Ortus

Top Tips for Starting a Business

2011-12-05T01:21:00.000-08:00

by Seamus O'Prey, CEO at the Ortus group

Starting a new business can be a worthwhile experience but there are a few things you should do to ensure that your business survives that critical first twelve months.

Seek help and advice

There are many organisations that offer assistance including Invest NI and Enterprise NI so don’t go it alone. Ortus also offer free training and mentoring on starting a business.

Do the research

It’s vital to research your idea thoroughly. Ensure you ask and, more importantly, listen to what your potential customers are saying. Also research and analyse your competition. Remember research is a continuous process for survival.

Think about location, location, location

Location is very important. Consider things like footfall of customers, parking, public transport routes and accessibility. These need to be addressed in order to get the customers through the door.

Understand the figures

Make sure that you only take on necessary debts and keep accurate records of monies in and out of the businesses. Avoid spending unnecessary money before there’s positive cash flow. Make sure that you have properly researched costs such as insurances; business rates; rent etc and ensure that you are adequately financed (talk nicely to the bank manager about free overdraft facilities in case the business doesn’t meet its targets in the first year).

Get help with a proper business plan

Talk to experienced professionals and rely on their years of experience to guide and mentor you through the process. Your local enterprise agency can help with this. Most importantly understand your plan and set realistic SMART business objectives.

Get the marketing and PR right

This is a vital element to business success and it is worthwhile engaging PR people to do your initial work and learn from them, this is more cost effective in the longer term. There are many small reputable PR companies out there who will understand your needs and get you results a lot more quickly.

Don’t forget to manage!

Lots of small businesses owners are so busy ‘doing the business’ that they forget to manage it. Remember to manage your staff well; keep a close watch on the finances and ensure that when you need to, you have a pool of advisors that you can talk to and rely on.

Remember to be flexible and have the ability to react to change:

Being flexible is crucial. If customers are telling you that something isn’t right then change it, or lose the customer – and the business!

Plan for the future:

Market trends, government policy, legislation and competition can all have a major bearing on the future success of the business. It’s important to think about these and look at probable scenarios. ‘Best guess’ the most likely scenario, be proactive and help create your own future.

Ortus offer free training on starting up your own business, visit our website for more information

Research Highlights Need for Third Sector Investment Readiness Programme

2011-09-28T04:56:00.000-07:00

Paul Donaldson presents Sorcha McKenna with her prize

Recent research carried out by Belfast based business development agency, Ortus, on behalf Charity Bank has identified a need for third sector organisations to reposition themselves for sustainable investment in light of the sudden collapse in its previously assured funding streams.

The research, which has led to a tailored qualification being developed by Charity Bank in conjunction with the University of Ulster, included a consultation with third sector organisations from across Northern Ireland. Organisations were invited to comment on current trends in the sector and the issues they face. Those who replied to the consultation were entered into a prize draw for a brand new lap top, which was won by Sorcha McKenna of the Human Rights Consortium.

Paul Donaldson of Charity Bank, who presented Ms McKenna with the lap top, commented: “We at Charity Bank are happy to present the lap top in recognition of the valuable input from all of the third sector organisations who responded to the consultation. The Investment Readiness Programme is being developed to directly combat the issues raised during the consultation and promises to be an exciting new initiative, aiming to promote sustainable investment and financial management throughout the third sector in Northern Ireland.”

Programme Managers, Ortus, are currently inviting expressions of Interest from individuals and organisations who feel they would benefit from the qualification via an online form at www.readyforinvestment.org.

National Minimum Wage Changes

2011-09-28T03:59:00.001-07:00

Legislation surrounding the National Minimum Wage (NMW) has changed.

The new rates will come into force on 1 October 2011, when the following will apply:

£6.08 per hour for workers aged 21 years old and over
£4.98 per hour for workers aged 18 to 20 years old
£3.68 per hour for workers above school leaving age but under 18 years old
£2.60 for apprentices under the age of 19 years old or aged 19 years old or over and in the first year of their apprenticeship

For more information on the change, visit wwwnibusinessinfo.com who have prepared a guide to NMW changes.

