Woolworths may be gone, but it is well and truly unforgotten.

A few weeks ago, we heard that the Barclay Brothers had bought the Woolworths name to use for online selling of some of their famous brand names. But now it seems not only that, but some of the Woolworths stores may be returning under a new name and new management.

Woolworths went into administration in November of last year after it was struggling to pay its £385 million debts. The 800 chain store closed its doors to customers throughout December, and the final stores closed their doors at the beginning of January this year.

New beginnings

However, it is planned that in March of this year, the manager of the Woolworths in Dorchester is going to re-open the shop she has worked in for eighteen years under the new name of Wellworths.

Claire Robertson started working for Woolworths when she was 16 as a Saturday girl in Somerset.

Ms Robertson claims the store in Dorchester “was like her second home”, and was said to be “very sad” about its closure.

However, customers will be able to visit the pick ‘n’ mix counter she used to refill as a teenager once again.

Ms Robertson said: “The idea was very easy [because] Dorchester’s Woolworths was a successful store.

“The getting it onto a business plan and convincing somebody that it was a good idea was slightly more difficult.”

She also added that she hoped to “get back Woolworths customers and attract some new ones as well.”

Future Employees ‘can’t wait’…

Many of the employees of the old Woolworths that have so far been unable to find new employment will be getting new jobs in the new store. Mr Robertson has done her best to make sure that the team she has hired are the same team that worked for her before.

Patty Ball and Terri Edwards are two such examples. They said: “We can’t wait [until it opens] – our little family back together again.”

Economic Limitations

However, starting up a business in the midst of the current economic climate will be no easy trait.

“It would be silly not to thing in this time opening a new retail outlet is not going to be difficult, but people out there need to by foods at good value,” Ms Robertson said.

“We have already sourced out pick ‘n’ mix – I remember as a Saturday girl filling the pick ‘n’ mix counter – again, it has been part of my life. That building feels like my second home.”
 

What do You Think?

Will Woolworths ever be truly gone? Do you think this store will be a success? Is it a very risky plan, or is it the beginning of a new High Street name? Leave your comments here.

Even though the UK and the worldwide economy may be on the slide there are still literally millions of people around the globe thinking of setting up their own businesses. The internet has brought a new dimension to start-ups and reduced the historic set-up costs which had scared off so many people in the past. However, even though set-up costs have fallen dramatically many people do not realise that there are still many opportunities to obtain start-up grants and assistance.

A quick check on Google will show you just how many opportunities there are to obtain financial and advisory assistance if you are looking to start-up your own online (or offline) business. But why are the authorities still looking to assist new businesses even though start-up costs have reduced substantially?

There are a number of reasons why the government and other associations are still keen to see new businesses develop and grow, reasons such as :-

Local Economy

The more successful a local business is the more chance of employment opportunities in the region. This takes pressure off the local authorities, puts money in people’s pockets and also ensures that there is a local work force on tap for those who need to increase staff numbers.

Country Economy

The more successful business which the UK assist the more taxes will flow into the Treasury coffers and the less funding will be required for social security / unemployment benefit, etc. Many research projects have also highlighted the personal boost to people who are working for their own money, people who have a reason to get up and go to work. Everyone likes to be part of a successful business.

Balance Of Payments

The stronger the UK economy the more money will flow in from outside companies who want to acquire services and goods from the UK. While this has a positive impact upon the exchange rate, it can also attract further tourism when people realise that the UK is once again a prosperous economy.

EC Grants

As part of the EC the UK, and other partners, will receive an annual budget to assist national business and start-ups. Very often this funding will be reclaimed or reduced if it is not fully invested so while the authorities need to be careful whom they are assisting, they also need to ensure that funding does actually find its way to the people who need it

Post Start-Up Costs

While we mentioned the reduction in traditional start-up costs because of the internet, there are still other costs which need to be considered post-launch. Advertising, promotion and investment for the future are just some areas where funding can be very useful – it is not just the start up period which is dangerous as figures have shown that the vast majority of businesses will struggle in the first year, with a large number actually going out of business.

