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Reversing the decline of our high streets
December 17, 2010
You don’t have to look far to see concrete signs of the recession hitting small businesses hard. Walk down any UK high street and the empty shops say it all.
But boarded up shops is one thing — the danger is that they could soon become piles of rubble as unused properties are demolished to avoid paying rates.
Parliamentary under-secretary of state Bob Neill has announced this month that the government is to take an extra £400m per annum from businesses next year, by scrapping business rate relief given to the owners of empty properties.
But don’t blame us, says Neill.
"This is a Labour tax,” he says. “There are many Labour taxes that we would like to scrap, but we are simply unable at this point because of the disastrous fiscal legacy left by Labour. But we are taking action to tackle problems with business rates — such as scrapping Labour's retrospective ports tax and by increasing small business rate relief."
In fact, Labour introduced this tax in order to encourage regeneration schemes before the recession took hold. Obviously, this “incentive” to keep business premises occupied could not compete with the global recession.
So will we really see businesses bulldozing their own premises to avoid rates?
It’s happening already according to the British Property Federation. What it calls the “bombsite Britain” tax has led to millions of square feet of property being demolished since its introduction two years ago.
There are plenty of empty premises, that’s for sure. According to the Local Data Company, 13 per cent of all town centre shops are now lying vacant. The majority of the boarded-up blackspots are in the Midlands and the North with a shocking 29 per cent of all businesses in Blackpool closed up.
Napolean Bonaparte called us a nation of shopkeepers. The fact is that our high streets reflect the state of our nation and it doesn’t look good — some are turning onto ghost towns, others are high street clones with few independent stores.
So what can be done to encourage more enterprise on our high streets?
People power is one way. Pop-up shops, cafes and galleries are moving into empty premises and using them to improve community life. By starting small, many projects have been able to get off the ground. Some have turned into permanently successful going concerns — like the Dock Kitchen in West London which was set up in the old Virgin recording studios complex.
But pop-up shops aren’t going to save the high street single-handedly. Even economic recovery may not immediately change the fortunes of our shop-keepers, according to the British Retail Consortium. Director general, Stephen Robertson, has said: "Many of the problems of town centres have more fundamental causes than simply the economic slowdown. High street shops are often battling to pay big bills for business rates and rents”.
The BRC has called for a moratorium on business and property rates. Certainly, national and local government have to find ways to reduce the barriers that stop entrepreneurs setting up businesses on our high streets — from business rates to planning and even parking.
Something’s got to be done — before boarded-up Britain becomes bombsite Britain.
Next Generation approaches to persuade, engage and stand apart
October 27, 2010
Phone and email for new business generation are still at the heart of all new business marketing programmes when reaching out to an audience; however social media is playing a growing part in these strategies.
Neilson research reveals that social networks are now more popular than email. And yourBusinessChannel highlights this well in their online video: The world has changed (for business).
Here are a few suggestions showing how you can widen your reach to be noticed, to persuade your audience, engage them and stand out from the crowd.
Join discussion groups — those your key targets are part of and active in. Get involved and offer your expertise, help solve their problems.
Follow key targets, including a sample of their targets, to get a feel for trends, issues, challenges and popular topics being discussed.
Online expert forums
Independent expert status will deliver a deeper level of trust. Get involved with forums that will be most valuable to you and share relevant content across these platforms.
Regular media monitoring
Have a close look at media in your sector, the angle taken, your targets’ positioning and the audience they are reaching out to.
Trade events
Attend all key industry events and engage with your target audience. What are your targets showcasing, how strong and professional is their positioning, collateral, understanding of their audience?
Whitepapers
You’re an expert. Share your knowledge and industry opinions.
Networking events
Attend carefully chosen conferences and seminars, consider speaking at them, particularly those that are the benchmark for your specialism.
Your website
Your website needs to be interactive to allow your audience to connect with you. Make it easy for them to reach you through an online blog where they can post comments or find you through other social media platforms and connect with you there.
Sally Danbury is an expert contributor to Marketing Donut and the founder of Cake Business Matching.
Dragons' Den digest - Week 10
September 13, 2010
If you missed last week's, catch up here and below you will find the highlights of episode eight.
Quote of the Episode: "I have a horrible feeling that you don't know how to make a profit." Deborah Meaden
Idea 1
Product: Abiie Buggy (My Babiie Ltd) – buggy with an incorporated changing table.
Investment sought: £100,000 for 10 per cent equity
Handling: Straightforward pitch, stuck to the basic facts. Adam is clearly ambitious, and confident when answering questions about his turnover. Says he owns the company but when questioned it is revealed that Ken, who he works with in the USA, owns the designs and has worldwide distribution rights while Adam has UK rights on a three-year contract providing he meets sales targets. The Dragons aren't impressed by this. Before declaring himself out, Peter Jones sums it up by saying: "I don't believe in you".
Outcome: No investment.
