7 Questions To Ask When Considering Equity Finance For Your Business

Apr 1, ’12 6:20 PM

Author Lorraine Allman Categories Business Funding, Finance, Finance, find funding

Do you have a registered limited company?
For equity finance to work, you need to have a limited company (occasionally limited partnerships are acceptable), which then allows for the allocation of company shares to your external investors. If you are unsure about the advantages and disadvantages of moving from your current structure to that of a limited company, have a look at this resource and speak with a professional adviser.

Do you have an up-to-date business plan?
A business plan is essential if you’re planning on raising any kind of finance (venture, angel, bank etc.) and an up-to-date one including cash flow projections and other financials (see below) is essential.

Do you have up-to-date and detailed financial forecasts for your business over the next 3-5 years?
As part of your business plan you will definitely need detailed financial forecasts for your business over the next 3-5 years if you are serious about securing external investment. Investors will want to see exactly when they can expect a return on investment (normally within this time-frame) so if you can’t demonstrate that through your financials you may need to go back to the drawing board on your business model. As a starting point for putting these types of financials together, make sure the figures are backed up with solid, reliable research on projected growth of your company, future demand of your product/service, and current and future growth of your target market.

Do you have a clear idea as to what you will do with the money that will be invested in your business?
Sounds obvious but surprising how many businesses think it’ll be great to have £80k investment without a clear plan as to what the money will be spent on. Simply generalising that £x will be spent on ’marketing’ or ‘product development’ is not sufficient to reassure potential investors that you’re not going to just fritter their money away or pay yourself a big fat salary! Take time to focus and think strategically about where you want your business to be and how the money will help you move towards that goal. Always research your costings and put detail on your spending plans to demonstrate a thorough and professional approach to the business.

Does your management team have credible and relevant business experience including industry knowledge where applicable?
External investors such as Business Angels and Venture Capitalists will look at your management team to work out where the strengths and weaknesses lie and whether as a team you will be able to deliver the plans and grow the business. Even though you may feel your team has good all round business experience, you may want to think about ways to add credibility, complementary experiences, industry knowledge and networks to that team through for example the appointment of a Non-Executive Director.

The other area to consider is how you articulate the entrepreneurial skills and attitudes of your team. This will be of particular interest to external investors who will always want to know more about the people who are going to be delivering the business plan.

Do you have a clear exit strategy for your business?
Venture Capitalists in particular are keen on clear exit strategies within a specific time frame. They usually look to invest in high-growth companies with a clear growth and/or exit strategy such as sale or IPO. If you are still unclear about your exit strategy then Business Angels may be a better option to explore however it is worthwhile spending time thinking about where you see the business in 3-5 years’ time, possible exit routes and what needs to be in place to achieve any of these.

Do you have experience of ‘pitching’ your business to investors?
‘Pitching’ to investors is something anyone who is seriously considering equity finance is going to have to get to grips with. I’d be lying if I said it was a piece of cake, but if you are passionate about your business, and have a solid business plan behind you then you’re halfway there. You may be put off pitching by some of the experiences you have seen on programmes such as Dragon’s Den but these are not necessarily a true reflection of live pitching, rather selective snippets of ‘reality TV’ combined with a certain amount of ‘entertainment value’. There are some excellent resources available to support and inspire you as you prepare to pitch and of course a business mentor or coach will be able to provide some short-term support in this area too.

If you’ve worked through the answers to these questions and feel that securing equity investment in your business is not for you, take time to evaluate alternatives such as the increasingly popular Crowdfunding. I’ve written more about this on an earlier post.

Disclaimer
Anyone considering Equity Finance should be aware that there are many complex legal and regulatory issues relating to raising finance in this way and professional advice should always be sought. Please be aware that content here does not constitute specific legal or business advice nor should it be taken as such and you are strongly advised to consult an appropriate professional adviser before making any decisions and/or financial commitments.

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It’s SME Jim, but not as we know it…

Mar 1, ’12 8:24 PM

Author Lorraine Allman Categories Business Infographics, Economy, Micro Business, SOHO/SMB/SME/Micro, Small Business / SOHO, Small Business Support

We all know how important small and micro-businesses are to the economy so it’s great to find some neat little INFOGRAPHICS which enable us to see at a glance some basic facts and figures about the number and characteristics of small and micro-enterprises across the UK.

