Potential New Start-ups in the Hospitality Sector | Goodflo
Prospects for New Start-ups in the Hospitality Sector
At Goodflo, we talk to many new start-ups and expanding second stage businesses in the food service hospitality sector. A large proportion of these are small medium size enterprises (SME) with government research suggesting the hospitality and food service establishments (FSE) make up to 38% of all new start-ups.
In such a dynamic sector of the UK economy, what are the prospects for new start-up businesses and those in second stage growth?
Business Survey Stats
The Longitudinal Small Business Survey Year 2 (2016) published by the Department for Business, Energy & Industrial Strategy provides useful information and helpful insights for SME business owners and operators.
Government statistics report that 82 percent of SME employers are micro business (1 to 9 employees) a further 15% are small businesses with 10 to 49 employees. Of the 5.5m businesses in the UK 96% are micro businesses. Many SME business owner/managers often underestimate their value to the UK economy and it's easy to see why when government, politicians and the media appear to focus on corporate business.
When starting and running a small business, there are many challenges. Having good skills and experience in your chosen business expertise is only the start. Learning new skills in dealing with taxation, government legislation and compliance, landlords, suppliers, and sales and marketing can often feel overwhelming after the initial excitement of launching your own business begins to fade.
Goodflo has been trading for over 14 years as a specialist grease management business providing all aspects of grease trap supply, servicing and management to the FSE’s. In the time since our start-up, we have experienced the highs and low of growth, recession, changing governments and policies, gaining and losing customers and having been a supplier to some great customer success stories.
There are a number of lessons we have learned over this time and a few key learnings can be summarised as – “you can't do it all by yourself” and “be alive to when it is time to make a change” and “choose your suppliers carefully”.
Asking for help
There is plenty of help out there you just need to know where to find it and don’t be afraid to ask - it is often given freely. Look for support from Chamber of Commerce, local Colleges and Universities and government funded, sponsored business support and growth schemes.
Developing a good network of business contacts, choosing solid and reliable suppliers, who share your values and consistently deliver for you, will help expand your knowledge and ease the burden particularity in areas that are not your core skills and strength.
Take it from us, starting and maintaining a small business can have great challenges, but also be highly rewarding. We feel it is important not to underestimate the significant part we play in the overall economic landscape and we invite you to do the same.
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