Should I use Groupon for my business?

2011-09-08T05:02:00.000-07:00

With the well documented growing popularity of deal-of-the-day websites, Groupon in particular, it’s getting harder to ignore the potential benefits such sites may offer local business. However, it is important to understand how Groupon works before diving in and posting a feature.

As you may be aware, Groupon offers large discounts on prices to their extensive mailing list in a particular geographical area. This is a great way to get some online word of mouth advertising about your company out to a base of users who are inclined to share and reshare deals that are of interest to them and those in their social networks.

Groupon can therefore give you a much needed spike in sales and an increased customer base – but at what cost? Ortus have pulled together a guide on when careful manipulation of Groupon can benefit your business and when it can be detrimental:

When to use Groupon:

Excess Stock

Groupon is brilliant for companies that have an excess of unsold stock for example the end of a range or during a clearing out or closing down sale. This allows you to offload product, freeing up some much needed space and maybe even making a small profit while still benefitting from the publicity generated by Groupon.

Excess Capacity

If you are running a tour business or transport company, for example, and have a few spaces left, Groupon is the perfect medium for which to fill those spaces and bring in an extra bit of cash at no extra cost.

Repeat Sales

Groupon may also be used as an introductory offer for a new product or service in the hope that people will return to pay full price following the termination of the deal having had a good experience

Add - on Sales

Groupon is a great way to get customers into your shop or café based on a particular deal. Most people who come in to make use of a coupon for a free burger, for example, will likely order a drink and maybe even a side order!

Attracting a Particular Demographic

Groupon users are mostly young women between the ages of 18 and 34. If this is your target market then Groupon is an excellent way to target this group and increase your customer base.

Online Word of Mouth Marketing

Groupon is also extremely useful in creating a buzz around your product or service. If you have a new product, or are moving into a new area, Groupon will get your first few customers through the door and encourage word of mouth marketing.

When Not To Use Groupon:

If you don’t have the capacity levels

As a business development agency, Ortus have heard an abundance of horror stories about small businesses attempting to deal with the sudden influx of customers following a Groupon feature. Shortly after your feature on Groupon, you should expect high volumes of sales. If you are unable to meet this increased demand then you need to think carefully about the parameters of the deal you offer and how you will deal with the spike in demand.

Due to the large discounts required, and commission required by Groupon, many small businesses end up running their offers at a loss. It is therefore important that Groupon is viewed as a promotional activity rather than as a sales technique. It is also important to bear in mind that no matter what happens, you will have to deliver the service/product offered to everyone who has purchased a voucher.

If you don’t get repeat Sales

If the nature of your business means you don’t often get repeat sales then it is unlikely that you will be able to use the deal to drive additional sales. Since there is such a large discount when customers use Groupon, you may be running at a loss and as such, you need to make sure the investment will be worth the cost.

For more information or advice on how to use Groupon and other online marketing techniques, contact James Scott - james@ortus.org

(Image by digitalart)

Latest exhibitor list for Northern Ireland Franchise Show 2011

2011-09-02T00:52:00.000-07:00

Ortus are delighted to announce the first batch of franchises to confirm their attendance at the Northern Ireland Franchise Show in November 2011.

Ortus, Northern Ireland's franchising experts, are teaming up with Job Done Marketing, who have a reputation for delivering quality shows an value for money throughout the UK, to host Northern Ireland's biggest franchising event in November 2011.

As well as indigenous franchises, the show will see some of the biggest names in Franchising from the UK, the Republic of Ireland and further abroad come together to show what they have to offer to potential franchisees.

Confirmed franchises as of 1st September 2011:

Sport Plus Scheme
Abacus Care
Leisure Leagues
TaxAssist
WPA (Health Insurance)
Lighterlife
Franchise Your Business
Hire Fitness
The Entrepreneur's Source
Domestique
YellowTom
Kidsbeehappy
Husse
Expense Reduction Ireland
Belvoir Lettings
Bar Sport
Kumon Eductional
Synergy Stocktaking
Car Medic

Show Dates:

Derry/Londonderry
Friday 11th November 2011 - The Millenium Forum

Belfast
Saturday 12th November 2011 - The Europa Hotel

For more information visit: www.franchisingni.com

Ortus Charity Golf Day 2011

2011-09-02T00:49:00.000-07:00

Ortus are now accepting entries from teams for our Annual Charity Golf Day. This year we will be supporting a very worthy charity in the form of FSID.