There are, however, a number of areas of concern I have with this kind of information:

Firstly, much of the data has been sourced from the Department of Business, Innovation, and Skills – the same government department which simply refuses (at least at the moment) to recognise the separateness of micro-enterprises from the all-encompassing term ‘SME’ which includes companies employing up to 250 staff and turnover in the millions. In fact for bank lending purposes under Project Merlin four major high street banks define SMEs with a turnover anywhere between £15m-£25m per year. I wonder where small and micro-enterprises feature in that definition?

Secondly, the estimated number of micro-enterprises in the UK in 2010 was 4.33 million followed by a statement that of these 4.33 million, 3.3 million employ no-one. Unless I’ve missed something obvious here surely those 3.3 million micro-enterprises/sole traders are by their very definition making not taking a job and if that were not the case then our unemployment figures would be even more shocking than they are. Yes, I understand that encouraging more businesses to take on employees is important but at least first recognise and support the brave step those 3.3 million (and growing) have already taken to make a job for themselves.

I know that many small and micro-enterprises in the UK and beyond are simply getting on with the job in hand – running their businesses, trying to make a living. Yet life could and should be so much better for them – a life where they can make a move from just surviving to thriving, a life where a support infrastructure recognises micro-business and gives proportionate allocation of areas such as government funding and a good package of support particularly at the start-up stage. This kind of recognition and infrastructure isn’t just achievable it is absolutely necessary to ensure the best possible outcomes for the economy and society as a whole.

Whilst we’re waiting and campaigning for this to happen there are a couple of things you could be doing…

The next time someone mentions in conversation the term SME, ask them what exactly they mean by it – are they referring to Small and Medium sized Enterprises or to the ‘engine room of the economy’ – Small and Micro Enterprises.
If you agree with what I’m saying here (or even if you don’t and want to debate it) rock on over to Enterprise Rockers – a voluntary organisation committed to making life in micro-enterprise better and fairer. You’ll be joining a happy band of people who believe micro-enterprise really Rocks and instead of complaining we’re getting off our seats and doing something for ourselves. I’ll see you there!

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Competitive strategies for small business

Feb 15, ’12 10:29 AM

Author Lorraine Allman Categories Customer Service, Small Business / SOHO, Small Business / SOHO

The danger of trying to undercut competitors. How can we add value in different areas?

This was a question posed on Twitter last week and my immediate response was: “Don’t compromise & undercut competitors, offer something special/better in areas such as customer service, added extras…”

My thinking behind this reply was that all too often we focus on price as a way to compete yet this can be a disastrous strategy for small business operating within already tiny margins. If you are in an industry competing with big business, it’s essential to find and build on competitive alternatives. This may be in areas I mentioned in my Twitter response such as customer service and those ‘added extras’ which big business are just, well, too big to offer. So, here are some ideas to get you started.

Your flexible friend – the thing about big companies is that decision making is often a laborious process, going through layer upon layer of staff before action can be taken. If there is a change in the market then you as owner of the business can act immediately, taking decisions quickly and efficiently. You can adapt your business plan at a moment’s notice – a business plan should NEVER be set in stone after all. Use the flexibility you’ve been given as a small business to try new ways of doing things, whether that’s online, offline, using technology etc. While big businesses are still talking about ideas you can be out there putting them into action.

Collaborate – I’ve written an earlier blog about collaboration so I will just reiterate the importance of building alliances with other small businesses offering complementary products/services as an effective way to compete with bigger companies. If you want to go for a big contract but are missing an essential element (e.g. design) go and find a company who can and are willing to provide that service as part of the winning contract.

The power of plenty – this is a wonderful phrase I’ve borrowed from the UK Enterprise Rockers movement. Small businesses joining together can secure cost reductions in overheads and every day purchases through for example group purchases, marketing costs e.g. sharing exhibition space and much more.

Customer Proximity– chances are as a small business you know your customers by name and/or face or are at least getting to know them. How many big companies can say that? You can offer continuity of customer care throughout their buying experience, tailoring the service to what best meets their needs. You have the flexibility to follow up on that purchase and incentivise loyalty and are far closer to understanding their needs and wants than many of your larger competitors.

