Micro Business: Supporting Each Other in a Cold Climate
The majority of our clients consider themselves to be small businesses – but did you know that a ‘Small Business’ is classed as one with turnover under £50 million? At the coalface of startup and micro business, this sort of turnover is many years away or unattainable for most. When government talks about supporting small business, they are aiming at those with turnover into the millions, with a good track record and potential to make an instant contribution to the economy. The seeds of the future economy are increasingly being left to their own devices.
The end of the ‘Grant Culture’
Since the start of the current financial year in April, it has become clear that the old system of free support for new business has finally been swept away. With the demise of Business Link’s on the ground support, and grant funding running out at the end of the last financial year, new business is on its own. This is not all bad – the businesses starting up now have to be very clear about what they want to achieve, and understand the sacrifices that have to be made, rather than worrying about getting three quotes for business cards, brochures and letterhead that may never be used.
What comes in its place?
Business Link still provides a lot of information through their website and free telephone consultations, but one-to-one mentoring falls to private suppliers. Here at Galia Digital we consult with all our clients about their business as a matter of course – it’s not possible to run a successful marketing strategy unless your business strategy is clear. Once you have a clear business strategy you are more likely to find investors – lenders are holding tight to their money and only release funds to what they see as a good risk.
We all know that nurturing startup and micro businesses is vital in creating dynamic market economies. Micro business entrepreneurs like us are big drivers of economic growth, innovation, regional development and job creation. The challenges we face for survival and growth are huge. The availability of financial resources and sometimes our lack of capacity to handle business management issues, present major obstacles. As a result, there is an urgent and continuous need to improve the different elements that make up a good entrepreneurial climate.
The Importance of Networking
Micro businesses need to stick together and support each other. They need to recognise that you get what you pay for in business – very few things of value come for free. Manufacturers invest in good quality raw materials and training in the skills needed to build a commodity – micro businesses are building themselves, and the raw materials they need to invest in for growth are business knowledge, marketing and professional support.
Value for money is essential to every business. How can you ensure that your investments in goods and services are going in the right direction? One of the greatest tools for micro business is the plethora of networking opportunities, both online and in the real world, which helps you to get to know your supplier or your client well enough to gauge their worth and work effectively with them. People buy people, after all.
Online, LinkedIn and Twitter encourage informal and informed networking, and also support the valuable ‘real world’ contacts you make through networking organisations. Here in the North East, our people have built great relationships through the North East Chamber of Commerce, the Inspire Network, Middlesbrough Business Forum, Networking Angels and others – and keep those relationships up through online channels.
The message is clear: Get out there and talk to each other! Micro businesses hold the key to economic recovery, but we need to do it together.