Boom Or Bust - Will your London Business Fail?
So, you want to start a new business? You’re not alone!
Each year, according to The Telegraph, 660,000 new companies are registered, which works out to about 70 per hour. However, it’s not all ‘beer and skittles’. About 20% of them will fail within a year, and 60% within 3 years.
But, zoom out a little, and you’ll see that the business population has increased 63% since the year 2000. Well, what does this mean?
Firstly, let’s put Brexit aside…at least for a few lines.
What it means, if you want to start a business, is that the overall trend, your chance of success, has been quite positive, if you do due diligence. However, recent headwinds mean that now is not the best time to have considered starting a business…at least since 2000.
Online Or High Street, Which Is Best?
Footfall traffic is down about 2 and a bit percent recently. This means that High Street stores are getting less customers through the doors. Now wonder, then, that chain, or high street stores are supposedly going to top 1000 this year, as opposed to about 900 in the previous 2 years.
And, it doesn’t take a genius to realise that online shopping is quite busy….provided you are found, and relevant. This stands to reason, since most people are living frantic lives, and have little spare time to browse. In addition, previous concerns about the quality of online goods received have become less of an issue in recent times, as businesses improve their products and service.
How To Survive Headwinds In Your Business
Well, we mentioned earlier, that Brexit is a subject for another time, and it still is. Let’s assume that Brexit never happened. How would a business succeed? Clearly, being a trustworthy online retailer is a must for any shopfront business. Gone are the days when you could just expect to make a killing through people passing your door. Now, you need to take the door to them.
So, if you already have a business, or are thinking of starting one, it is vital to have a clear online marketing strategy. London Businesses should, in fact, must, invest in a website that sells, and have the online marketing strategy to match.
Whilst it is true that rivalling Ebay, Amazon, or Ali Baba is not likely to occur anytime soon, to not have a creditable online presence is likely to ensure that your business will fail.
So, what type of online marketing strategy should you consider? Listing products on Ebay, or Amazon, is a good start. However, your brand is somewhat swallowed by the Ebay/Amazon brand. Still….it is a starting point.
Getting listed on popular London Business Directories is a must. Choose directories that have great numbers of visitors, and that are relevant to your products and brand.
Next, set aside a budget for your online marketing. How much? Well, that depends on how much you can afford, and how quickly you wish to achieve your goals. If you are patient, and are looking to dips your toes into the online marketplace, maybe set aside 10% of each sale. If you are less patient, increase that figure.
After this, workout how to distribute the funds into each avenue of Online Marketing. If your directory submissions allow, assign the rest of your budget to Search Engine Optimisation for your website.
There is nothing you can do about the ever decreasing high street foot traffic. Trends do, and will, often change. However, having a strategy that circumvents the need for foot traffic, such as using online marketing, can soften the blow of the vagaries of this problem.
So, what about Brexit? The simple answer is who knows!? However, whatever happens, it probably won’t be good for UK businesses. If there is a ‘no deal’ Brexit, things could be bad. A standard Brexit also will impact the local business, by entering hitherto uncharted territory. And, if the uncertainty continues, without an outcome, uncertainty almost always impacts businesses negatively.
Boom Or Bust…What’s Your Chances?
In all likelihood, without adequate direction and management, your business could well go Bust. However, if you plan for an excellent pathway forward, by effective management and goal setting, your business can still Boom.
If you are, however, going to start a new business, it may well be best to wait for the fallout of Brexit to settle. If you still intend to go ahead, tread cautiously, feel your way, and don’t over commit. We live in changing times, recognise the need to change with them. The result could well determine whether you Boom or Bust in 2020.