Starting a Business

Starting a business is never easy but starting a business in today's economic downturn is even more of a challenge. Spiralling costs, dwindling customers and the banks' reluctance to lend money make it increasingly difficult.

However Emma Knight at Business Link says it's not all doom and gloom: "The recession is inspiring new entrepreneurs and some 50% of our enquiries this year are from people who want to redeploy their skills in starting up a business. From young entrepreneurs to people approaching retirement age, many see it as a golden opportunity to take the plunge and finally do what they want."

Furthermore business leaders say a recession can be a great time for new ventures. "You can attract staff you wouldn't have got last year and for a lower cost, rent office space cheaper, have lower operating costs which may reduce the risk involved in launching a start-up, and redundancy packages mean entrepreneurs now have the time and capital that they never had before," says Peter Jungen, co-president of the SME Union.

It's worth considering that the world-renowned entrepreneurs including James Dyson launched his own vacuum company in the downturn of the early nineties, while icon Bill Gates founded Microsoft in the recession of 1975.

Staples is on hand for business start ups.
Visit www.staplesforbusiness.co.uk for a Start-Up pack produced in association with the British Chambers of Commerce. For inspiration and advice from Staples Business Gurus.

Some 71% of UK business owners believe they will be able to grow or maintain their level of business during the credit crunch, says insurer RSA. So if you're currently in business, how can you improve your chances of keeping afloat? TV Money expert Jasmine Birtles from Moneymagpie offers these top tips:

1. Don't panic. Hold your nerve, think and then take action. If you're facing a difficult problem you need to approach it with a considered, balanced response.
2. Be decisive. In tough times, analyse the situation, look at possible options, select the best one, communicate the decision to everyone affected and then implement the action.
3. Check payments. Keep cash-flow flowing. You can't afford to deal with people who can't pay. Do credit checks with potential new clients and check your payment terms. Chase debtors.
4. Analyse competitors. Keep an eye on your competition and get ideas from what they do well. Copy any of the good stuff - and do it better!
5. Motivate staff. When times are tough, people worry. Monitor the 'motivational temperature' regularly. Remember that even in a recession there should be a 'fun' aspect to work.Look for ways that you can lift their spirits without spending too much money on it.
6. Get uncomfortable. If you can overcome your resistance to dealing with undesirable situations you will dramatically increase your effectiveness. Tackle problems head on.
7. Negotiate. One of the good things about operating in the recession is that you can negotiate really good deals on everything. Aim high and go for the best deal.
8. Cut out bad marketing practices. Make sure in tough times that your marketing activity is focussed on what you know the customer needs and wants.
9. Encourage loyalty from your customers. Keep clients happy in every way you can. If one has a complaint, find out why they are upset and find a solution.
10. Fine tune your selling techniques. When times are difficult people want to know three things above all: 1. Is the product being offered to them affordable and good value? 2. Do they believe it is deliverable? 3. Is it competitive?

Visit www.staplesforbusiness.co.uk to see how our products and services can help to make the lives of businesses easier. Plus enter our competition to win business essentials to kit out your office.

Even when you go-it-alone you're never on your own. There is a wealth of great advice
Try these sources for starters:

Need to borrow money? Try your high street bank. Many banks have schemes for helping new businesses. The Enterprise Finance Guarantee helps viable small firms which are unable to raise conventional finance because of lack of track record, and is available through 26 lenders including Barclays, NatWest and Yorkshire Bank.

Need a financial backer? Several agencies can put you in touch with people with funds to invest. The BVCA represents companies offering venture capital and gives free advice to entrepreneurs. Venture capital is a source of long-term finance for those wanting to grow a business. The British Business Angels Association represents private individuals who invest in start-ups and invest between £10,000 and £750,000, often in local companies. LINC Scotland represents business angels north of the border. The Enterprise Investment Scheme (EIS) is a government scheme which attracts individuals to invest relatively small amounts in unquoted companies through tax incentives.

Thinking about a franchise? The British Franchise Association has useful information and lists opportunities.

Need a business plan? Business Link or Business Support in Wales, Scottish Enterprise in Scotland or Enterprise in Northern Ireland provides free, step-by-step advice on everything from drawing up a business plan to marketing, finance and growing your business. Your local Chamber of Commerce and Federation of Small Businesss also offer invaluable advice. Visit www.staplesforbusiness.co.uk for a Start-Up pack produced in association with the British Chambers of Commerce.