Verdict: A promising start but things got more and more confusing after the questioning started.
Idea 2
Product: GaBoom – online user-to-user video game exchange.
Investment sought: £60,000 for 11 per cent equity
Handling: Confident, calm, well-rehearsed pitch. She handles questioning well and with a smile. Claims her website provides faster exact search results than any other website, which Duncan points out is because it's the only site of its type! Peter Jones highlights a flaw in her business: physically handling every game will be very costly, especially as the business expands. The Dragons think she's a very promising entrepreneur and are confident she'll have a successful future.
Outcome: No investment but a potential job offer from Peter Jones.
Verdict: A confident pitch and a promising young entrepreneuer.
Idea 3
Product: Media Displays – mobile advertising unit.
Investment sought: £80,000 for 25 per cent equity
Handling: Strong, polished presentation. Theo Paphitis encourages him to be honest about working from his home office and employing his son. Answers questions clearly and confidently until he shares a heated exchange with Deborah Meaden about whether the business is profitable. Theo points out that his business model as it stands doesn't work and declares himself out. James Caan isn't sure about the business but likes Ian Tayor, the entrepreneur, and believes that he could make it work so makes him an offer.
Outcome: £80,000 for 45 per cent of the business (this amount will drop if certain targets are met).
Verdict: A good result after some tricky questioning from the other Dragons.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
Related articles:
Dragons' Den digest - Week 9
September 07, 2010
If you missed last week's, catch up here and below you will find the highlights of episode eight.
Quote of the Episode: "I’ve just got to get my chequebook." Theo Paphitis
Idea 1
Product: Sweat Sportz - a plastic vest worn during exercise to allow the user to sweat more and therefore lose weight at a faster pace.
Investment sought: £100,000 for 10 per cent equity.
Handling: A confident start, but nerves got to them a little bit towards the end of the pitch. The Dragons seemed impressed at first but concerns were raised over the price of the product being too high for a disposable item. They seemed confident about their figures but then were caught out by James Caan when he asked them about their profit forecasts. Theo Paphitis and Duncan Bannatyne raised concerns that the vest was not an innovative idea and that the majority of people would not use it.
Outcome: No investment.
Verdict: A confident start but fell down when it came to the numbers. The product seemed too niche for the mass market and was not an innovation.
Idea 2
Product: Content and Calm (Traykit) - An innovative children's bag which folds out into a tray to be used on long journeys.
Investment sought: £80,000 for ten per cent equity.
Handling: A very confident and passionate pitch. She knew her product and market well and demonstrated excellent knowledge of the financial situation of her company. She impressed the Dragons with the news that she has been approached by several large retailers. Duncan Bannatyne wondered why she needed an investment, as the company seemed to be doing very well already. Peter Jones went straight in with an offer of the full amount for 25 per cent, but was quickly undercut by James Caan who offered the same amount for 15 per cent equity. After some negotiation, Peter Jones suggested he joined forces with Deborah Meaden and they offered to make the investment for 12.5 per cent equity each.
Outcome: Peter Jones and Deborah Meaden - full £80,000 for 25 per cent equity.
Verdict: Excellent product and pitch, she knew her stuff and it showed. She managed to keep cool under pressure and went away with a good deal.
Idea 3
Product: TailorMade - 3D body scanning technology which takes measurements for bespoke handmade suits.
Investment sought: £75,000 for ten per cent equity.
Handling: An interesting start to the pitch with a demonstration of the 3D scanner, followed by a confident presentation of his company. The Dragons initially seem impressed with the technology and the speed with which it works. However Theo Paphitis felt the product was over-engineered and that it fixed a problem that didn't exist. Peter Jones added that the cost of installing the technology was so high, few tailors would be able to justify the expense.
Outcome: No investment.
Verdict: A good idea but over-engineered and expensive, this product solves a problem that doesn’t need to be fixed.
Idea 4
Product: Proppa - a website that sells accessories for vans, motorhomes, pickup trucks, etc.
Investment sought: £50,000 for five per cent equity.
Handling: An impressive and honest pitch, where he clearly demonstrated his knowledge of the financial side of his business. James Caan questioned his financials and soon uncovered that he had a large bank debt. Deborah Meaden became frustrated and demanded to know why he borrowed so much money from the bank. Not satisfied with his response, Deborah declared herself out. Duncan Bannatyne thought differently and offered the full amount for 20 per cent equity. Peter Jones then came in with another offer, the full amount but for 25 per cent, claiming he was worth more due to his online expertise.
Outcome: Duncan Banntyne - £50,000 for 20 per cent equity.
Verdict: A good business opportunity with potential to make money, and an honest pitch helped him gain credibility with the Dragons.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
Related articles:
Dragons' Den digest - Week 8
August 31, 2010
If you missed last week's, catch up here and below you will find the highlights of episode seven.
