Top Tips for Starting a Business

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

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

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?

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)