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Starting a Business in the Recession.

Only for the brave?

There are numerous reasons for starting a business, and many very successful businesses have grown almost by accident. Whilst Richard Branson obviously had a major game-plan, who could have believed his Virgin empire would have grown out of school-boy trading?

Timing is crucial, but so are opportunities, brilliant ideas, hard work, great luck, natural ability, and of course good cashflow.

Whilst the current recession has its business casualties, it also creates great opportunities. How many civil servants and former Connaught employees have been biding their time to strike out on their own? Redundancy is a great catalyst to get budding entrepreneurs into harness.

And whilst the market may appear to be shrinking, houses must still be maintained, parcels must still be delivered, book keeping records and accounts must still be kept, websites built, roads dug up and re-surfaced, property traded, vehicles repaired and maintained. The list of potential opportunities is endless.

So what is required?

Firstly a pretty clear plan of what you are doing and why. Today this should take the form of a written business plan. Include your trading name and style of trading, a corporate aim, business values, and the reasoning behind your venture. Prove that you have carried out market research and that there is indeed a need for your type of operation. Include details about your own experience and skills, what you know about the competition, your proposed premises, marketing, staff, product sourcing, stock holding, and the risks associated with over/under stocking. Add some milestones, a list of advisors and partners, how you will finance things, and the all important review dates.

Reviews are vital because no business venture works according to plan. Some targets will be easy

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It seems strange that a brand consultant such as myself would tell everyone that brands are dying, but I genuinely believe that we are in the middle of a significant cultural change. The brands that miss these changes and don’t adapt accordingly may not be around in a few years. It’s that serious. Get a coffee and a biscuit and read this carefully. It could just be the catalyst that encourages you to relate to your customers in a totally different way.

Brands Make Us Scared

The essence of successful branding is based upon fear. All the advertising, inspirational slogans and celebrity campaigns are all designed to make us feel like something is lacking in our life. We are not quite the person that we’d really like to be because we don’t have that particular product and it’s that fear of inadequacy that drives many of our buying decisions. Of course you can go to TopShop and buy a handbag that look’s like a Birkin, but you’ll never be like Kate Moss if you don’t go to Hermès and buy the genuine £6000 version.

I remember chatting to a designer from Ralph Lauren when I was doing some work on Savile Row and during a particularly dull show in London Fashion Week I asked why they went to such great lengths to showcase £20,000 dresses. In my ignorance I couldn’t understand why they would go to all that trouble when you never see anyone wearing such flamboyant creations in real life. In retrospect, the answer was obvious. They didn’t expect to sell more than half a dozen dresses, but what they did expect to happen was that the ‘halo effect’ would come into play.

In order words, most people can’t afford Ralph Lauren wardrobes, but they can afford a piece of the brand in the form of a perfume. That’s where the money is. The halo effect is basically the process of organically promoting part of your brand, by showcasing something else that is so aspirational that it is out of reach to most of us. Ford

Music is a wonderful and powerful catalyst. It is funny how you can introduce some tunes into any situation and change things. Imagine how music affects you when you are enjoying a horror flick. You can always tell when something nasty or frightening is coming. The eerie music builds the tension in your muscles and gets your heart racing. Try viewing the same scene with no sound and the effect will decrease dramatically. As I said, music is powerful. One way I like to use music to my advantage is during workouts. Some jumpy, enthusiastic weight lifting or jogging music can really drive you to work harder and pick up the pace.

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