In your 50s and want to start a business? PRIME helps people aged 50-plus want to take the plunge. Some 15% of the 436,000 new businesses started each year belong to people over 50.

Under 30 and want to start up? Staples is encouraging future entrepreneurs by helping school children be better prepared for work life, please find out more here. Livewire and The Prince's Trust give support, grants and run award schemes for young entrepreneurs up to age 30. Some 33% of Brits started their business between the ages of 26 and 35, according to Abbey Business Banking.

A women starting up in business? Every Woman offers advice to women start-ups. Women-only start-ups increased by 9% to more than 90,000 in 2008 compared to 83,000 in 2007, says Barclays Bank research.

Need equipment? Visit www.staplesforbusiness.co.uk to find out how we can save your business money. Plus find out about our Rewards card.

"Redundancy put me in the driving seat"

A desire for a better work-life balance has put Paul Carter firmly in the driving seat. Paul, 38, set up Carters Driving School in Milton Keynes earlier this year, after the printing firm he'd worked for relocated in 2007. “I tried retail management for a year but hated the long hours and not seeing my family. A neighbour who runs a local driving school franchise suggested I train as a driving instructor and I haven't looked back."

Paul used savings to pay for his driving instructor tuition. “I passed the instructor test and worked for my neighbour's franchise for a year paying for referrals which was taking a big chunk out of my earnings. Then I found I was getting most of my work from recommendations so set up on my own in February."

Paul admits it hasn't been easy. “There's plenty of competition and not having a regular income can be stressful. But I'm proud of my reputation and get a buzz when a pupil passes a test.”

5 things I learnt that I didn't know before

1. Tax really is taxing.
2. Just how stressful not having a regular income is.
3. You worry about taking holidays in case you lose business.
4. You can't be ill!
5. You have to be constantly aware of what the competitions up to and offer deals accordingly to entice new customers.

5 things I wish I had known:

1. That diesel prices were going to spiral! Fuel costs a fortune.
2. That word-of-mouth is better than advertising. I could have saved £2,000.
3. I wish I'd leased my car rather than financing it with a loan. The car will expire before I've paid it off!
4. How much money the car would eat up. I'm always having to buy new tyres and seem to be forever servicing the car.
5. I wish I'd gone on a tax course.

5 things that are great about being self-employed

1. Spending more time with my family.
2. Great flexibility.
3. Only having yourself to answer to.
4. Being able to do school runs.
5. How rewarding it is!

"The recession made me think again about opening my dream business"

Nicola Brooks, 38, was going to pull out of opening a cafe last November because of the recession: "But then I thought people will still want a cup of coffee. The former childminder had always wanted a cafe: "Catering's in my blood. My family's always run bed and breakfasts, tea rooms and my sister runs the local brasserie."

Buckinghamshire-based Nicola spent months looking for suitable premises. "I'd heard that the owner of a cafe in busy Woburn Sands high street was looking to sell. So I popped a note through the door saying - I'd like to buy. What I didn't expect was for her to agree and sell up within 3 weeks - it happened so quickly! "

Nicola put together a business plan and got a bank loan. She sourced suppliers, hired an accountant, took on two-part time staff, decorated the shop, put a notice board up outside and opened Cafe Blue. "After 8 months of trading the cafe's set to go into profit. The cafe has taken over my life and I treasure my day off with my two young sons, but I love what I do."

5 things I've learnt that I didn't know before

1. My life revolves round my cafe.
2. I'd be continually trying to keep on top of paperwork.
3. It's hard to take a holiday.
4. I feel as if I need to be in the cafe all the time.
5. I don't get to see as much of my two boys as I would like.

5 things I wish I'd known

1. On a quiet day, the people who work for me earn more than me.
2. Have to bring out the qualities in your staff to create a happy working environment.
3. Hidden costs, for instance I had to pay six months lease upfront.
4. That you don't get any time to sit and have a chat with the customers.
5. How much it takes over your life.

5 things that are great about being self-employed

1. Owning my own business.
2. Not having to answer to anyone.
3. Being able to change things without needing permission.
4. The customers' positive feedback and my regular trade.
5. Being able to spend money out of the business account.

Visit www.staplesforbusiness.co.uk to see how our products and services can help to make the lives of businesses easier. Plus enter our competition to win business essentials to kit out your office.