Why a downturn does not have to signal doom and gloom for business start-ups.
For businesses starting up, or already operating, the current economic climate is unsettling to say the least.
In the ‘food to go’ industry my business operates in, it’s not only the recession that gives cause for concern, but also the rising commodity prices that have become the norm.
In addition, the minimum wage has increased each of the three years we’ve been trading, amounting to an increase in our annual wage bill of around £4k.
When we opened three years ago it was virtually impossible to find a decent high-street location with an affordable rent [...] Now there are some fantastic retail premises available
Added to that, statutory holiday allowance has also increased. It currently stands at 4.8 weeks per year, and is rising to 5.6 (four extra days per employee) on 1 April.
The marketplace is most definitely not a bed of roses if you're running a cafe, coffee shop or sandwich shop.
But that doesn’t mean that a start-up can’t do well in the next 12 months and beyond.
In fact, there are some very real business opportunities for small businesses and start-ups to capitalise on.
Business premises
When we opened three years ago it was virtually impossible to find a decent high-street location with an affordable rent and landlord willing to accept an unproven business tenant.
Now times have really changed and there are some fantastic retail premises available.
The key is to strike a hard bargin when it comes to rent, rent-free periods and lease terms.
Use the opportunity to gain a foothold in a high-street location that would otherwise be out of your reach, and make sure the deal you strike has the longevity to make your business future safe and secure.
Recruitment
Often, the recruitment process is a lengthy and draining one, as it’s very difficult to find high quality, reliable staff, especially for part-time, minimum wage positions.
However, in the current economic climate the pool from which you recruit has grown in size and the quality of candidates has increased.
New businesses should be able to make the most of this improvement.
