The 40 Schoolboy Errors Made by Startups
This article is 100% gold dust for teachers and students covering the business startup process (AQA BUSS1 in particular)...
read more...»9 business survival tips for getting through the recession
Businesses were not short of advice - good, bad and downright daft - for getting through the recession. This piece in the Telegraph had some pretty sensible suggestions for what entrepreneurs and managers needed to do…
read more...»Strategy in a recession - Fusion Systems
A terrific article and audio interview clip on the BBC site that makes a great resource for business students preparing for AQA BUSS4 (UK Recession)...
read more...»Source of finance - SMEs turn to the private alternatives to banks
A fascinating piece of research on the sources of finance used by small businesses has hit my desk this morning. Great materials for Edexcel/AQA GCSE Unit and for AQA BUSS2 - the textbooks look even more outdated now!
read more...»Product, pricing and profitability in a changing market
In an article in the Business Section of the Sunday Times, Rachel Bridge looked at the vital importance of getting the marketing mix right for businesses struggling to survive the downturn in demand during the recession. The focus is on product, pricing and profitability in the changing market place. One point, that tends to get forgotten in market research, is the value of talking to those who are not currently customers as well as those who are. There are some excellent examples in the article, from a jeweller who introduced a new, cheaper range in order to allow customers attracted into her shop to find something affordable rather than leave empty-handed, to a couple running a pet and house minding business which has launched a “business in a box” to enable people to set up on their own just like they had. For a one-off fee of £6,995 plus VAT they supply a manual, a website, two days of training and the right to set up a similar business in a specified region.
The article concludes with some key lessons for reviewing the marketing mix:
- Consider introducing a cheaper range to appeal to more cost-conscious customers but make sure it does not damage the image of your business.
- Be wary of marking down prices of existing products to attract customers. Once lowered, prices are very difficult to put back up.
- Don’t continue to sell products or services purely for sentimental reasons. If they are not in demand, or they don’t make a profit, ditch them.
- Get a clean sheet of paper and write down the ideal product range for the market you are serving. Then work out how to adjust your range to mirror this.
- Don’t make decisions in isolation — ask your customers what they think of your product range and what they would like to see more of.
- Work out the profitability of your products. It may no longer be enough to justify stocking them.
- Review the way you sell your products and services. Can they be ordered or delivered online? Is selling them wholesale still the best way, for example, or should you be trying to build a brand of your own?
Primary v Secondary Market Research for a Startup
A very useful article on Startup Donut examines the differences between primary and secondary market research for a start-up. Ideal for everyone preparing for BUSS1 and similar exams in Jan + great for Edexcel & AQA GCSE Unit 1. Well worth a read - here
Offshoring and Small Businesses
An interesting piece of market research has landed on my desk today from ICM which reports on a survey of small businesses in the UK during November 2009. It looks at whether SME’s are already getting involved with, or are contemplating, offshoring (a new part of BUSS3)
read more...»How small businesses can compete - attack is the best form of defence
I like this article, published today on the excellent SMEWeb…
read more...»Beating the import threat - luxury furniture
I came across this super short case study in the FT (Oct 09) which is a great example to use to illustrate one strategy of dealing with cheap imports….
read more...»Coffee – and sausage rolls – still a huge hit on the High Street
A nice case study that we’re all familiar with, just by checking out our local high street. One isn’t a surprise in the current climate: the booming business of Greggs the baker. But I am surprised by the other trend. I was convinced that the froth on the coffee bubble would be blown away by the recession, but so far I’m wrong. Coffee shops continue to spring up across the land.
read more...»Brompton Bicycles - Guardian Profile
Terrific news for Edexcel Unit 4a students - the Guardian has a feature article today looking at the growth and strategy of Brompton Bicycles. Its a really useful article which focuses on the added value that Brompton provide to its growing customer base. Some great examples in too there on the role and benefits of staff training, the challenges of retail distribution and on production capacity.
There’s a great quote too from the Managing Director:
“Our patent ran out nine years ago, and if we were making this bike in Taiwan, staff turnover would mean that knowledge would be lost. Years of love have gone into our staff,”
School for Santas
Here is a great example of skills training to meet a seasonal need, which was reported on the BBC website yesterday . A visit to santaschool.co.uk will enable you to register for one of the latest training courses.
Run in association with Dumfries and Galloway Council, Stuart Thompson is, for the second year running, offering a training course which has a very specific objective - to ensure delivery of unforgettable, quality experience to children of all ages. The training at Mabie Farm Park near Dumfries aims to help people take on the role in places like shopping centres and children’s parties and the website says that the training syllabus includes the History of Santa, voice training, costumes, make-up, roleplay etc. They also take bookings for personal home visits and reindeer hire - and the website is very carefully worded to ensure that the integrity of ‘the one and only Santa’ is maintained.
