As a teacher, enterprise policymaker or head of a government department, how do you get young people to consider starting a business as a possible career path? How do you explain the highs and lows, challenges and opportunities and realities of running a business?
The approach taken in Wales is to bring local entrepreneurs and young people together, from primary school right through to university, to raise awareness of entrepreneurship, encourage students to take part in enterprise challenges and competitions and provide them with the tools to start a business. It may not sound groundbreaking, but the Welsh Youth Entrepreneurship Strategy is seen as a success across Europe, and evidence suggests that the impact of the strategy is three-fold.
Young people who have taken part in enterprise challenges and events report that their aspirations have risen as a result. Research suggests that more than half of young people in Wales aged 16 to 24 now aspire to work for themselves – a significant increase from ten years ago. Interviews carried out by the Carnegie UK Trust with those involved in delivering enterprise education in Wales suggest that this stems from an increase in students’ confidence, and in some cases, their leadership skills.
Learning about enterprise from a young age and having the opportunity to take part in challenges that mimic starting a business equips young people with entrepreneurial skills. The Trust’s survey of student attitudes to enterprise found that 52% of Welsh respondents had sold goods online, while 64% had experience of selling face to face. Many students are using these skills to set up their own businesses. After the Welsh Assembly Entrepreneurship Action Plan was introduced in 2002, early-stage entrepreneurial activity among young people increased from 3.5% to 10% in 2011.
The final and ultimate support for budding businesspeople in Wales is the help made available through the Youth Entrepreneurship Hubs to develop mature cashflow and business plans before asking for financial support. This bridging stage between education and work helps young people to discuss their plans with business advisers on a practical, day-to-day basis. And in return for supporting enterprise from an early age, the Welsh Government is being rewarded with more graduate start-ups compared to other parts of the UK and Ireland.
Those involved in delivering the enterprise agenda in Wales are well placed to share their success with governments in other parts of the UK and Ireland. Sharing what has proven to work well across national boundaries might just be the starting point for UK start-ups of the future.
According to the AAT (“the UK’s leading qualification and membership body for accounting and finance staff”), your business could be missing out if it doesn’t currently employ an apprentice.
The organisation reckons that every time a business takes on an apprentice, “its bottom line gets a boost of more than £2,000”, while lack of awareness of available government support is a key reason why more small and medium-sized businesses aren’t employing apprentices, who, it estimates, “delivered £1.8bn of net economic benefits to UK organisations in 2012/13”.
The claims are based on a research report called The Value of Apprentices, compiled by the Centre for Economics and Business Research (Cebr). It found that apprentices offer UK firms “a significant return on their investment”, with economic output usually far exceeding associated wage and training costs. Even after wages and training is accounted for, every time a business takes on an apprentice, on average, they gain by £2,000, according to the AAT.
But the research also found that awareness among businesses (particularly small firms) of government support for those who take on apprentices was poor. About 60% of small businesses surveyed by The Department for Business, Innovation and Skills in August 2013 lacked basic knowledge of the “government’s programme of support for businesses that take on apprentices”. For example, businesses with fewer than 1,000 employees that haven’t hired an apprentice in the past 12 months and take on one apprentice (aged 16 to 24) could receive a grant of £1,500 per apprentice from the National Apprenticeship Service.
Jane Scott Paul, AAT Chief Executive, comments: “Take-up of apprenticeship schemes has grown sharply over the past five years, as more and more organisations enjoy the benefits that apprentices can bring to the workplace. This is benefitting their businesses and bolstering economic recovery and growth.
“We now need to do more to engage with smaller businesses – to break down the misconceptions and make it easier for smaller enterprises to unlock the full potential of training apprentices and to gain specific skills relevant to their business.
“Our research clearly reveals that apprentices, far from being a cost to business, are often a tangible benefit and, what’s more, they’re flourishing in non-traditional sectors such as business, administration and law. By quantifying the value of apprenticeships in this way we hope to encourage all sectors of business to open up their recruitment policies and address the skill shortage.”
With it being National Apprenticeship Week this week, maybe it’s time you found out more about the business benefits of taking on an apprentice?
When running a business there are two key things you must always try to do. Firstly, you always need to be improving. Secondly, you should always be trying to test yourself.
