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Your EnterQuest Bulletin - Issue 204
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| Thought for the week: "In giving advice, seek to help, not please, your friend." Solon |
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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
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information team and we'll do our best to help.
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your question to enterquest@cobwebinfo.com.
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Survey results: the most helpful and unhelpful sources of start up advice
A couple of weeks ago, EnterQuest subscribers were invited to take part in a survey about the most helpful and unhelpful sources of advice and support when starting up in business. Thanks very much to everyone who responded.
We will shortly be publishing the full results of the survey, but for now here's a quick summary of the headline findings, showing the top five responses for each survey category.
1) Most accessed source of business advice or support
Family or friends (89%)
Business Link (77%)
Bank (75%)
Other small business owners (74%)
Accountant (63%)
2) Respondents who found the support they received very helpful
Business Link (33%)
Other small business owners (24%)
Local enterprise agency (20%)
Family or friends (20%)
Accountant (19%)
3) Respondents who found the support they received helpful
Family or friends (85%)
Other small business owners (73%)
Business Link (68%)
Business networks/forums (58%)
Accountant (57%)
4) Respondents who found the support they received totally unhelpful
Bank (19%)
Business Link (9%)
Accountant (6%)
Chamber of Commerce (6%)
Your employer/boss (5%)
Based on our own experience, gained over the years working with new start ups, there was nothing particularly surprising in these results.
Family, friends, other small business owners and business networks are the natural place for a prospective start up to seek advice. And the bank, Business Link and your accountant are the obvious (and often only) avenues for external advice and support for a new starter.
The most surprising response, however, was how well Business Link measured up. When we carried out a similar survey a couple of years ago, Business Link was the least favoured source of advice and support, so there has clearly been a marked improvement in that particular quarter.
Also of note is the fact respondents have said that banks have proved to be the most unhelpful source of advice and support, with a general comment being that they lack an understanding of your marketplace.
A particular frustration relating to support offered from Business Link was that it tended to push you towards grants you were not eligible for, and that it's a difficult organisation to get in touch with.
We'd also like to thank the many EnterQuest subscribers who have agreed to be part of a new Opinion Panel, which will soon begin to help us critically review and rate a range of key services and sources of support, advice and funding for small businesses in the UK. Those of you who agreed to participate will be contacted very shortly with more details about this.
If you missed the survey or didn't respond to it but would still like to join the Opinion Panel, please e-mail us at enterquest@cobwebinfo.com.
Guilt, hard work and a good night's sleep key to success
A Welsh organic mattress manufacturer is having to ramp up its production capacity to keep up with demand for its products.
But the formula for success did not come straight away for the business' founder, Rhiannon Rowley.
Originally from a Welsh farming background, Rhiannon had worked in the mattress industry for 18 years. She started thinking about setting up on her own when she realised there was a gap in the market for mattresses made from natural materials.
She says: "It was about five or six years ago that people started to ask about the materials used to make mattresses. It was on the back of that, and the back of Foot and Mouth."
Rhiannon was buying mattress wool from the south of France. But due to guilt caused by working in a rural area during the 2001 Foot and Mouth epidemic, she started looking at sourcing products from the UK, rather than abroad.
"They didn't come up to standard, so I looked at having them manufactured to my specification, then the next step was to use organic wool," she said.
"It was the right product at the right time."
Although the mattresses - which have organic verification from the Soil Association - have proved to be successful, Rhiannon admits that starting her business was the hardest thing she has ever done.
She added: "I was 50 - to take on a new business, to remortgage the house, to put myself out on a limb as far as was humanly possible - I think it was insane!
"But it's paid off. The business is going to survive. The business is growing rapidly. The sales figures are extraordinary."
The business initially received a £10,000 loan from Finance Wales and a £30,000 loan from Barclays Bank.
"That was very hard fought for. Barclays was the third bank we went to. Finance Wales was very good," Rhiannon said.
She says starting up in business is not for the fainthearted.
"It's a hard world out there for start ups. It makes me very sad when I see these posters encouraging people to start up. They make it look so colourful and romantic."
But Rhiannon believes it has all been worthwhile. "What's been most heartening about this business is the ability to help people.
"I take phone calls every day - three, four, five - from people who have allergies to flame-retardant chemicals and they are so pleased to have found something they can sleep on without them reacting to it. That's a real pleasure to me."
And Rhiannon's final tip for start ups aiming to follow her example?
"Never, ever, ever let an accountant run your business."
Abaca, based in rural Carmarthenshire, aims to increase its output from 100 mattresses a month to 1,200 in the next year to 18 months. The company, which has been trading for two years, turned to the Manufacturing Advisory Service (MAS) Wales for advice on expanding its current base.
Where can shopkeepers find information and advice?
There are now plenty of resources and websites where small, local retailers can get information and advice to help them compete with their larger supermarket rivals.
Here is a summary of some of the best online resources:
- The British Retail Consortium (BRC) publishes a wealth of statistics and market data for the retail sector, including the monthly Retail Sales Monitor, as well as lobbying the Government on key issues.
- The British Shops and Stores Association (BSSA) is a trade body for non-food retailers that offers a broad range of services to its members, including coverage of breaking news and legislation.
- The Association of Convenience Stores (ACS) produces news and lobbies the Government on issues such as tobacco smuggling and underage alcohol sales. It's aimed at small, independent stores.
- The Scottish Grocers' Federation (SGF) is a campaigning membership organisation for shopkeepers north of the border. Its largest category of members is local independents, although it also counts all of the Scottish Co-ops as members, along with Somerfield and Spar.
- The Interactive Media in Retail Group (IMRG) is a useful resource for retailers that have an online presence, or those that trade solely via the web.