Differentiate – take a look at your larger competitors and think about where the gaps are in what they’re offering. Often logistical and/or financial issues mean it just isn’t worth a bigger business offering particular products on a small scale even though they may meet customer needs, however as a small business it may well be worth your while producing them so just because your competitor isn’t offering them, doesn’t mean you shouldn’t.

Online – many small businesses have a web site now but chances are they’re not making the most of that online presence to connect with their customers. Be clear about your brand and present that consistently and professionally online. There is no reason why anyone has to know that you’re just a one or three person band provided you deliver on what you’re offering. Most large companies are using social media (e.g. Twitter, Facebook) to engage with customers and you can do the same, again provided you are consistent and genuinely have a two-way communication with them, so there is a far more level playing field online when it comes to securing customers.

Be social – not social in terms of having a chat (although that’s always a good way to engage with customers) but through offering social incentives for customers to buy from you. There are many ‘shop local’ initiatives taking place and if your business operates in a growing and thriving local community then getting involved in charitable events e.g.advertising, sponsorship, donations and working with other small businesses to offer each other’s customers loyalty discounts can be a great way to build your customer base.

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Collaborate to Accumulate

Jan 26, ’12 9:57 AM

Author Lorraine Allman Categories Entrepreneur, Small Business / SOHO, Small Business / SOHO, grow your business

There’s no denying times are tough for small business. Competition for customers is fierce, overhead costs are rising, and although there is much talk of ‘going global’ the reality is for many small enterprises the costs of breaking in to new markets are often prohibitive.

Yet there is a way for small business to remain competitive, increase capacity, enter new markets and secure new customers with expansion costs being kept to a minimum – collaborate. In its’ simplest form, collaboration involves two or more people working together with a common goal to improve their position. In many cases this will involve sharing knowledge and planning how best to use the joint resources (client lists, technology, networks, investments etc.) to achieve the goal or goals for each party.

Technological developments means your list of potential collaborative partners no longer needs to be restricted geographically, so the opportunity to share the development costs of entering new markets, taking on larger clients, and securing new customers is open for all to take. There are also plenty of ‘tools’ available to assist your collaborative efforts from the simplest of email and telephone, to web conferencing and the increasingly popular document & calendar sharing, social media, and web forums. The majority of these tools cost little or no money to use so the ‘barriers to entry’ for collaborative working are minimal.

My own company actively works in this way with a number of projects on the go with different collaborative partners, some over 300 miles away! We speak regularly, have plans mapped out (Gantt charts can be useful for time sensitive tasks and identifying responsibilities), keep an eye on shared costs, and are clear about what we each want to achieve from the collaborative effort.

Tips for a successful collaboration

Think carefully about your collaborative partner(s). They may be a company you already have a relationship with, in which case consider whether a collaborative project would enhance or be detrimental to that, but if not then take the time to research who might be suitable. Some basic ‘due diligence’ in terms of trading history, previous successful collaborations, and general reputation is a good idea.

Consider how the collaboration may be viewed by significant others in your business e.g. customers, suppliers, shareholders if appropriate. If there is any question that this approach will not be positively viewed, have a re-think.

Be clear and put in writing the objectives of the collaboration, who is responsible for what and when, costs and how these are shared (who pays for what), and crucially be clear about ownership of Intellectual Property.

Be clear from the start about what you want from the collaboration in terms of furthering your own business objectives and make sure that these are complimentary (they don’t have to be the same) to the company you are partnering with. The whole point of collaboration is to achieve a very specific quantifiable goal (e.g. secure a public sector contract, increase client numbers) rather than just a general mutually agreeable relationship with no clear focus.

I’m a keen advocate of collaborative working and have been doing this myself for many years. I’m not, however, saying you should just hop in to bed with the next business that comes along! Collaboration for collaboration’s sake is unlikely to be successful, but you may be surprised where opportunities arise. Keep an open mind as to whom you could partner with, including those you currently view as competitors, to achieve greater recognition and success.

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Crowdfunding – could it work for your business?

