Posts Tagged ‘business’

It would appear that there are very few businesses and industries that have not seen a negative impact as a result of the global recession that economies are facing today. In the UK alone unemployment has risen by 1.5 year on year to Feb 2009 with an increase of nearly half a million people out of work.

According to Equifax, a global leader in consumer and commercial data, the number of businesses that went into administration in the last quarter of 2008 was 24% higher than the previous quarter. This information will not come as a great surprise to the people of Warwick and Warwickshire where the effect of the economic downturn has been apparent in certain business and industry sectors.

The automotive industry for example, has taken its fair share of knocks around Warwickshire and the midlands over recent years, most notably the decline of the MG Rover company which went into administration in 2005 and Jaguar and Land Rover which were bought out by Ford after falling sales.

Since November 2008 Jaguar LandRover have made 1300 job cuts across their plants in merseyside and the midlands and more recently staff at the plants have agreed on a cut in working hours to avoid further redundancies.

The county town of Warwick itself however, is a very popular tourist destination with attractions such as Warwick Castle and Stratford-upon-Avon, Shakespeare’s birthplace, just around the corner. This attracts not only UK visitors but also those from abroad, particularly America. To this end, the effects of the recession have been less noticeable in Warwick since more people in the UK are looking to spend their holidays at home rather than travel abroad. Another factor is that in recent months, the value of the pound has decreased considerably against the dollar which means that the UK has become a more affordable holiday destination for many Americans.

In a recession, when companies are struggling financially, often the first thing that they will do is to cut their advertising budget. This is probably the biggest mistake to make since advertising actually becomes more essential to the survival of most types of business in an economic downturn.

There are many different media that a firm can choose to advertise their product or service one of which is online advertising. Due to the increasing number of internet users, online advertising has become more and more popular in recent years and can actually be one of the most cost effective methods for a company to reach its target market.

There is however still some scepticism surrounding advertising on the internet, often due to a lack of knowledge on the subject but recent studies into it’s effectiveness have shown that online advertising is now at least as important as offline advertising ever has been.

Businesses must now look towards harnessing the power of online advertising either instead of, or in conjunction with traditional media if they are to ensure their survival in these difficult times. This will also help to keep the company’s product or service fresh in consumers mind during a recession even while demand is low, and to lay a solid foundation for companies to grow when the economy picks up.

Sometimes having a cool, unique product or service is enough to create a buzz, but more often than not, companies are forced to hire an advertising agency to gain exposure and increase revenue. While doing so, businesses must ensure the agency they retain understands and supports the particular product/service being offered.

A common disconnect I see is advertising agencies taking on projects they truly have no experience with, and no interest in. Yes, of course, one can learn on the fly, but this is not efficient and ultimately produces a lesser quality product in a longer amount of time due to the inherent learning curve (research, analyzing statistics, etc.). Plus, if you do not truly believe in something, and have no interest in it, how can you put your best marketing foot forward? Well, you can’t.

On the flip side, finding an advertising agency that specializes in your niche is beneficial because you can rely on professional marketers that have a passion for what’s being promoted. Through an intimate connection with the target market, and an understanding of what works and doesn’t work, niche agencies have the ability to more effectively reach out to potential customers.

Within the category of niche agencies, I see there being “niche niche agencies” (if that even makes sense). There are the conventional full-service niche advertising firms that, for example, market automotive products or other select products via a wide variety of mediums regardless of ROI. Then there are “niche niche” advertising agencies like The Brainchild Group that specialize in particular industries and utilize select marketing mediums (social media, SEO). Since the internet is quickly taking over daily life, and companies are jumping on the e-marketing bandwagon left and right, working with a niche ad agency that specializes in online marketing is crucial. Match this knowledge with a passion for the product and the rest is history, so to speak.

In wrapping this up, when searching for the best advertising agency for your business, remember to find a firm that has product knowledge as well as experience working with online advertising as the internet is truly the wave of the future.

Sincerely,

Aaron Schoenberger

The Brainchild Group

For the Support  of Small Business in Georgia

Content.

In the conditions of deep economic crisis and  during the period of extreme restriction in requisite  resources for economic investments of tendency of selecting priority in investing activities enquire upmost importance. According to these circumstances, small and average businesses must be admired in such system of priorities. It follows not only from conjectural, political  or ideological  purposefulness, but also from objective activities of social-economic conditions; Simultaneously it is also connected to the position perspectives of this field to solve vital questions of the country. (creating concrete atmosphere, increasing employment level and efficiency, treating and spreading technical decisions etc)  however, it is baseless to speak that small and average businesses in our country have any kids of advantages in distribution of investing resources, ` moreover, it often moves to the second place.

Financing has always been the urgent problem of small and overage businesses.  According to the social research of small industrial management, half of respondents had to use  their own savings in organizing these enterprises. Only more than a quarter managed to receive credits, but less than 20% – to attract depositors’ sources.

The  employers admit that, the first and main problem is finances and buildings and then follows cooperation with local authorities. However, investment always remains as the main problem in the activities of a particular firm.

Pressent Day Situation of a Small Business.

In western countries outnumbered commercial banks, insurance companies, branch funds, regional commercial departments of tuition structures stimulating small business, regional guarantees, outnumbered charitable funds and associations, actively support  them.

Due to not existed similar institutions, the development of small and average businesses is prevented. So it is quite natural, that development of small industrial net is still unable to form the commodity market. Nowadays supporting industrial activity has  no main basis in small and overage businesses. The situation of providing these enterprises  with material, energetic and financial resources has recently   been deteriorated; according to results of selective researches in 2000-2005, in order study small industrial business activities in industry, building and retail trade showed  that  nearly 40% from small industries have their raw and building material supplies reduced. The existing level of orders and resource  maintenance was estimated as “..below average”; however unlike large industries, homogeneous tendency  of economical situation in small and average businesses is distincted, e.g. during 200-2005, the amount  of employees and usage level of industrial capacity maintained sufficiently stable in small industries.

Although capital investments of small industries include sufficiently large amount  of  money (11% of investment realized at the expense of financial resources in Georgian economy. The small enterprise activity of industry in the field of investment is still exceptionally low.

Inquiries showed that among active reasons  about  restriction of investing activities, about 60% of  respondents  consider high level of taxation, 30% – high rate of inflation, above 30% general economic and political instability.

The leaders of small industries, critically characterize competitiveness of their products over 50 % of leaders  consider   it as “average” towards the internal market.

Leaders of examined small industries consider lack of their own resources. (75% from inquired people), high payment rate (over 60%), unaccepted conditions of investing and accounting as a main resistance for their  innovational activities.

Financing Sources of a Small Business.

Analysis of financing sources for small and overage business  shows that the most available for their activities are inner developing sources which are used by over 3/4 of industry, while only one from four, manages to abtain any kind of means from external sources. Enquiries show that their own small business incomes take first place among financing sources. It’s  proved by every two participants from three ones. On the second place are the founders of average business with their own sources;  (21,7%). And private credit takes the third place, used by 17,9% of these industries. Other sources are used by 10-15% of small businesses. Simultaneously over 20% of enquired leaders consider that their enterprises have no any developing chances. More complete idea about the nature of investing in small and average business field is given by the results; Researches on tendencies of small business investments. According to this data, leaders are those industries which direct their investments towards the equipment and transportation (57,5%); and the enterprises which use investments to fill their sources of circulation. take the second place (44,3%). A lot of enterprises use their sufficient sources in repairing building and commercials (38%). Over 20% of small enterprises spend their sources on their staff training.

Comparison of data according to the groups of small industries prove all the following differences connected   with specificity of a business field. e.g. small industries of trade fill their  sources of circulation, frequently (76%), but they stay backward in investment of human capital – only 8% of them provide staff training, whilst corresponding average index for all enterprises is 20,8%.

