Small firms can show they’re super (From Gazette)

Small firms can show they’re super

10:08am Wednesday 20th February 2008 in Search By Vanessa Moon

Working for yourself is becoming a bit of a trend.

In the last year, 2,300 new businesses were established in the Colchester borough alone - 50 more than the previous year.

And early signs show this year could see another increase.

But how many of us budding entrepreneurs actually know what's involved in starting a new business?

"It's very easy to start up your own business and think everything will be fine, but it is about more than putting together a business plan," explained James Tucker, of Larking Gowen accountants, in Colchester.

Larking Gowen is one of three sponsors of Super Start, a new competition to give those thinking of starting a new business, or have set one up in the last few years, a kick start.

There will be two categories, taking into account brand new businesses, and businesses more than two years old.

As well as a cash prize of £2,000 to plough into the business, each of the two winners will receive hundreds of pounds-worth of free advice from Larking Gowen and the other sponsors, Fisher Jones Greenwood, solicitors in Colchester, and Barclays.

All entrants need to do is put together a business plan, which will be assessed by judges.

Six finalists will then have the chance to present their plans to a panel of judges - the sponsors, Gazette editor Irene Kettle, and Patrik Minder, owner of The Lemon Tree in Colchester and winner of the businessman of the year award at the Gazette's Colchester Business Awards, in a Dragon's Den-style finale.

Also present will be an audience of north Essex business people who may wish to invest in one of the finalist's ideas.

As Mr Tucker said, though, starting your own business involves more than a business plan - and that's where the sponsors come in.

In the panel above, they reveal common problems experienced by new businesses and the advice they will be giving to the winners.

The business team at Barclays, which is Super Start's third sponsor, deals with a wide range of size and type of businesses and said a robust business plan will stand start-ups in good stead.

As well as a business plan, researching the market, profit forecasting, and health and safety need to be considered.

A spokesman added: "We would talk to people about balancing the risk and ensuring people know they could be working long hours."

JUDGES REVEAL BENEFITS FOR THE WINNER

• James Tucker, of Larking Gowen accountancy firm based at Colchester Business Park, said there are several common pitfalls people stumble on when launching on their own.

"People might have a good idea but they will not necessarily have enough money to see it through," said Mr Tucker.

"It is also very easy to overlook the day-to-day administration.

"Book-keeping and VAT are all to easy to forget when building up a business, then people realise six months down the line they have a cashflow problem, or have not registered for VAT."

The winners of Super Start will get valuable advice on these issues and more, which is why the competition is worth entering, said Mr Tucker.

"It's an excellent platform for people to launch their business ideas."

• Tony Fisher, of Fisher Jones Greenwood solicitors, based at Severalls Business Park in Colchester, said those setting up on their own often do not understand the legalities involved.

"People are usually shocked at how complicated the world actually is.

"They do not realise the amount of regulation new businesses have to comply with and the pitfalls if they don't.

"For instance, if a business idea involves selling on the internet, most people do not realise there are regulations governing a cooling-off period. So, if customers want to return goods, they have to be refunded," he explained.

As a result, the winners of Super Start will receive legal advice on everything from employment contracts to advice on protecting intellectual property rights if someone is producing designs or materials.

"People entering the Super Start competition are not only winning the cash, but they are also saving money because they will get all this free advice.

"The winners will get a full range of professional services from the outset so they can make sure their businesses are run in accordance with regulations," he added.

MORE JOBS NEEDED

The east of England needs to create 14,000 jobs by 2021 to accommodate the rise in population and growth in housing development.

Bob Baggalley, chief executive of Colchester Business Enterprise Agency (Colbea), in George Williams Way, told the Gazette that 70 per cent of small businesses in the area are owner-managers and one-man-bands.

Colbea, which will run a new £2 million centre for start-up businesses at Colchester Business Park, said Colchester can never have too many businesses and encouraged anyone with a business idea to enter Super Start.

"You don't know how good you are until you try," he said.