interactive online health and safety tool will be launched next month by the Institution of Occupational Safety and Health (IOSH). The 'occupational health toolkit' has been put together to help businesses tackle problems caused by occupational health issues. It'll initially focus on stress and musculoskeletal issues but will be extended to include skin disorders and inhalation hazards.
This book provides a concise summary of UK employment law, covering everything from contract terms and redundancy to recruitment and unfair dismissal. It serves as both a textbook for business and human resources students, and a reference manual for business owners who employ staff. Chapters are clearly laid out, with each ending with a summary and overview, making this an easy to use tool for dealing with a number of employee issues. Check out:
Just one word answer
The answer is b).
Supplant means to replace or supersede.
In the high-tech, modern office, the floppy disk has been supplanted by the CD and memory stick. |
How's your business radar answers
1) The answer is d) - Royal Mail has said that it wants to raise the price of a first class stamp to 38p and a second class stamp to 29p to give it the extra revenue it needs to survive.
2) The answer is b) - Google has unveiled a range of business software programs. The products include word-processing, e-mail and spreadsheet functions, and will cost £26 a year per user to access.
3) The answer is c) - as part of Fairtrade Fortnight, the Fairtrade Foundation has announced record sales figures for Fairtrade products in the UK. |
Visit www.enterprisequest.com to access all back issues of the EnterQuest bulletin. If you have any feedback or suggestions for us to make this service more relevant please e-mail your comments to enterquest@cobwebinfo.com.
If you wish to discontinue your subscription to EnterQuest please click on the 'SafeUnsubscribe' link at the bottom of the bulletin.
Remember that we guarantee never to sell or give your e-mail address to anyone else.
Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