One of the main problems in small business development is their slight investment in the process of crediting due to existing high risks in this field. It  is caused by following factors: usually, small industries have no ability to represent absolute  guarantee independently over their responsibilities and there’s no complete system of guarantees and insurance of their investing activities.

Usually, personnel of small and average  businesses have no sufficient knowledge in economy, which is the main cause of those incomplete projects which are introduced by them. As for consulting service of business management and preparation of investing projects, as a rule it is excessively expensive for enterprises of small and average businesses.

The results show that in the process of providing crediting resources, leaders of small and average enterprises experience not only general inflexibility of crediting, but also discriminative policy of banks towards small and average businesses.

The main difficulty in the process of receiving credits is price restriction (very high percentage was mentioned by 47,6% of leaders of small enterprises); It is followed by the range of nonprice restriction – unpractical mortgage and  guarantees (21,9%), innaccessibility of investing credits (10,5%), restriction of crediting terms (14,3%) and subjective evaluation of discriminative conditions. Besides, the role of organizing factors is not sufficient.

The interests of commercial banks are not directed towards crediting of small enterprises due to their non-existing complete technologies of investment; Besides it claims to discuss numerous investing projects, though working procedures are highly  significant. Banks don’t take risks, due to their negative experience in disappearing of credited firms, no returned credits and hidden mortgages, including small and average businesses as well. Hence, due to controlling and providing insurance, they choose organizations having accounts in a particular creditor bank.

Banks avoid crediting of newly founded firms and insist on collateral security guaranteeing  a small enterprise. The level of percentage implies the level of risk that is significantly high for every small industry. Standard validities of given credits include  3-6 months period.

Thus, Georgian banks. like in western countries must inevitably develop assisted financial services for small and average businesses. First of all, it includes detailed treatment and examination of any kind of projects independently from credited funds and improvement for abilities of banks in estimation of loans. The same time, they must rely more on the knowledge of potential resources for enterprises and markets than in the amount of funds and guarantees.

Who Helps and How to Developa Small Susiness.

Noticeably developing non-governmental specific structures formed for supporting small and average industries are also of great importance. The first similar structure was founded in 1992. It was an agency, supporting small and average businesses. Its purpose is to increase industrial activity among the population with the  help of consulting, informational and expert services provided not only for small and average industries but for pioneer implcyers as well. It includes issues on economic, financial and taxation policy; recommendations about keeping a ledger; support for composing constituent documents; registration of enterprises and allowance of their activities; elaboration of a firm mode, teaching business; (hobbits based on special programmers, worked out  of the agency together with foreign experts). for  the successful development of their own activihes; (business planning; marketing; commercials; industrial experience etc); informational support for the operations of external trade. customs issues and other normative juridical problems. Agency constantly tries to expand its  own activities. It mainly includes issues on the support  of activity of small and average business industries. Special investing department is created in the structure of agency for this purpose, which is directed towards the preparation, training and conducting of recommendations for composing  business plans, investing projection and financial management; working and conducting of examination for investing projects; researches of their financing sources. The given department is an official agent of the federal fund for supporting small industries, that is directed to the selection of industrial projects for providing credits.

In the beginning, the functions of agency were distinctly oriented on the demands of developing small and average businesses in Tbilisi region, but now it has begun to play the role of informal-methodical – coordinative organizational structure throughout the country.

Realization of this role is significantly depended on the formation of corresponding regional agencies and their active participation in the country. Above mentioned activity of  the agency must necessarily be established by state departments.  Namely, it is advisable for the government to elaborate a special document about “regional agencies for supporting small industries”. In this document, it is necessary to be mentioned the labor financing scheme of the regional agencies’ net at the expense of assignation from the state budget. Formation of regional agencies supporting small and average businesses   is decisive to serve physical and juridical persons in creating small and average enterprises and to provide their effectiveness. Such schedule of services is defined by developing quality of agencies which may include practically all types of support for small and overage businesses including informational services,  legal advice and participation in investments. As a rule, the purpose of agencies is not receiving profits and that is why their quite high level of services  compared with ones of other organizations are relatively cheap, but in some cases it is  absolutely free of charge; if agencies function into contact with the government and authority organizations of all level. and are based on the assistance of these organizations.

Herewith, the first task is that the agency of small and overage business supporting, leads the work to form united  informational net of regional agencies, that will take active part in the field of modern informational technologies, highly quailfield organizations. It is a significant stage of business, for united as well as regional agencies. Practice showed that, distinct division is the most essential task for separate regional agencies and affective organizational development of their net. It implies the gradual development according to the accumulation  of organizational experience,  stabilization of financial situation and  equipment with modern organizational-technical means and so forth. At the some time, determined service must be formed gradually and  successively, not only in accordance with the principle of senseless expansion of above men toned factors, but also selecting  the variants which are the most profitable and essential for the agencies in this or that concrete region. It must be said that estimation of perspectives in small and average business support activities is connected with the fact, that its significance is constantly outlined by the central government of the country as well as regional authorities. Of course, it clearly gives the chance to make optimistic prognosis. Unfortunately, in reality, the existed mechanism to support small and average businesses can’t still put into practice not only present-day objective demands, moreover the tasks which are not only possible to be solved but should be , for the development of its investing activities.

Wat is the Programme of Small and Average Business Investment Support?

As it is know, programme realization of investment support in small  and average businesses, may have double substantiation. The first assistance of a small  enterprise development, represents the effective way of solving social and foremost, employment  problems. Thus, conception of social direction for financial support in small and average business fields, follows that, grant realization of socially useful functions in a small business, must be fulfilled by state and society. The second-progress of small and average businesses are significant factor from the standpoint of effective use of people’s economic resources. Due to such approach , from the position of market   economy, defined means for small and average businesses must be considered as profitable investments.

Nowadays, systematical crisis is proceeded in our country. Factual unemployment problem instead of falling is rising steadily and it requires of taking vast  and active measures for small and average business  development. Simultaneously, tensity of central and local budgets  and lack of foreign investments do not give chance to form such material-financial basis, that includes all the above mentioned factors.

It’s clear that the way out of exiting situation can be found in the treatments of conception, such is investing support (and realization)  of small and overage businesses, when all the possible funds used with this purpose will  be spent on forming organizations and such financial machinery, that has high level guaranteeing aptitude for the feedback of invested resources. For the realization  of this conception, several main directions can be singled out, for the fulfilment of investing activity in small and average businesses.

1. Scientific-analytical and informative provision development of investment support mechanism  in small and average business fields.   Here, main goal is to study priority system of financing  for small enterprises, according to essential directions of development  and substantiation of their realization activities with the purpose of reflecting aims at each level. (central, regional as well as small and average enterprises). Strategic research organization and financing, forming development conceptions and treatment of inter-active mechanism for investing support system in small and average businesses. In addition to the point above, the following must be taken into account.

The first and foremost, the mechanism for investment support in small and average businesses must be based on state structural and industrial policy, financing of private investments or definition of essential directions for stimulation, in the section of divisions,  subdivisions and enterprises – definition of so called dot priorities.

Second – towards the formation of mentioned mechanisms, maintenance of scientifically proved approach is accessible as far  as it reflects the real peculiarities of economic development and  investing processes in this or that region.

Third – Improvement of scientific -methodic and informative supply for investment activities, mostly in small and average businesses is simultaneously connected with the existence of investing projects of small enterprises in order to restrict existing risks. The most is financial, technological and marketing accompaniment, i.e. financial analysis, technical examination, and marketing research of investing projects of enterprises in small and average businesses.

