Your EnterQuest Bulletin - Issue 165
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| Thought for the week: "The problem with the French is that they don't have a word for entrepreneur." George W. Bush |
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In this week's issue:
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What to avoid doing to ensure your business fails
When you start up a new business, everything seems hard because, of course, everything you're doing is new. But running your new business once you've started trading is also hard, and it's a mistake to think that things will get easier as your little venture evolves, because that just isn't going to be the case.
In fact, the reality is that a great deal of things will become harder still, like steering your business in the right direction, tracking down new customers, dealing with increasing amounts of admin, having more decisions to make, getting more and more things done on time, and so on.
There's an old adage that says "Be nice to people on the way up because you might meet them again on the way down". This is particularly apt for the new business owner because your chances of surviving are little more than 50% at best, with more than half (perhaps as many as three-quarters) of business start ups failing inside three years.
But just because there's a chance that your venture will end up deep in the doo-doo doesn't mean that it necessarily will, and with the correct approach right from the start, your chances of being part of the 50% that survive are actually pretty good.
Still with us? Good, so now let's look at some tips to help you avoid getting eaten alive in the small business jungle.
In fact, a better way to illustrate what lies ahead of you is to give you some tips on what to avoid doing that will maximise the chances of your business being a complete flop. This approach might help to drive the message home.
Here are five sure-fire failure factors:
1) Avoid being organised
Being an entrepreneur is meant to be all about being arbitrary and ready to jump at every opportunity that lies in front of you. But if you and your team aren't completely organised every single day of every week of every month, in terms of the nitty-gritty admin, stocktaking, bookkeeping and day-to-day selling tasks that are required to keep your business on track, then you haven't got a cat in hell's chance of taking on anything new that comes your way.
2) Avoid being a master in your field
You may have heard the pun about the farmer - a man outstanding in his field. Well, joking aside, that's exactly what you need to be no matter what field of business you're in. To survive in your business, it's not good enough just to be good at what you do. You need to excel, be the best, and be noted as an expert in whatever field of activity you trade in. And if your customers don't consider you ahead of your rivals, that's going to spell trouble sooner rather than later.
3) Avoid changing your mind
If there's one thing that's absolutely certain in business, it's that nothing is absolutely certain. No matter what your assumptions are about your target customers' needs, what marketing message or medium will work over another, or how your competitors will react to what you're doing, it is a big mistake to assume you will always be right. As soon as you test or try out those assumptions, your opinions, understanding and actions will almost certainly need to change or be adapted to reflect what you have learnt. Changing your mind and making continuous subtle alterations to your business direction and course are part and parcel of entrepreneurship.
4) Avoid inspiring and motivating your team
It doesn't matter whether you're a one, two, three or ten employee outfit, as it's a big error if you don't pass on what you learn and know about your business, your trade or your market to the rest of your team. Especially in a fiercely competitive small business sector, it's your team against your rivals, and the more you do to educate, train, inspire and motivate your team, the more you are doing to increase your chances of competitive success.
5) Avoid learning new skills or expanding your horizons
Unsurprisingly, the business world isn't heavily populated with self-admirers or one-trick-ponies. These types of people generally don't survive in business for long. Sure, you can wallow in your success for a short while, but standing still and not looking for ways to develop your own business skills and acumen, find untapped markets for new products, or add value to existing products will eventually lead to one thing only. Your rivals sneaking up behind you, stealing your market and putting you out of business.
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For hundreds of practical tips and techniques about finding new customers, increasing sales and growing your business, check out the UK Small Business Marketing Bible. |
Who to contact when starting up as a sole trader
When starting a new business, you are legally required to notify a number of organisations (see our practical factsheet on business regulations when starting up for more information).
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First and foremost, contact HM Revenue and Customs (HMRC) to tell it you're becoming self-employed. You must register within three months to avoid paying a fine. To obtain a starter pack, call 0845 915 4515.
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You should also contact an insurance broker for advice on employers' liability insurance, which you'll need if you're going to employ anyone, as well as any other forms of insurance your business might need.
Other important contacts when starting up include:
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Your bank - you'll need to tell it you're starting a business and organise a business bank account.
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A solicitor - for advice on all the legal aspects of getting your venture up and running.
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An accountant - to advise you about keeping financial records and tax issues.
You can find out more about the key organisations to contact when starting your business in our helpful factsheet.
National Standards for childcare businesses
If you provide childcare services, you must follow a legal code of practice comprising 14 National Standards. These set the minimum level of quality that every registered childcare provider must meet.
The standards apply to all businesses offering the following services to children aged under eight:
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Full day care.
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Sessional day care.
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Crèches.
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Out-of-school care.
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Childminding.
In addition, these businesses must also be registered with the relevant regulatory body - the Office for Standards in Education (Ofsted) in England, the Care Standards Inspectorate for Wales (CSIW), the Care Commission in Scotland, and the local Health and Social Services Trust (HSST) in Northern Ireland (contact your local authority for details).
The standards cover issues such as:
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The personal suitability of the care provider.
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The care, learning and play facilities provided.