We knew our business, TreatmentSaver, was going well, because our customer base was growing in line with our revenue. It took us a number of attempts to find the best business model, but we knew right away that online appointment booking was a winner for both clinics and our site visitors. Clinics benefited from acquiring new customers and our visitors got to save money on treatments such as laser eye surgery and Botox. From this point onwards, it has always just been a case of trying to scale up the business.
We figured we needed both investment and exposure, so going on Dragons’ Den was potentially an opportunity to kill two birds with one stone. As well as this, we saw it as a great way to test ourselves and take us out of our comfort zone.
Initially we applied to appear on Dragons’ Den more than a year ago and having gone through a number of online and phone interviews we had to do an audition. This basically involved going to the BBC studios in Manchester and doing a mock pitch and interview in front of a BBC producer.
Everything went well and we were consequently chosen to appear on the actual show. After a few months of due diligence by the BBC (basically to check we were who we said we were), we were invited to film for real.
The whole day was surreal – it was certainly the first time I’d ever worn makeup. Once we were ready, having met the producer, etc, we spent about five hours in the green room, basically biting our fingernails until we were summoned in front of the Dragons.
When our time came to meet them, the adrenaline was definitely pumping. By far the worst bit is when the lift doors open for the first time and you see all five of them in front of you. It was a relief to get the pitch done, because for me this was the most nerve-wracking part. From then on it just became a Q&A with the Dragons, with a few curve balls thrown in for good measure.
After a fairly heated battle, unfortunately we did not manage to secure investment, but we gave it our best shot. After the initial disappointment had died down, we started to reflect on what a great experience it had been and how we could bounce back.
Ironically, being turned down was a shot in the arm for our business. It gave us the motivation and determination to prove the Dragons were wrong not to invest in us. Since the show was recorded we’ve doubled the traffic on our site and increased the number of clinics and offers on the site, while saving our customers more than a million pounds when booking online through our website.
But for me it’s some of the less tangible benefits that the whole experience has brought us that are more valuable. It has helped to reinvigorate our business, given us the extra drive to succeed and the confidence to seek out investment elsewhere. We will prove the Dragons wrong!
If you’re planning to start a business, you will need to decide how you want to trade, whether it’s as a limited company, partnership or sole trader. This will largely depend on how many people are involved, the type of business and how you want it to be run.
If you’re going into business alone, becoming a sole trader may be the best option. However, if you want to work with and employ a number of people, you can trade as a partnership or a limited company. But which one is best?
A partnership has a very different structure from a limited company in terms of accounts and liability. There are, though, advantages and disadvantages to both, so you need to know all the risks involved before you dive in.
A partnership is similar to a sole trader business but, of course, a partnership must involve two or more people to own the business and share the responsibility. This can have its upsides and downsides, but the main points are:
As licensed insolvency practitioners, we’ve come across numerous partners who have realised too late just how liable they really are. If a partnership is the preferred type of business, all partners must be aware of what’s at stake and know exactly what they are getting into from the beginning.
This is a corporate structure that gives partners limited liability and has similar traits to that of a limited company, while keeping the tradition of a partnership. It gives partners the benefits of a partnership, but allows them to be only partly liable if things were to go wrong.
A limited company is owned by its shareholders (usually the directors) and all profits generated belong to the company. The company debt remains separate from individuals.
It’s impossible to tell how well a company may do in the future. If the business is a success, a partnership can be highly beneficial. However, if the business were to fail, would you be prepared to pay off the entire debt and put your own personal finances at stake? Regardless of the kind of business you want to set up or how many people you want to involve, you must consider all the risks (as well as benefits).
This article provides only a basic introduction – it does not constitute legal advice. The law on partnerships in particular is complex, with little case law, therefore you should always consult a lawyer if you are worried about your personal situation in any partnership and indeed company.
As an SME owner, I know that experiencing that inspirational moment that cements the purpose of your business is essential, but almost painfully difficult to find. The more you panic about finding your ‘Eureka’ moment, the more elusive it can prove to be. However, there are a few sure-fire ways that can help you to relax and find that moment. Take some time to find inspiration in some of the most unlikely of places and chances are you’ll soon be struck by the light-bulb moment you’ve been searching for.
Even if you’re the world’s most practical and business-minded person, sometimes you have to unleash your creative side to find true inspiration. From roughly sketching a meaningless object to spending hours working on a more challenging piece of art, you’ll find yourself lost and letting your mind wonder onto other subjects, which could lead to you being struck by an unexpected bolt of inspiration.
