Focus on finance and acting local
Until two years ago, all participants in CREA’s Business Start-Up programme were eligible to apply for a start up grant of £1,000 as well as advice and training but such grants are now very limited.
“In most cases, a new business would succeed or fail with or without the grant,” confirmed John, “but I think new starters miss the focused planning and the tests and challenges on viability that were needed to qualify for the grant. Not everyone finds it easy to write a proper business plan but it does clarify thinking. All the CREA advisors still encourage anyone thinking of starting business to create a formal plan and I am particularly proud of developing templates to help people to do this. I know that CREA still use these and I hope that they continue to be useful in the future.”
John has seen plenty of change in business in his career but he says there are a few pieces of advice that are as relevant today as ever: “Never ignore a letter from the bank is one,” he said. “If you’ve got cash flow problems or issues with borrowings, it is no good sticking your head in the sand. Talk to an advisor, talk to your bank and get as much help and advice as you can to sort things out – the earlier the better.”
Over the years, Internet developments and marketing opportunities have changed drastically but again, John’s advice starts with common sense: “It’s no good setting up a website if you don’t use a computer, for a start! And new businesses should make the most of old-fashioned advertising on notice boards and in parish magazines before they invest too heavily in glossy print. I once advised a postal worker who left to start up a painting and decorating business. The only advertising he did was a small ad in his village magazine and after a couple of months he was inundated with enough work to last a year or more.”
Future sources of advice
John Peel’s work advising local businesses has been funded via Cumbria Vision and European funds in recent years as part of the East Cumbria Business Support programme. However, current funding runs out this summer and CREA is keen to attract future investment to enable at least some of the support services to continue.
Lynne Fox is the Business Support and Planning Manager responsible for the programme: “We are proud to have contributed to the high survival rates of new businesses in Cumbria,” she said. “I like to think that our package of practical support – counselling, start-up courses, networking with other business owners and specialist workshops – has made a difference. However, unless new funding becomes available to replace schemes that are now closing, we will only be able to offer limited support after the summer. We are very grateful to South Lakeland District Council which is enabling us to provide a business start-up support service in South Lakeland through to 2009 and we will continue to do what we can through information, signposting and workshops for start-ups in Eden and for existing businesses.”
Bob Clark is the Chief Executive of Cumbria Rural Enterprise Agency: “Small businesses are crucial to the economy of Cumbria and I know that our approach of tailoring a package of support has helped hundreds of people to start their businesses with confidence and to achieve success over the past 20 years. The low levels of unemployment in East Cumbria are testament to the success of our programmes over the years, and funders must build on what obviously works well, to enable us to continue helping the small businesses which drive the rural economy”.
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