Starting Up a Successful Business
Posted on 23. Oct, 2010 by editor in Business Advice, Business News
Roger Galbraith, area director for Lloyds TSB Commercial in East Midlands and Lincolnshire, considers the steps that should be taken when starting out on a new business venture, and suggests that times of economic uncertainty shouldn’t necessarily deter new start-ups.
Turning good ideas and passions into a successful business during a period of economic uncertainty might appear daunting, but those who start up in challenging times are likely to be more frugal, tougher and ready for all situations.
Start-ups have a far higher chance of succeeding if their owners have taken the time to prepare for both the good and bad times. Identifying risks early on and developing strategies to eliminate or reduce them will increase the likelihood of success.
Those who have travelled the start up road before will tell you that there are essential things every new business needs; a solid business plan, cash flow forecasts and general guidance about the pitfalls they may face in the first year of business.
Developing a robust business plan is essential. The business plan needs to clearly articulate your understanding of the market and strategy for overcoming potential challenges. Besides being a great way of capturing long-term objectives and financial estimates, a business plan can be used to prove the viability of an idea to prospective lenders and investors.
When it comes to getting the all-important working capital to cover start up costs, working closely with your banking partner and advisory network is crucial.
There are some great free resources in the East Midlands – such as your local Business Link – and a wealth of support and guidance is available from a good banking partner such as Lloyds TSB Commercial.
We place emphasis on an approach where our locally based managers can help you shape business plans, offer guidance on how to manage cash flow and, where possible, work with you to anticipate issues which could hamper growth.
We’re committed to providing funding for small businesses and entrepreneurs and we’re one of the most active participants in the Government’s Enterprise Finance Guarantee (EFG) scheme. Lloyds Banking Group (LBG) has offered 3,660 loans totalling over £260 million of finance being made available to UK SMEs. LBG accounts for 30 per cent of the total number of EFG loans offered across all participating lenders.
In the East Midlands and Lincolnshire alone we’ve offered 270 EFG loans totalling £20.78 million since the launch of the scheme in January 2009.
We can also provide funding under an agreement with the European Investment Bank (EIB). Funds of £250 million have been made available to Lloyds TSB through the EIB, enabling firms to obtain a standard fixed or base rate loan with a 0.80 per cent interest rate discount.
As part of the initiative, SMEs can borrow up to €12.5 million to fund a project made up of tangible and intangible elements either in the UK or the EU within three years of the finance being made available.
New businesses banking with Lloyds TSB Commercial will get their first 18 months day-to-day banking free – as well as free Sage business planning software to help develop and forecast their businesses, and preferential offers on Sage accountancy software. Customers can then be assured that every penny they make will go towards building a successful business.
It is not easy being small, but there are big advantages. The reward for the hard work is the flexibility and creativity of being your own boss and the satisfaction of enjoying what you do.
For more information please call in to your local branch and speak to one of our business managers or visit www.lloydstsb.com/business