It is a spin-off of a business called Heatherbank Promotions which is an Entertainment Agency for Parties & Events, and strikes me as a great example of entrepreneurial product development!
The Decline of the Pub
If you’re a bit older, you reflect more on big (but slow) changes that have taken place in your lifetime. One huge transformation is the British High Street – a topic under much discussion during the current recession. Yes, small independent retailers have been hurt and much is said about the decline of the Post Office. But one huge change is the steep decline of the local pub. Sounds like a good opportunity to use SWOT and PEST analysis to try and understand some of the reasons behind this trend.
read more...»Entrepreneur takes advantage of the postal strike
As the turkeys at the Royal Mail officially vote for Christmas, entrepreneurs are quick off the mark spotting opportunities to build a business from the Royal Mail’s dissatisfied customers. Here is a terrific video which is packed full of full with key business studies terms - even though it only lasts just over a minute!
read more...»Startups and Small Businesses in Numbers
Some fantastic statistics on the UK’s small business sector has been made available by the Federation of Small Businesses…
read more...»Teaching Activity on Startups - Mini Briefs
This teaching resource went down a storm when we introduced it to our colleagues offering AQA BUSS1 and at the Business Booster CPD days this month! So we thought we’d share it with the wider tutor2u business teacher community…
read more...»V-Water - from start up to exit
The market space for enhanced water is getting crowded! Sales of ‘smoothies’ are down by more than fifty per cent this year but the volume of enhanced water bottles being bought is proving more resilient to the recession. And the growing amount of shelf space in the supermarket aisles given over to the likes of Firefly, Vitamin-Water, Just-Juice, Vitsmart and V-Water is testimony to the high margins these products generate. Chris Coleridge, co-Founder of V-Water gave a relaxed, entertaining and thoughtful presentation on the growth of his business to the Eton College Entrepreneurship Society on Thursday night. A large audience - fortified by a generous sample of the six flavoured drinks on offer - grilled Mr Coleridge on his business after he had taken time out to explode five myths about start-ups.
read more...»Ever tried milking a camel?
For a different story of a new business start-up try this radio interview with Europe’s first camel farmer in Holland. The milk is already widely used in Africa and India, and is believed to have curative properties for diabetes and possibly for a wide range of bowel conditions, and apparently tastes little different to cows’ milk. If you use this in the classroom you might want to use the following questions for discussion:
Why are camels much harder to keep than cows?
What benefits do the farmer and the dutch government hope that the milk may have as a USP?
What hurdles did the farmer have to overcome in setting up the business?
What markets should the farmer target and why?
Great TV for Business Studies Alert - Hotel Rescue
A new series featuring Ruth Watson begins tonight on Channel 4. Hotel Rescue sees Ruth run a management bootcamp for six under-performing hotels. The six projects require serious work. From a run-down 32-bedroom hotel in Blackpool to a couple attempting to create a boutique B&B in Margate and proprietors with no hospitality experience, Ruth has her work cut out. it should be packed full with useful insights for Business students at all levels - particularly relating to customer service, marketing, financial planning, people management, quality and other aspects of operations. Highly recommended.
Are you one of the growing number of “5-9ers”?
Homeworking guru Emma Jones is writing ‘Working 5 to 9 - how to start a business in your spare time’ - the book will cover the rising trend of people working a day job and building a business at nights and weekends. There’ll be 50 stories of successful 5 to 9’ers and Emma would be delighted to include a tutor2u user!. If you have a day job and are tutoring in your spare time, please let us know if you’d be interested in the profile opportunity.
Born in the Storm - 4 Start-ups One Year On
A year ago, BBC Newsnight Scotland profiled four fledgling start-ups where the entrepreneur concerned had decided to launch a business in the eye of the financial storm. How have they got on?
read more...»Icing on the cake for entrepreneurs
This niche market is growing at 50% per year and is attracting dozens of business start-ups in the UK…
read more...»Patent Theft threatens enterprising inventors
An item covered by BBC news on TV and radio yesterday morning may be useful when covering protections of ideas and inventions for start-up businesses and entrepreneurs. Trevor Baylis, who invented the wind-up radio among other things and often features as a classic entrepreneur-inventor in business text books, is calling for Government action to help British inventors defend their ideas from rivals who try to steal them.
