What are your thoughts? It’s true that the government is putting a great deal of emphasis on the private sector to help the struggling economy and that more and more people are becoming self-employed. However, what are the reasons behind this increase in self-employment? Is it more opportunities to get into business, the lack of jobs, the public sector cutbacks, working to later ages, increase in university fees putting off potential students, greater encouragement of the entrepreneurial spirit?

Another important question is how successful these new entrepreneurs actually are, as if their new venture fail the unemployment figures, and the economy as a whole, definitely won’t show any signs of improvement. So, how much support do new start ups actually get? How easy is it to access finance?

Here’s what Paper Mountain Solution’s MD, Paul Smalley, has to say about start ups: “In 2011 we saw the greatest number of new business starts (480k according to Barclays) with the number of self employed now representing the highest proportion against the whole working population for 75 years. We are certainly seeing a huge interest in the requirement for help amongst the start up community, which is one reason we launched StartUp Revolution. It is interesting that the government is looking to SMEs to get UK plc out of the doldrums, yet support is being cut! Is this where the private sector now steps in to provide assistance to start ups at a sensible cost against the heavily subsidised public support there used to be?”

We’d love to hear your thoughts and experiences about start ups in the UK. If you run your own business and are interested in finding out about the outsourcing services provided by the experts at Paper Mountain Solutions click here.

As we begin 2012, the economic outlook is somewhat mixed depending on which think tank, economist or business owner you talk to. If you are Robert Peston, however, the world is a very gloomy place and we are all doomed!

We can’t get away from the fact there is a level of uncertainty with the economy – just look at the eurozone. That saga will play into the hands of the Euro sceptics who are gleefully saying “I told you so”, but as just over 50% of UK trade is with the EU, the future of the Euro and the EU as a whole will have a direct impact on business here at home.

Looking at the current worldwide economy and the various impacts it can have on the UK is another breakfast meeting all together. So let’s look at the situation we find ourselves in at the moment.

The Government is forecasting the loss of 700,000 public sector jobs between 2011 and qtr 1 of 2017 in addition to the MOD positions that will also be lost. This does not even take into account the loss of private sector jobs – just look at what is happening on the high street with Blacks Leisure, Past Times, Peacocks to name just a few. Then there are established businesses who are culling large numbers of staff – look at Lloyds and RBS Group.

Despite these rather worrying looking statistics, the Government has stated that it wants private enterprise, and that includes new start up businesses to be the power house of the British economy to forge growth in the coming years. Not surprising when you consider that SMEs (or companies employing less than 250 people) account for approximately 60% of the workforce and 50% of GDP.

To this end the Government has set targets for getting NEETS (Not in Education Employment or Training) into self employment through the Enterprise Allowance Scheme, as opposed to collecting Job Seekers Allowance. It has also put its weight behind the Startup Britain Campaign that is currently promoting self employment to a much wider adult audience.

Such activity is backed up some Barclays statistics which has estimated that nearly 480,000 businesses were created in 2011, which is a record, with self employment now standing at the highest level relative to total working population for 75 years.

This confirms historic data that shows during recession and tough economic trading conditions, more people look to self employment/starting their own business than in boom years. So why would that be the case?

These days there are plenty of TV programmes that present the image that setting up your own business is an achievable prospect, and given the risks of being employed at the moment, setting up your own business now appears less risky than staying with an employer.

For example, I started my working life in Guernsey where the notion of being made redundant did not feature for me as I was building a career with a well respected international firm.

However, I left in 2001 to start building a career in London, but within six months was facing redundancy as the company I was working for decided to relocate to Cardiff – lovely city, but one hell of a commute from Colchester. Thankfully I walked into another job a couple of weeks after picking up my redundancy pay, only to watch the owners of that business beholden to the whims of the insurance syndicates who underwrote the insurance agency where I was the senior underwriter. For a couple of years I wondered whether there would be a job in January as the syndicates often left it until late on the 31st December before agreeing terms. They played hardball because they could.

In that situation it appeared risky to me to remain with that employer, as technically I faced redundancy from year to year, so decided to set up Paper Mountain Solutions with my business partner in 2004. Now times were quite good in 2004 and people thought we were mad to be starting a business – there were jobs to be had and I was fairly well paid with great prospects – why would I throw that away? It was all a perception of risk, one that we thought was worth taking.

Anyway I digress slightly, but I suppose it was relevant to the perception of risk. The increase in start up businesses in the market place will undoubtedly affect everyone in this room, whether directly or indirectly. Firstly let us look at professional services firms.

Despite the Government’s desire for the private sector to become a major part of the recovery of the economy, it seems odd that they would withdraw support from the likes of Business Link and Enterprise Agencies. Now people have strong opinions on Business Link and some were very pleased to see it go, but in its place are volunteer mentors, a call centre and online presence.

So it is to the professional service firms that we often see these new start up businesses turning as we provide the necessary support functions for what they need. But how will we cope with the increase in numbers?

- Create or strengthen the start up offering, or

- Develop strategic alliances to deliver the desired results

The former will be the more expensive option in a market place where new business owners are reluctant to part with hard cash, whereas the latter provides the best of both worlds where you maintain your core competencies, remain close to the start up to deliver fee earning work when they can afford it, yet work closely with partners to achieve mutual benefit.