Jan 18, ’12 7:21 PM

Author Lorraine Allman Categories Business Funding, Business Startup, Finance, Finance, Micro Business, Small Business / SOHO, find funding

Crowdfunding is becoming an increasingly popular method for small businesses and social ventures to raise much needed funds. The map below gives you some idea of the scale of growth in Crowdfunding over recent years. Interestingly, the same source indicates that 46% of all UK Crowdfunding platforms were launched in 2011 alone, so with the growth in such sites I wanted to write about the ups and downs of Crowdfunding from a small business perspective.

What exactly is Crowdfunding?
The idea behind crowdfunding is a relatively simple one. You have a business idea or want to grow your business but need money to make this happen. Visit your chosen crowdfunding platform, create your pitch, set your financial target, and promote your project to anyone online or offline who you think might want to invest in it, for example family, friends, clients, suppliers, twitter followers, linkedin (you get the idea). You offer rewards (traditional Crowdfunding) or a share of equity/revenue (commercial Crowdfunding) in return for the investment. When you reach your target, you get your money and get delivering on all those promises.

Sounds simple enough! So once your project has been listed you sit back and let the money roll in?
Alas, nothing could be further from the truth. In fact if you haven’t already been building your profile and marketing to your target audience before you post you’re going to have to work flat out to raise the funds you need. The onus is very much on YOU to promote your project and get the investors in. At the time of writing this blog 31 projects, that’s 67% of those listed currently on the commercial Crowdfunding site Crowdcube® have 10% funding or less (many at 0%). Looking at some of the successes on the site it’s not difficult to spot the more established companies securing their investment fairly quickly (Kammerling’s £180k; The Rushmore Group Ltd £1m). I’m not saying they didn’t have to work to secure their investment but a more established brand is likely to have a head-start.

How much does it cost to post a project?
At the current time the majority of sites don’t charge to list your project, but do take a fee when projects reach their investment target. The average seems to be around 5% of the target achieved.

What do I have to offer in return?
Different sites have different rules so be clear about this before deciding whether to part with equity or offer rewards. Rewards (or ‘perks’ as they are called on some sites) could be anything relevant to your project such as free tickets to a show to an acknowledgement on a website or free/discounted products depending on how much is pledged. Crowdcube® require you to release equity in return for pledges so you’ll need to make sure you have the right company structure for this and think carefully about how much equity you’re prepared to offer. Most sites have an area where you can interact with investors and let them know how plans are progressing.

The art of pitching
Creating a memorable pitch (usually in video format) is a crucial part of the Crowdfunding process and it’s probably true to say many small businesses don’t have spare video footage hanging around that can be used. Even if you did, you need to know how to make your video appealing to potential investors and get your message across in a very short space of time.

You have to remember that whilst the Crowdfunding websites are providing a platform for you, that is all they are doing. It is YOU who has to put the work in to promote it, market it and reach your intended audience. You’ll be competing against plenty of other businesses so creating a compelling pitch, sometimes in less than a minute, can be a real challenge. It’s worthwhile looking at the different sites and watching the videos of those projects who have secured 100% funding to get some ideas for your pitch. It may even be worth having a chat with one or two of them to find out just how much work they put in ‘behind the scenes’ to reach their target.

Dribble Delights – an example of a small business Crowdfunding
I caught up recently with Cheryl Ryder owner of Dribble Delights who currently has her project posted on Bloom VC a site which allows you to ‘make a promise’ to investors in return for their money. I asked her about her Crowdfunding experience so far.

Cheryl’s idea for a range of dairy-free foods for babies and toddlers stemmed from her own experiences as a Mum of a now 3 children, all of whom are dairy-intolerant. She became exasperated at the lack of choice on the shelves when it came to party food and treats in particular. She entered the company into The Pitch 2011 competition with just an idea and became one of five finalists in the Scottish heat. This spurred her on to take the idea forward but as is often the case, funds were needed to turn it into a reality. Enter Crowdfunding.

“It seemed like a good idea” said Cheryl “we had nothing to lose and everything to gain by trying to raise funds this way”. Although Dribble Delights have not yet reached their target funding (they have 30 days left but have so far secured just 3% of their target £7300), Cheryl is keen to point out what a positive experience it has been for them and the value of using the Crowdfunding platform to get their message out there.

