Wednesday 24 October 2012

Some reasons why small businesses are at risk


So many people these days who cannot get jobs are moving instead towards using their skills and experience to create a job or even a small business. Older people are positively encouraged to do so, both by the media, especially online where there are so many resources devoted to starting a business that it looks deceptively easy, anyone can do it, and at the Job centre, where they encourage the budding entrepreneur via their website, to consider starting a business and that it is indeed a possibility, that you are entitled to apply for all sorts of help and grants to do so, until that is you go the Job centre, where the advisers will do everything they can to deter you, and often they manage it successfully.

How this happens resonates to me with a comment I recall reading on one of the many forums devoted to getting a job or ways to make money that I come across while working on the blog. 'When you are on Job-seekers allowance the Job centre own you, and you just have to do as you are told'.For the budding would be entrepreneur what this often means is that you have to in effect 'stop this nonsense and get a job, with a paying employer, and come off benefits. These days you have to do this before you either get sent to the work programme and given a job, regardless of if you are fit to do it or not, or your benefits are stopped because it is considered you re not cooperating enough to get work and so not meeting your job seekers agreement

When saying that the Work programme will match you with what they consider to be a suitable, available job regardless of if you are fit to do it or not think of the thousands of sick and disabled people who under this government are losing their entitlement to sickness benefit, frequently resulting in their deaths when forced to work or waiting for an appeal What used to be known as a medical certificate from your GP, signing you off as unfit for work is now called a fit note !! and Job centre plus advisers admit openly to clients that like as in cases such as mine, where my GP is stating on the note that I am not fit for work, it is not the GP who has the right to decide , but ATOS, the company given the contract by the Department of Work and pensions to deny sickness benefit and find claimants fit for work. I have health conditions including a heart problem, high blood pressure, joint and bone problems, partial sight and anxiety and depression , but according to the department for Work and pensions I am fit for work and so this would give the work programme, which I have recently been placed on, the power to place me in any available job they say I can do..

I held very enthusiastic hopes of turning my website and blog devoted to the issues concerning people in the same position as myself into a business , in the main part financed by advertising. However on trying to get the Job centre to make the referral to the enterprise scheme , which the Department of Work and pensions website clearly states is available, I was denied it at every attempt and any adviser who did encourage me was quickly removed from my case
Eventually, I was informed that this was because they have to say that the money for start up grants etc. is available, because in theory it is, but the reality is that providers do not want to release the money they hold.

In the movie "You've Got Mail", the sub-plot aside from the love angle is that the heroine (played by Meg Ryan) was forced out of business when the big-time book store owner (played by Tom Hanks) moved into town.

Meg's character owned a quaint little book store which she inherited from her mother. Although the prices of her books were a little steep, she makes up for it in service. She packs the books in a specialized bag, and she knows all of her customers by name..sounds like the sort of well respected independently owned book shops seen on high streets in the UK before Waterstones, WH Smiths....and Kindles !!! Indeed, not just bookshops were of this nature, but all kinds of trade shops.

Tom's character, on the other hand, moved into town to build a branch of a big chain-bookstore which offered discounted prices and a huge building, as compared to Meg's little bookshop on one corner of the town's streets.

In the end, Meg was forced out of business because her customers went to Tom's monstrous bookshop.

When I was totally convinced that my business plan was viable and I attended a local enterprise project, thinking I had a wonderful idea, to help people like myself, older and not in good health to look for work and deal with all the other issues that arise from unemployment, I felt that I was unique. However, I do remember slight alarm bells tinkling when I was asked to think about who else was doing what I wanted to do. As I thought I realised that actually, I was not so unique and I would be a small fish in a big pond, with players in my field such as the well respected Wise owls


It is the larger and proven organisations with a track record for success who get the first and largest share of the pie when contracts and funding are given out, and this is why so many people who have a business idea are advised instead to work with what is already there and see if they can incorporate their ideas into that provision. An example of this is the many people who decide to set up a charity for an illness or concern that has affected them or their family members and then try to get charitable grants and funding , with what can be little success or even none.

In the movie, the reason why Meg Ryan was forced out of business is because she cannot profit anymore. Her prices are steep as compared to the other big business' discounted rates.

Her only edge is that she gives personal service, she knows her customers by name and she has a very small staff, about 2 or 3 employees.

As a small organization you may turn around and have these qualities as your edge to compete against the big sharks in business. , but it will be a struggle....think of the number of empty high street shops while there are Tesco's branches of every size..Metro, Express etc. etc. in every town and village

Here are some tips on how you can hold your own against a big business:

1. Small businesses have big competition.

This means that you need to know how to survive out there.

No matter what nature of business you have, it is better to learn about the competition so that you will be able to survive.

Here are some tips on how you can survive the big competition:

>Keep your business alive. ...promote, promote, promote

Have a very clear idea of your budget

Do not spend on unnecessary business purchases and always balance your books.

If you are one to buy on impulse or if you are the type to listen to those who sweet-talk you into purchasing "necessary" items, control yourself.

Get a second and third opinion if possible, as these impulsive buys and actions may lead to the end of your small organization.

>Do not be afraid to seek professional help. ..there is plenty out there

The fall of most small businesses start with decisions on problems which are not carefully analysed.

Although you think that you already have a contingency plan, make sure that you have foreseen the results of a certain business decision. ...seek the longer term view and look at the bigger picture

In the long run, it is better to seek professional help rather than embark on a plan that could start the downfall of your business. before it has even begun.

>Keep your books straight.

The better option is for you to hire a professional outside accountant to figure the returns of your investment and handle the other financial aspects of your business.

>Take advantage of every free business counselling whenever available.

This does not just help widen your knowledge, but it will also give you an idea of how other businesses are ran by small-scale owners.

>Know exactly where your business is headed. ..have a good business plan

In your day-to-day operation, make sure that you know where you want your company to be 5 or 10 years from now.

Be always aware of the trends in the industry that you are in, practice good money management and learn how to recognize potential problems before they arise.

2. Learn how to market your small organization.

Marketing is not about trying to sell your products and services to everyone.

It is about knowing who to market your products to.

In marketing, it is good to remember these fast facts:

> Know about your customers.

>Communicate with your customers.

>Build a good and personalized relationship with your customers.

This will be a great edge for you to have against the bigger companies.

They might offer discounted prices but it is harder for them to keep track of customers on a more personal basis.
>Do not stop the marketing process.

As a small organization, you need to routinely review the markets that you need to pursue so that you can better reach out to your customers.

Remember, small organizations are big businesses these days so do not be afraid to work hard for the company that you have - not matter how small.

If you work hard, make wise business decisions, learn how to market your small business and personalize your customer interaction, your small-scale business can rise to the top.

Valerie Hedges




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