In the Telegraph today it was reported that there is now the largest number of insolvencies in at least half a century.  A record 35,000 people were declared insolvent during the three months to the end of September, the largest number in at least half a century. Small businesses are particularly at risk during this continued recession, so what can be done about it?  Everyone has heard about marketing your way through and out a recession but what can you do if you've only really thought about this now?

Some of the main causes for going insolvent are:

• Keeping too much stock and a lack of cash
• Not responding to what competitors are offering
• Not researching the area of business in enough detail
• Low investment or being under capitalised

So don't hang around, see what you can do about any of these problems before they arise.  If you have too much store and / or a lack of cash, think about creating a promotion to release some of the equity you are holding in your stock room.  Be aware of what your competitors are doing, not only must you make sure you are more visible than they are but you've got to keep up with the competition.  Also, your competitors’ businesses may be failing - make sure you are the company standing out incase their clients are looking for a new supplier. Offer special incentives as early as you can for them to try your services before they go hunting for alternatives.

Make sure you are investing in the right areas of your business - don't cut back in vital functions or those that will get you through the hard times.  Some companies make the mistake of cutting marketing budgets at a time when you should be taking advantage or lower marketing costs and making your company the one of choice.  Save money by managing your business well and making your processes more efficient. 

See the Promotr Marketing in a Recession page for more tips.

In the UK almost one person in three aged between 50 and state pension age is workless. Of these less than 10 per cent are retired on adequate incomes. The remaining 90 per cent are on incapacity benefit, registered unemployed, caring, made redundant or retired with an inadequate pension.  So we all know that the over-50s face huge problems of unemployment and age discrimination in the conventional job market.  And that's why if you are over 50, it could be worth you setting up your own business. After all, enterprise isn't all about youth and the experience and skills which people build up over a lifetime are an invaluable resource.

But starting up a business is not necessarily the right decision for everyone. Here's a few things to think about:

Be prepared to get stuck in - Once you've left the corporate ladder it's all up to you. There's no one to call when the plumbing backs up or your computer system crashes. If you're an energetic jack-of-all-trades type, terrific - but line up a reliable local techie who makes house calls, just in case.

Have some finance - Most businesses take three years to break even (if they last that long), so you need to have plenty of cash on hand. Of course, it is possible to finance a start-up by taking out a second or third mortgage and maxing out the credit cards, but... wouldn't you rather be able to sleep at night?

Be prepared to sell - You've got to be prepared to sell your product.  Many experts say the most-overlooked cause of new-business failure is that fledgling entrepreneurs are reluctant to get out there and sell what they've got.

Be prepared to bounce back - When things don't go as smoothly as expected do you have trouble dealing with unpleasant surprises?  If so your first year or two as an entrepreneur may send you running back to the corporate fold.

Get the family onboard - All entrepreneurs and the folks who advise them say that opposition from a spouse or life partner can strain a new business to the breaking point.

PRIME provides free information, events and training to help the over 50's start their own business or become self-employed.  Over 50s considering self-employment, or wanting to start their own business, can go along to PRIME’s Olderpreneur Roadshow which kicks off in Bristol on 23 September. PRIME’s Olderpreneur Roadshow is part of a practical package of support the charity offers over 50s including a Business Club, Olderpreneur Loans Scheme and Mentoring.

At the FREE roadshow anyone over 50 who wants to find out whether self-employment or setting up their own business might be for them, can come along. They will hear from local ‘olderpreneurs’ about their experiences, and inspirational business speaker Tom Edge author of Age Is No Barrier. They will also be able to quiz local business support organisations and network with other 50s wanting to start up on their own.

After Bristol, the roadshow will be moving onto Leeds on the 14th October, Birmingham on the 4th November, and Manchester on 9th December. A London date is soon to be confirmed.  For more information on the roadshows, visit this site.

 

Yesterday a German researchers found that those sports teams who wear red tops, jackets or clothing score 10 per cent more in any competition than if they were in another colour. But why?  Well, experts believe that red could make individuals and teams feel more confident as well as being perceived by others as more aggressive and dominant.  Mostly being Chelsea fans at Promotr, we're fans of blue, but there is little disputing Arsenal, Manchester United and Liverpool have been pretty successful in the past and as reported in the Telegraph, even England's victorious World Cup team in 1966, led by Bobby Moore wore red, instead of their usual white, and have not won a World Cup or European Championship since.

It's the same for business and what your potential customers perceive through your branding and marketing materials. But it's your company so ultimately, the colour reflects on you and should be something you are happy with.  Here are a few things to think about.  

'But all environmental companies have green'  — colours are not industry specific necessarily but some may be better suited for some services/products than others. You should aim to pick a color that will represent your brand’s personality best as it's not necessarily about what you do, but who you are.  Is your company energy important to you - then yellow is a more energetic colour that also makes you think of the outside.  On the other hand, there are colours certain industries should avoid.  If you in the restaurant trade it is worth noting that blue and black suppress appetites whereas our topical red makes food more appealing and influences people to eat more.

'Our printer says we should have one color' - long gone are the days of just single colour printing.  Some brands like Google and Windows go with several colors to represent variety.  Just try to choose one's that actually go well together and don't strain your eyes.  The most legible of all color combinations are black on yellow and green on white followed by red on white so it is no surprise that you find these on traffic lights and signs.

'We've changed our minds' - setting a new brand is not something to be done lightly and certainly not abandoned lightly either. If you are not sure about the colour anymore then you probably did not choose well int he first place, but beware, changing your brand, often or quickly will hinder building your brand and confuse existing customers.

 

 

You may have seen the MI6 disaster this week.  The new head of MI6, Sir John Sawers, is at the centre of a security breach after his wife published family holiday photographs and other personal details on the Facebook website.  A classic example of not using social media wisely.  As a small business using social media can be a quick win for boosting and maintaining business.  Sites such as Facebook and Twitter mean you can display everything from photos, videos, discussion forums, personal and professional profiles and links to other online materials or news. And these can all promote your company and your brand.   But be careful not to get it wrong, here are a few simple rules to help:

• Make sure your social media is still targeting your audience - some social media sites are geared toward teens and young adults, while others cater to business professionals 
• Consider your demographics and tailor your marketing messages to appeal to different demographics, the same as your would for your traditional marketing materials
• Think about mixing business and pleasure - anyone can be found online these days, make sure you have made a decision about what you are happy being online
• And finally, be professional at all times - it can be easy to get sucked into the less formal arena of social media

 

 

Ever heard an editor say, 'thanks for calling but it's not really news'.  The media are busy people, and their audiences are busy people, so to get yourself into the press you've got to have something interesting and here's the word 'newsworthy'.  Well that's all fine and good except what if you don't have anything new?  Well what has your business done lately, it need not be a new product.  Take the British Library for example.  They've just digitised pages from 19th century newspapers and put them online.   Two million documents are available for everyone to see.  The documents have to be paid for but the Library made their work newsworthy just by talking about what they have done and it was covered in the national media.  So what has your business done recently?

It can be difficult to look at the economy with a 'the glass in half full' attitude and even the most optimistic of us can feel it's all doom and gloom for small businesses marketing themselves at the moment. But things look like they are on the upturn in recession-hit Britain.  I think small businesses are one of this country’s little-known success stories. The Happy Small Business Report we collated shows the positive impact they have right across the country. Small businesses make up a substantial proportion of the UK economy and they can play a major role in steering us all back to better times. And acting positively in a recession is the key to surviving - and even thriving – through the recession. Did you know that most small firms not only expect to make a profit but are looking to grow their businesses and invest in training staff in 2009?