“If anyone enters Crowdfunding simply to get money then they’re fools” said Cheryl. “It’s a bonus if you get your money but the exposure and opportunity it presents is priceless. We’ve had amazing coverage and recognising we’re operating in a very niche market, but being able to reach that, ask questions and effectively test out what we’re doing has been incredibly helpful”.

Cheryl isn’t put off even if they don’t raise their funds in the next month, but feels that the most successful projects are those who have been working on building their market well in advance of posting their project and already have a following.

Making your ideas public
I asked Cheryl whether she had any concerns about drawing attention to her business idea before it was off the ground in case somebody came along and copied it. As her company was already very much in the public domain having been a finalist in The Pitch 2011 it wasn’t really an issue, but for others it could be so you have to balance whether the exposure with potential financial return balances out or outweighs the possible risk of someone with deeper pockets taking your idea and turning it into reality before you have chance to.

Here’s my summary of the ups and downs of Crowdfunding for small business:

Some good reasons to choose Crowdfunding:

More straightforward (and less expensive) to raise finance than through Business Angels/VC
An alternative to bank finance which is difficult for small business to secure
Free PR for your business – gets your message out there
Positive endorsement from potential clients
Builds future buyers database

Some things to think about:

Waiting time to know if you’ve raised sufficient funds to go ahead
Lack of good contacts, networks and mentoring that normally comes with external investment
Risk of failure to gain investment
Multiple investors to communicate with
Risk of idea being copied

It’s up to you to decide whether its right for your business but it should certainly be given serious consideration.

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8 Top Tips for Start-Ups

Jan 11, ’12 8:09 PM

Author Lorraine Allman Categories Business Startup, Micro Business, Small Business / SOHO, Start-Up, Start-Up, start-up in business, start-up in business

January is perhaps unsurprisingly one of the busiest months of the year to start up a business, yet the statistics on survival rates continue to make shocking news. For example in 2010 297,000 UK businesses went bust, equivalent to more than 1,170 every working day. Further research shows that less than 50% of companies established in 2005 were still trading at the close of 2009. (source)

So what measures can you put in place to avoid being a negative statistic, giving your business a better chance of doing more than just surviving?

Do your research Yes, I know it sounds boring but researching at least the basics about your market (e.g. trends, scale), target groups (where they spend their money and time), and competitors is essential to inform the rest of your business plan.

How are you helping the market? For most businesses to succeed you need to have a pretty clear idea about what problem your business is providing a solution for and/or what need you are meeting. If you’re thinking of entering an already busy market, consider how you’re going to differentiate your business from competitors. What are you going to do that’s better?

Keep listening and talking to customers This sounds obvious but it’s surprising particularly during the early years how we can be so focused on getting the business off the ground, learning the ropes and managing day-to-day that we forget the most basic of requirements for a successful business to listen to and talk with your customers. Create an authentic and meaningful relationship with them to engender loyalty and make sure you’re meeting their often changing needs.

Don’t take everything on yourself Easy to do in the early days when money is often scarce, but take a long, hard, and honest look at your skillset and time available. Consider outsourcing anything you’re not so good at. Doing your accounts is an obvious one (particularly if you’re Limited company) but help with administration or sales could be equally valuable. Ensure your network of colleagues complements your own skills and knowledge and don’t forget to keep an eye out for collaborative opportunities with complementary businesses – so much more can be achieved with a collaborative effort

Avoid starting with debt Being under-capitalised is one of the key reasons why businesses can fail. If your cash flow is poor to start with you could face an uphill struggle making the figures stack up. If you’ve done the figures and are short of money to start up take a look at some of the alternative funding sources such as crowdfunding (I’ll be writing a blog about this very soon) or even for small amounts your local credit union.

Find a mentor Many new initiatives that have started in the last year encouraging start-ups and existing businesses to find and benefit from a mentor. Some of these are volunteers and others charge a fee. Recent evidence suggests 70% of mentored small businesses survive longer than 5 years (double the number of non-mentored enterprises) so finding a mentor or coach isn’t really an option anymore, it’s essential.

Consider finding a Non-Executive Director This option isn’t for everyone however if you have genuine aspirations to grow your company quickly but need investment and skills to do that, you may want to consider finding an Investing Non-Exec. Once the domain of large corporations, an increasing number of start-ups are now choosing this route to add credibility to their management team as well as much needed funds and contacts. You can read more about this with some case studies here.