The Golf day is a great opportunity to network and promote your company while also having a great day out!

If you are interested in getting involved or entering a team contact Ryan on 028 9031 1002 or email ryan@ortus.org

Eye on Greek Debt Crisis

2011-06-24T05:07:00.000-07:00

(by Eugene Murray)

As Greece agrees to more austerity cuts today, market analysts believe this is merely an exercise to prolong an ‘inevitable’ default.

The purpose of the Eurozone’s permanent €500bn bail-out fund was to use it pre-emptively to avoid full scale bail-outs, however in the case of Greece, Ireland and Portugal this has proven unsuccessful to the end that each have required extensive bail-out schedules. The overhaul that could have put the Eurozone on the front foot never happened.

And as the blame game continues to unfold across the EU, it is believed that this is time that could be better spent preparing for a default scenario.

Greece will not be able to pay back its debt. The EU will eventually get tired of extending the bonds and Greece will sooner or later have to pay market rates, whether this is two or three years down the line.

The recently passed austerity cuts will not solve the restructuring problem, it merely extends Greece’s payment schedule. This affords Greek Banks and those with a level of exposure to the Greek markets to better prepare their balance sheets; it is hoped that this vital preparation period will avoid a Lehman scenario.

A default scenario will be felt throughout the global markets, particularly within the Eurozone. Weaker economies such as Ireland and Portugal (and to a lesser extent Spain) are advised to stress test against a default scenario and prepare accordingly. Time will tell whether these weaker economies have been afforded enough time to find their feet before a Greece default hits.

The greatest concern for Greece is not whether or not it will default, (this is an almost certain scenario) it is whether a default would be enough to get Greece back on its feet. Greece’s lack of competiveness is concerning. This coupled with a likely default throws into question Greece’s creditworthiness making it extremely difficult for Greece to gain access to the Global Credit Markets.

Hind sight is wonderful thing; however one has to believe that warning bells surrounding Greece went off much earlier than now.

Ortus nominated for Best Social Economy Business Award

2011-03-25T04:34:00.000-07:00

Ortus have been nominated for the Best Social Economy Business award at the 2011 Belfast Business Awards.

The award recognises the vital work carried out by the most successful social entrepreneurs in Belfast and marks the contributions they have made in changing the future of their communities for the better.

For more information on the Belfast Business Awards visit: http://www.belfastcity.gov.uk/belfastbusinessawards/awardcategories.asp

Ortus The Business Development Agency Belfast

2011-02-21T08:07:00.000-08:00

Banks will back franchises as a safer start up option

2010-11-30T07:58:00.001-08:00

Given the current economic conditions it may surprise you to know that the amount of people investigating the idea of starting and actually starting a business has gone through the roof. This is often the case during times of recession. People who have been made redundant resolve to never work for a company again and use their transferrable skills to set up on their own.

This increase in start-ups can only be good for our economy. We need to drastically increase the levels of private sector activity in Northern Ireland if we are to try to cope with the impending government cuts.

Mirroring the growth in start up activity is the increasing interest in Franchising. Franchising a successful established business could offer entrepreneurs starting their own business a part of a potential market worth an estimated £400 million pounds in Northern Ireland.

Franchising is a fantastic opportunity for anyone considering starting their own business. It does have its own risks but unlike starting a business from scratch, franchise businesses benefit from the operational experience and market presence of the parent company. This can be a real help to would-be entrepreneurs starting a business for the first time, particularly in a recession where there is a higher risk of failure.

According to a recent NatWest business survey,

The estimated annual turnover of the business format franchise sector is £11.8 billion.
It is calculated that some 465,000 people are directly employed in the franchising sector.
The proportion of franchisees reporting profitability in the survey was 89%.
1 in 3 franchisees advised they had a better 2009 than 2008 and particularly the second half of the year.
Franchisors do not require their franchisees to have any specific skills or experience but are looking for a combination of skills such as self motivation, marketing, sales, business, drive and commitment.
78% of franchisors forecast an improvement in their business.