Summary

So if you are looking to start-up your own business you need to think a little longer term than many at the moment. True, you may not need as much start-up funding as we have seen in the past, but there is still a requirement to invest for the future and ensure you are not another statistic that suffers in the first 12 months and goes out of business.

As news of the credit crunch continues to dominate the financial pages, many are over looking the problems many entrepreneurs are forecasting after the increase in small business tax from 10% to 18%.  Recent research has shown that the vast majority of small business owners are very concerned about the lack of funding for inward investment, with many looking to delay or even cancel already planned expansion plans.  So why have the government taken this path?

After a campaign by a whole host of small business groups the Treasury had indicated that they were willing to listen and consider changing the new tax rules for small business – after initially simplifying the whole tax system. After much spin and bluff, nothing has happened and the government are now stuck between a rock and a hard place, unable to back track because they will losing facing, and attracting the continuing wrath of the small business environment.

Despite many promises to simplify the small business regulatory arena, the government have undone any good work of late, in one foul swoop.  A near doubling of the tax rate for smaller companies has ripped the heart out of many, coming at a time when the economy is set for a major shift downwards. What could go wrong has gone wrong for the Treasury over the last few weeks, and we are set to see more heartache for many industry leaders.

Where is the incentive to invest their own money and take a risk? Where is the incentive to fund new projects? Where is the incentive to even consider starting a new business?

Finance costs have risen substantially, taxes have nearly doubled over night and the economy is turning down.  Can there be a worse situation for the band of UK small company entrepreneurs?

Over the last few months we have seen doom and gloom everywhere, and Friday’s fall on the Dow Jones Index has further highlighted the perilous state of the US economy.  If the US were to dip into  slow down or even a recession this would effect all areas of the world, but should it stop you setting up your dream business?

While a best case scenario would always mean setting up a business when economies are growing and the good times are rolling, this cannot always be the case.  True, it may be a little more difficult to secure financing for a more adventurous business idea when the economy is under pressure, there will always be good money for a good business idea, no matter what state of the economy.  Imagine how strong you would be when the economy starts to pick up?

The internet has given more and more people a chance to follow their dreams, to set up that business they can run form home, and hopefully bring in a lucrative income stream.  The internet has also given many businesses the opportunity of exposure to other economies around the world, other than their own.  No matter how difficult the world situation is, there will always be pockets of vibrant economies, whether this be the fact there has been political change or perhaps they have joined the EU.  Not all economies will be down at the same time, and not all will be up at the same time.

However, in order to secure financing for your venture you will need to show that you have researched the market, you have the knowledge and focus.  Even if economies were in double digit growth mode, you would never secure any form of financing without a business plan - somethings never change!

Historically the UK has been, and continues to be, a hot bed of new business talent with a vast number of new businesses being set up each year, some succeed, some fail and some limp along.  However, one of the main problems which many new businesses experience is under funding.  There are a great number of business people who think that they need to cut down their starting budget to a minimum in order to be successful - this is not always the case.

In order for any business to have a chance of succeeding, the business needs to be fully funded.  True, there is always a need to cut out any surplus costs but there is no way a start up business will stand any chance of succeeding unless it is allowed to grow.  Many business people have been known to approach their banks for funding with a figure which is wholly inadequate and a recipe for disaster. You need to remember that no sensible bank would expect your business to break into profit from day one, a company needs to be nurtured like a young plant - given a firm base, encouraged to grow and watered frequently, with the end product of a blooming flower (or a successful business!).

To under fund your business from day one is a major mistake and drastically reduces your already borderline chances of success.   There are many banks who would not even consider the funding of a new business if they saw that the project was under funded.  Under funding leads to :-

· Less chance of being successful.

· Tighter trading conditions.

· Less breathing space to make the normal mistakes associated with a young business.

· A disheartened owner always fire fighting.

· Probably eventual closure

As strange as it may seem it is always advisable to ask for a little more than you expect when looking to fund a new business.  There are many highs and lows of setting up a new venture, but to experience the highs and the lows, you will need to be around - for that you need to be fully funded!