- IRN Talking Shop is a news and information portal for independent retailers, featuring product news and factsheets about running a retail business.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
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Knitting up a storm. The popularity of the woollen knits associated with 'granny chic' have made knitting services a viable home business opportunity.
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Fuelling the alternatives. Eco-awareness and Government targets are providing commercial opportunities for farm diversification into biodiesel fuel production.
Budget 2007 changes
Chancellor Gordon Brown delivered his 11th Budget yesterday afternoon. Here's a quick summary of ten key issues that will impact on business:
1) Corporation tax for small limited companies will rise from 19% to 20% from 1 April. It will eventually rise to 22% by 2009.
2) However, corporation tax for large companies will be cut from 30p to 28p in the pound from April 2008. An incentive for small companies to grow?
3) Income tax stays the same this year, apart from indexation of personal allowances. But from next April, the basic rate will be cut from 22p to 20p in the pound.
4) The income tax starter rate of 10p in the pound is being abolished from April next year.
5) The top-rate threshold for income tax on high earners will rise from £33,300 to £34,600 from 1 April - and will eventually climb to £43,000 from April 2009.
6) Road tax for cars with carbon dioxide emissions of 226g and above will rise to £300 from April this year, and will go up to £400 from April 2008.
7) First-year capital allowances for small businesses are unchanged at 50% for the 2007/08 financial year. However, capital allowances for plant and machinery investment will be cut from 25% to 20% from 2008.
8) The limits for the different classes of National Insurance contributions (NICs) rise in line with inflation. The lower profits limit for the Class 4 NICs paid by self-employed people will climb by £190 to £5,225 and the upper profits limit for Class 4 NICs will rise by £1,300 to £34,840.
9) The VAT exemption threshold will rise by £3,000 to £64,000 from 1 April this year. The VAT deregistration threshold will rise from £59,000 to £62,000.
10) The turnover below which businesses are eligible for the VAT cash accounting scheme will increase from £660,000 to £1.35 million.
The full Budget report can be read on the HM Treasury site, and the BBC also has a useful at-a-glance summary of the main points.
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 'enumerate'?
a) to create a forecast based on figures or numbers
b) to quantify or put a value on something
c) to name things separately, one by one
d) to prove or make certain
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 new in-store service are 12% of retailers reported to be thinking of introducing this year?
a) A rental service for CDs and DVDs
b) An electronic payment terminal
c) A mobile Post Office
d) A National Lottery terminal
2) Which beverage could be set for impressive market growth, after a study revealed its healthy antioxidant properties?
a) Red wine
b) Green tea
c) Purple grape juice
d) Cloudy apple juice
3) Which two high-tech appliances have been added to the UK's typical 'shopping basket' of commonly bought goods and services, compiled by the Office for National Statistics (ONS)?
a) Wireless laptops and Flash memory sticks
b) Digital pedometers and personal security alarms
c) MP3 players and BlackBerrys
d) Satellite navigation systems and digital radios
Answers at the end of the Bulletin.
There's a new site to help with fire safety
Businesses can face penalties of up to £10,000 or even a jail sentence if they break fire safety regulations, and can also run the risk of going out of business altogether if they suffer a fire. Insurer More Th>n's statistics reveal that in 2006, the average cost to a business of a fire was £26,000. It says 80% of small enterprises that suffer fires cease trading within a year. The Government has launched a Fire Gateway website, which includes practical self-assessment tools to help businesses check their progress in complying with the law.
BT can calculate your carbon footprint
BT has launched a new website to help small businesses work out their carbon footprint and look at ways to reduce their impact on global warming. Based on your fuel consumption and work-related travel, the online calculator works out how much CO2 your business produces annually. The website also includes hints and tips on how smaller enterprises can become more environmentally friendly.
Newspaper circulation figures online
If you're looking to advertise in your local or regional newspaper, check out the Newspaper Society's database. It includes information about when newspapers are published, where they are available, gives links to their websites and provides circulation figures, which can help you choose the most suitable publication for your advertising message. Useful demographic information about households and readers in local areas across the UK is also available.
Website to find and publicise blogs
The Fuelmyblog.com site aims to create interest in and attract readers for blogs. The site has been developed to enable people to publicise their blogs free of charge. The idea is that readers vote for their favourite blogs, as well as finding new blogs to read. The sections include business/technology and news/politics, as well as general lifestyle and personal categories.
Free health and safety advice
Workplace Health Connect is a Government-funded resource to help small businesses in England and Wales put health and safety regulations into practice. Key sections include the main health and safety risks faced by small businesses, such as asthma, falls from height and stress. The site also includes advice on managing absences, as well as case studies of small enterprises it has worked with. Workplace Health Connect's advice is confidential and free. Scottish businesses can visit the Safe and Healthy Working site for similar advice.
Described as the 'ultimate how-to book', the authors use this guide to show how the skills of pitching business ideas can be applied to life at all levels when handling 'human transactions'. It brings together market research, mentoring and anthropology in an attempt to change the way the reader thinks about the art of persuasion. The authors say the pitch is a drama, rather than a meeting - with money and power the ultimate prize for all successful pitches. Check out:
Just one word answer
The answer is c).
Enumerate means to name or explain things separately, one by one.
A good sales pitch should clearly enumerate the different benefits of a product or service. |
How's your business radar answers
1) The answer is b) - research by PayPoint shows that 12% of retailers have plans to introduce an electronic payment system to their stores this year, to enable customers to settle bills when they visit.
2) The answer is c) - purple grape juice topped a study carried out by the University of Glasgow because of its high levels of antioxidants.
3) The answer is d) - satellite navigation systems and digital radios were added to the latest snapshot basket of goods by the ONS. Alleged superfood broccoli also replaced Brussels sprouts, and olive oil usurped vegetable oil in the basket. |
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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. |