2. Reinforcement of objective direction and transfer the obstacle centre of topping-up process of investment activities in small and average enterprises at regional level. It must be taken into consideration that, formation of regional politics of investment support of these enterprises, in accordance with this qualitative index of region economy, that creates the peculiarities for small and average business development and support. Simultaneously, the development level of industrial production, resourceful base, consumers market provision, regional problems of population employment and social  defence must be taken into account. Only complex  consideration of all these factors, gives chance to study those activities that provide attraction of owners of industries for people’s demands in the most suitable fields and stimulation of economic development, first of all at the expense of local possibilities.

Nonexistence of financing, due to the deficit of state and local budgets, is one of the main reasons, that  represents the obstacle for the outcome of central and regional programmers in supporting small industries. In such cases, it is advisable, not only subsidization of industries, but also the assistance for the development of infrastructure in small and average enterprises. (marketing as well as industrial). It must also be admitted, that the state should do its bit to establish special regional banks, innovational funds, informational analitic centers and such organizational-regional structures that serve small and average businesses and keep their interests by means of preferential duties privileged regime of transferring buildings to the possession, licensing, etc.

3. Development  of perspective forms of small and average business support and financing. In this field, for reinforcement of purposeful direction of investing process and raising its effectiveness, local administrations should orientate on the creation of main tendencies of progressive investment infrastructure for small and average businesses. Great attention should be paid to the following factors:

Grade 1. Development of crediting system for the purpose of increasing the number of financial support receivers and simplify the way of giving commercial credits to small industries, implies the expansion of financial institutes net, that realize small and average business crediting with preferential conditions. It includes: lowering interest, extension of crediting term, reduction of demands at the expanse of guarantee and free consultations.

Grade 2. Development of guarantee mechanisms of investing credits, given to small and average business industries must include given state guarantees  to commercial banks, which took part in financing these enterprises. Compensation of  some parts of interests rate. at the expense of commercial credits of banks, could be considered as the significant tendency of using guarantee reserves,  especially at the initial stage of project realization, when returning of funds is still delayed in small and overage business field, for the support of investing business activity.

Grade 3. Financial crediting mechanism of small and average business support, implies the assistance of development, including cooperation of small enterprises and establishment of new mutual – crediting forms of societies in crediting field.

Grade 4. Leasing  development, as the most perspective form, is inevitable process as the most perspective form for small enterprise investors. In industrial countries, leasing includes 25-30% of direct investments annually, but in our country it is not still well expanded. for moving complicacy centre of financial operations from circulation field into real sector of economy in leasing development, it is essential that the participation of reliable commercial banks and insurance companies to be actively stimulated.

Grade 5. Establishment of industrial and technological service  system  in small and average businesses, implies the consideration of this fact that, nowadays, actual reserve of  forming  some element of infrastructure of small businesses, can be usage of industrial capacities and properties of poor  industries, after their liquidation, reorganization and changing profile. (namely, it is possible to locate supporting units of small groups of ownership and enterprises on their base). Distinct experience of realization of such approaches is already existed in a number of regions from the standpoint of industrial-technologic support of industries.

Grade 6. The problem of developing modern tendencies in small overage and large business cooperations has already been matured, e.g. franchise development of small industries in Russia will help to solve many essential economic  and social problems. Here, first and foremost is meant the creation of new working places and broad involvement into business of all these people, who can’t manage it independently, without any support and getting suitable knowledge. In modern conditions, a range of obstacles arised against the franchise development in  Russia: non-existence of special normative-legitimate base and suitable informational insurance, owners insufficient knowledge of running business  by means of peculiarities of such skills and possibilities; nonexistence of sufficient consultative structures; and common financial-crediting problems.

In the development of modern tendencies of cooperation in large and average businesses, financial-industrial groups play a drastic role. According to the practice of development countries, such groups grow the stability of economy and give chance  to solve investing problems. It’s especially important  for the regions, where there are outnumbered branches and subbranches with high investment capacity. Such as: (fuel-energetic complex, wine-making, mineral waters, etc) and conversional enterprises. Financial-industrial groups can become the significant means of realization of state selective structural politics, as with the help of these large integrated structures, it  is easy to carry out rational manoeuvverability in industrial sector; among them, definition and support of prioritative  fields and enterprises.

Grade 7. It’s necessary to put ventural financing schemes into motion and develop investment insurance system in small and average business fields. During realization of the above mentioned schemes,  effectiveness of scientific-research and experimental-constructive works are significantly increased in small enterprises. Innovational campaigns of a small business, in most of the countries function by direct backing of the state, that really estimates their great national-economic importance and due to this is ready to assign corresponding  financial expenses. Innovational small enterprises, technological development funds, incubator of technologies etc. nowadays, in Georgia,  experiments of a range of ventural financing programmes realization, in small and overage business fields take place from foreign financial institutes. These are: European World Bank, Inter-American Development Bank, Development Credit Bank and so on. In the realization of ventural financing of small business, their experience can be acceptable for Georgian banks and financial institutes. In a country market, the most vital subject is insurance problems. In western countries, the insurance is considered as unavoidable mechanism of risk redistribution. Its increased level in small and average industries, causes a number of difficulties in the working process of insurance companies: herewith, simultaneously insurance and reinsurance, also guarantee systems of credit returning can be created. Perhaps, it is necessary, these systems to be supported distinctly by central and regional organs. (e.g. for specialized risk insurance companies, checking privileges or compensation of their loss). In perspective, Georgian financing crediting system must be filled with specialized net of risk insurance, connected with investment credit issue.

4. Establishment of united investment infrastructure in small  and average businesses. Specialization of financing-crediting system in small and overage businesses can be carried out in two ways: a) Investment. In the way of forming financial organizations, specialized at the expense of investing operations: 6) In the way of orienting, just connected with small business operations. Different combinations of the above mentioned directions of specialization for financing-crediting organizations in small and average  business fields, are also possible. But in any case, these organizations   must be given distinct privileges by  federal and regional organs. Unfortunately, for fear of next “financing pyramids”, at present, population don’t have  eny confidence in establishing these specialized investment banks and sharing investment funds, that assemble the private investors’ funds and after, these are put in small enterprises as well as in small and average infrastructural units as the investment portfolio. Thus, at initial stage ideological training for the sharers of small business and population is necessary. It’s not less important that such specialized investment organizations, for the  purpose of guarantee and getting confidence must be created on the initiative of these state, social and commercial organizations, which are highly qualified in successful running of small business industry field and have authority over this field.

5. The role of small and overage business support agencies in the development of crediting and investment mechanism of this field. In  the regions,  these agencies characterized by a range of peculiarities due to their status, that creates quite profitable atmosphere for them, during the corresponding service. First regional agencies are fully specialized in their field. With  the difference from many other organizations, for which small and average business support is either temporary or accompanying with essential business. These agencies can use their priorities for getting experience and advices, attracting highly trained  specialists, having permanent relationship with  administrative organs and  so  forth. That is why, the service of regional agencies is famous for its quality. Their consultations and other forms of small and average business support are high trained in all, and recommendations – useful and practically acceptable. Second, such agencies have right to use all the various forms and methods of small and average business support, that on its side securing the complexity of their service. Third, from the very beginning regional agencies are involved in federal, regional and local systems of small and average business support; That is very important for the successful realization of their registration, investment and other functions. Fourth, regional agencies take objective part in the whole net of intercommunicated and inter useful organizations, that is practically expanded all over Russia.

In the case of successful development of regional agencies’ net, this advantage can be essential for small and average business support, due to their specialization and professionalism,  treatment of regional politics, development of proper federal and regional programmers and also because of having participation ability in creating similar regional bases.

