|
Your EnterQuest Bulletin - 28 September 2005
| Thought for the week:
"No pessimist ever discovered the
secret of the stars, or sailed to an uncharted land, or opened
a new doorway for the human spirit." Helen Keller |
In this week's issue:
Small business answers
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 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.
Weekly stir 
Tips
when applying for small business grants and loans
Every
year since 1996, we have maintained and updated our own database
of over 2,500 business support schemes and initiatives, including
grants, soft loans and other forms of subsidy, aimed at small firms
in the UK. While that's a lot of schemes and grants to check out,
it has helped us to uncover a heck of lot about the availability
and variation in quality of business support services during this
process.
Now
despite what you may have been told or read elsewhere about the
billions of pounds of 'free money' that's on offer to most UK small
firms, we have noticed, when we look closely at all this information,
that the reality is somewhat different.
In
fact, it's startlingly different.
Here
are some major facts we'd like to highlight, plus a couple of tips
that every small business owner and budding entrepreneur should
know about when considering applying for grants and soft loans.
1)
Most small firms are not eligible for grants
The
fact that business grants and loans are aimed at most small firms
is not the same thing as most small firms being eligible. In fact,
certain small business sectors and activities are specifically excluded.
Eligibility can be a particularly fluid and often a very subjective
thing. So check out eligibility criteria very carefully first before
you start applying for any specific fund or scheme.
2)
There's no such thing as free money
Do
you still think it grows on trees? If you apply for a grant or small
business loan from somewhere that is dubbed a 'non-commercial' source,
you'll still have to pay it back with interest if it's a loan, and
you'll almost certainly have to match the amount of a grant with
money from your own pocket or your existing business reserves.
3)
Writing a business plan won't necessarily get you a grant or loan
A
lot of people believe, or are led to believe, that the main or only
reason to write a business plan is to secure a grant or loan finance.
While a business plan may be helpful or possibly even a requirement
of a grant application, you will also need to be able to articulate
a genuine need for the grant to the awarding body, and show how
you will deploy the funds in your business.
4)
Applying for grants can be tricky and time-consuming
This
shouldn't be a reason for not applying if you find a scheme for
which you're eligible, but make sure you understand how long it
might take you to fill out the forms, to research the requirements
of the awarding body and to get a response. Will your project or
business opportunity still be there as the weeks slip by?
5)
Do you genuinely have a project that would benefit from a grant?
Essentially
it's business projects that are operationally feasible and stack
up financially that will ultimately be what a grant awarding body
will be looking for, not just a waffle-riddled business plan with
finger-in-the-air projections. What is your project? How much additional
finance do you need? Do your figures really add up?
6)
Will a grant or loan give you specific measurable outcomes and benefits?
If
you just apply for extra cash for your project or business idea,
you'll likely get a very quick and unfavourable response. But if
you can genuinely describe in your proposal or application the specific
outcomes you can achieve as a result of the extra finance awarded,
you will dramatically increase your chances of having your application
approved.
7)
What will you do if you don't get awarded any funding?
Seriously,
this is something you should also describe in your proposal, but
in any event if you have a genuine project you should be planning
for how you will pursue it on a more limited basis without the extra
funding you are hoping to secure.
8)
Is the fund you want to apply for still available?
Grants,
loans and other business support schemes come and go very quickly.
Some new schemes are over-subscribed in a matter of a few weeks
following their launch. To avoid disappointment, and a lot of time
wasted filling out forms, make sure you contact the awarding body
to ensure the fund is still available, and also to check the deadlines
before you start your application.
Getting
some local or professional advice to help you before you start applying
for grants and loans is our best recommendation. This sort of advice
is generally free and available from your local enterprise agency,
independent business adviser, or possibly even a local accountant
who specialises in this area.
And
be very wary of anyone who says they will guarantee you a grant
in return for you paying them a fee. They may offer a genuine service,
but there are countless examples of small businesses who've had
their fingers burned by con merchants doing this. Again, if you're
in doubt, ask your business adviser first.
Check
out this
practical factsheet on applying for grants for more information
about the process.
Marketing
tip
Getting
the price right
Working
out the right price for your new product or service can be one of
the biggest headaches faced by small business owners. You need a
price that covers your costs and ideally makes you a profit, but
you also need to think about what your competitors are offering
and what customers will be prepared to pay.
The
resources listed below provide advice, guidance and a few useful
tools to help you work out a fair price for your products or services.
You
can find hundreds more tips, techniques and tactics for promoting
your business and getting new customers in the UK
Small Business Marketing Bible.
Legal
tip
New
product regulations in October - do they apply to you?
