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A new year has started with a lot of expectations and hopeful opportunities. 2010 will be a big year for people starting their own business, either out of necessity or the recovery of confidence as the economy begins to pick up.
The downside
Although the fact and figures indicate that the situation is not so optimistic as the economy is still trembling, the possibility of tax increase is obvious and cash flow is expected to be troublesome for small businesses in the start of 2010.
Looking hard
Experts describe the forthcoming scenario in which entrepreneurs and corporations will be seen carefully tracking their customers to get paid on time, and similarly the Australian Tax Departments will be after anyone they can get their hands on. However, it doesn't mean that the money is not there. Opportunities are still underlying and it all depends on the entrepreneur and start-ups to dig them out.
Following are some of the forecasted trends envisioned to be followed in 2010, understanding them will help you build your start-up strategy for the New Year:
1. Angels Investors
Angels have been like a symbol of hope and strength for entrepreneurs for a long time. In 2010 they are not expected to stop investing, but they will surely be more cautious and are expected to invest lesser.
2. Ride alongside the infrastructure
By leveraging the due diligence, investment and monitoring that has gone into a primary investment, private foundations are going into the business of managing sidecar funds. Sidecar funds are a committed source of capital that 'rides' or invests alongside an angel group. While with the quite old concept of sidecars, the collective experience gained by various angel groups is new and striking. With venture capitalists entrusting more money, they have been likely to invest in more mature enterprises. So as a start-up you must give more attention to sidecar funds.
3. Social entrepreneurs
Small business ownership will become increasingly common and diverse, new forms of small and personal businesses will be created, and educational and training programs will shift and expand to support small businesses. The businesses with a social impact will be encouraged more than others.
4. Boomers to start-up businesses
According to a recent Australian poll by Internut, 61% of non-retired adults in Australia plan to work into retirement, and two-thirds say the enjoyment they get from work is the key reason. As boomers mature, they will form small businesses at higher rates than prior generations. According to recent trends, large-company service has become less secure and rewarding, while small businesses have becomes more attractive.
5. Women entrepreneurs
Entrepreneurship will reveal an upswing in the number of women. A recent survey has shown a 17% growth in women entrepreneurs since 2006.
6. Personal businesses
Technology has made it a one-man show. Small home-based businesses owned by single persons typically having no employees are also flourishing in Australia. As in this case, the investment is quite low and depending on skills and strategies the profit margins are amazing.
7. Don’t approach VCs
In 2010, venture capitalists are expected to diversify less and commend more money to each investment, generally investing in more mature enterprises i.e. those that have attested the value of their products or services and seek additional funding for expansion. So VCs aren't the investors to be approaching in the seed and start-up stages this year.
We hope the study of these recent trends will help you establish a good start-up business of your own in the year 2010. Good luck.
