Business Q&A

Carolyn Powell, the Bizfizz coach for Burslem and Middleport, answered our (frantic) start-up questions


What is the biggest mistake people make when starting a business?
There are probably two main areas of concern when people are starting a new business, the first one is whether they have researched the market sufficiently to establish why people will use their business – is there anything similar out there? – how is their product/service different to what already exists?

Any business must have a product or service which is tangibly different to what’s already on offer, otherwise they will struggle. There is a well worn expression which sums this up ‘There may be a gap in the market, but is there a market in the gap?’
The second area is when there are not sufficient funds put aside for marketing. There have been many very good businesses/products where all the money in setting up has gone on premises, equipment and stock and there is nothing left for marketing.
Without this crucial expense the business will struggle in the early days, this in turn causes cash flow problems and before the business has got going it’s already in difficulties.

There are many things which would-be entrepreneurs believe that they need, which in fact they can do without, or make do until the money starts coming in, it can of course depend on what type of business they are in, but largely this tends to be true of many.


How can I test my business idea?
Research, research, research... Going into business, in whatever field, you must research the market. With the benefit of the internet this has become much easier than it used to be – look at the competition: What are they doing? How are they doing it? What are they charging? How are they perceived by their customers? How do they market their business? What is their unique selling point? How will yours be different to theirs? What specific skills do they have?
You have to try to be objective in your outlook, this is not always easy, however with time and support this can be done.

Help! I’m drowning in paperwork and don’t know what to do! Nobody mentioned this when they said you should follow your dreams. What can I do?
Drowning in paperwork is a common difficulty for new businesses, much of it is getting into good habits from the very start, expressly making time for the tasks so that they do not build up and become overwhelming.
There are excellent support services out there particularly to help people with these issues – Voluntary Action in Hanley (Tel. 683030) will give good initial advice.