Over-thinking something often means that the ideas you come up with are forced and unrealistic. Watching an unchallenging film or TV show can allow your mind to switch down a gear and come up with something much less forced.
Unwinding with a great read has numerous benefits, but is also a brilliant way to learn and let your mind wander. It doesn’t have to be related to business in any way. Pick something or someone in whom you’re interested and passionate about or even something that will spark debate or opinion in you. Annotate as you go along with points that you find interesting, inspiring, enlightening or even empowering. You could even write short reviews or points you have learnt.
As more people move to TV that allows viewers to pause, rewind and fast-forward, it can be easy to think that adverts are a total waste of time and money. However, there are adverts that make people stop, look and listen. Take notes about what makes these ads successful. How are they able to convey a story in a short amount of time and how do they connect with their audience? Apply these observations to your own work and think about how you can make it your own.
How you become inspired is up to you. We all have our ways that are as unique to us as our business models, but if you’re lost for ways to expand your mind, these are some easy tricks that are sure to get the creative juices flowing.
Blog supplied by Paul Lees, founder and CEO of business conference call services provider Powwownow. You can see Paul talking about his experience of starting a business below.
With record numbers of people starting their own new business, hopefully 2014 will be another triumphant year for start-ups in the UK. If you want to make the leap, finding your feet may seem daunting, but don’t let fear prevent you from stepping out on your own. To help those who are thinking of starting their own business, Aisling Brennan of eFax and Rory Whelan of eReceptionist share their top ten start-up tips.
If you fail to plan, you plan to fail. You should have a succinct and clear business plan. Not only will it enable you to monitor your business’s success, but it will also prove useful when asking outsiders for funding. Conversely, don’t be beholden to the plan. The pace of change in business can be rapid, so make sure you’re able to adapt. The joy of entrepreneurship is often the ability to make decisions ‘on the fly’.
Why waste precious money on renting an office if you can run your business from home? A proportion of your electricity bills and mortgage payments can be offset against your business tax bill and it’s now simple and cost-effective to set up a second phone line for business calls. When you bundle your number with a virtual office phone system you can even have a real-time receptionist answering and directing your calls, so you never miss a business opportunity.
Hopefully, the money will be flowing in from the start. However, don’t get too carried away, always keep good track of your financial status. Do you have savings that can be invested and will these be enough? If you don’t, approach potential investors and lenders early on. Don’t rule out considering government-backed funding, too. Investigate the many business incubator services that are on hand to advise you, and in some cases they offer financial backing.
Taking on the responsibility of running a business all by yourself might be too much, especially if you have a family. Find a business partner who shares your goals, but perhaps someone with different skills and knowledge, so you complement each other.
If you don’t shout about your new business – who will? Make the most out of social media to spread the word. Similarly, something as simple as asking your customers to tell others about you can make a big difference to your sales. Also, network like mad. This doesn’t have to be at networking events, but just in your daily activities. Keep telling people about your business and in some cases you may find yourself talking to someone who wants to buy from you.
A good business name, business cards and a professional website all contribute to how your business is perceived, but don’t underestimate the power of your telephone number. By setting up a national 0800 number, you can look bigger, but having a local phone number need not limit your ambitions. For example, should you want to appeal to customers in Birmingham despite being Manchester based, it’s easy to have an 0121 number with calls routed to your existing Manchester landline.
Customer like 0800 numbers, because they are free to call from landlines and will soon be free from mobiles. Our research shows that UK businesses experienced a volume increase of 167% when they switched to an 0800 freephone number.
Keep your start-up costs to a minimum and look to invest in cloud-based services. Investing in the right fax software will make running your business smoother, less time-consuming and more cost-efficient. Digital faxing eliminates the need for fax hardware, while allowing you to sign orders or contracts through a digitised signature anywhere from your mobile.
Customer care, business development and administration are the three key areas you should concentrate on. They are all equally important, so all require equal attention. If you neglect one, it will have an impact on the business as a whole. No one likes doing paper work – but it needs to be done.
Learn from your mistakes and adapt accordingly. Be prepared to continue refining your methods as you encounter new hurdles. No one successful ever launched with the finished product, so keep tweaking and adding. You’ll learn so much from your first few sales and customers to help you refine the way you do business and make things easier for the future. Keep motivated and don’t lose sight of why you started the business in the first place.