To maintain the special status and role of their organizations, the staff of regional agencies must take into consideration  well, a main point of the politics of small financial industries  support, that must be realized on different levels of state government, clearly elucidate all the varieties of useful forms, methods and institutes, necessary for the development of this politics; They must easily manage to orientate on the proper segments of investment-financing,  momentary-crediting and stock markets.In the formation and  realization of regional politics of small and average business subjects, the first condition for successful  participation of regional  politics is to know as much as possible about real financial demands of concrete enterprises. But the problem is not only in the manifestation of the demands of additional finances, but also in structural-problematical analysis of the  above mentioned and also in the manifestation of these small enterprises,  that require financial support most of all; afterwards, selecting the most long-range enterprises from the standpoint of future profitability.  (after getting financial support).

The role of regional agencies in deciding these  problems will be shown in working out unavoidable systematic-analytical instruments, in leading proper date basis, creating informational guide and findings fulfilled by general as well as individual orders on the basis of their own estimation. Above mentioned  orders can be as   from enterprises themselves, as from authority and government organs and financial-crediting organizations.

Other direction of activity of the above mentioned  agencies, according to the regional politics context of financial support of small industry, must be the research of possible sources of free funds in the region and in solving financial problems of small and average business or working out principal schemes of their usage in investments.

Evaluation of regional politics structure for financial support of small industry. without the arrangement of systematic monitoring of this sphere, its constructive and in-time correction is impossible.

During the time of special and regular researches of industries, regional agencies can evaluate  programmer realization results in small and average businesses – (for different level budgets and enterprises, which require assistance) in the concrete regions. Also, practical results of giving credits and establishment of regional taxation privileges for small industries.

Thus, regional agencies can take part in the realization and formation of regional politics of financial support in small enterprises and play a mediator role and such a performer, who has to carry out a range of  the functions, which were not paid any proper attention by any kind of elements of regional  infrastructure in small and average businesses. With the help of all these, they would like to assist the growth of investment activity of this field.

The Funkcions of Regional Agencies in the Development of Small and Average Businesses.

Functions of above mentioned agencies, for small and average business support, enquire essential  analysis  in line with the development of progressive investment forms; and in the realization part of prioritative tendencies  of its state support.

1. The role of regional agencies in the development of leasing and franchise. In the development of these progressive forms of small and average business investment, participation forms of agencies can be absolutely different. There are united activities together with the organs of federal level, for getting normative acts and working out methodical  materials; forming statements about taxation privileges, establishment of specialized data banks etc; Parallel  activities at regional level, that supplement central authority actions (e.g. initiative of sentence study about getting privileges for local tax payment , also, independent steps for the development of leasing and franchising.

Such steps represent the following: a) making contact to these firms in Georgia, which are potential organizations of leasing and franchise, working out typical documents jointly (contracts, methodic, checking procedures etc). b) organization of juridical, consulting and informational assistance. (Search and selection of partners, consultations, assistance in teaching and control, etc). c) organization of international cooperation (leaseholders and  franchisers ‘ search in Russia and abroad, assistance in market research, selection of potential clients, adaptation of foreign system of leasing and franchise to Russian conditions, assistance in arranging these technical questions, which include partners separation a long way off, corresponding..service..etc).
d) Organization of leasing and franchise propaganda. (Conferences, Seminars, Symposiums, Coarses, Press and Televise etc.)  Participation in establishment of their supporting centers and also in the development of leasing and franchise association in regional departments. e) Participation in establishing those specialized mediatory  firms, which duty includes: selecting of partners, working of different tasks of leasing and franchise assistance and development on the commercial basis; f) organizational   assistance for the participants  of leasing and franchise system by transmitting buildings and constructions with preferential conditions.

2. The role of small and average business support agencies in the development of industry in innovative field. These agencies can play an important role in getting contact among innovative firms and their providing with necessary  information; They can render assistance to such industries, expressed by investment support. from the side of agencies, main directions of small industries support in innovative sphere are the following: information base development in innovative small enterprises, assistance to establish such data base, were advices about the publication are given in the proper scientific fields; notifications about introduction of distinct types of techniques, about perspective development of scientific-technical approaches. b) rendering assistance of preparing investment projects, in estimation of perspectives of offered scientific-technical projects, in creation and introduction of new techniques and risk determination connected to above mentioned factors. c) in assistance of providing small innovative enterprises  with industrial buildings and equipment and for scientific-research realized by them. d) ensuring of small innovative enterprises with consulting and teaching services and keeping intellectual questions: e) assistance in finding partners and making contact with those enterprises, which work in a joining fields.

The  law on   “supporting the development of small enterprises”   adopted on  23  Jule   1999   is  considered to be the next step toward supporting  the  development  of country’s small and medium enterprises. The law helped to create “the center for supporting and developing small business”. The year 2002 was very important for providing Georgia’s business enviornment with legislative basis and adopting new normative acts.Much attention is presently given to the changes in the law on supporting small and medium enterprises.The law defines the status of small and medium enterprises according to workers’ requirement and annual turnover of their funds. In the same year small and medium business support program 2002-2004 was finished and adopted on president’s descreet.From then on the law has been improving,but the desirable result hasn’t been achieved yet.It is noteworthy that in 1991 there were 600 small enterprises registered .In 1994 their number increased to 12000,in 1995 to 17000 and in 2000 it increased by 20%, in the year 2006 the total number of small and medium enterprises amounted to 22000,thought 28% of the enterprises are inactive.[

In Georgia, mastering new skills for industrial development  in small and average business fields, gives chance to make conclusion that, this field of economy gives vast possibilities for effective investment and its future progress. But it is essential to reveal and put into practice energetically, the most  effective ways of using these possibilities. In connection with this , it must be said, that state policy must be more flexible in the tasks of forming own financial sources of investment, which are the most important at present, for the small enterprises. These industries must be given free rein, while establishing amortization norms, which defines the structure of internal financial  sources of investment (in the job of using internal sources of investments, except the state legislative  support, the effective consultative assistance of small business support organs is also unavoidable). Active  state support is very important for the attraction of external financial sources of investment by small and average business enterprises. Small business characteristics, such as flexibility and mobility, implies that small industries must have ability to increase their financial resources  fast, in any proper time. Its realization is only possible at the expense of borrowed funds. On its side, it includes organizational state assistance in getting funds, guaranteeing commercial funds given to small industries and accomplishing other supporting activities . It is natural that, the progression of this support must be accompanying process of state control reinforcement from the view point of using investment sources and overall development of small and average businesses.

Thuse, the analysis of current social- economic  conditions in Georgia and valuable experience gained from foreign countries show that during transitional period small and medium business must play on important role in forming national economy.

   Small business representis one of the main structures of business, that must establish market economy provide the creation of private business as well as new social class- small and medium business managers and help to overcome the crisis in economy.Small and medium business proved its viability. Their exsistence encourages the mobilization of labour and material resourses creation of jobs,quickly reacts on investments and meets market needs and takes part in state and local budget fulfillment process.

   We must hope that if we use the experience gained from foreign enterprises,we will be able to support small business. From this point of view the structure “Business incubations” is the most effective. Business incubations hasten the development of small business and reduce fail in business by 22%. This question deserved our particular attention because the conditions of small and medium business in Georgia are unfavorable. We approve the creation of business incubations for supporting the small enterprises that have been chosen for some reasons, and their support is exercised by providing them with machinery, services, consultanting and

education.They act to establish contacts between other sectors of economy,grow innovative  activities of business that makes diversification of economy possible and on top of all encourages the growth of small and medium business and their viability.

