- Small business advice
- How they started in business

We have all seen Dragon’s Den and some of the good (and not so good) ideas that people have to start a business and make money.

But is a good idea really enough – especially in the current economic climate where banks are still cautious on lending to anyone without cast-iron guarantees.

There are also concerns as to whether the entrepreneurs of tomorrow are being held back. According to a new report from Make Your Mark (the business backed national campaign to increase entrepreneurial behaviour amongst young people) budding entrepreneurs are being short-changed by parents insisting their talented and innovative offspring pursue ‘safer’ careers.

The report shows that of over 2,000 16-30 year olds questioned ,55% felt their entrepreneurial behaviour was discouraged by their elders; 41% said they would not approach a family member for advice when setting up a business and 56% of young people would turn to internet search engines as their first port of call ahead of friends and business contacts

Anecdotal evidence is that parents can have a huge positive impact on the success of an entrepreneur’s business, providing essential advice, support and even financial backing to their offspring.

And if proof where needed, look no further than Sir Richard Branson whose Virgin empire might not even be here today had it not been for his mother remortgaging the family home to help pay a settlement to the UK Customs & Excise back in 1971. There are other examples to of how small businesses can prosper when parents and their sons or daughters pull together. .

Clare Hastings’ daughter Calypso Rose is the founder of Clippykit, the personalisable accessory range that has become a must have for celebrities.

Supporting Calypso in her journey was not without its challenges, as Clare remembers: “We gave over our entire flat to Clippykit for two years, as Calypso’s dad also works from home this was a great sacrifice but it was worth it.

Despite some deals falling through, all the support and commitment eventually paid off with distribution to designer department stores and culminating in Calypso winning the young business person of the year at the London business awards.

Another success story is husband and wife team Beth and Ritch Goddard, founders of More! Productions a company that produces learning programmes and interactive events primarily with schools.

The business got off the ground in 2006 thanks to a loan from Beth’s dad, Steve and in 2009 it took on a new staff member - Steve! You could say that he was so impressed with the company, he joined it!

Beth insists the business is already benefiting from her dad’s more commercial approach and says More! Productions is planning to branch out.

But what about well-established small businesses, how are they coping in the current environment?

Peter Quinn Associates is an award-winning landscape architect based in Ross On Wye. Founder Peter Quinn believes the secret to success is to put the good years and bad years in context.

“Most areas of business go in cycles and it is important that you don’t get too carried away in the good years by growing too quickly and taking on too much debt. The benefits of a healthy balance sheet going into a tough economic period cannot be over-stated.”

He adds: “There are many good businesses that struggle not because the company provides an indifferent service but because it is administered badly. You have to learn to be fair but firm with clients who owe you money – a good client is one who not only works well with you but understands that the deadline process works both ways – if I fulfil my side of the bargain they should fulfil theirs.”

Top Tips for Young Entrepreneurs:

1. Even if the business fails you will have learnt a huge amount along the way which will help them in other careers and enterprises.

2. Don’t expect to make money overnight.

3. Be prepared to be in it for the long haul.

Top Tips for Small Businesses

1. Keep borrowings in check – aim for steady growth rather than world domination!

2. Grade your clients – no point having a big-name client if they take 12 months to pay you.

3. Stay on top of cash-flow – the lifeblood of your business.

4. Make sure you are going into a growing market not a declining one.

5. Don’t price too low – price up to the market. Don’t squeeze profits unnecessarily.

6. Customer must know the true value of your product. If you have diff features from rivals need to be spelled out.

7. Keep tight control of the purse strings but avoid false economies - for instance don’t try and build your own website if a designer can do much more professional job. How you look and how you are perceived can affect profitability.

8. ‘Stick to the knitting’ – branch out yes, but not into markets you don’t understand.