In the past fifteen years, we have all witnessed the demise of some of this country’s retail giants; Comet came crashing down, Habitat took a hammering and Woolworths was simply wiped out. In the last year alone, more and more retailers have closed down their stores, including household names such as John Lewis and Marks and Spencer, and the disappearance of the high street banks is manifesting at a startling rate.
With economic ‘goliaths’ such as these disappearing from our high street, it is no wonder that business owners are in a state of panic. But which proprietors face the greatest risk? Surely the smaller the company the bigger the threat, but actually this could not be further from the truth.
Small, rural businesses, which contribute a fifth of the UK’s economy, are propping the rest of the country up. Us Rutlanders always knew we were a special breed, so I am sure that this statement will not come as a huge surprise! We should all be proud of this fact; our ‘micro-economy’ is laying the foundations for Britain’s financial recovery. So how have we achieved this and how can we continue to see success?
There is no magic formula when it comes to business. What works for one, may be a complete disaster for another. However, I believe that the success of small, rural businesses is down to five factors which most of our county’s companies have utilised. I also feel that if our local businesses follow these maxims, our county will continue to flourish. So let us have a look at these key ingredients:
- Understand the Market. Market research is most certainly not a new concept in business; having a firm grasp of the desires of your consumer is a vital part of your company’s success. This could not be truer in rural areas. People who live in the countryside have different needs to people who live in the city, so require different products and services. Understanding the needs of the rural market is the first step to success for any rural business.
- Find a Niche. Once you understand what the rural consumer needs, you need to identify what is missing in the market. As I mentioned above, rural residents have different needs to those living in urban areas. Try to find a product or service which uniquely benefits them or is hard to obtain in the countryside, and most importantly, is not currently available.
- Sort Your Finances. It all comes down to money, as ever! But having your finances in order is a vital part of running a successful business. In short, protect your assets, maximise your returns and minimise your risks. You also need to keep an eye on your overhead costs. Being based in the countryside may initially seem like an expensive location, but actually there are lots of discounts available to you. If you are a rural business, which benefits the local community and promotes the sustainability of rural economy, you may be entitled to a grant. There are also some flexible rental agreements available at certain business centres, like The Oakham Office, which help to bring down your costs. Other factors, such as parking charges, can also be lower in rural areas.
- Flexibility and Diversification. I believe that the core reason that rural businesses have thrived, boils down to one factor- they are willing to change. When farming started to become less profitable, we saw a surge of farm shops opening their doors. The produce on offer is fresh and appealing to the local market and it also helped to boost the farmer’s income. Win, win. Being able to quickly react to changes in the market, whilst bearing in mind the needs of the consumer, will help you to keep your head above water. Do not be afraid to change the direction of your business. Modern working culture is like a chameleon, so be prepared to go with the flow.
- Network. Sharing business ideas, collaborating on projects or simply talking to other company owners will help you to succeed. Gone are the days when business ideas were top secret (unless you are the designer for a certain fruit-themed electronics brand)! Success in today’s market is about whom you know and how you can help each other. This is an incredibly valuable tool for rural business owners. Not only can it help you to reduce costs, networking can also help to widen your own knowledge and give you the skills to provide additional services to your customers. There are many networking groups in the local area, so get out there and try it for yourself!
Whilst the true success of a company boils down to the business acumen of the owner, these five factors really can be ‘make or break’. At The Oakham Office, we have fully embraced these ideas for several years. We keep our ears to the ground and endeavour to provide services and solutions to our local community; whether it is a private office to play home to an existing company, a virtual secretary service to a start-up business or a meeting venue for a local training firm. We also offer free networking events and seminars, as we believe that collaboration and education are the factors that will help the UK rise out of recession.
On the whole, Rutland is economically sound. Of course companies have closed their doors, but we are a strong county with a good basis for business. The Oakham Office strives to help all local firms when and where we can. If you feel that we could help to support you business, come and see us today.