[5-minute read]
Written by guest writer and Truevo growth marketer, Marlene Bramley
Think of the economy as a massive machine. Each business category plays its part in making the wheels of the economy turn. Manufacturing and mining provide the raw materials and know-how to make all the parts. Factories assemble, and logistics deliver. The services industry is the grease that makes the whole engine turn. It’s the cleaning companies that ensure everybody works in a safe space. The cooks who feed us, the accountants who count everybody’s meals, the lawyers who fight for our rights to have another plate, the designers who work out how they can serve a gram but make it look like a pound, and the packaging people who wrap it all up. These service industries keep the show on the road. And their needs are very different.
Glass ceilings and clones
All it takes to start a business in the services industry is a gap in the market and some serious skills. In some industries like tourism and hospitality, you might need to invest in equipment initially. Even this has changed over the last year with equipment rental options becoming available as businesses pivot after the pandemic. So with your skills in hand and a head full of plans you arrive at your desk and start your business. It can be as simple as that. Obviously, it gets more complicated once you’ve realised you’re not the only one with this vision. The services industry is notoriously competitive. You have to really focus on time management, cost control, and competitive pricing if you want to make it in this space. Although entry into this market is relatively easy, the big drawback is that there is only one of you, and there are only so many hours in a day. The glass ceiling is exactly that. You can see where you want to grow but you are restricted by your own capacity.
Your options are to either clone yourself, automate where you can, or expand. Each option comes with its own challenges. Cloning in particular can really take it out of you.
Seriously, the same principles apply whether you want to start a retail business or enter the service industry. You need to have a solid understanding of your income, costs, overheads, and other financial indicators. A business plan will also help you find your way.
Go fishing
The service industry has been extremely affected by the pandemic.
The services industry include the retail, financial and public sectors, business administration, leisure and cultural activities. These industries accounted for 80% of UK economic output (Gross Value Added) and provided 82% of employment in April to June 2021.
So, if you want a financial injection now, go and fish where the megalodons are. There are various government support schemes for the service industry at the moment. Let’s have a closer look at some of them.
Sardines are also fish
Even small grants can help you pivot, grow, and survive. There are various Government support schemes for restaurants, musicians, and other businesses in the hospitality industry awarding grants between £2,500 and £10,000.
The Arts Council Grant Scheme is aimed at organisations undertaking creative projects as part of their primary activity. It’s open to individuals, organisations, libraries and galleries. The handy fund finder is regularly updated to stay abreast of new available funds.
The Department of International Trade’s export hub provides advice and training on selling overseas. They’ll help you with various aspects of export, from finding target markets to contacting suppliers. Visit their export hub for more information.
Innovate UK can support your startup by testing the feasibility of any idea. They will help you research and develop it into a prototype that you can take to market. Speaking about ideas. Once you’ve developed your idea properly, ensure you register it. The IPO (Intellectual Property Office) provides information on trademarks, patenting and copyright. They also provide handy online training tools. .
You’re safe in a shoal
Many SMEs are grouping together to either sell their services to corporates or to leverage community buying power to reduce their costs. The FSB, The Federation of Small Businesses, helps small businesses grow and green and prepare for the future. They also provide small business advice, financial expertise, support and are a powerful voice in the UK government.
We discussed funding for startups in a previous blog, have a look to see if there are appropriate resources for you there.
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