UK is Still a Nation of Small Businesses

The old adage that the UK is a nation of small shopkeepers could never be truer. Recent research by Barclays Bank showed that over 471,500 people started a new business during 2007  - the highest since records began. This shows that the UK is full of entrepreneurs who want to take the plunge and become self employed or start a new business with the view of employment of others.

This is great news for the economy at large but also for the entreprenerial spirit and a “just do it” mentality that has been with the UK for centuries. These days there is the highest amount of support for new businesses and people who have never run businesses before. Even if you just type in “small business” into Google and don’t mind clicking on all the ads, you’ll find all the research and information you need to start and grow a business.

The biggest step is taking the initial plunge. Our advice is to attempt to begin your business whilst you are still employed. This doesn’t mean developing a multi-million pound empire in your lunch time but beginning to get your first customers, developing your website and marketing materials and starting to get referrals. Once you have some momentum you can think about quitting your job. The worst you can do is think your business will succeed but you have no plans or customers — but quit your job any way; this way you will surely fail.

So a few quick tips to get going:

1) Write a business plan - yes, you have seen this before and it sound boring and complicated - but really, it will open you eyes to what is really required for you to get your first profits. You will know how many customers you’ll need per week and at what profits - real essentials - without this information written and in your head you will lose.

2) Cashflow - many a profitable business has gone bust because they run out of cash. You can get working capital/ cash flow through loans, factoring, invoice financing, improve payment terms, purchasing on credit etc etc - just let the cash work for you.

3) Customers - oh yes, but real customers that really want your product. Don’t ever attempt to try and sell to everyone, because everyone doesn’t want your products and services - and that’s guaranteed. Just select exactly who is going to purchase your product and only pitch to them

4) Products/ services - the next item after (3) is to have a product or service that people actually want. Don’t develop something you think is needed because you think it’s an idea. If you want to survive you’ll need to sell more than one of your products to many hundreds, thousands may be millions of customers, so it’s going to need to be popular.

Trust that gets you going and you join the nation of small businesses in the UK very soon !