Could the Small Businesses be the winners?

[Gordon N]

Whilst out and about in the car this morning I was listening to Radio 1 and heard on the news that Woolworths and MFI are not the only big companies suffering just now. It appears that Dixons Stores Group are also in the red now! This got me thinking...

For all everyone said at the start of this 'crunch' that it was the small business community that were going to feel things hardest, could it be possible that there is actually a twist happening. Small businesses like most of ours have quite obviously much lower running costs and overheads which in this climate actually makes them more sustainable. The more big national names that announce administration status or reduced profits etc. the more people will return to sourcing their goods, products and services more locally.

That's my hope and opinion, what does everyone else think?

Regards,

Gordon

 

[stugster]

I don't feel sorry for these big companies. Well, I did, until I looked at the Board of Directors salaries.

Small Businesses can only benefit from these kinds of greedy misfortunes.

 

[ScottJ]

...the more people will return to sourcing their goods, products and services more locally.

Will they?

I question that in my local town, if Woolies closes then it's another reason not to go down the town for things and another reason to buy online and through the major supermarkets. All I can see is smaller towns will end up with 3 major supermarkets and charity shops, but I hope you are right.

 

[stugster]

I suppose it could be argued that it would be a good opportunity to open up a shop there now then

 

[OldWelshGuy]

People are sourcing their goods online more and more. Small businesses need to harness the power of the internet, and form 'reasons to visit' on a town basis.

Reserve for store collection is BIG business, as people get to use the web AND shop locally at the same time.

 

[TomB]

It is a shame about woolworths, and seeing that camelot have just pulled the plug on them selling the lottery, i guess that isn't going to help the situation much is it?

I do think small businesses are in a better position during this climate, as with lower running costs.

Buying online is great and more business should make more use of the internet, the only problem i have is that royal mail are totally useless at delivering. I mean our postman hasn't bothered to turn up for three days, hardly a reliable service is it.

I just feel sorry for the woolworths staff, can you imagine how many of them must be feeling just now worrying about their jobs at xmas time.

And how many other people are in the same position.

T

 

[stugster]

I just fell sorry for the woolworths staff, can you imagine how many of them must be feeling just now worrying about their jobs at xmas time.

And how many other people are in the same position.

T

That's a good point. I didn't think about that at all. Bad enough to lose your job, but at this time of the year as well.

Poor guys.

 

[Power Lunch Club]

I don't feel sorry for these big companies. Well, I did, until I looked at the Board of Directors salaries.

Small Businesses can only benefit from these kinds of greedy misfortunes.

Yes, much as the directors of these large organisations are paid a lot (and yes they should have managed the debts better)...it's still important to remember, they employ, ten's of thousands of people who may or may not have a job soon. And what do the family's of these companies spend their salaries on....well all sorts of products and services from large to small businesses.

I think your right Gordon, yes the smaller companies are a little better off in term of how they are geared up. But by no means is anyone safe at the moment. It's irrelavant if your costs are small....if your still not making sales.

And it often the small businesses that have no cash reserves or many assets to fall back on.

But it's the fear factor that is coming into play. There is no more money in the economy than there was a year ago....it's just that its not moving...i.e. we are not spending....and until that happens we will have to listen to the loud grinding noises for some time to come.

How does a government/economy/person start to be bold....because at the moment, what is really truly crippling us is fear!! Nothing else....we are frightened to spend money.....our suppliers are holding back payment to companies as well.....(instructed to hold on to money as along as possible).

But it's like marketing your business....you have to be different to get the business.... As someone once said, "If you do what everyone else is doing, you will get what everyone else is getting."

I don't want to live in fear, I wan't to be big brave bold and brash....and shout out, hey I want to do business....and until the rest of the ecomony shouts out the same things....it will be tough.

Most of the people on this great forum are self-employed, we are the risk takers and the one's willing to lay it all on the line (as long as my wife allows me....:blush, but my point is this, ordinary people working in organisations, like MFI, Woolies, PC World....only really understand that they either have a job or don't; the techinicalities of trying to understand that to get the economy going, they need to start spending, no matter what...won't enter most of their heads (and that is not implying ignorance or stupidity...far from it) it's just the way it is. But they do fear losing their job, not being able to pay the mortgage, having to sell the car. So what do they do, ....try to save money by not spending....and it then perpetuates the problem even further.

Until this nation (oh god, I'm sounding like a nationalist),overcomes fear, I don't see any of the solutuion of VAT reductions, tax cuts, or even borrowing is going to change anything.....in fact it makes me fearful just listening to what Darling is proposing!! And that's not a good thing.

Gordon

 

[Scottish Business Owner]

I have to say we've actually started buying meat etc from our local farm shop as opposed to a supermarket and I for one would really like to see more and more people shop local but like the posts above i'm probably in the minority and most people harness online and big supermarkets for sheer convenience.