Test-trade or work 5-9 Thousands of people right now are holding down full-time jobs whilst starting a business of their own. They do this by working what is commonly referred to as the ‘5-9’ shift although in reality of course the hours are much longer! Test trading in a small way and/or working 5-9 can be an excellent way to find out a) whether you’re suited to being self-employed (it really isn’t for everyone despite what you may hear others say!) and b) help you determine basic information such as whether there really is a market for your business and if so how much people will be prepared to pay for your product/service.

Whatever your situation and whatever you decide to do, I wish you every success in 2012 and beyond.

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Mirror Mirror on the wall…’tis the season to reflect

Dec 6, ’11 12:00 PM

Author Lorraine Allman Categories Business Checklists, Business Ideas, Business Startup, Entrepreneur, Entrepreneur, Micro Business, Self-employed, Small Business / SOHO, Small Business / SOHO

I have often been quoted as saying you need more than just a good idea to get a business off the ground. I’m sure over the festive season many people taking a rest from work will be hearing the cogs whizzing as they take some time out to ponder on a new business idea, and wondering if 2012 will be the year it all takes off.

I read an interesting and slightly amusing article the other day written by Jason Hesse concerning where entrepreneurs get their ‘big ideas’ from. A survey showed nearly half of British entrepreneurs come up with their business idea in bed, so I have a feeling over Christmas many new business ideas will be born for those fortunate enough to have a lie in or two.

Now I don’t want to be accused of “Bah, Humbug!” so I’m not going to start listing all the things required to accompany these ‘big ideas’ and spoil your ‘Eureka!’ moment. Instead, my advice is to go and talk to those people already in business. They will tell you the reality about what’s required not only to get your business idea off the ground but to survive and thrive.

If you’re one of those businesses up and running, then you’ll know how important it is to take time to work ‘on’ your business, reflecting on what’s going well and areas of the business (and yourself) you need to prioritise to make 2012 a better year.

Here are some areas to focus and reflect on:

Business Plans – What were your plans for 2011 – did you achieve/exceed them? What made a difference? What are your plans for 2012 – will you achieve them on your own or would some collaboration/partners/employees help?

Market trends – What’s happening in your target market? Future trends? Are your target groups changing? Where will they be spending their time/money in 2012?

Competitors – What are they doing? How are they doing it? New competitors on the horizon?

Accounting systems – Are they working for you, could they be improved? Are they effective in helping you manage/predict cash flow?

Mentoring/Coaching – how are you developing yourself as well as your business? Are there skills you’re going to need for future plans? Who do you talk business with?

I’m sure there are other areas specific to your business, but this is a start. Talking of start, everything detailed above is also relevant to those of you dreaming up those big ideas in bed this month too (so I guess I did manage to sneak a list in!). There is plenty to be thinking about.

Whether you’re spending Christmas in bed dreaming up your new business, or sat at the computer on Boxing Day trying to work out the online self-assessment system, have a wonderful time and don’t forget when your mirror asks the question “Who is the greatest of them all?” you know the answer!

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The mindset of small business

Nov 29, ’11 9:53 PM

Author Lorraine Allman Categories Business Infographics, Business Psychology, Micro Business, Small Business / SOHO, Small Business / SOHO

I recently came across a couple of interesting INFOGRAPHICS relating to small and micro-enterprises in the UK and USA which I would like to share with you. The first is from the UK based on research from Smarta – the DNA of Sole Traders. In a nutshell it says that UK sole traders are ‘motivated by freedom; are web-savvy but use a spread sheet to do their accounts; go to bed late, don’t have a pension and don’t like the government’.

DNA of a Sole Trader

The second is the US ‘Small Business Happiness Index’ indicating that 77% of micro-businesses are happy or extremely happy that they work for themselves; have more customers than they did at the start of the year; welcome expert advice on a whole range of business issues and rely heavily on referrals as the most effective marketing tactic.

Given the economic climate world-wide and the lack of support generally for micro-enterprises (by this I mean businesses employing 0-10 people, including sole traders) it’s a wonder we’re not all shutting up shop and yet the number of new business start-ups continues to grow. In the face of adversity, feeling the pressure of economic downturns, established small businesses are clinging on and making the best of what they have, and it would appear remaining optimistic and positive about working for themselves.