   Business incubations are flexible structures and merge with infrastructural complexes of region very well. The analysis of functioning business incubations based on world experience and especially of those,like Georgia  enables us to prevent negative consequences and over come current difficulties. Business incbations proved to be fruitful in Post Soviet area. In Russia,Azerbaijan,kazakhistan and Lithuania,but from this point of view Georgia has significanthy dropped behind. We have to do our best to introduce this progressive infrastructural elements in our economy.

Our recomrndations:

   Based on these recommendations we set the goals and main directions of small and medium business development in the following way:

1.    To create a stable enviornment for business with the help of business incubations.

2.    To create  new highly  paid jobs in small and medium business.

3.    To introduce specialized multilateral business incubations.

4.    To provide small and medium business with informational,consulting and financial – credit means.

5.    To Supporing the increase of  independent traders’ number in small and medium business.

6.    To meet the consumers’ needs immediately.

7.    Formation of the enterpreuners’ class that should become the stable guarantee for economic security and overcoming poverty.

Enagic USA, Inc, with its origins in Japan, has much to offer the American people who are health-conscious and particularly to those of us who are sick and/or overweight. Japan (according to the World Health Organization and various United Nations entities) is Number One in the world as far as the health of its citizens and also its health care system. Before we at Enagic began marketing our “Japanese medical grade” water ionizers in this country, our people had no way to affect their health/wellness/sickness standards through ionized water. Now the opposite is true. You can regain your health and you can protect it — keep it.

Our flagship product is the SD501 Leveluk with a full (renewable) bumper-to-bumper five year warranty. Recommended for home use AND as a reliable and dependable commercial work horse.

•    $3980.00
•    5 year warranty (renewable after 5 years; built to work HARD for 15-20 years; repair for $800 and the 5 year warranty is reinstated)
•    7 large solid titanium plates dipped twice in medical grade platinum (no mesh plates, no spray on platinum) This is the strongest electrolysis chamber available in the world.
•    Filtering system removes chlorine, harmful chemicals, bacteria (KDF filters also available ($168.00) to remove rust, trihalomethanes, lead, hydrogen sulfide, iron, barium, cadmium, chromium, arsenic, fluoride, and nitrates) Enagic uses 3-layered high grade filters that purify the water and make delicious drinking water! Your machine will let you know when it’s time to change the filter. ($120.00 about two times a year, to replace the high grade filter. $90.00 for regular filter)
•    Produces 5 types of water [Kangen Water (8.5pH, 9.0pH, 9.5pH for drinking), Clean Water (neutral 7.0pH for taking meds), Acidic Water (5.5pH for skin beauty), Strong Acidic Water (2.5pH for sanitizing, killing e.Coli, anthrax spores, MRSA, staph and strep, salmonella, gangrene, mold, fungus, aphids, skin problems, infections of ears or nose or throat or eyes), Strong Alkaline Water (11.5pH for de-greasing, cleaning household and shop, removing ALL pesticides from food)
•    230 watts, AC 120V, 60Hz (grounded) Greatest wattage used of any water ionizer available. The combination of greater plate surface area and higher wattage combine to make the Leveluk SD501 the most powerful water ionizer. Power source is a transformer. Our machines will not overheat.
•    Fast flow rate 2 gallons/minute
•    Self cleaning cycle, automatic; and your first cleaning cartridge comes with purchase
•    Large LCD panel
•    Voice prompts for each type of water and power switch and cleaning cycles
•    1 high-grade filter, 1 cleaning cartridge (use about every 3,000 gallons), electrolysis enhancer fluid, hook-ups for your sink, product literature, instructional DVD
•    Recommended by doctors and health practitioners. Your Leveluk SD501 is the recommended choice for those with severe or chronic health problems because of its ability to produce ionized water with a greater negative ORP range. The pH and ORP outputs will vary based on source water with any water ionizer, but the SD501 has the power and the plates to out perform them all.
•    Approved as a medical device in Japan. This unit has been approved as a Medical Device by the Japanese Ministry of Labor and Welfare. The medical device number is: #21600BZZ00376000

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The SD501U under the counter model is our newest edition by Enagic! Enjoy the benefits of ionized water right at your kitchen sink without sacrificing valuable counter space. It’s simple to operate with the fully featured wall-mounted LCD control panel.

•    SD501U
•    $4980.00
•    Get the same attributes and 5 year bumper-to-bumper warranty as the SD501
•    Hidden away from view, under your sink.
•    Approved as a medical device in Japan. This unit has been approved as a Medical Device by the Japanese Ministry of Labor and Welfare. The medical device number is: #21600BZZ00376000

Imagine… water that is so amazing, so specific to a variety of uses and so very convenient! Surprisingly economical to produce, yet fulfills 100% of your most critical needs. You get high value water for each specific use in your modern day lifestyle.

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Our top of the line model for commercial or heavy home use is: Enagic Leveluk Super 501

•    $5980.00
•    Highly productive machine with two hoses
•    Built in water pressure regulator
•    12 electrode plates, almost twice the amount of any machine on the market. All water ionizers built by Enagic have solid titanium plates dipped twice in medical grade platinum. Safely dipped twice, never sprayed, ensuring full protection from titanium.
•    5 plates dedicated to Kangen drinking waters (8.5pH, 9.0pH, 9.5pH); 7 plates dedicated to strong acidic (2.5pH) and strong alkaline (11.5pH) waters used especially for disinfecting microbes, cleaning surfaces, cleaning laundry or carpets, and for extensive medical purposes. IMPORTANT!
•    5 types of water … see the SD501 (above)
•    3 year warranty instead of 5 year. If this is an issue for you, consider the SD501.
•    Automatic cleaning like all the Enagic machines. No other machines on the market have self-cleaning capabilities – only Enagic! This is huge. With continuous use, any alkaline ionized water machine will experience build-up of calcium and other materials on the electrolysis plates. If an ionizing machine has no way to clean itself or be cleaned at all, in a few months of normal use, it will refuse to work. Our competitors’ machines cannot be repaired or cleaned. Only machines by Enagic have self cleaning capabilities built in and cleaning cartridges available to extend the life 15-20 years!
•    Specifically useful for restaurants and small-scale food industries. It is also useful in health centers for sharing the water with clients. It’s a wonderful addition for salons (beauty treatments, hair treatments, drinking refreshments for clients), spas, nursing homes, and hospitals). In some Japanese hospitals, every room is equipped with a water ionizer for healing and restorative purposes.
•    Approved as a medical device in Japan. This unit has been approved as a Medical Device by the Japanese Ministry of Labor and Welfare. The medical device number is: #21600BZZ00376000

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NOTE: After purchasing any one of our products, you then qualify for a large discount on two specific products: the Anespa and the Super 501.

•    The Anespa (our mineral ion water activator) removes chlorine from your shower and bath water. Its dual cartridge system contains therapeutic ingredients (main ingredient is Radium Calcium Carbonate) that make you feel relaxed just like a hot springs soak. You can moisturize your skin and make your hair shiny while relaxing in the comfort of your own spa! The water is broken down into smaller clusters which make it easier for your body to absorb the healthy and clean Anespa water.

•    $2390.00
•    $1650.00 bought as a second machine
•    3 year warranty
•    2.6 gallons/minute
•    Mineral ion water activator performs beautifully in your spa or hot tub.
•    The internal ceramic cartridge contains Tufa, MIC stone, and power stones, which purifies your water and regulates the actions of harmful contaminants. The power stones abound in negative ions and the highest level of far-infrared radiant energy. The strong negative ions give a relaxing effect. The far-infrared radiation causes a heating/thermal effect while cleaning the air and preventing oxidation in your body.
•    Tourmaline, part of the external carbon fiber filtering system, helps activate the water.
•    A neodymium magnet activates the water and causes a micro-clustering effect, which enables the minerals to be absorbed readily by your body.
•    Very simple to install and operate.

