Your EnterQuest Bulletin - 26 April 2006
| Thought for the week: "The best way to make your dreams come true is to wake up." Paul Valery |
In this week's issue:
Small business answers
If
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Weekly stir 
Questions your bank or investors will ask about your business plan
Regular readers of EnterQuest will be familiar with the degree of ridicule we generally attach to the advice given to new business start ups about the importance of writing a business plan. Advice that often mistakenly states that a business plan is the be-all and end-all of starting a new enterprise.
This week in EnterQuest, we're going to eat our own words. Well, almost.
Yes, we agree that it is important to write a business plan - provided that you have a purpose for doing so.
One such purpose is to convince your bank or another lender that your business idea or proposition is worthy of their backing with the support of a loan, overdraft or other form of funding.
Of course having a 'plan' for your new enterprise is something that everyone starting or running a business should have at the forefront of their mind anyway. But this may just need to be something short, focused and to the point, which will provide you and your team with the direction you need to move your venture towards its goals.
However, if that goal involves raising start up or development capital from a lender or other investor, you will certainly need to provide more detail and structure in your proposition to them.
If you need to prepare such a plan in order to secure a loan, grant or equity investment, here are some tips and useful pointers to help you get it right and ensure that you are providing your prospective funders with the information they need to help them make a decision.
Questions the lender or investor will certainly ask you:
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How much money do you need?
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How much of your own money are you putting in? And how much of the lender's or investor's funds do you need?
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If it's a loan, how long do you need to repay it and how will you repay it?
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If it's equity, what will the terms of the agreement be?
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What personal or business assets can you use to secure the funding?
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Are you and your partners creditworthy individuals?
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Will your proposed cash flow cover the business' expenditure and any loan repayments?
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Will you have enough customers to generate the revenue you are forecasting?
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Are you and your team committed and capable enough to make the business a success?
Questions you should ask yourself:
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What is the maximum amount the lender or investor will provide?
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Is your business eligible for this type of loan or funding?
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Can you meet their lending or investment terms?
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How long does it take before they make a decision?
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Have you completed all the necessary application forms that are needed by the investor or lender?
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Has your business plan been thoroughly checked and proofed for errors by someone other than you?
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How long will this funding meet your needs and when might you need more?
However long your business proposition supporting your funding application is, make sure you've made copies for the lender and investor as well as for yourself - this is an easy mistake to overlook.
And above all, make sure you've got a fallback plan in place that will enable you to move your venture forward, albeit at a slower pace or on a smaller scale, should your funding bid prove unsuccessful. Failure to raise the desired funding is the harsh reality for many people with no thought as to how they might progress without it.
For more information about writing an effective business plan, read our popular factsheet.
Marketing tip
Finding exhibitions and trade shows for your sector
The EnterQuest team is exhibiting at this week's Library + Information Show, so this week's marketing tip focuses on how to find suitable trade shows and exhibitions for your business sector. Exhibiting at these shows provides an excellent opportunity to network with
others in your industry and to meet potential new customers.
You can find the shows and expos relevant to your sector by browsing UK Exhibitions or the TSNN website, while franchise exhibitions are listed at Franinfo.
However, not every trade fair, exhibition or convention is worth the time, effort or money it takes to organise a stand. Before booking space or registering with an exhibition organiser you should decide exactly what you want to achieve by considering the following:
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Attendance - you want the maximum number of potential customers to see your products and services so check the exhibition has an established reputation within your sector. Ask the exhibition organisers to send you visitor figures for the past five years.
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Visitor profile - establish if the exhibition is open to the public or to trade only. Asking where the exhibition is advertised will help to establish a visitor profile. You can also ask for the previous year's visitor demographics, which provide
a breakdown of visitor characteristics.
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Facilities - find out exactly what is included in an exhibitor's contract price. You will need to find out who is responsible for providing lighting, power
and any Internet connection. This type of information can usually be found
in the exhibitors' pack provided by the organiser.
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Extra facilities - ask if demonstration space or private meeting rooms are available at the venue.
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Location and access - check that the venue can be easily accessed by your potential customers and that there are sufficient facilities for people with disabilities. Check for good local transport links, parking and accommodation.
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Independent opinions - it is also worth speaking to businesses that have
exhibited at the event before, to get an unbiased view of whether it
provides value for money.
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Labour requirements - some venues and exhibition organisers insist the construction of stands and the installation of facilities are carried out by the venue's contractors. Establish which contractors will be supplying facilities to your stand.
For more tips on planning to exhibit at a trade show, see our checklist on preparing for an exhibition.
Finally, you can read hundreds of other tips about promoting your business and finding new customers in the UK Small Business Marketing Bible.
Legal
tip
Understanding local authority regulations
Local authorities enforce a wide range of regulations affecting small firms, and their permission may be needed to carry out certain actions. It is important to understand and comply with these regulations so that your business stays within the law.
The following areas are examples of some of the business activities that are affected by local authority regulations:
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Planning - planning permission may be required before your business can begin trading, and will definitely be needed if you change the primary use of a building or develop a new site.
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Trading standards - trading standards officers have several responsibilities, including enforcing consumer legislation; examining advertisements and labels; investigating complaints; inspecting factories, shops and markets; and advising traders. See Trading Standards Central for more details.
