Business ideas to start out – this can be difficult!
The times I have spoken to friends and colleagues who are looking for that new business idea to start a new business – oh what it would be to invent the next new widget, the next best thing.
Many people do get blocked with this and feel they need to come up with a completely new idea, which whilst this is probably the best way to make sure your business is totally unique, it is never guaranteed. Something new is just that and does not have a proven track record. The costs of market entry can also be very high, especially if you have invented something that needs to be manufactured. There are all the costs associated with patenting your idea, which is not cheap and then getting it made and then the marketing costs can be huge!
So the other way to look at starting a new business is to look at what is already successful and has a ready-made market already and start a business making or doing something that people are already doing.
You could also consider buying a business, which can save a lot of time and you know for sure this business works, as it is already selling whatever it makes.
I don’t want to take it away from you or dishearten you with this article, if you have a great business idea and want to start out with it, then there is not time like today – starting from scratch is hard, but it is possible and if you have a good idea combined with determination, then there is no reason why it shouldn’t work – look at Mr Dyson.
The election 2015 and my thoughts on how it will affect business.
I know the most of us are getting fed up with the amount of stuff on TV and in the papers, with the spin and bickering that goes on with it, does get a bit boring after a while. Having said that I wanted to share my thoughts on this with regards to the affects on business.
There is no doubt that the Conservatives have always been the business owners friend, as they tend to opt for lower taxes and better tax breaks for businesses, on the whole. For example, during their last term, they reduced Corporation Tax rates for both smaller businesses and for larger businesses, which for me was a welcome reduction and good for business. As another example, they have also given very generous Annual Investment Allowance for businesses too.
However, if you look back to the beginning of their time in office, they did increase VAT from 17.5% to 20%. This increase was justified, because at the time, the outgoing Labour Government had nearly bankrupted the country, so alongside cuts, this increased tax was expected and whichever party had got in this change would have happened.
If we look at Labour though, they see things from a different perspective and are ‘Worker Centric’ rather than the Conservatives ‘Business’s Centric’. This is a chicken and egg scenario, as one cannot work without the other, so who is more important, is it the business and the business owner or is it the employees within the business that are more important?
Well without the taking of the risk in the first place and the long days and hard work to set up a business from the outset, there would be no jobs. This is not to say that employees are less important, but instead highlights the importance of rewarding businesses owners for taking that risk, in order to create jobs, as without this there would be none. Also, by having better business tax breaks does create the opportunity for even more employment.
The anti-employment tax in my opinion is Employers National Insurance, which in Labour’s and Alistair Darling’s last Budget set an increase of 1% to 13.8% to come into effect in April 2011. This of course makes it that much more expensive to employ people, which is why I was disappointed in the Conservatives for not reversing the change before it came in.
However, if Labour win this time, there is a huge risk for business that National Insurance rates will increase yet again, as there is talk within their party of this very thing being called for by Labour members. Interestingly, the Conservatives have confirmed that they will bring in a law to say, there will be no increase in income tax rates, VAT or National Insurance in the next parliament.
The other alarming policy, which has only just been announced, is Labours policy on rent controls and land grabbing. This feels like communism to me and not something that should be seen in a modern democratic society. I like many business owners have a property portfolio and to have the government start setting controls on this really goes against the grain. The market should set the rents both good or bad, it didn’t work when they tried this in the 70’s, so don’t do it again.
Funnily enough, as I am writing this blog, Ed Milliband has just been on TV being ask a question by a voter about the amount of borrowing the previous Labour Government did and was he sorry. I was amazed at his answer, when he defended it by saying what they had spent it on. Usually, people learn from their mistakes, whereas in this case if they don’t see it as a mistake, there is no learning and they will likely do it again!
On balance, I think it is obvious that the Conservatives are the right vote for business, but also for the country and everyone else concerned.