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The safety and hygiene of the physical environment and equipment.
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The standards of food and drink provided.
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The availability of care for children with special needs.
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How well you work in partnership with parents and carers.
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Child protection and documentation.
For more information, see our comprehensive compliance guide for the childcare sector.
Choosing a domain name
One of the first things to think about when setting up a business website is choosing a domain name.
You may find that your first choice of name or combination of words is already registered by another business, and it can be difficult to select another name that you would like to use. Here's a checklist that you can use when considering different options for your domain name:
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Is the name easy to associate with your business? Does it make it clear what you do, and does it contain relevant keywords?
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Is the name easy to remember? Long or complex names that incorporate many different words and hyphens can prove difficult for your customers to recall.
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Is the name simple? A complicated name or one incorporating commonly misspelled words might make your website tricky to find. There is a practical maximum length of 67 characters (including full stops, www and your chosen suffix).
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Is it free of symbols and punctuation? Ampersands (&) and exclamation marks can't be used in domain names, although hyphens are allowed. Foreign language characters such as accented letters are OK, but currently only a few registration agents offer this service and many web browsers don't recognise them.
As an initial exercise, you can search the WhoIs database to find out if your first choice of domain name is already taken. You can also browse the Nominet website for tips and advice - it's responsible for registering .co.uk domain names. And finally, see our practical factsheet for a guide to registering an Internet domain name.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
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.
In e-commerce terminology, do you know what 'SSL' stands for?
a) Safe Shopping List, a database of online retailers with security certification
b) Secure Sockets Layer, a method of sending encrypted payment data
c) Security Service Limited, an independent body that verifies e-commerce standards
d) Safe Search Listed, a term to describe secure online stores that have sponsored ads with Google
Answer at the end of the Bulletin.
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The One NorthEast website
(www.onenortheast.co.uk)
Continuing our theme of reviewing Regional Development Agency (RDA) websites, this week we're looking at One NorthEast. How user-friendly and accessible is its website? |
Navigation
and presentation - the homepage looks vibrant, with plenty of changing images, but it includes too much information, which makes it overly long and difficult to scroll through. The number of options in the side bar is confusing, and space has been scrimped on in an effort to cram everything in - the large main image in particular takes up most of the page.
 
Accessibility - real efforts have been made here. Not only is the site available in high-contrast format to make it easier to read, but it is also speech-enabled, with a link provided to download screen-reading software. Instructions are given for users of other browsers and those wishing to alter text size in an impressively detailed section on accessibility.
Content
and usefulness - the business section of the site is detailed and helpfully categorised into areas for sector-specific support, financial support, e-business and so on. There's also a useful e-tendering section, but again, the sheer volume of options in the menu make specific pieces of content hard to find.
Relevance - news stories are added to the site almost every day, focusing on interesting business and cultural stories from around the region, rather than simply on the agency's own activities. News articles, forthcoming events and new tendering opportunities are also listed on the homepage, which keeps everything looking fresh.
A solid score for One NorthEast's site, which features some of the most extensive accessibility options used in any public sector site we've reviewed so far.
Our rating - 14/20
Staff holiday rules could change
The Government has started a consultation on employee holiday rights, with a view to changing the rules to stop business owners forcing staff to take Bank Holidays as part of their annual leave entitlement. It reckons that around two million people, especially women, ethnic minorities and part-time staff, would benefit from the planned changes. If the proposals are approved, the additional leave will be phased in from October 2007.
Google to launch online payments
Internet search engine Google is preparing to take on eBay by launching an online payment system similar to PayPal, according to reports. The system, dubbed 'GBuy', would initially be aimed at firms that wanted to sell via the search engine. The general consensus is that it's only a matter of time before Google takes on eBay with its own auction site. Ten million people currently buy or sell goods on eBay in the UK, but Google handles more than 75% of Britain's online searches.
Professional services marketplace
People 4 Business is a 'services marketplace' where freelancers, contractors, consultants and other professionals can advertise their services, and businesses can search for matches for specific projects or activities that they need help with. The site is usefully categorised into sector-specific sections, and the buyer zone for businesses features step-by-step instructions about how to use the service.
Help for new employers
HM Revenue & Customs (HMRC) has published a free guide providing advice for first-time employers about their tax obligations when taking on staff. The 'Prospective Employer's Pack' includes information about how to register with HMRC, how to set up and manage a payroll system, and when and how to file tax returns.
Essential Microsoft security fixes
Microsoft has released its biggest security update in more than a year, including 12 patches to fix 21 separate problems. Eight of the vulnerabilities have been rated "critical", and most potentially enable hackers to access users' systems remotely. However, users running Windows 98 or ME will not receive support from Microsoft after 11 July, when it is ending its technical help for these older software versions.
Practical, tip-based and written in a lively tone, this manual provides a comprehensive, step-by-step guide to pricing analysis and strategy development. As well as tackling the theory, the book also covers the psychological aspects of price sensitivity. Check out:
Just one word answer
The answer is b).
SSL stands for Secure Sockets Layer, a method of sending encrypted payment data. |
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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. |
