Small Business Matters

New businesses and 'silver startups' on the rise

Startup businesses enjoyed a resurgence in 2011, according to the annual Simply Business Start-up Index, which shows the first rise in annual growth since the start of the recession in 2008. 

The research finds:

• A 3% increase in UK startups in 2011
• A 19% increase in businesses started by retirement-age entrepreneurs
• Entrepreneurship no longer confined to London with strong regional growth reported

Jason Stockwood, CEO of Simply Business, commented: “Our results suggest that Government initiatives such as Start-up Britain have inspired would-be entrepreneurs to make their business dreams a reality. It’s now crucial that this support and encouragement continues into 2012 so these fledgling businesses can fulfil their potential.”

Here are the findings as an infographic:

Jason Stockwood added: “With ever increasing life expectancy and more flexibility around retirement, it’s interesting that those in the 60 plus age bracket are considering a second career as an entrepreneur. Starting a business can be hugely rewarding at any age and those with so much experience behind them are in a fantastic position to make it a success.

“It is also encouraging to see London is no longer monopolising entrepreneurism and other regions are giving the capital a run for its money. This trend will hopefully continue as aspiring business owners see success stories springing up around them.”

What do you think? Do you find the results encouraging? Are you surprised by any of the findings?

Small business news round-up (28/1/12)

We search out key small business news stories and articles each week so you don’t have to, leaving you more time to spend on running your business.

Want to keep up with regular small business news, features and tips? Why not subscribe to our blog by RSS or email?

HMRC Self Assessment returns – two more days to file and pay

HMRC has agreed that customers who can’t get through to HMRC's call centres on 31 January because of strike action will have a couple more days to submit their returns. Late penalties will not be imposed for people who file their Self Assessment returns on 1 and 2 February, the HMRC has said.

The SA deadline remains midnight on 31 January. However, HMRC will treat all returns that come in by midnight on 2 February as though they were submitted by 31 January. No one will have to pay interest on payments due on 31 January that are paid on 1 or 2 February.

Find out more

Set up your business in a Government department, says Cameron

Entrepreneurs will be allowed to set up their companies in empty Government offices, David Cameron has said this week.

Small business news round-up (20/1/12)

We search out key small business news stories and articles each week so you don’t have to, leaving you more time to spend on running your business.

Want to keep up with regular small business news, features and tips, why not subscribe to our blog by RSS or email?

UK may have slipped back into recession

An economic forecast from The Item Club has suggested that the UK has slipped back into recession. The think tank said GDP shrank in the final quarter of last year and would contract again in the current three-month period.It said that even if the eurozone problems are resolved, the UK economy would grow by just 0.2% in 2012.

The Item Club's chief economic adviser, Peter Spencer, told the BBC: "We are probably in technical recession.” However, the economic forecasting group said it did not envisage a full double dip recession.

Small business formations on the rise

The number of small business formations in the UK is increasing, new figures have shown.

According to Companies House data, 435,856 new businesses were registered in 2011, compared to 384,981 in 2010. In addition, registration volumes in the first two weeks of January 2012 are up by 12% compared to the same two weeks last year. 

The majority of these startups are tech firms taking advantage of growing demand for software, apps and online tools.

Find out why self-employment is booming, even in uncertain times.

Marketing on the cheap: Free and low-cost marketing ideas for small businesses

So, your product is great, the business plan is so sound your bank manager has already booked his triplets into Eton and you’re mentally picking out the colours of that holiday home in the Bahamas you’ve promised to buy yourself as soon as your business makes you stinking rich.

Just one problem: you don’t have any customers. Why? Because no one knows you exist yet. As a small business it's unlikely that you're in a position to run five-minute ads in between X Factor and Jonathan Ross, and that double-page spread in The Times may stretch your 12-quid advertising budget just a little too much. Hell, you can’t even afford any PR. 

So, what are you going to do? The answer is low-cost/no-cost marketing.

There are plenty of ways you can get your company’s name out there – we’ve already talked a lot about the possibilities of Twitter and Facebook on the blog, for example. It doesn’t end there, though; all you need is a little imagination and a bit of smooth talking - things you'll already have in spades as a small business-owner. Try these ideas:

Reciprocal Marketing

 Keep an eye out for brands that you may have some crossover with and ask if they’d like to do a little reciprocal marketing with you. Say, for example, you run a stables and you know someone who sells equestrian equipment - some publicity for them on your website could well lead to them doing the same for you, meaning that both business are exposed to new customers. 

This could be a blog post or even a small banner ad – the important thing is that you’re both widening your customer base with little effort or outlay.

What motivates you?

The results of a recent survey got us thinking about what drives small business owners to get up and do what they do each and every day.

Business insurance provider Hiscox quizzed over 300 SME-owners on what motivates them to drive their business forward. They found that:

• 39%  are driven by wanting to provide financial stability for themselves and their family

• 25%  are spurred on by personal ambition/the desire for recognition

• 20%  are most motivated by the belief in their product/service

• 12%  are fuelled by the desire for wealth

More than money?

The truth is, for many small businesses their motivation is probably a mixture of these things. The mundane need to pay mortgages and bills means most of us get up and work each morning when in an ideal world we’d perhaps rather be sleeping in and doing our own thing all day. Many people find they can eventually make more money through running their own  business than by being an employee and this is a factor in them choosing to go it alone.

