What do these companies have in common? – Netflix, Airbnb, Microsoft and Disney?
The answer is, they were all founded during times of recession… In these strange days that have been caused by the COVID-19 pandemic maybe its time to think about your next steps, and whether the time is right to go out there on your own and build the business you have always dreamed of.
I have noticed a sudden surge of startups being formed, and enquiries coming in about how to set up the financial structure for a new business, so maybe the time is right…
In times of instability, it may seem counter intuitive to think about launching something new, but below are some of the reasons why now could be the best time to take the plunge:
Many companies are struggling or have gone under completely, market saturation and competition is therefore lower – it’s time to fill those gaps
If you’ve lost your job, or have reduced hours you now have precious time on your hands. The biggest factor that stops people going out on their own is the comfort factor of a stable job. Take this away, and all of a sudden, it’s time to start afresh.
Costs are generally lower during a recession; it’s a good time to negotiate and get preferential deals on goods or rent and equipment.
Companies during recession are extremely cost aware and look to reevaluate their business, including their supply chain. Startups by their nature have a low-cost base. If you can offer a good product or service at a more reasonable price, then your business can take off.
There are lots of good people in the market, if you need help with starting your business, reach out, and see who wants to partner up?
Companies that start during, and can survive a recession are efficient, and have a well-planned cost base, these are the companies that will fly when times return to normal.
How do you go about starting a business?
Below are some of the most important aspects that you need to consider…
Start with a plan – I’m an accountant we like things to be organized, and set out properly. However, also recognize, that you do not always need to stick rigidly to the plan as a startup needs to be agile and roll with the punches. Make a business plan, and then take time to evaluate it now and again to see if its working, or if it needs some tweaks along the way.
Look after your cashflow and your finances properly – Cashflow is the most important thing when it comes to startups, lose control of it and you’re setting yourself up to fail. I have worked with many companies that started 12 – 24 months ago who didn’t start out with a proper financial system. Fast-forward to today, and they have no idea how much their business is making, they are still making payments from personal bank accounts, and are basically in the dark when it comes to performance evaluation. Every one of them wishes that they had organized themselves properly from the beginning. If finance is not your thing, get yourself some help to start on the right path from the outset.
Understand your niche in the market – You need to have a unique selling proposition if you are to succeed. If you don’t fully get why you and what you provide is better than anything else out there in the market, then don’t expect anyone else to buy it from you. Once you have a clear idea of what it is that makes you great, practice how you convey this. From the elevator pitch to the formal presentation, make sure your potential customers get the message loud and clear. For us, the USP that we have focused on is our personal touch. We discovered that accounting in Dubai can be a very dry and impersonal landscape, and we wanted to change that. We are small enough that we can maintain that personal touch and our customers believe that we care, and will always do our best for them and their businesses. Our motto is “Camden Hill – bookkeeping and accounting with a human touch”
Listen to your customers – Understand exactly what service they want, and give it to them. Don’t be afraid to adapt - if your killer offer is proving a bit slow, but an ancillary offer is flying, change it up, focus on what your customer wants, and you’re well on your way. At Camden Hill, we have done just that, when we started out, we discovered that often our packages were too rigid to fit exactly what our customers wanted. We have since added a bespoke service that enables us to tailor our offering exactly to our client’s needs. Recently, we have also found that there is a new breed of freelance and e-commerce customers wanting to speak to us, so again we are working on new offerings which will fit these customers perfectly. Never be afraid to adapt.
Focus on value not cost – Time and time again you will come up against a customer who is fixated on your cost, and wants everything for the lowest possible price. Come up with strategies that highlight the value of your offering (the positives) rather than the cost (the perceived negatives) and all of a sudden, these conversations and pitches get easier. Value can be as little as a clear explanation as to why your services can make your customers business so much easier, or it can be the added service and customer attention that your competitors don’t offer. Whatever it is, define it and make sure your customers understand what you can do for them, rather than what you are selling to them.
How can Camden Hill help?
We’re the numbers experts, we’re small enough that each of our clients is personal to us, and we can help you get on the right track. We have standard bookkeeping packages designed for businesses at different stages of their evolution, or you can talk to us and we can build a service that is bespoke to you.
We can make sure you’re VAT compliant and advise you on the best accounting system for your business needs. There are many different systems out there, and it can be sometimes confusing as to which one to choose, we know them all and are here to help.
We can be your virtual finance manager. When you’re just starting out, you often won’t have the funds to spend on a full-time finance manager to help you make the right decisions to move the business forward. We have the experience to help you set up properly, develop proper accounting policies and procedures, and navigate the complicated world of TAX and audit.
We’ve set up accounting systems and look after the bookkeeping for all sorts of businesses, import / export, freelancers / consultants, e-commerce and more. Let us take care of the financials, so that you can focus on what makes you and your business great.
Is now, the time to start your own business? It could very well be…
If you would like to know more, please email me: jo@camdenhill.co.uk
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