The research said that about 57 per cent of businesses felt that less than 5 per cent of gifts that were sent their way last year were designed with them in mind. But more telling was that 34 per cent said they will feel that their business is really important if a supplier sent a personal package that contains a gift that was specifically designed for them.

Company formation and business solutions experts are advising business owners to be more considerate and to nurture the business relationships that they have.

Company formation and business solutions experts agree that it doesn’t necessarily have to be expensive to study the competition. Some of the competition-studying tactics that can be done are:

• Study the competitor’s website
• Talk to the competition (depending on the sector, this is possible but you must follow certain etiquettes)
• Ask friends and associates
• Investigate the competitor’s SEC papers
• Use Google or Yahoo!

The study was carried out by the Better Payment Practice Group (BPPG) as it polled over 200 small enterprises about the difficulties they have experienced in starting and operating a business into a thriving success.

A similar small business enquiry made by Enterprise Insight, the group behind the forthcoming Enterprise Week, also found out that half of young entrepreneurs with a good idea failed to bring it to reality because they had trouble in accessing funds.

But the BPPG respondents revealed that credit management problems hampered their start-up and expansion ventures more than any other factor. Over 35 per cent of respondents said they suffered because of poor credit management, while just 19 per cent said that accessing capital is the biggest obstacle in their business.

Meanwhile, a smaller number of entrepreneurs said that the biggest barrier that they faced was knowing how to get their idea off the ground. This is then followed by those who suffered from finding it difficult to find ongoing business support.

According to the BPPG “Although business owners know from experience the restrictions that cash flow problems can place on a new or growing business, the survey highlights that employees and budding entrepreneurs do not realise the importance of credit management.”

The group is urging entrepreneurs to consider the long-term vision of their enterprise dream and this could be achieved by listening to established company owners and business managers.

According to British Gas Business’ commercial director, Adrian Harvey said “Small businesses have to punch above their weight to compete against larger competitors with more established brands. A company’s name plays an important role in doing this as it can quickly inform a potential customer of the product or service on offer. If a name is not carefully thought through and does not properly reflect what you do, potential customers will go elsewhere.”

Harvey said that with the internet playing a bigger role as the search method of choice for consumers, more businessmen who and operate a business feel that a company that is named after a family name will not be noticed. They now want names that will be easily noticed and will be memorable.

Here are some things to consider when naming your business:

* Are you considering a name that would reflect what your business does – framing, moving, cleaning, building? Alternatively, would you like to use a more abstract name?
* Do you want to use a traditional-sounding name that evokes durability and old- fashioned values, or a modern name, that paints a picture of freshness and innovation?
* Think about the future – avoid words or phrases that are likely to become easily dated.
* If your business will have some aspects of overseas trading check that the name doesn’t mean anything inappropriate in the relevant languages. Also, determine if the name will be easily read and pronounced.
* Think about your callers and customers – avoid very long names, unusual words and spelling.
* Check that no one else is using the name you choose.

Analyse your competitors’ strengths and weakness. Their strengths are the threats to your business, and their weaknesses are your opportunities. Be as objective as possible, since this will be the backbone of your whole plan. A subjective view can break even the most well-thought out plan because it does not address the reality of the situation.

Now look at the market. Try to determine if there are emerging trends that might be perceived as either a threat or an opportunity for your business.

One important rule about devising a marketing plan is to make one that is appropriate for your business and your market. An extravagant plan is not always effective because it may not address the key factors that will determine your success. Identify your target audience/market and devise your strategies around it – your “sales-pitch,” so to speak. After this, determine what kind of media you would want to use to bring your “sales-pitch” to your target market.

A common, yet highly effective, strategy is to use people’s emotions in making your pitch. This is a potent approach because you do not address your audience’s logic but their hearts. An emotional response is more impulsive and immediate than a logical response.

All the factors needed to understand the competitor and the market consumes a lot of time and attention. It is for this reason that there has been an increased demand for company formation and business solutions professionals. By outsourcing certain functions of setting up and maintaining a business, owners can focus on more crucial battles, like sales and marketing strategies.

At this stage, it will be important to determine how your competitors are using and managing their resources . But this is not a battle to overwhelm a competitor with sheer numbers, rather it is a conscientious allocation of available resources. Use just enough to get the job done and follow your marketing strategy without any wastage.

