Is it a good time to start a business?

The economic outlook  has been gloomy for a while. Banks are not lending, big companies are experiencing difficulties and consumer confidence is in decline. Why would someone want to begin trading in this environment? Well, recessionary climates have produced some of the best firms. Microsoft, Bill Gate's innovative creation was founded in a downturn, as was Amstrad, Lord Sugar's revolutionary electronics company. If you feel the need to go it alone, do not be deterred by externalities. The biggest factor in defining the success of a company boils down to the internal running of the firm. Is there a demand for your product or service? Does your product or service satisfy this demand effectively? If the answers to these two questions are yes, you should not be put off by negative media portrayals of the marketplace, believe in yourself, believe in your idea.

Another way of looking at the market is to appreciate that if you can survive in a downturn, you will most likely have what it takes to prosper in a boom. Admittedly the lending issue is a massive hurdle particularly if your business requires the purchase or leasing of property, but why not try launching your idea online and then adding premises when things improve? 'Necessity is the mother of invention', if you want success badly enough, nothing will stand in your way!

How can a small enterprise (SME) generate more business?

As a result of the precarious economic situation, many people are starting small businesses as an alternative to paid employment. A new business faces many challenges which must be overcome if survival in the first year is to be achieved. A business owner could consider the following activities to drum up some custom:

1) Engage in social networking. Twitter, Facebook and Linkedin are just 3 of the may internet based advertising tools a business person can use to get to potential customers. The social networks have huge reach and cost you nothing to join,almost sounds too good to be true!

2) Start leaflet distribution. All you need is a printer, ink and paper! Make your message clear, bold and professional. include an introductory offer to entice interest.

3) Get on the phones! This is particularly useful for service based businesses. A Real Estate Broker can contact private sellers in the local classifieds, a hotel can call local businesses in the directory,offering hospitality services to executives, etc.

4) Hold an open day. Advertise the event via leaflet distribution and the local press. Prepare some nibbles and drinks and offer a special fee rate to attract thrifty consumers!

5) Create an 'email tout' aimed at past customers. Maybe they have received a better offer or just forgotten you, repeat business is often the easiest to secure.

6)  Offer incentives for introductions from existing customers encouraging advertising via 'word of mouth'.

7) Print new business cards. You can only make a first impression once, so ensure you look the part with a stylish, impressive format.

8) Utilise Supermarket noticeboards. Do not be shy! Many people check these boards before or after their weekly shop. Any opportunity to grab a potential customer's eye must be taken.

9) Approach Local Press for an interview. There is no better way to introduce yourself to a local market and create a 'buzz' in the local community.

10) Offer the best service you can offer to every client. A positive reputation forms the basis for a prosperous future.