Member Article

New Year, new dawn for your business?

For many business owners, the festive season is the only time they get when they aren’t chasing customers, dealing with staff or solving day to day issues. This short break was a chance to recharge the batteries, reflect on the hard work of the past year and think about what’s coming up in 2014.

As we look ahead to what the year might bring for business, Simon Green, Head of Business Support at Newcastle Science City, gives you his top ten tips to help businesses make the most of their growth potential in 2014. They’re all about increasing income or reducing costs, so can directly contribute to profitable growth and success.

Launch a new product

If you’ve got an established customer base of people who know you and like you, why not think about what else you could be selling to them? Ask your customers what their problems are and then think about how you could develop a product to solve them. It’s much easier to sell new products to a market you understand than to try to break into a new sector. If you’ve got a clever product idea, you could look to the local universities, GrowthAccelerator or the Business & IP Centre Newcastle for help with development.

Enter a new market

If you’ve got a good product that is selling well but your market is growing slowly, how about looking to new markets for the same product? You wouldn’t need to develop anything new, so you can turn leads into revenue quickly. The new market could be geographical (such as exporting for the first time) or parallel (such as selling a product designed for building cars into the aviation market). Either way, there’s support out there from UKTI, Enterprise Europe Network and Newcastle Science City.

Collaborate more

Being an entrepreneur doesn’t mean you have to plough a solitary furrow. Why not make a resolution in 2014 to collaborate more? Working with organisations in your supply chain or from other sectors can spark new ideas that you couldn’t implement on your own. There’s funding available through the Technology Strategy Board and European Commission that is specifically aimed at collaborative innovation projects.

Build your networks

Attending networking events is par for the course for an entrepreneur, but it isn’t always easy to find the time. It is vital to build your contacts as you never know what an informal conversation over coffee could bring to your business. There are lots of networking events across the region – it’s just a case of finding out what works best for you. Have a look at First Friday Newcastle, Informal Friday in Morpeth, the Mussel Club or Rise & Design as a start.

Reduce your outgoings

How long has it been since you reviewed your current service providers or negotiated on existing contracts? This can prove to be a simple but effective way of saving your business money without being too time intensive. For example, cutting down on your energy and waste might not be at the top of your ‘to do’ list but it can save your business money, whilst helping to create a positive company image. By ticking the ‘sustainability’ box you could also become eligible for tendering opportunities that might otherwise have slipped through the net. Organisations like Newcastle Science City and the Environmental Academy can help.

Don’t stop learning

Richard Branson recently wrote an article about the importance of embracing failure and learning from mistakes. Strive to learn more in 2014 both from your mistakes, but also from other people. Make the most of free seminars and events where you can hear from entrepreneurs who have been there and done it - you’ll be able to relate to their experiences because you’re treading the same path. Initiatives like the Experience Bank can also put you in touch with mentors to support you in growing your business and organisations like Design Network North can help bring your design thinking to bear.

Know what finance is available to you

It isn’t always easy to know where to turn to for access to finance but there are numerous schemes available in the region. These range from £5,000 to £500,000 and from helping you start a business right through to helping established businesses grow even more. Getting the right funding in place for new activity is crucial; the wrong type or amount of funding can undermine all your best efforts. There’s a comprehensive listing at www.nea2f.co.uk.

Protect your business ideas

The old view of business value being based on fixed assets (buildings and equipment) doesn’t work anymore. According to the Intellectual Property Office, the value of intellectual property in UK businesses is now greater than their fixed capital. This makes it more important than ever to protect your ideas. You can achieve this through keeping secrets, relying on copyright, filing for patents or design rights or filing trademarks. If you don’t understand enough about this area, there are free services available online and through local libraries, especially the Business & IP Centre at Newcastle City Library.

Review your supplier & employee contracts

The New Year is an opportunity to review things that have been in place within your business for some time. This includes payment and employment terms. You could find that, due to changes in demand for your products and services, you need to change your payment terms. It is also worth reviewing your employment terms and conditions to make sure that they reflect the current needs of your business.

Finally, but most importantly, find time for yourself

This is is the last tip on the list but it’s probably one of the most important and difficult to fulfil. Being the MD or CEO of a business means that you work hard and get very little time to do anything else. However, it is vital to set aside some time for you. This might be time to get your finances in order or get your filing done. It could just be time to think, reflect or let your creative ideas flow. Either way, set aside time to take a breath and reflect on your business.

If you focus on just a few of these tips over the coming year, next December you could be running a larger, more profitable and less risky business, which is good for you, your investors, employees and the North East as a whole.

This was posted in Bdaily's Members' News section by Newcastle Science City .