The question you should ask yourself at this juncture is: What resources are available to my competitor in terms of finance and people? Try to find out if these are increasing, pegged at a certain level or declining. Credit reports are a good resource in finding out these data. Also try to find out if your competitors outsource some of their business functions. Outsourcing is an effective strategy in keeping business maintenance costs down. In fact, accountancy and payroll functions are increasingly being outsourced by many companies.

Company location, especially in a retail business, can also be considered an important resource. A strategic location can be advantageous in that it can attract more customers or clients. An inconvenient spot will certainly affect a business’ viability. There may be some instances where the competitor is not easily reached but is still attracting good business. Find out what makes them successful because it may be a strategy that you can also use.

Staffing is an important resource. Getting the best possible manpower is advantageous to any business. In fact, company formation experts advise that business owners pay ample attention in hiring their employees.

The questions that you would need to ask when dealing with perception is: How does my competitor position himself? Try to determine if the image your competitors are trying to project to the market is the same as yours. Are they trying to be upscale, mass-market, snobbish or accessible? Make the necessary adjustments to your image based on what you have learned.

It is also important to know what channels your competitors are using to project that image. Are they using direct mailers, media advertising, or billboards? The kind of homework you do, and your dedication in collating this kind of information is an important factor for the long-term success of your business. By having the right information you can then formulate an effective counter-strategy that will not only counteract your competitors’ marketing efforts but also make your own messages and image-building efforts more effective.

It may take a lot of work but you can always employ the help of professionals in sharing the load of setting up and operating your new company. Company formation and business solutions professionals have the necessary expertise to help in the task of taking care of the nitty-gritty of setting up a limited company or even handling certain aspects of business operations.

This kind of strategic thinking lets you stay two steps ahead of competition. The first question to ask is: who are my competitors ? Direct competitors offer the same product or service to the same market, e.g. two travel agencies selling tickets to a luxury cruise. But you also deal with indirect competitors, who meet the same need through alternative ways, e.g. a website offering cheaper tickets, since it removes the cost of a travel agent. Both cut into your profit because customers will choose only one way to meet one need.

For this reason, company formation experts recommend that you invest in understanding your consumers’ needs and values so you can convince them that you provide the best option. You must also study how your competitors are already meeting those needs. What will make your product or service different from theirs? How are they perceived by the consumer, what are strengths and weaknesses, and how can you take advantage of those weaknesses to highlight your own strengths?

Knowing your competitor also means identifying his potential — unused opportunities and resources that may not be a current threat, but may develop into one once he makes the necessary investment. Many financial consultants say that the cost of investing in opportunities is far less than what it would cost once competition has made its move on those territories.

Here are some more characteristics a successful entrepreneur must possess:

Goal setting – The willingness and ability to set realistic yet specific business goals. It also means having the foresight to make the necessary plans to achieve the goals that have been set.

Flexibility – The successful entrepreneur must be the definitive jack-of-all-trades and show how flexible he is. He must be able to handle the various responsibilities and roles that is required when starting a business like marketing, finance, research and sales. Aside from this, the entrepreneur has to handle his staff and still be conscious about the various decisions that have to be made – are real juggling act.

Leadership – the successful entrepreneur must have the skills to lead his team to success. Strong leadership skills will enable him to set goals and targets and inspire his staff to achieve them. A true leader must also be able to share his vision to his staff and unify their actions in pursuit of that vision.

Independence – This is a trait that all entrepreneurs should have in the first place because it is rooted in the desire to be their own bosses – hence the decision to start their own businesses. An independent streak also means being able to go it alone especially during the crucial start-up phase where the entrepreneur must do everything on his own.

Perseverance – Focus and determination is a crucial formula for success. The successful entrepreneur must never be discouraged by setbacks or failures.

In order to prepare for success an entrepreneur has to acquire the following characteristics:

Innovation – Entrepreneurs should have a creative mind and be able to innovate with the acute sense to see opportunities and act accordingly. They should know how to create a market for themselves – a niche where they can thrive.

Passion – An unflappable belief in what he is providing or selling. The entrepreneur should know his product or service by heart – as well as knowledge about the market and his competition.

Courage – The ability to make the though decisions and accept whatever challenge must be faced. There must be an unshakable conviction on the business even if the going get tough. This also means also having the guts to take the right but unpopular business route even if some people may discourage him from doing so.

Commitment – The ability to invest the time, the energy and the resources in order to make the business succeed.

Judgement – Be able to identify which risks to take and when to take them. This also means knowing what aspects of the business to prioritise.