Ok, so we all know about the credit crunch, I mean how many times are they going to keep using that 3D arrow on BBC News at 10? The sooner they stop using it the better I think we’ll start to feel. But the real question is, and this is one the government are still trying to figure themselves (with no luck I might add), what does this actually mean for each and every one of us, our daily lives and our futures, job wise?
Well I’ll let you in on a little secret, as if you didn’t know. Prices will go up, they are now, but I mean, really up, really really up. It’s inevitable, labour can’t prevent it, the conservatives want to use it as a reason to suck our blood once again, and the rest of the world is bracing [edited version] itself.
So for us it means we have to start thinking for ourselves and not waiting for the government to wave its fake wizard of Oz wrist at the situation. Listen, I know what happens at the higher government levels does affect us, but the time scale between their intervention and our rescue is so far apart that you’ll have better luck getting married, not talking for 25 years and meeting up on your Silver anniversary to find out if it’s still on.
So thinking for ourselves means one of two things. Firstly think back, way back, to when mommy and daddy stopped telling you what time to come in and what to do with that person you was dating but they thought were waste. The point here is, there are things you’re going to have to do to survive this new decade that the government isn’t going to spoon feed you. You will have to start going to the library, online (thank you btw) and whatever other sources you can find. Knowledge is power, it really is. Read, read a lot. I used to hate reading when I was younger, I get it now believe me. One book I recommend which will get you started somewhat is ‘Rich Dad, Poor Dad’ by Robert T. Kiyosaki. On your own, from there you are, young apprentice.
Start thinking about your money, how you earn it, how your money works for you now and how you can use it to its greatest advantage. One thing you can do, and really, it doesn’t matter if your on minimum wage with only £50 spare each month, is go seek the help of a financial advisor. Just so you know I’m not chatting rubbish, I’m actually studying my CEFA right now to be a financial advisor with a local law firm, one of many talents. A few things financial advisors do, as well as offer assistance with people looking to invest their money, is help you become more tax efficient. Most of us just prod along not even thinking that there is money out there that we’re actually owed, or that there is a way to make sure that we actually keep as much of our hard earned cash as we can.
Let me give you an example. In April 2005 Somerfield Group's turnover was £4.676 billion. Profit was £60.9 million before tax. They call in a few ‘friends’ to help them out and due to a tax credit it was £62.9 million after tax. Ok, so this is an extreme example, but the only time a fuzzy wuzzy example hit home was when I last read the tortoise and the hare. Obviously if your just a Joe the plumber (remember him?) then you’re not going to see these returns, but I can probably guarantee most of you that you can increase your tax efficiency further than you could imagine.
The second thing you can do, and this is most relevant for people who are thinking of starting their own business (or already have and don’t want end up going back to that desk next to ‘that dude’ who calls you dude), is do your research and continue doing it even after your set up. Don’t become complacent. You’ve heard of the business cycle right? Well let’s think of things to come as going through a business drag race. In order to stay ahead of the game you’re going to have to become inventive with your marketing strategies, utilise existing business models and also look outside the box as well. All at the same time.
The reality also is that funding and money is the most common worry for most people who want to expand their careers. There are plenty of organisations that can help you get funding either as a start up company or to help expand your current business. Now then, because there are different organisations out there, you have to make sure that you get the best advice that’s relevant to your specific needs. And the only way to do that? Ask the right questions, which also means, do your research.
Ok, a real life example. I’m also starting my own business (I really don’t have a life). Commercial music Productions and Solutions Company that also does Music Interaction Therapy with disabled and disadvantaged children. The first thing I did (after spending months and months researching and putting together my initial business plan) was contact a few different organisations to get the ball rolling and see what real help they could offer. These included the Princes Trust, the Bright Ideas Company, East London Small Business Centre and the Arts Council. They each offer different kinds of assistance, funding and grants. The most useful for me were the Princes Trust and the ELSBC. They helped a lot with my business plan and pointing me in the right direction and you also get the assistance of a mentor, which comes in handy if you’re a lonely freelancer (wink wink). Give it a go, see how far your rabbit hole goes.
Also get yourself out there. There are loads of seminars at universities and other venues where successful business men and women give talks and presentations. These can be very useful if the prospect of starting your own business in this current economic climate is daunting. You do have to remember a few things. The economy needs new businesses to grow and create new jobs and new forms of revenue. When you hear on the news that the government is borrowing more money to help stimulate the economy and provide public services, wake up, some of this money is being pumped into new business and start ups just like the one your thinking of starting. So get going, if you don’t, someone else will benefit. My brother went to a seminar the other night at Brunel University. One of the speakers was the youngest member of the UK’s 100 most influential black people’s list, he was only 21. I was going to go, but I went to 'Fabric' instead, I’m waste, I know. The point is, one piece of advice this young man (I forget his name, apologies) gave was, instead of registering your company LTD, go through the CIC channels. They have certain conditions you have to adhere to, but it is worth it because it makes it easier in the long run for your company to obtain funding from government organisations that support the growth of small businesses.
I hope you found this useful. If you want to find out more information about any of the things I have spoken about then go through the websites listed below. Infact, go through them anyway (even if you got bored of reading and skipped to the end) and then tell each of your friends about this blog. You never know, they might thank you for it!
http://www.moneysavingexpert.com/
http://blog.moneysavingexpert.com/
http://www.cicregulator.gov.uk/
http://www.princes-trust.org.uk/
http://www.artscouncil.org.uk/
http://www.goeast.org/
http://www.brightideastrust.com/dev/index.htm
http://www.richdad.com/
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