As we all know one of the barriers to starting up any business is access to finance. However, approaching the banks with a franchise concept is much more likely to secure that investment. According to Girvan Gault, Ulster Bank Area Manager for Commercial Corporate Markets, franchising can offer a less risky route to start-up businesses and is a model supported by the business lender:

“We are very positive towards lending to franchise businesses. In most cases a franchise offers a lower risk because the business can demonstrate a proven model that works.”

Franchising on the whole is a much safer and more successful model for starting a business. The Franchisee benefits from the greater visibility of the existing business, better management support and back-up from the franchisor. In general, they are better prepared about the financial details needed by lenders, due to the preparation that goes into any franchise agreement. All of these factors add an element of confidence to lenders.

There are also real opportunities for successful Northern Ireland businesses to grow using the franchise model. Currently there are a number of high profile indigenous businesses, such as The Streat, who are successfully growing the business through this model.

If the business model is right, then growing your business through licensing or franchising is an effective way to ensure initial investment and recurring revenue into the business. Franchising your business can also allow for greater brand awareness, increased market share, greater geographical spread, greater exporting potential and rapid national and international growth. Of course, and maybe more importantly, it can also be a model for self financing expansion.

(ORTUS offers expert advice, mentoring and training, often available free, to support businesses and individuals interested in franchising. Their experienced team of business consultants can help overcome some of the more complex legal steps needed to purchase or develop a successful business franchise. For more information on buying a franchise, becoming a Franchisor or getting access to finance for this activity, contact Melanie on ortus on 02890311002).

SME's need to get busy living or get busy dying.

2010-11-19T03:39:00.001-08:00

The current economic conditions are the worst we have experienced in years. Every time we turn on the television we are bombarded with news of cuts and job losses. Whilst I agree it’s very tough out there for business at the moment, SME’s can either get busy living or get busy dying.

Our economy is predominately established on a small business foundation with estimates that around 95%+ of the economy being within the small business sector. We have to remember that in Northern Ireland, small business is big business.

Being an optimist in general, I think small businesses can shine in these times if they are smart, flexible and willing to change with customer needs. Skilling up to plug into new opportunities will be crucial.

We hear announcements on a semi regular basis of new investments from the US and if SME’s are clever they can adapt to provide services and support to those investments. Those companies will want and need local knowledge, support, products and services. But, and it’s a big but, SME’s need to gear up to a level to be able to provide those products and services.

This will involve change on many fronts. For example, it will be crucial that SME’s let those companies know that they can provide the services or products at the right price (for both them and the customer). How SME’s traditionally market themselves will need to change. They will have to tap into social media and its infinite opportunities.

In order to survive and grow, SME’s will need to be competitive on both quality and price. To do this, they need to look internally for a second. Now I am normally the person who is always encouraging companies to look outside of themselves, to take in their environment, to know what their customers want, but sometimes they need to check if they are doing things the most effective and cost efficient way.

SME’s will need to assess if they can cut costs and overheads. I will caveat that statement by saying that doesn’t mean they have to cut quality or jobs (employees are a company’s greatest strength after all).

A great example of how this can be achieved is by implementing LEAN processes. These have been used with great success for many years with big and small business alike. They can help drive down costs by simplifying, standardising and continually improving processes and systems in a business. LEAN processing is basically a toolkit or a set of steps that a small business can follow to achieve a planned result.

Whilst LEAN processing is often deemed to be useful for bigger companies, it is equally important for many SME’s. Simply changing and improving the processes within a business can affect massive benefits to small businesses. This will help them to work SMARTER and better.

Outputs of this process can include increased staff morale; greater productivity; improve quality; reduce work in progress; less wastage and increased profitability.

Working smarter rather than harder is the way forward for SME’s. This coupled with a flexible approach and the ability to embrace change, will help SME’s to survive and flourish in a very difficult world.

For more information on LEAN processing contact Ortus on 02890 311002