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Enagic manufactures THE only water processing machines capable of producing Kangen Water™. They have been selling industry-quality units to hospitals, restaurants, farms and other businesses for over 30 years in Japan. In 2003, the Japanese community in the US began to benefit from Enagic technology and in 2006, the rest of America was introduced to Kangen water by Enagic.

Kangen water is perhaps more powerful than any single food or vitamin supplement, because it contains active hydrogen which supplies huge amounts of extra electrons to our body. Most water electrolysis equipment will not create active hydrogen in the water; therefore, the equipment merely produces ionized alkaline water, not Kangen water. In fact, the antioxidant potential of a single glass of Kangen water would cost several dollars to duplicate with vitamin supplements and they would never be absorbed by our body with conventional water.

Kangen water is so powerful as an antioxidant that your body will no longer have to use up calcium to supply electrons to free radicals. When your body begins retaining more calcium you may experience significant weight loss.

The Leveluk Junior ll is one of our smaller water ionizers, but will easily produce Kangen water.

•    $2380.00
•    3 year bumper-to-bumper warranty, all parts and labor
•    3 titanium plates dipped twice with medical grade platinum (no mesh plates, no spray on platinum)
•    Enagic uses 3-layered high grade filters that purify and make delicious drinking water! Your machine will let you know when it’s time to change the filter. This model uses the same high grade filters the larger models employ. The high grade filter purifies the water from bacteria, chlorine, mildew odors, agricultural chemicals, metals, dirt, dissolved lead and more. Specialty KDF filters available from Enagic effectively remove rust, trihalomethanes, lead, hydrogen sulfide, iron, barium, cadmium, chromium, arsenic, fluoride, chloroform, barium, and nitrates…)
•    120 watts; power source is a transformer
•    This model can be compared to our competitor’s models because it is smaller. Never compare our work horse SD501 models to the competition. You can’t compare apples and bananas! The Leveluk Junior ll will not overheat like the competition models and it produces excellent quality ionized alkaline drinking water as well as strong acidic and strong alkaline medicinal waters.
•    This model is serviceable for singles and couples, not for sharing with others. 120 watts produces water for immediate use, not for carrying away from the house or office. The competition may never tell you that about their small machines.
•    Self cleaning cycle, automatic; and your first cleaning cartridge comes with purchase
•    This unit has been approved as a Medical Device by the Japanese Ministry of Labor and Welfare. The medical device number is: #21600BZZ00376000

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The Sunus is our baby machine, our starter model. One of Enagic’s most affordable units, it is ideal for frequent travelers, someone with a limited budget, or as a backup unit. It does not make the strong alkaline or strong acidic medicinal waters, but it does generate all kinds of drinking waters (pH 8.5, pH 9.0, and pH 9.5) and beauty water (pH 5.5). This is the model to compare to our competitors. Never compare our large SD501 work horses to the tiny machines made by competitors!

•    $1280.00
•    Compact size, easily transportable
•    3 electrolysis plates made of solid titanium dipped twice in medical grade platinum (no mesh plates, no spray on platinum)
•    3 year warranty
•    The Sunus uses the same reliable filters that the larger SD501 machines employ and a button indicates that the filter needs to be changed. Filters are generally ready for replacement after 3,000 gallons.
•    120 watts; power system is a transformer just like the bigger Enagic machines. It DOES NOT OVERHEAT. Our competitor’s models do not use transformers and they DO overheat. It’s very aggravating to try to run a quantity of water and have a competitor’s machine shut down to rest!
•    Self cleaning cycle, automatic; and your first cleaning cartridge comes with purchase. Note: competition models do not have cleaning capabilities at all. Once they shut down due to mineral deposits (sometimes within one month!), they are not repairable…
•    Always remember the Sunus is the machine to compare to our competitors’ machines because they’re small. The Sunus will run circles around the competition simply because it’s made to last years, to be self-cleaned, to be cleaned with a cleaning cartridge every 3,000 gallons, and to produce stable alkaline waters. It will not overheat.
•    Note: this baby machine will not produce water that is still medicinal quality after transporting it in a water bottle. This water is strongest and best when you drink it immediately right from the machine. If you’d like to share water with others, you should consider a larger unit like the SD501, our flagship model. The competition will hide this fact from you concerning their machines, but ionizing units with 120 watts (or 85 watts like some competitors’ models) will not produce ORP ratings that will remain during transport from home or office. Drink this water directly from the machine. Useful for a single person or a couple.
•    Not recognized as a medical device. If this machine with 120 watts, is not recognized as a medical device, please be aware that competitors’ models are about 85 watts and most certainly wouldn’t qualify as a medical device. Be careful when you shop and compare Enagic with competitors. We hope you will recognize false claims when you see them.

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Are you ready now to get your health and zest for living into hyper-mode with powerful ionized Kangen Water?

1.    Ready to turbo charge your immune system so it can be your best defense against disease?
2.    Reduce or eliminate drugs so you can have more fun in life with less worry?
3.    Protect yourself and your family against escalating health insurance costs and those manipulative “maximum benefits”?
4.    Ready to learn how to BEAT the drug companies out of their race with you to have your medicine cabinets overloaded with their own pharmaceutical products?
5.    Want to SAVE over $10,000 on the cost of bottled water? ($2/day for 15 years = $10,800. Enagic’s machines are built to last 15-20 years, then be rebuilt for $800, then have their full 5 year warranty reinstated. That’s why we use the 15 year period for figuring the cost of bottled water.)
6.    The most valuable resource on the planet can be designed to keep you and your family safe and protected – every hour of every day, naturally, conveniently, and without chemicals or drugs!

Yes! Send me my machine today!

I’m ready to get serious about my health and the health of my family. With my investment of one full payment of $3980 plus $18.00 shipping charge, I want you to send me, immediately, a magical Kangen™ water ionizer that will get me on the road to UNSURPASSED HEALTH AND ENERGY. I also understand that I get access to all the bonuses and benefits described.

(Tax applies in CA, HI, IL, NY only.)

Here’s How To Get Your Machine Super Fast, Super Easy! Leveluk SD501 The magical Kangen™ water ionizer by Enagic.

Fill out the three forms found at http://enjoyingyourhealth.com/WhichWaterIonizerIsBestForMe.pdf carefully and completely. Shipping for the SD501 is only $18.00.

Be sure to print everything in BLOCK LETTERS so it can be easily read by our customer service representative. You can fax, scan and then email, or postal mail the forms to:

Dave and Dianne Hansen diannedave@gmail.com
P.O. Box 99, Fortine, MT 59918
Call us at 406 882-4050 MST if you have any questions.

OR you can fax, scan and then email, or postal mail the forms to Enagic USA, Inc

•    Enagic USA, Inc, 4115 Spencer Street, Torrance, CA 90503
•    Phone: 310 532-9000  Fax: 310 542-1700
•    Email: cc@enagic.com

If you need financing help, we can make arrangements with one of several different companies, some requiring no credit references, some requiring a credit rating over 600 points. Some requiring no down payment!

FINISHED?
HAVE YOU CHECKED EVERYTHING FOR ACCURACY AND COMPLETENESS?
REMEMBER, IF YOUR PAPERWORK ISN’T ACCURATE, THIS WILL SLOW THE ORDER PROCESS.

You might need to call your credit card company and authorize the charge from Enagic USA, Inc., because if your credit card refuses the payment, it will cause delay…

Now here’s what you can EXPECT…

Once we get your order and confirm your information, your order will be submitted for processing. You will then receive a confirmation email within 48 hours of your order being accepted and a distribution number being assigned. Next, you will be notified of an approximate delivery date that you can expect to get your Leveluk SD501 delivered to your door.