Later this week, the Enterprise Rockers web site re-launches with a brand new look and clear mission – to make life better and fairer for micro-enterprises. For this to succeed, the positivity and energy of small business needs to be channelled into supporting each other through inter-trading, improving the quality and value of essential services, and finding a united voice which stands out loud and clear that micro-businesses matter, that micro-businesses make a positive difference to our communities, our economies, and to the general wellbeing of our countries. The tenacity, resilience, perseverance, flexibility and absolute self-belief in what they are doing make micro-business a force to be reckoned with.

There is much to be learnt from the mindset of small business – isn’t it time to start listening?

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Business Awards – you have to be in them to win them

Nov 22, ’11 10:41 AM

Author Lorraine Allman Categories Marketing/PR, Small Business / SOHO

The last few months has seen a flurry of activity on the Business Awards scene – from Start-ups to Growth business, from Social entrepreneurs to Mumpreneurs there are so many opportunities to get your business noticed by entering a competition, being shortlisted, and potentially winning an award.

The big questions is, when there’s already so much to do in a day just running your business, is it really worth your time and effort applying? As I’ve already said there are many different competitions out there from local and regional awards to national events so the first thing to do is think carefully about which one has the ‘best fit’ for your business. For example, it might be nice to receive an award in recognition of you as a Mumpreneur, but if what you want to promote is the uniqueness of your products then going for an award such as “Made in Britain” may suit better. Equally, if you want to be known as an innovative business then applying for ‘Innovator’ awards may give you the focus you want.

There’s no denying it takes time and effort to apply for a competition so if you’ve missed the recent run of awards but are wondering whether to have a go next year, here are 10 potential benefits for you and your business:

Raise the profile of your business on a regional or national level
Use the application process as an opportunity to reflect on what your business is all about and clearly articulate your USP
Revisit your business plan and map out your business metrics (how you measure success).
Work on your business rather than in it by stepping back to look at achievements, areas for improvement, assessing how market trends and target markets may have changed
Profile the expertise within your business to potential investors and clients
Acknowledge the work of your team
Gain significant PR and marketing opportunities for your business
Gain a competitive edge over your rivals
Give your confidence a boost
Become a business that is in demand

Even if you’re not short-listed you will benefit from having spent some time working ‘on’ your business and you can use that knowledge to plan future strategies, identify weak areas and think about how you can make improvements ready for the next round of awards.

The majority are of competitions are free to enter but always check in case administration fees are applied. Aside from all the reasons listed above, if you win an award you will usually benefit from a superb prize package which may include a cash prize, mentoring, free PR and much more. So what are you waiting for?

For help in making the right impression with your competition application, click here for top competition tips.

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Life’s a Pitch and then they buy

Nov 15, ’11 8:09 PM

Author Lorraine Allman Categories Entrepreneur, Relationships, Sales, Self-employed, Small Business / SOHO, be successful, market and sell

As a small business you know that every communication counts. When speaking with customers, suppliers, investors, competitors, or peers, the way in which you present yourself and your business will have a lasting impact on whether or not they do business with you, or in the case of competitors treat you as a genuine threat or potential collaborator.

Thinking of your business communications as ‘pitching’ may for some appear a little salesy yet there is nothing further from the truth. Pitching in this sense is simply about understanding, developing, and effectively communicating your authentic ‘personal brand’. It really doesn’t matter how many times you’ve won an award for excellence or how many features and benefits your product/service has, decision makers want to know about the person behind the business and will normally be influenced in their decision making by what they think of you rather than your business. I am reminded of a quote by Malcolm Levene who recently said “Being in demand for your services…is a direct response to how you behave and express yourself to others. These days that’s what counts”. I think Malcolm is right and that engaging authentically with the customer or supplier, getting your ideas and passion across is far more likely to lead them to the next stage of buying or supplying.

If you’d like some tips and ideas to improve your pitching skills, take a look at the series of short videos from Paul Boross (aka The Pitch Doctor) on his You Tube channel. His message is simple – “You are the message, You are the Product, You are the Pitch”.

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