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Environmental health - the environmental health department of your local authority deals with a range of issues, including environmental protection, food hygiene and occupational health and safety, covering areas such as business waste and pollution, and inspecting food premises for safety.
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Registration - some businesses, such as factories, must register with their local authority for health and safety reasons, particularly if they employ staff.
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Licensing - some businesses require a licence before trading begins. Examples include taxi services, pet shops, theatres, nightclubs and street traders.
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Alcohol licensing - following the implementation of the Licensing Act 2003 in November 2005, local authorities are responsible for issuing licences for businesses that wish to sell alcohol, offer late opening hours or live entertainment.
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Business rates - if you use any part of a building for business purposes, you will probably have to pay business rates.
The details of your local authority can be found in your local telephone directory or on the Directgov website. You can also find out more about the work of local authorities by visiting the Local Government Association website. Finally, you can find out more about local authority business regulations by
reading our useful factsheet.
IT
tip
Useful IT magazines, portals and periodicals
Keeping up with the latest virus threats, software developments and e-commerce tips can be difficult if you're not an avid reader of technical magazines. But there are a number of well-written, plain English e-zines and news sites available that can help you to keep up to date with news and developments in the IT world without getting bogged down in jargon.
Try some of the following as examples:
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.net offers tips and reviews for slightly more technical entrepreneurs who are engaged in building or updating their own websites. It features regular reviews, tool downloads, tips, shortcuts and tricks.
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NetMechanic provides tips, tools and articles about the technical aspects of running a business website or e-commerce store.
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The Search Engine Journal is a useful place for news and information about search engine marketing.
New business idea
Each week we provide you with summaries of some popular or emerging business ideas in the UK.
Here is this week's idea:
Just one word
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 what 'boolean' means?
a) a search method that combines the words 'and', 'or' and 'not' to make the results more specific
b) a type of Internet cookie that remembers your username and password details
c) a website that has been optimised for search engine spiders
d) the technical name for a category list, site map or taxonomy on a site
Answer at the end of the Bulletin.
Website review
The British Council (www.britishcouncil.org)
A research resource for the UK's creative and cultural industries, as well as providing information for anyone hoping to work in this county, this site offers a surprisingly diverse range of information. But how user-friendly and accessible is the site?
- Navigation and presentation - the homepage is engagingly designed, with lots of eye-catching images, but practical information about where to find different items on the site is clearly presented and easy to follow. There are plenty of comprehensive drop-down lists, which makes navigating through the site simple.
 
- Content and usefulness - the business section of the site features plenty of practical guidance on Council services, from funding for arts ventures and training, to information about relevant events and networking opportunities.
- Relevance - the newsroom is helpfully categorised into areas for press releases, events, publications and transcripts of relevant parliamentary speeches. Although press releases are predominantly about corporate Council developments, there are some interesting stories about arts initiatives in the UK.
A well-designed resource that offers plenty of useful fodder for businesses in the creative industries, the British Council's site provides valuable assistance for firms in the UK as well as those located overseas.
Our rating - 16/20
Did you know?
Windows malware is on the increase
IT security professionals are warning that there has been a massive 700% rise in the 'stealth' malware or rootkits that attack users' PCs without their knowledge. The most dramatic rise has been in malware that targets Microsoft Windows applications - antivirus firm McAfee reckons that this rose by 2,300% between 2001 and 2005. Worryingly, the complexity and sophistication of malware has also spiralled - by 400% since 2000, and by 900% over the past year.
Are you ready for new electronic products rules?
Firms that deal in electrical and electronic products need to plan for the introduction of new regulations that govern the way electronic products are made and disposed of. The Restriction on the Use of Certain Hazardous Substances (RoHS) Directive comes into force in the UK on 1 July. It will eventually be followed by the Waste Electronic and Electrical Equipment (WEEE) Directive, although the Government has yet to get around to confirming a date for the implementation of this rule. The RoHS rules will restrict the substances allowed to be used in consumer electronics. Legal news service Out-Law has a useful summary of the main provisions of both Directives.
Worth
a visit
Campaign to save the British café
Independent cafés are fighting back against the European and US coffee shop chains that are taking over the UK's high streets. An online campaign called 'Save the Proper British Café' has been launched, with all money raised being distributed to local cafés struggling to compete with the big chains. It is feared that the traditional British 'greasy spoon' will disappear altogether by 2010 due to the combined threats of competition and the move towards healthier eating.
Degree for aspiring entrepreneurs
Would-be entrepreneurs can now go to university in London and study for a degree in starting their own business. The one-year Masters course in the 'Technical Ventures and Foundations of Entrepreneurship (TVFE)' is being launched at University College London (UCL). It aims to equip students with the skills and knowledge required to give them the edge in their chosen area of business. They will be put in touch with potential investors, business partners and clients, and will be required to write a full business plan for their dissertation.
Worth
a read
Aiming to provide a 'map to success' for e-commerce businesses, this book focuses on the key habits and techniques that must be adopted for an online store to run smoothly. The habits include measuring traffic and optimising your site for the search engines, converting visitors to customers, and improving your use of technology. Check out:
Just one word answer
The answer is a).
Boolean refers to a method of searching for information (in a database or on a search engine, for example) that combines the words 'and', 'or' and 'not' to make the results more specific. |
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Good
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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
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