Here’s what you GET…

Enagic magical Kangen™ water ionizer SD501    DELIVERED RIGHT TO YOUR DOOR! Full 5 year written warranty Three-layered, high-powered water cleaning filter – able to filter 3,000 gallons of water Bottle of electrolysis enhancer included Complete instructions for simple installation and operation Laminated chart showing how water is dispensed Booklet explaining the advantages and use of each kind of water An antioxidant rich, highly alkalized water straight from your tap An environmentally sound, ‘green’ sustainable product BONUS: AFFILIATE PROGRAM     Free participation in customer referral affiliate program. Receive a thank you check paid directly to you in cold hard cash when you help someone else enjoy the healthy benefits of the incomparable Kangen water. If you find someone else interested to purchase an Enagic    water ionizer, simply have them fill out the same forms you did. You will sign the forms with them as their sponsor.

Questions?

Contact: Dave and Dianne Hansen 406 882-4050 MST
diannedave@gmail.com

Once you receive your machine, call us and let us hear what you like best about Kangen™ water.

Here is what the experts say about alkaline ionized water:

•    Dr. Sherry Rogers: “Alkaline water rids the body of acid waste… After carefully evaluating the results of my advice to hundreds of individuals, I’m convinced that toxicity in the form of acidic waste is the primary cause of degenerative disease.”
•    Dr. Ingfreid Hobert, MD: “You do not need expensive medicine with all the negative side effects to regain health… Alkaline water has profound long term effects because it alkalinizes your body and provides an effective antioxidant.”
•    Dr. Hidemitsu Hayashi, Director of the Water Institute, Tokyo: “Bad diets such as meat and potatoes, fried foods, soft drink colas, and sugars build up acid salts in the body. Often these deposits, by having to be stored away from the blood flow, can remain in the body for decades. I recommend the consumption of ionized alkaline water, which will slowly and gently wash these salts away.”
•    Dr. Theodore Barcody, author of Alkalize or Die: “I have administered over 5,000 gallons of this water for about every health situation imaginable. I feel that restructured alkaline water can benefit everyone.”
•    Felicia Drury Kliment, author of The Acid Alkaline Balance Diet and Adjunct Professor at City College, New York: “After years of a very positive continuous clinical experiment that I am conducting – with hundreds of clients using electronically restructured alkaline water – it is my opinion that this exciting technology will change the way in which all health providers and the public will approach their health in the coming years… My suggestion is to drink restructured alkaline water whenever possible.”
•    Dr. Susan Lark, author of The Chemistry of Success: “Drinking four to six glasses of alkaline water a day will help to neutralize over acidity and over time will help to restore your buffering ability… Alkaline water acts as an antioxidant because of its excess supply of free electrons. This can help the body against the development of heart disease, strokes, immune dysfunctions, and other common ailments.”

Direct Cost Increase
Whenever you drive for a business purpose – even to and from work – you are paying more then you did a year ago. This direct price increase may only be slight for wage earning employees, but small business owners typically drive a lot more. Between trips to the local Office Depot, frequent visits to their place of business, trips to the bank, and trips on behalf of customers, that extra $0.50 – $2.00 per gallon can really add up.

Increased Shipping Costs
One place the cost of fuel has had a direct impact on is the cost of shipping. This increase is passed-down directly to the consumer. This means that the price of everything is going up (i.e. price of supplies, inventory, merchandise, etc.), and the overall cost of running a small business will continue to reflect this problem.

More Reliance on E-mail and Fax
Due to the direct increase in shipping costs, small business owners are increasing their usage of e-mail and fax machines. Paying to ship large documents or contracts just costs too much these days. A lot of businesses are also turning to virtual fax machines that let you scan documents to fax out and receive faxes through one’s e-mail address.

Less Employee Candidates
Due to the high cost of commuting, people are beginning to only seek employment near their homes. This can drastically reduce the number of applicants who will apply for a position. It is especially troublesome for restaurant owners or stores that frequently hire teenagers.

Higher Wages for Employees
When you do find and hire employees, it is likely that you are going to have to pay them higher wages to compensate for the higher commute expenses. This is especially true for businesses located outside of a dense city and your employees must drive long distances to get to work.

Less Face to Face Meetings
Pretty much everyone in the country is looking to reduce his or her gas consumption and save money. This means business owners will need to adapt to more virtual means of communication that avoid the gas of driving to face-to-face meetings. Expect to conduct additional business calls, and even videoconferences. These forms of communication are less personable, thus reducing the chances that you will “win” a contract or a customer based upon your people skills.

Higher Prices for Prime Locations
The housing boom a decade away led the path to sprawl, where middle income Americans moved to the suburbs in record numbers. However, with record fuel costs, they are driving less. This means the cost of prime locations is likely to skyrocket. Consumers are no longer willing to drive long distances to get a good deal. In addition, advertising will waste money if your store is a long drive for potential customers.

Less Drive by Traffic
As consumers drive less and seek-out alternative modes of transportation, the importance of drive by traffic and advertising is going to be less and less effective. Instead, owners of brick and mortar stores are going to need to adapt to more results-driven forms of advertising.

Are you tired of working for someone else and letting them get paid for it? Do you want to be your own boss? Have you always dreamed of running your own business? Many people today think these things every day; however they believe it is only a dream. Well this dream could become reality by starting an auto body franchise business.

If you are wondering what a franchise business is, it is simply a method that companies use to disperse its products or services through many different retail outlets which are owned by an independent third party. The third parties or franchisees’ are entitled to use trademarks, products, services and even techniques already established by the franchiser (developer/owner). Most of the time the franchiser offers ongoing support and resources for the franchisee to take advantage of. Many franchisers have already accrued many discounts with other business which the franchisee may also use. Depending on the franchise there may be many other benefits associated with running your own franchise!

So why is the automotive auto body franchise business a great way to get into business ownership; just they a look at the numbers. There were 220 million vehicles on U.S. roads in 2003, a figure that had been growing steadily at approximately 5% per year. We can use this figure to project that there will be more than 275 million vehicles on the road in 2008. More vehicles means a larger market, and an increased number of minor accidents as streets and parking lots become more crowded. Every 17 seconds a reported rear end collision occurs, and every 8.5 seconds an unreported rear end collision occurs. The most frequent accident on the road is the rear end collision, at almost 29.7%, and 75% of these accidents occur at less than 10 mph. Fully 12% of Americans had minor damage repaired on their vehicle in the last year alone! 36% of all minor auto body damage is to the front or rear bumper. More than a third!

Compared with other services, auto repair is a real bargain. Over the past decade, the cost of hospital services has risen more than 100%, and the cost of financial services has jumped 90%. Automotive maintenance and repair costs, in contrast, have risen just 44.5%, making auto repair the darling of the service industry.

Now you may be wondering why you should start a franchise instead of starting your own business simply from scratch. Well, the main reason is because 5% of businesses succeed in their first 5 years, meanwhile 75% of franchises succeed in the same time. So you have a much higher chance at succeeding in a franchise business. Another reason is that the franchise already has a working system in place. You will not have to try and fail until you find the solution while wasting your time and money. Another benefit is that there are others out there on your side who can offer advice and suggestions to help your business thrive. Even though there is a system in place it will take your determination and leadership skills to successfully run the business!

As with many businesses you need a plan in place before you get started. Similarly the same will apply if you wish to start your own automotive sales or repair business. Not everyone knows what the recommended steps are so here we go over but a few to give you an idea of what you need to look for and plan for before parting with your hard earned money and starting your dream business in the automotive industry. These steps are not necessarily in any specific order but it is recommended that before you start anything you begin with the Business Plan.