“Age can be a bonus, rather than a barrier”

Following on from our post on the myths about starting a business later in life, we meet someone who successfully started a business at 57. Bob White explains how he got to where he is today and provides some tips for those considering starting a business post-50.

In 2008, 57-year-old Bob White started a new business as a domestic energy assessor. Bob had spent 30 years in finance and leasing as sales manager, business development manager and managing director. With the recession, the market declined and Bob found himself made redundant three times in three years. 

He said: “I didn’t want to rely on others for my employment, and I didn’t want to be made to retire while I was still fit for work. Self employment was a way to take control.”

Adventure company enjoys freedom of online accounts

Guest blog from Samantha Mayne, entrepreneur and small business owner of TriAdventure, an adventure based events company.

Freedom from having a fixed workplace is one of the big bonuses of running an online business. When I set up TriAdventure a couple of years ago, being flexible in how and when I worked was one of the main attractions of going it alone. Using QuickBooks Online to manage my books means I don’t have to worry about carting my laptop around to keep on top of my finances. I log on from anywhere there’s internet access, running my business easily when I’m out of the office – which happens regularly. It saves me a lot of time too as I’ve got instant access to everything I need and don’t have to rush back to my desk to do my billing, create a quote or find out how my cash flow is doing. Having this lack of restrictions was why I set the business up in the first place.

 

Small Business Britain unfazed by VAT increase

One month on from the VAT increase, we decided to poll 1400 small businesses to see how they have been affected by the change. The results were slightly surprising! Despite the widespread media hype, two thirds of those we surveyed confirmed that the VAT increase has had no impact on their business. Perhaps even more unexpectedly, 44% of small business owners said they agreed with the Government’s decision when quizzed about whether increasing VAT is the best way to tackle the national deficit.

It is certainly reassuring to know that many small business owners have been able to cope with the recent VAT increase despite widespread predictions of doom and gloom. As this is the third VAT rate change in less than three years, many of you who have been around for a while may feel that you’ve have had enough practice to cope with the changes! What is even more encouraging to see is that when looking for advice on how to manage the change, around one in five turned to other small business owners for support.

Do these results reflect your own experience with the VAT increase? Do you think the tough times are still to come? Have your say in the comments section below.

Countdown to Christmas

With December nearly upon us and festive adverts already on TV, small businesses should now be well on their way with preparing for Christmas. The economic doom and gloom surrounding the Christmas period over the past couple of years may well be lifting with Verdict Research predicting that consumers will spend an additional £1.6 billion in comparison with last year. This should bring some festive cheer to small businesses throughout the UK! Here’s a few tips on making the most of the festive period.

Get online:
In order to take advantage of this increased spend, preparation will be key. Unsurprisingly online sales will continue to increase and according to the IMRG Capgemini e-Retail Sales Index, total online spend for this year’s fourth quarter will reach an estimated £17.4 billion, up from £15 billion in Q4 2009. Small businesses need to be online and tailoring their websites to suit their customer’s Christmas needs in order to get their slice of the online pie – (or should that be pudding!?)

Provide tip top service:
Small businesses can provide a haven from the chaos of huge department stores and this should be used as an opportunity to gain and retain new customers. Businesses must make sure their staff are prepared for the rush and are on hand to meet and exceed customer expectations. People spend a lot of time in the run up to Christmas rushing around the shops, trying to find the perfect gifts, food and decorations, so going that extra mile to meet a customer’s needs and make the whole preparation process easier will pay dividends – not only for December’s balance sheet but also for ongoing sales during the next 11 months.

It’s all about the bargain:
With the New Year bringing the governments increased VAT rate of 20 per cent and the likely resulting decline in spending, now’s the time to “sell sell sell”. Consumers will be looking for a bargain and businesses should be cutting prices and marketing new promotions to lure in customers before people tighten the purse strings come New Year.

Finally, don’t forget to get into the festive swing of things. If you haven’t already, now’s the time to decorate the tree, crank up the Christmas classics and switch those fairy lights on!

A royal business opportunity

The big news announced this week was that Prince William and Kate Middleton will marry next spring or summer in London. And while many in the nation are celebrating, there are sure to be plenty of business owners of all sizes from around the world considering how the news will affect their companies.

In fact, the marriage could give a 620 million pound boost to the economy, retail researchers Verdict said on Wednesday (Reuters).

Asda has admitted that it had already produced thousands of mugs to mark the couple's engagement which will be in stores this week.

Looking further afield, in Sweden earlier this year an array of Royal wedding products were launched to capitalise on the royal wedding between Crown Princess Victoria and Daniel Westling, from coffee and cakes to umbrellas and porcelain vases (Sweden.se).

But even if you don’t have the purchasing power of Asda, there are still ways that smaller companies can benefit from the news. Alisa Donohue, owner of boutique stationary firm Creatively Engaged, notes that the “inspired by” concept is sure to be huge. She is already planning a special discount of royal-wedding-themed invites for her Facebook followers – “The key thing is to put your own spin on it so you can bring value to the product or service” (ThePortfolio.com).

Whether it’s through new products or special offers, we’d love to hear about your creative ideas on how to get the most out of the royal nuptials. Feel free to share your comments below!