Quote of the Episode: "I think you are a product genius." Peter Jones
Idea 1
Product: Yum Yums – collectible series of books to encourage children to eat healthily.
Investment sought: £100,000 for 20 per cent equity.
Handling: The Dragons didn't look impressed with the dancing fruit that opened the pitch. The company had a good deal with Borders but it went into administration. Peter Jones was disappointed with the stories and the lessons they teach to young children and told them to go back to the drawing board with the whole product. Duncan Bannatyne noticed spelling/grammar errors in the books. Deborah Meaden encouraged them to sell what stock they have left and not to invest any more money.
Outcome: No investment.
Verdict: Lack of attention to detail in the books led to disappointment.
Idea 2
Product: Valuemystuffnow.com – online antique valuations.
Investment sought: £100,000 for 20 per cent equity.
Handling: Confident pitch but gave over-complicated answers to the Dragons' questions. Peter Jones questioned his figures, but Patrick answered confidently. After three of the Dragons declared themselves out, Theo Paphitis explained that he could see the potential of the buiness and thought that there would be further demand for his services. He offered £50,000 for 20 per cent equity and Deborah Meaden matched it.
Outcome: Patrick tried to negotiate down the equity but failed. He accepted their offer of £100,000 for 40 per cent equity.
Verdict: As James Caan said: "What a charming man."
Idea 3
Product: Odourbuster – toilet odour extractor system.
Investment sought: £75,000 for 15 per cent equity
Handling: Confident, well-rehearsed pitch. Duncan Bannatyne couldn't see a need for the product and claimed he'd never had any complaints about bad smelling toilets in his health clubs, hotels or spas. They changed their tack after this, although their original aim was to remove bad smells, the product also complies with building regulations and removes the need for extractor fans. They struggled to convince the Dragons that it was an investment on which they could make a return.
Outcome: No investment.
Verdict: A confident pitch but while the product met residential building regulations, it wouldn't work in cubicle rows in commercial premises without a solid wall.
Idea 4
Product: Power8 Workshop – cordless power tool set.
Investment sought: £150,000 for 5 per cent equity
Handling: Strong pitch and an interesting product demonstration. The Dragons were very impressed by his product design but the complicated share ownership structure led to three Dragons declaring that they were out. However, Peter Jones saw that the real value was in the inventor and the products.
Outcome: Christopher accepted Peter Jones' and Duncan Bannatyne's offer of £150,000 for 30 per cent equity going down to 20 per cent once the investment is repaid.
Verdict: Nice to see a successful inventor in the Den.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
Related articles:
If you missed last week's, catch up here and below you will find the highlights of episode seven.
Quote of the Episode: "Not all good ideas are money-making ideas." Theo Paphitis
Idea 1
Product: Gift Card Converter – online marketplace for buying/selling gift cards.
Investment sought: £50,000 for 25 per cent equity.
Handling: Confident pitch. They want investment to increase their marketing efforts and develop the business further. Duncan Bannatyne doesn't think it will make any money while Theo Paphitis and Deborah Meaden questioned the legalities of the business.
Outcome: No investment.
Verdict: Confident pitch and confident at answering questions, but the Dragons were concerned about whether the business was actually legal. No deal.
Idea 2
Product: Surviva Jak – foil jacket for walkers to help prevent hypothermia.
Investment sought: £75,000 for 30 per cent equity.
Handling: Good initial pitch but lost their confidence when Duncan Bannatyne questioned their financial calculations. The male Dragons interrogated them over their market research but Deborah defended them, saying she could see they had made mistakes but didn't understand why they were coming in for such harsh criticism.
Outcome: Deborah Meaden offers them £75,000 for 45 per cent equity, they try to barter it down to 40 per cent but she won't budge. They accept 45 per cent.
Verdict: A rocky pitch, they struggled under questioning, but received a good investment.
Idea 3
Product: Citidogs – Dog Crèche.
Investment sought: £75,000 for 20 per cent.
Handling: Starts out seeming like an investable idea. Duncan Bannatyne suggests they go away and work out their financial projections – they haven't evaluated the true cost of their business as they're not taking a salary and haven't registered for VAT.
Outcome: No investment.
Verdict: Started well but need to think through their finances in more detail.
Idea 4
Product: The Wand Company – buttonless remote control that works on movement.
Investment sought: £200,000 for 10 per cent.
Handling: Theo Paphitis looked impressed by the demonstration of the magic wands – a special take on remote controls. Product cost £50 when sold directly to customers but just £10 to make. Confident with their figures even under questioning. They received offers from all the Dragons.
Outcome: Accepted Duncan Bannatyne's offer of £200,000 on a sliding scale starting with 30 per cent share and going down to 10 per cent if they make £1.2 million.
Verdict: Strong pitch and product demonstration. Interesting to see all five Dragons make offers.
- You can replay the episode on the BBC's Dragons' Den website
What did you think of the episode?
Related articles:
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