Business Plan

Any new business must make a business plan so that it is understood what is required to get your business started, what your intentions are for the future and your expectations. The costs you are likely to face and the funds you have to deal with all the required financial concerns. Your business plan should look to the future, perhaps with a 1 year, 5 year and 10 year outline of what your business expects to achieve within that period. If you are required to obtain funds to start your business you will be required to provide a business plan to the Lending institution and this also shows your commitment and thought processes for your intended business and its success.

Bank Account

You need to ensure you open a business account only for your business income and expenses. If you do not use this account for all your business related expenditure and income many times you will find that the income has not gone into the business and yet all the expenses are coming out of the business. This is often the reason why many businesses do not succeed. In the initial steps of your business you can expect to run at a loss and this can continue for an extended period of at least 1 year so ensure you are not taking any income from the business unless there is a huge excess of income and it is sustainable, during this first initial set up period.

Insurance

Ensure that you have all the required insurances to cover the operation of your business and the employees you have relating to the business. You need to consider coverage for insurance for your employees themselves as well as any property insurance such as vehicles left on your premises and also any liability issues that you can obtain insurance coverage for.

Do not skimp out on insurance requirements as nobody can see the future. Ensure you get coverage for natural disasters etc. If you are able to with your current insurance provider, shop around to get the best deal. Just because you have insurance currently for your private items with a particular company, this may not make them the preferred choice for your business insurances and they may not even have these on offer.

You should also look into some form of personal insurance as if you are the sole owner or operator of the business and were suddenly unable to work how would the business continue to produce an income? Not to mention of course life insurance coverage in the event that there was a death then generally all debts and profits have to go to someone and you don’t want to leave your family in debt if something were to happen to you.

License

Make sure that you check with all regulating authorities that you have the correct licenses and all of your staff fulfills all required criteria before you start off with your business. You do not want to outlay all your start up costs only to find you missed a simple step such as a permit that you may be required to have and you are shut down for the offence or required to pay huge fees.

Advertising & Promotion

Make sure that you have an allowance in your estimated costs for sufficient advertising and promotion. Once your business is open you want everyone to be able to find you so make sure that you have allowed a budget sufficient to cover your advertising and branding promotion for a minimum 3 month period if not for the entire year. Don’t rely only on newspaper advertising, try to be creative with your promotion and ensure you do some research before you get started. Things to consider are items such as a uniform for staff and small promotional items to give away at the end of a completed job or sale? Perhaps key rings with your logo and telephone number on etc.

If you follow these suggestions and listen to advice of others as well as your own common sense you will find that you have a great starting platform to get your automotive business off to a great start. Research all you can about every aspect of the business you intend to start before you go ahead and this applies in any industry not only business in the automotive industry

.

As with many businesses you need a plan in place before you get started. Similarly the same will apply if you wish to start your own automotive sales or repair business. Not everyone knows what the recommended steps are so here we go over but a few to give you an idea of what you need to look for and plan for before parting with your hard earned money and starting your dream business in the automotive industry. These steps are not necessarily in any specific order but it is recommended that before you start anything you begin with the Business Plan.

Business Plan

Any new business must make a business plan so that it is understood what is required to get your business started, what your intentions are for the future and your expectations. The costs you are likely to face and the funds you have to deal with all the required financial concerns. Your business plan should look to the future, perhaps with a 1 year, 5 year and 10 year outline of what your business expects to achieve within that period. If you are required to obtain funds to start your business you will be required to provide a business plan to the Lending institution and this also shows your commitment and thought processes for your intended business and its success.

Bank Account

You need to ensure you open a business account only for your business income and expenses. If you do not use this account for all your business related expenditure and income many times you will find that the income has not gone into the business and yet all the expenses are coming out of the business. This is often the reason why many businesses do not succeed. In the initial steps of your business you can expect to run at a loss and this can continue for an extended period of at least 1 year so ensure you are not taking any income from the business unless there is a huge excess of income and it is sustainable, during this first initial set up period.

Insurance

Ensure that you have all the required insurances to cover the operation of your business and the employees you have relating to the business. You need to consider coverage for insurance for your employees themselves as well as any property insurance such as vehicles left on your premises and also any liability issues that you can obtain insurance coverage for.

Do not skimp out on insurance requirements as nobody can see the future. Ensure you get coverage for natural disasters etc. If you are able to with your current insurance provider, shop around to get the best deal. Just because you have insurance currently for your private items with a particular company, this may not make them the preferred choice for your business insurances and they may not even have these on offer.

You should also look into some form of personal insurance as if you are the sole owner or operator of the business and were suddenly unable to work how would the business continue to produce an income? Not to mention of course life insurance coverage in the event that there was a death then generally all debts and profits have to go to someone and you don’t want to leave your family in debt if something were to happen to you.

License

Make sure that you check with all regulating authorities that you have the correct licenses and all of your staff fulfills all required criteria before you start off with your business. You do not want to outlay all your start up costs only to find you missed a simple step such as a permit that you may be required to have and you are shut down for the offence or required to pay huge fees.

Advertising & Promotion

Make sure that you have an allowance in your estimated costs for sufficient advertising and promotion. Once your business is open you want everyone to be able to find you so make sure that you have allowed a budget sufficient to cover your advertising and branding promotion for a minimum 3 month period if not for the entire year. Don’t rely only on newspaper advertising, try to be creative with your promotion and ensure you do some research before you get started. Things to consider are items such as a uniform for staff and small promotional items to give away at the end of a completed job or sale? Perhaps key rings with your logo and telephone number on etc.

If you follow these suggestions and listen to advice of others as well as your own common sense you will find that you have a great starting platform to get your automotive business off to a great start. Research all you can about every aspect of the business you intend to start before you go ahead and this applies in any industry not only business in the automotive industry.

In 1984 Nissan established a Factory in Sunderland, North East England. In the past eight years this factory has been Europe’s most efficient car plant. Since then Nissans overall investment in the region has been approximately £2.1bn ($4.1bn). The level of commitment by Nissan has propelled the North East of England as one of the top places in Europe to relocate automotive businesses as well as the expansion opportunities available.

Nissans decision to move to the North east has prompted over 150 automotive companies to relocate or start up in the region and the industry now has a combined workforce of 18,000 skilled people. Companies in the car or car component industry can take advantage of the regions large and skilled workforce with great employment skills in the automotive industry.

In addition to the employable skills enjoyed in the region, the industry is also supported through the Institute of Automotive and Manufacturing Advance practice at the University of Sunderland which is recognised worldwide as a one of the leaders in its field. Its research includes materials and structural analysis, manufacturing systems and ergonomics. There is also Durham University’s Centre for Automotive Research; here they have expertise in vehicle aerodynamics and hybrid vehicles.

Located in nearby Newcastle upon Tyne is Northumbria University. The design school contributes to the industrial design of automotive products.

The North East of England also boasts a wide range of specialist industrial support. This includes the NEPA programme which looks at lean automotive manufacturing; The Regional Centre for Manufacturing Excellence; The Automotive Academy; and the Automotive Centre for Excellence. These resources are made available to businesses that are looking to set up in the region. The regional development agency, One NorthEast, have a dedicated team who help businesses from all over Europe and around the world to look at the opportunities available to business looking to relocate and take advantages of what the North East has to offer.

So the North East of England is a region that can support new and existing businesses that are looking for expansion opportunities or relocation opportunities in the Automotive industry. With a highly skilled workforce and support and collaboration available for the regions local Universities the North East has established itself as one of Europe’s prime locations for the Automotive industry.

If you would like to know more about these business opportunities then the best place to get advice is through the Invest North East England team at One NorthEast.