Britain may have been rocked by the worst recession in decades in 2009, but budding entrepreneurs have been starting up new businesses at record rates.
Figures from the British Bankers Association show that the total number of new business accounts opened this year is set to exceed the total for 2008. Almost 430,000 new businesses began trading in the nine months to September. By this measure, and with the monthly average exceeding 47,000, it will mean that last year’s 525,000 total is passed.
But it has not been plain sailing, with tough trading conditions prompting a rise in closures. Barclays estimates closures are up 2pc on 2008, although this is lower than expected.
The challenging conditions are reflected in the fortunes of some of the companies that have featured in the Starting Out column during the year.
UR in the Paper
Rebecca Philipson set up her personalised newspaper company in 2005 after hearing her grandfather reminisce how he used to buy them from a kiosk on Blackpool pier. To start with she produced a generic newspaper but soon struck deals with a host of local newspapers to produce personalised versions of their titles. This year the company agreed licensing deals with football clubs to supply personalised football shirts, photographs and gifts.
It was a gamble that has paid off, says Ms Philipson. “It launched in the summer and this Christmas it’s been absolutely phenomenal,” she says.
It’s been a welcome turnaround in fortunes for the Stanhope, County Durham-based company. “The beginning of the year was very tough for everyone. We felt it like everyone else. We had suppliers who were going bust,” says Ms Philipson. “People were tightening their belts. And the summer is always hard for gift companies as people don’t buy them. We were probably a bit down before Christmas. But this has definitely been a fantastic Christmas for us.”
She adds: “It’s been very much hard work this year. We extended the day by two hours and most people have done four hours. It’s been a long slog but it’s definitely worth it.”
www.inthepaper.co.uk
Alderney Angling
Mark Harding moved to Alderney, one of the smallest Channel Islands, in 2004. After settling in, he spotted that the local fishing tackle shop was up for sale and snapped it up. Working with his girlfriend, Fieona Cosheril, he built up the business, moving the shop from a side street onto the main high street in St Anne and diversifying into shore guides and angling lessons. Last year they redeveloped the flat above their shop to act as a B&B, which is run by Ms Cosheril. This year was all about marketing the tackle shop and B&B. The plan has worked well. Mr Harding says sales are up between 20pc and 25pc for the year. “We had bookings all the way through to last weekend [on the B&B],” he says. “We have got quite an empty book for next year, but what usually happens is that the old man’s fishing holiday comes after everything else if there’s any money left.”
He’s relaxed about trading in 2010. “I would be more worried if the bookings were not there come February. I’m sure the business will come. I don’t think it’ll be great but it will be OK.” The plan for 2010 is to expand the business further. An online shopping facility and the purchase of a second shop on the harbour front will mean hiring their first staff. “We do need some help. If we get another 20pc lift next year we will not cope,” says Mr Harding.
www.alderneyangling.com
Clippy
Personalised see-through plastic bag maker ClippyKit became Clippy London since featuring in The Sunday Telegraph in February. The move marked founder Calypso Rose’s plan to take her venture from bags, wallets and umbrellas into a fashion brand. Since setting up the business in 2004, Ms Rose has built up a diverse fan base, from famous actresses such as Helena Bonham Carter and Thandie Newton to teenage girls using Clippy- branded stationery. This year, however, provided a bit of a reality check. “When we hit February, looking back at the Christmas before we realised we really had to pick up sales,” says Ms Rose. “It’s meant more focus on sales this year, getting on the phone, ringing people.” The effort has paid off. While the London-based company’s sales at 250-odd independent shops have been flat at best, Ms Rose has struck distribution deals with new partners that should pay off next year. “I have looked at Japan and went a couple of months ago. It was very successful,” she says.
Upmarket department store Isetan and a stationery chain called Plazastyle will both stock Clippy ranges. Stiff competition for fashion gift sales has also forced Ms Rose to re-examine her cost base and as a result production has moved from Britain to China, helping to keep the business profitable this year.
“The recession really makes you think about your business. Instead of pootling along it makes you fight so you can be around next year. I have learnt a lot this year,” she says.
www.clippykitlondon.co.uk
Charlotte Designs
Sarah Hodgkins has two recessions under her belt. In the early 1990s her interior design company, which did show homes for builders and developers, failed when several of her customers went bust. She applied those lessons to her new venture, decorating childrens’ bedrooms from her base in Northamptonshire.
Charlotte Designs’ projects range from £200 for a simple mural to 10 times that for a major refurbishment and Ms Hodgkins says that even after raising her prices at the end of last year, domestic commissions continued to flow in.
However, this year was also meant to be about the expansion of the business with the launch of “Murals by Numbers”. The idea was to use the website to sell traceable designs that could be sent to customers all over the world. It did not take off and the investment has dented profits.
The main business continues to prosper and Ms Hodgkins is already booked up for the first couple of months of 2010.
“I have friends whose businesses have been affected [by the recession]. We have not grown this year, but we have not shrunk either,” she says. “My marketing campaign for the next three months is around public sector work. There’s money going into libraries and schools.”
www.charlottedesigns.co.uk
http://www.telegraph.co.uk/finance/yourbusiness/