Statistics show that a start up business that receives hands on support in the early months and years is much more likely to succeed. With practical guidance from professional services firms who have ‘been there and done it’, the risk of making those early mistakes can be reduced significantly and lead to a solid business from which to grow.

The media continue to be quick to point the finger at banks for not lending money, but more often than not no business case is made to warrant such lending. We can’t return to the laissez faire lending seen pre 2007.

Yet with the right support from a professional services firm, sound business plans with relevant assumptions can be drawn up to justify any request for finance. Armed with the information and knowledge that these new start ups have proactive experienced business support to help them achieve their desired goals on hand, should greatly improve their chance of securing that finance. Is that right bankers?

But what of those businesses who are not professional service firms – and are therefore perhaps in competition with new business enterprises?

We are seeing new entrants to the marketplace across all sectors, as people who have taken redundancy or been unemployed have decided they can do it on their own. They feel they can take on their old employers at their old game and do it better. Then again I felt like that when I was an underwriter.

In some cases you would have thought there were barriers to entry, yet the service sector has an uncanny knack of unlocking the global market to having anything made or produced anywhere in the world. Take printing for example; we heard last week in the news that Polestar was under threat in Colchester. I am aware of a number of firms who are print managers – essentially they find who can print the work for their client at the best possible price and commission that work accordingly, and Eastern Europe is a key destination for that kind of work – it is emailed over and then shipped back to the UK for onward distribution. The same is happening with manufacturing.

Existing players, though, have their own advantages; a historic view of the trading landscape and buyer preferences and trends; contacts and expertise through their time in business; experience about what works and what doesn’t. The survivors, or those that emerge from the current recession strongest will be those that meet their competition head on, understand the strengths and weaknesses of both positions and innovate to best advantage.

I started this talk about what the outlook was like for 2012, and from where I am standing it is looking pretty good. The majority of our clients finished ahead in 2011 compared with 2010, and some of those clients deal with the construction and catering industries. Our feeling is that there are some very good times ahead, and as every good optimist should believe, there are always opportunities out their to be explored, you just have to get out there and look for them.

Knowing when is the right time to recruit is, therefore, very difficult, especially in these uncertain economic times when revenues are changing dramatically for many businesses. I know a company who was due to interview for their first member of staff and the day before the interview lost one of their major contracts. In a way they were lucky it happened before they had taken on the employee, but it does show how decisions made one day can be forced to change another. Employing staff is a huge commitment, and businesses need to understand all aspects of the contract between themselves and the employee, and that includes how they can potentially dismiss them.

One solution is obviously to go down the freelancer route as in this scenario they are not your employee, but there are regulations protecting freelancers meaning that after they have worked for you for a certain period their rights change – in their favour. So long as you understand this when you take them on that’s fine, but it might turn out better to take on full time staff in the first place and enjoy the benefits, such as loyalty, that this brings. Another way of saving money is part-time staff. While your costs will be lower, you have to ask yourself if enough work will get done.

A good solution is to outsource certain tasks. Let someone else deal with all the HR and management issue related to staff and simply pay someone to do the job you require. No hassle, no stress, just a job done well by experts. Read the pros and cons of outsourcing right here.

Paper Mountain Solutions are the experts when it comes to outsourcing. They really can save you money, and you can find out more here. The team would be delighted to discuss how they can help your business.

Students loans, however, have been surrounded in controversy in recent years with students currently able to obtain loans of up to £9,000 a year to cover tuition fees and £7,675 for maintenance with lower interest rates then comparable loans. Many students are leaving higher education with thousands and thousands of pounds worth of debt which potentially takes them many years to pay off.

So, how would an entrepreneur’s loan work? What we don’t want is young people getting themselves into more debt that they potentially can’t pay off, but on the other hand with access to finance so difficult this may prove the only option for many looking to start up their own business. Provision of the loans will need to be carefully considered as will the terms of the loan. It is positive news that the government is considering alternative funding options aimed solely at the young, but we have to also ensure they have the support required to ensure their business succeeds and that they don’t simply end up further in debt.

Starting up a business? With bespoke outsourcing solutions available Paper Mountain Solutions is able to provide business owners with an outsourcing solution tailored to the specific needs of their business from telephone call handling to bookkeeping and credit control. Paper Mountain Solutions understands the needs of businesses looking to outsource and are happy to advise on how they can you. Get in touch today.

However, whatever the ages of today’s comany directors, one thing is clear, and that’s the continued growth of entrepreneurship in the UK. More companies were founded in 2010 than 2009 and the figures for 2011 are expected to grow again to over 385,000.

Interesting Facts
Average age of a new company director: 30

New directors: 75% male & 25% female

Most common name of female directors was Susan and for men David

China had the highest proportion of start-up businesses which are based in the UK

Paper Mountain Solutions offers a number of business solutions for new and existing businesses.