The beginning of October brings various new regulations or changes
to existing law. One revision that might concern you if you're a
manufacturer or retailer is a change to the General Product Safety
(GPS) Regulations coming in on 1 October.
- The
new Regulations cover new and second-hand products sold to consumers,
and are meant to minimise risk by making sure both manufacturers
and retailers let customers know about all the known dangers associated
with a product.
- They
apply to all sorts of things, including household goods, clothing,
chemicals, pesticides and cars. They also apply to some types
of products which already have strict laws, such as toys, electrical
equipment and cosmetics.
- If
you think the GPS regulations might apply to you or what you sell,
there's a handy explanation offered by the Department
of Trade and Industry (yes, we do give credit to the DTI where
it's due!).
And
you'll find hundreds more factsheets and tips about consumer law
on the UK
Red Tape Buster.
IT
tip
Broadband
for your business - some ideas and inspiration
OK, you've heard about the so-called broadband revolution, and you've
signed up for an account with one of the many services available
(here's a directory
of broadband providers).
So what happens next? How's this supposed to transform your business?
That's a fair question, so the Digital Content Forum recently launched
this broadband
showcase, which gives real-life explanations of what small businesses
are doing to take advantage of broadband. Examples range from selling
online to e-mail software to customer services.
And if you're already using broadband to boost your business in
some way, you can showcase your own ideas and gain a bit of free
publicity into the bargain.
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 the difference between commonly confused words 'official'
and 'officious'? Which of the following definitions applies to which
word?
a)
meddling, bossy or interfering
b) approved, formal or legitimate
Answer
at the end of the Bulletin.
Website review
The
Chartered Institute of Marketing (CIM - www.cim.co.uk)
Providing
everything from formal training in marketing to news and resources,
this organisation is the UK's leading professional body for marketing
- but how user-friendly and accessible is its website?
- Navigation
and presentation - the homepage is clearly set out, with good
signposting to the sections about training and qualifications,
and marketing resources. Other key sections, such as news and
membership details, are easy to locate. The drop-down list of
books and resources, which can be browsed by category or by specific
marketing course, is a useful addition.
 
- Accessibility
- unfortunately, there is very little in the way of accessibility
options here. The only user help we could find on the site claimed
that problems accessing links or pop-ups would be down to your
own PC settings, and gave the helpful recommendation to "speak
to your IT department". There are no access keys, foreign
language options, text-only versions or help with PDFs.
The
site offers some excellent and engaging content and resources for
small businesses, and a clear and simple approach to navigation.
It's a pity that the CIM's lack of accessibility options let its
site down.
Our
rating - 13/20
Did
you know?
Phishing
is getting worse
The
number of phishing attacks during 2005 has climbed by 100% on the
figures for the last half of 2004, according to the Internet
Security Threat Report, published by IT security experts Symantec.
It shows that the majority of malicious code now aims to expose
confidential - usually financial - information, and says that there
has been an increase in attacks on wireless devices.
Worth
a visit
Practical
portal to beat red tape
The Government has launched a website, called the Better
Regulation portal, where businesses can describe the situations
and contexts in which unnecessary legislation affects them the most.
The Government says that this time it's serious about tackling red
tape - it promises to respond to every suggestion within 90 working
days. But we worked out that this equates to 4.5 months - which
begs the question, why would it take that long?
Catching
the trends to 2010
E-commerce
is likely to keep growing till at least 2010, according to market
analysts Forrester in a new
report about trends in online retail. Online sales of jewellery,
small appliances (like cameras and MP3 players), clothes, food and
beauty products are pegged as particularly high-growth areas.
Guide
to avoiding security breaches
Highlighting the DTI's finding that the average UK business suffers
at least one breach of electronic security a month, the Independent
Fraud Advisory Panel has issued a guide
to protecting computer systems especially for small businesses.
The guide contains a useful checklist of threats, along with practical
measures you can take to counter them.
Worth
a read
Packed
with role-plays and scenarios for what to say in hundreds of difficult
situations, this book is a useful tool for business owners who are
inexperienced at managing staff or dealing with customers. From
how to handle a disciplinary problem at work to tackling a customer
complaint and making a cold call, the book documents how to get
through all these problems, using practical scripts and flow charts
to highlight the points it makes. Check out:
|
Just one word answer
Official relates to definition b) -
as an adjective, it means something that is approved, formal
or legitimate.
Officious
relates to definition a) - it means someone who is bossy,
meddling or interfering.
|
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 send
a blank e-mail to enterquest@cobwebinfo.com
putting UNSUBSCRIBE in the subject box.
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.
|
