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Banks, Lenders & Investors Business Development & Marketing General Rescue, Restructuring & Recovery Turnaround

Are you a collaborator?

 

It is widely believed that larger companies are reluctant to engage with sole traders and SMEs because they feel they will be too small or inexperienced to take on a bigger contract.

But with business finance still reported to be hard to get, skill shortages widely reported and SMEs very nervous about taking on any debt it can be frustrating or not cost effective to try to grow a small business to be able to offer the range of expertise some potential bigger clients may expect.

An alternative solution may be to collaborate with related businesses as partners when making bids.  As long as they are organisations the SME knows well and trusts this does not have to mean entering into a formal long-term partnership but it does require excellent communication and agreeing on some basics.

Examples of such collaborations could be a web developer offering a combined service with a marketing content writer and a graphic designer to offer an all-in-one service for clients looking for marketing support.

Sole traders who specialise in carpentry could collaborate with painters, plumbers, bricklayers and so on.

The advantage in collaboration for the client is that they get all the services they need for a project with one central point of contact for co-ordination and communications. 

The advantage for the small trader is the ability to bid for larger contracts by offering a full set of the skills required.

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Banks, Lenders & Investors Business Development & Marketing General Rescue, Restructuring & Recovery Turnaround

Is Starting a Business in a Recession Wise or Foolish?

It is no secret that the Government is relying on SMEs to stimulate both the economic recovery and jobs.
Lord Young, senior adviser to the Prime Minister, is on record as saying that a recession may actually be a good time to start a small business on the grounds that wages are low, competition may have fallen by the wayside and premises, too, may also be cheaper to get.
That’s all well and good but there is more to starting a business than having a bright idea and the passion and motivation to get started.
There are a number of other factors to consider, especially where the business is something new and innovative and therefore unlikely to raise finance from currently risk-averse banks and investors.
A start-up must carry out research, identify potential customers, set sensible targets and put all of this into a business plan.  If it needs finance it should consider alternatives to the mainstream sources, whether these are friends and family, partnering with existing firms, seed funding, crowd funding or business angels and also investigate what grants and special concessions may be available that will help in the first year or two of trading.
A mentor or business guardian to help set the path and keep things on track can also make the difference between success and failure.  It’s impossible for a novice to do everything themselves without support and joining local business networks can also be a valuable source of advice and support.
If it is the kind of venture that can benefit from collaboration with other enterprises where there is a synergy, this is an option worth exploring since partnering with existing businesses in a market will help a start-up forge relationships with both a supply chain and  potential customers.
When money is tight, entrepreneurs should explore cash saving ideas such as offering equity, or future work, or future discounts, or other benefits in kind to any business that can provide them with useful services. Examples include introduction to customers, advice, market research, book keeping & accountancy, manufacturing prototypes, provision of office space, use of specialist or expensive equipment, and many more ideas that are only limited by the entrepreneur’s imagination.
Recession or not, starting up a business is all about doing all you can to weight the odds in your favour.