Outsourcing can be too constricting

In the past it is true that some companies found themselves tied up in long-term deals with outsourcing companies that ultimately proved uneconomical and unflexible for the business. However, this is a thing of the past, and today we see shorter contracts and flexible terms dictated by the customer that result in more productive, successful relationships. Early ‘get-out clauses’ are also common.

Outsourcing will alienate and disillusion staff

Quite often outsourcing is taken up by start up businesses not wishing to take on staff or lacking the required expertise, or within growing businesses for the same reasons. For existing businesses who choose to outsource it comes down to effective management and how the changes are presented to staff. For example, it might be a case of outsourcing day-to-day tasks to enable to staff to concentrate on new projects. So long as staff understand why some jobs are being outsourced and the benefit it will have on their working day then it should be a smooth transition.

Outsourcing will lead to a loss of control and flexibility

While this is an understandable concern, it can easily be resolved through setting up an adequate service level agreement from day one. This should give your business as much control as you desire, and if not then perhaps you have not yet found the best outsourcer for your business. In addition, it’s important to have a clear idea about what you do and don’t want the outsourcing company to look after. Remember you can always add roles over time rather than hand over everything all at once.

Outsourcing is all about cutting costs

Yes, saving money is important, but certainly not the only benefit (see here). There are many reasons why outsourcing may be the best route to growing your business, such as access to a larger pool of knowledge and giving time back to concentrate on developing your company.

To find out how Paper Mountain Solutions can help your business see our outsourcing solutions.

So why outsource? Well, in the words of Paul Smalley, Paper Mountain Solution’s MD, “It gives you access to a team of specialists that ordinarily a small business could not afford.”

So not only do you get an expert, from finance and admin to graphic designers and content writers, looking after your business, but the outsourcing company will also be employing that member of staff, meaning you don’t have to. In effect your business gains expert knowledge and saves money at the same time. An essential combination for any small business.

This is just the tip of the iceberg when it comes to outsourcing, and we recommend you read this article to find out more, but we will leave you with one final tip. How do you go about choosing the right outsourcing provider? You may need to interview several companies, as you would an employee, and ensure that you’re happy with the way that they work. For example, you will need regular reports on the work being outsourced and that they have adequate back-up procedures in place in the event of IT failure, staff leaving and so on.

Paper Mountain Solutions is different to most outsourcing businesses in that our team of bookkeepers, administrators, telephone handlers, web developers and graphic designers all work in our office. Our clients have enjoyed success through outsourcing, but what we would like to hear about your experiences and what advice you would offer others.

Of course, it depends on your area of expertise, but particularly in demand are those with software development skills, along with graphic designers, content writers and Internet marketing. There has also been a rise in demand for outsourced admin such as transcription and data entry.

Did you work as a freelancer before starting your business? Is this a route you would suggest to others thinking about setting up on their own? We’d love to hear your thoughts about the positives and negatives of working as a freelancer.

Paper Mountain Solutions understand the needs of businesses who want to outsource part of their workload and are happy to advise on how they can you. Visit www.papermountainsolutions.co.uk.

What’s interesting is the types of businesses these entrepreneurs are planning to open. There’s a very clear steretypical slant which may surprise many. Three of the most popular sectors are cleaning, beauty and hairdressing, while pet minders and cake makers also featured highly. However, as well as these the jobs of market traders and self-employed teachers and financial advisers were also popular.

While many of these seem like typical female roles, they are actually also a response to demand. For example, following the popularity of the BBC’s The Great British Bake Off programme an increase in demand for cakes led to a surge in cake businesses. Also, with more and more working mums there has been an inevitable increase in demand for cleaners.

Interestingly there has also been a sharp rise in some occupations normally the reserve of the public sector. The number of female entrepreneurs starting education consultancies rose 61%, and independent nursing businesses increased 46%.

It will be interesting to see what the figures are like for next year and also the types of businesses women choose to open. The sectors above reflect what the women we spoke to at the show were interested in. We wish them all luck, and remember Paper Mountain Solutions offers many products for new businesses.

Eight years later my working day changed beyond recognition when I became a freelancer and started working from home. All of a sudden I could make up my own hours and work where and when I liked. My employer didn’t mind, so long as I produced the work to the required quality and on time. I know some people say they would struggle to do this if they worked from home, but I have always had a very organised way of working. For me, now with two children, working from home gives me the flexibility I need and like. As always, so long as I get my work done it doesn’t matter if I decide to take a slightly longer lunch or get distracted by Facebook for ten minutes.

For me, therefore, it’s no surprise that this is they way the workplace is moving. It’s been a gradual shift for many years, which has been hastened by the arrival of smartphones and the greater ease of communication they bring, not to mention allowing some people to carry out their work wherever they like. Now many employers have come round to the advent of social media, and are happy for their staff to spend some time at work on the Internet or organising appointments, so long as their work gets done as well. Similarly, the growth of homeworkers is a result of better communications and a developed trust that the work will still get completed. It’s a two-way street and with both employer and employee understanding what is expected of each other and respecting this, then it’s possible for this increased freedom and flexibility at work. A happy employee and a happy employer makes for a productive workplace, and you can’t argue with that.

What are your views? Do you think this new of working is good for business?