A spokesperson for CBHC LLP has been quoted in an article about the popularity of parenting-related business start-ups. Written by Kate Hilpern, the piece was published in The Independent on 29th July 2010.
CBHC LLP submitted advice focused around the sort of considerations budding mumpreneurs (and indeed dadpreneurs) would need to bear in mind – although these tips can of course be applied to any start-up business:
- Many fledgling companies take on a bookkeeper or tax accountant to manage their financial affairs, but by taking a more proactive approach to your financial data you can really give your new business a boost. A financial expert with management accounts experience will ensure that your company has a clear and sustainable financial strategy to actively support its growth potential.
- It’s really important to work out why you’re doing what you’re doing. Are you looking for a more flexible option than traditional employment, to help you balance your family’s needs with other priorities, or are you intending to develop a business that can be sold for a healthy profit at some time in the future? Your answer to this question should inform your whole approach to the venture – basically, you should start with your ultimate goal, and work backwards from there when planning your new business.
- A lot of people only focus on creating a business plan when they’re going to their bank for a loan, but in fact this vital tool should be a priority from day one. Think of it as an ongoing process, rather than a single document – it’s a blueprint for your company’s success, and should be regularly reviewed and updated. When the time comes to raise finance, you will find that lenders will take a very positive view of your planning back-history. It will help reassure them that you have a healthy business-like attitude, and therefore are not a high-risk prospect.
- Don’t be afraid of funding – at some point it will be necessary for growth. You should be gearing up for a future application from the moment you start your company, by making sure your planning and forecasting is concrete. Many people worry about raising finance, as they think it could threaten their family’s security if the business fails, but in fact this doesn’t have the be the case. The Enterprise Finance Guarantee, for example, enables business owners to take out working capital loans if they are lacking in any tangible security.
- Mums and dads are definitely the best people to set up parenting-related businesses, since there’s no-one better to identify and accurately fill a gap in the market than someone who struggled with the lack of something themselves. They not only know what is going to work within this particular market, but with a bona-fide parent at the helm, a company can expect a high level of trust from its customer base, who recognise that nothing beats hands-on experience when coming up with solutions to parenting problems. Being able to demonstrate such an in-depth understanding of the target market will also reassure potential lenders and investors, since it underpins the business’s operation so completely.
To read the full article, including a quote from CBHC LLP, please click here.