04-07-2007
FSB says firms should be founded on a workable proposal
New businesses should be founded on a "practical proposition", according to the Federation of Small Businesses (FSB).
Matthew Knowles, deputy head of public affairs at the organisation, said that once the business concept is established as a solid one, then its success can depend on how competitive the marketplace is.
He said that if a new business is entering a competitive market, they will need "a really novel idea or are able to make significant service to potential customers".
"Half a million businesses are set up every year and within three years 300,000 of them have gone out of business for one reason or another," he added.
Mr Knowles also said that when setting up a new commercial venture, there are a number of places where people can find additional information to help them produce a business plan, such as the BBC's website and BusinessLink's services.
During the early stages of development, firms may also wish to take out business insurance.
In related small office news, the FSB recently said that firms should be subjected to a three-strike policy in relation to the new smoking ban. Under the proposal, small businesses who do not comply with the new legislation would be issued with two warnings before being fined.
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