I DON’T know whether you receive HSBC’s Business Matters newsletter.

But there was a very good piece in it this month from
entrepreneur, Doug Richard, a former Dragons’ Den investor and founder of School for Startups.

Doug provided some advice for small business to survive and thrive during a downturn.

I’ll try and condense his wisdom – but I thought it extremely good.

Small businesses matter because they provide the bulk of the employment in the UK. But large enterprises provide the stability and create GDP.

The recession is an opportunity to get new business. But you have to lower the cash your business needs to operate while reaching into new markets – such as the internet. But be smart about your marketing – it’s not a question of money; it’s a question of your time. And stop spending on what Doug calls ‘ego-spending’ – plush offices, big desks, executive trappings. Get rid of this – and as a result there will be less stress on the business because it won’t cost so much to run. Which is the piece of advice I like the most.

The Business Car Manager offices are small now – we used to have bigger ones, which were lovely. But it didn’t make us work any better – it just cost us more. And put financial stress on the business. So they are gone. We are tiny and compact; and the bottom line is better as a result.

Finally, think about what capital you require to expand your business – and look at business angels rather than venture capitalists for your funding.

There is more, but these are the key points. If you would like to read the article in full – and I suggest it’s worth it – click on this link to Business Matters.