Third Age Entrepreneurs drive start-up successes
A research report from Nesta has highlighted the importance of older people in enterprise activity in the UK. Entrepreneurs aged 50-65 years created 27 per cent of successful start up companies in the UK between 2001 and 2005, according to the research which has just been released (somewhat late?).
read more...»Video case study: battling for survival in the restaurant trade
The consumer downturn has hit the UK restaurant trade particularly badly and record numbers of establishments are failing according to data for the first half of 2009. In the battle to survive, restaurant owners are taking risks by diversifying into the cafe trade and also looking to boost demand through aggresive sales promotion. This BBC video highlights the attempts of one restaurant entrepreneur to stay in business.
Download student worksheet (including video link)
AQA AS - Unit 1 - Starting a business - The BMX Box
His Lordship has just returned from his Summer recess and on his return discovered a most excellent resource.
This article appeared in my local newspaper that covers large chunks of the new specification.
Former welder, Lee Southern has turned his back on a twenty year welding career to setup the ‘BMX Box’. Lee said that “My previous job took me all over Europe, but after 20 years I had just had enough. I decided it was time to focus my attention on something I enjoy, and for me enjoyment means biking.”
3 months in and sales have exceeded all expectations so well done to Lee.
Yes, there are thousands of articles around covering this topic, but what I like about this one is that BMX’s are actually something that Year 12 students can relate to. It also covers key topics such as motives for setting up a business, sales forecasting and budgets, gaps in the maket, government support as well as market research (his idea was backed up by the number of BMX’s on his drive from his children’s friends’). All in all, an excellent summary article.
Enjoy!
(You could also show the students the opening scenes from 80’s classic, BMX Bandits starring a very young, Nicole Kidman.)
A Small Business - three new radio programmes from BBC Radio 4
A quick heads up on a short series of 30 minute radio programmes from Radio 4 which have just started airing. In A Small Business, Liz Barclay visits a series of small business owners to discover how they started, how they are coping in the downturn and how they address other issues of running an SME (e.g. family succession).
A chance to listen again and note the broadcast timings for the remaining programmes here
Picking from a growing pool of job hunters
Despite evidence that the worst of the current global recession may be behind us, unemployment will continue to ratchet up for some time to come. It remains a lagging indicator of the economic cycle. The economic and social costs of mass unemployment are impossible to deny although hard to measure accurately. For some employers looking to recruit new workers, the growing pool of unemployed workers does provide - on the surface - an opportunity to hire well-skilled and motivated people often desperate for a fresh chance in work. Chris Tighe focused on employers in the North East in this revealing article in the Financial Times.
“More than 9,000 people in the North East are seeking work as sales assistants, it said, but only 191 such jobs have been advertised. Morrisons, the supermarket operator, has just reported an “amazing response” at its new Wallsend store in north Tyneside: more than 900 people applied for 35 posts….........At Manchester Airport, where an advertisement posted online for just two weeks in February for four places on its graduate training scheme produced almost 2,000 applications.”
The high and rising ratio of applicants to unfilled vacancies should give businesses the scope to find the right people and perhaps unearth some gems who might rise through the business in the years to come. But although the pool of workers is high, businesses must also face the challenge and considerable cost of screening each application. Few smaller businesses have the luxury of being able to employ human resources personnel. Hiring recruitment companies can be expensive. Often the best new employees fall into your lap because of their vigorous approach to job hunting and an ability to keep their nose to the ground to spot what might be the right job for them.
Business angels take flight - just when small businesses need them
An interesting article from Andrew Stone this morning in the Sunday Times highlights the growing funding problems faced by small business who are looking for external investment by business angels…
read more...»Small businesses waiting for the upturn
The ten small businesses which are being followed by the BBC month-by-month throughout 2009 are remaining defiantly optimistic, with most of them reporting confidence ‘marks out of ten’ at the same level as May, and three of them more optimistic this month. Many seem to benefit from being in a niche market with very specialised products meaning they can really focus on their customers. They talk of expanding sales and taking on more staff, and some increased interest in UK products and producers. The hotel on the Isle of Wight is benefitting from sterling’s weakness this year causing an increase in holidays in the UK.
Several have changed their cost structures and looked for ways to strengthen their cash flow, for example by reducing reliance on credit for payments, and are hanging on and managing to break even while they hope for increased business in the near future, and there are concerns about how they will cope when interest rates rise again. There is still difficulty for those businesses which are related to the housing market, as solicitors or suppliers of joinery, and the most consistent worries remain those related to finance – lack of credit from the banks, lack of mortgages available to potential buyers, and poor credit ratings given to any relatively new small business regardless of their history.