Gordon is bang on in that this is all about credit and the lack of it, if banks wont lend businesses will start to pay people off and a whole vicious circle starts. What's recently been announced wont effect most of us to any great extent. The banks need to be forced to lend and if that takes legislation then so be it. This whole situation is very ironic in that the very people that bailed out the banks are now at their mercy.

It is going to be tough but doing things like Gordon is doing with his marketing etc while times are maybe slow is a great idea as is diversifying your income streams so as not to be too dependent on any one stream. The current environment will i'm sure create opportunities in certain markets and you need to make sure that you and your business are ready to take advantage.

 

[Former Member 1]

I honestly can't spare a tear for the DSG people. The level of service was appalling even to the point of being dishonest. My own experience of my Mother-in-Law being ripped off for an extended guarantee on her TV and having to deal with the revolting little man responsible... It wasn't isolated either... And I've read of HUNDREDS of people having similar experiences... And I don't think I ever walked out one of their stores having had good service.

The ONE time I tried to buy something out of MFI in the past ten years was a simple little office swivel chair. Less that £50 worth and they wanted to take 3 weeks to deliver it! :001_rolleyes::001_rolleyes: Talk about out of touch...

Woolies... I have fond memories of the old one in Argyll St. Of buying fishing tackle and the odd record.... And the Pick-n-mix... Woolies; mostly harmless, but not very inspiring.... No longer cheap enough to be a real bargain store. And too down market to make it to the 'desirable' list.... Shame really.....

The thing about ALL of these businesses is that they're out of touch with their customer base.

Yesterday I read of a new music shop opening in the relatively isolated village of Dechmont near Bathgate. Ten years ago this would have been a really WEIRD place for such a store. But they have an online presence (can't find the leaflet right now). And that store's going to be REALLY easy to access by car. And they're not going to be P-ing money up against the wall in rent and rates for the main shopping centre.... And all in all I think this MIGHT just fill a hole! I dare say the folk behind the counter WILL give a damn. And MIGHT well know what they're talking about.... and all in all might just score where the big companies fail to meet expectations....

Big corporates? Here be monsters!

 

[Gordon N]

Some very fair points made above, and although I agree with Matt regarding DSG policy on customer service, I do still have sympathy for anybody who is in fear of their job (especially four weeks before Christmas!). I had the pleasure of working for PC World in Edinburgh for a year or so after I left college, it isn't the way I sell and hence never broke the records (or targets!) for warranty sales. It did however give me good experience in doing as your told prior to serving in the Armed Forces!

"If you do what everyone else is doing, you will get what everyone else is getting."

What a fantastic quote Gordon, any idea who said it or is it just one of those sayings that floats around?

Regards,

Gordon

 

[a okadmin]

I feel quite sad at the thought of Woolies disappearing from our High Streets. Not only do I remember them for their pick n mix which my mum and I would share on the way home from town but also for my first real job, as a Christmas temp at Woolies in Newcastle which led to me working there for several years on Saturdays while I was at Uni.

However, as a small business I do feel strangely optimistic at the moment. Maybe it's because of the type of business I run that I believe it is an opportunity as many companies may not have the cash to pay permanent admin staff but they will still require some support. Of course, the opposite could be true and they may decide to take it all upon themselves, but for once I am looking on the bright side.

 

[Power Lunch Club]

Some very fair points made above, and although I agree with Matt regarding DSG policy on customer service, I do still have sympathy for anybody who is in fear of their job (especially four weeks before Christmas!). I had the pleasure of working for PC World in Edinburgh for a year or so after I left college, it isn't the way I sell and hence never broke the records (or targets!) for warranty sales. It did however give me good experience in doing as your told prior to serving in the Armed Forces!



What a fantastic quote Gordon, any idea who said it or is it just one of those sayings that floats around?

Regards,

Gordon

I have no idea who originally said it....but if you don't come across someone....then I'll lay claim to it....:001_tongue:

Hey, the joys of the internet!!

 

[visagephoto]

I mean our postman hasn't bothered to turn up for three days, hardly a reliable service is it.

Or maybe you're just not as popular as you thought you were!!

 

[stugster]

Hehe! Tom, you asked for that one!

 

[Power Lunch Club]

According to the latest opinion poll, 10% of Britain is giving Gordon Brown’s economic policy the thumbs up.

The other 90% are using a different finger.

 

[Scottish Business Owner]

It's a rock and a hard place for Mr Brown! There will be no winners in this believe you me, I think just surviving will be ok. Fundamentally we are where we are and you've just got to hope that we learn from the mistakes to try and somehow make sure it doesn't happen again.

We have however been through this before and it will happen again as well

 

[Power Lunch Club]

It's a rock and a hard place for Mr Brown! There will be no winners in this believe you me, I think just surviving will be ok. Fundamentally we are where we are and you've just got to hope that we learn from the mistakes to try and somehow make sure it doesn't happen again.

We have however been through this before and it will happen again as well

And get our arses out there, so people can see we are doing business.