Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
.nicker bar any one.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
GaryC - you are not really interested in the answers, you are one of those addicted to the Labour big Government.
The costs of employing people are high and are much higher in the public sector than the private sector, the featherbedded pensions for one thing. You have to take into account accomodation as well and all the expenses associated with that and the costs of getting them to do their job (supervision - yes cutting at the bottom means less managers too) along with the costs of doing that job.. All this is paid for by revenues generated by the private sector - the taxes paid by employees of the public sector is only recyled as it came from us in the first place.
A lot of the jobs done in the public sector are not even useful except in the eyes of bean counters, job that if not done will not be noticed.
More and more people are starting their own businesses and many of those laid-off from the public sector will do so. I know a lot of people who are thankful for being made redundant because that spurred them on the do something they had always wanted to do instead but previously hung on to the comfort blanket of a salary. A recession is actuially a good time to start a business as the only way is then up, you just have to get through a lean period first rather than have it hit just as your new business is starting to take off. these new entrepeneurs will employ people too and suddenly those who were once merely consuming taxpayers money are contributing to the coffers.
it is also true to say that no matter how worthless the public sector job someone does they are more employable than the dross that sit around on benefits for years.
Rick - the vast bulk of the measures announced in the budget have not been enacted yet and those that have simply have not had time to impact on business. You, as all of us, are suffering from the deepest and longest recession in history, we are nowhere near out of it yet. Different types of business get hit at different times. I get a hit myself in two traunches, the first was from the investment crash, recovered from that even though the markets are still well below pre-credit crash levels and now there is a slow down in new client acquisition, this latter being less of a problem for me thanks to my business model. I do hear of other businesses in different sectors are picking up well while others remain stagnent. Too soon the blame the new government for our problems.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
I have sympathy for Ricks plight there, as its a very difficult time to operate a small business, the money simply isnt out there washing around in the economy. We ourselves were formerly in the advertising business and it is/was a notorious business for impacting badly in a recession...ie.. the first thing to get cut in anyone's business is the advertising budget ,particularly when people are battening down the economic hatches.
Today the government are going into re-negotiation with their long term suppliers. These are major suppliers, major contractors and all with major deals. The contracts with these businesses are already in place and fully signed up to...BUT today the new government are doing something unprecedented in that they are going to force these suppliers into renegoiating these contracts. In other words the talks today are to reduce the amount of money the government will pay to their suppliers.
On the face of it this might sound like a good idea. But is it? sure it saves the tax payer money but it also takes money out of the economy. To meet these new government demands, chances are these businesses will have to shed jobs, so not only do the businesses themselves lose , overall it makes them and the economy less buoyant, but in particular the poor Jo Soap at the coalface will be shown the door in double quick time.
This government move might indeed cut our much vaunted deficit, but there will be victims. Small busineses supplying the bigger busineses who are supplying the government..these will all in turn lose out and this reverberates all the way down to the individual worker on the shop floor.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
PaulB - the simple fact is that the government is not different to you. It cannot keep spending £4 for every £3 of income, it is as simple as that. if you were outspending income at that rate you would have to do exactly what the government is doing, cut spending.
Some cuts will hurt, others wont be noticed - but it has to be done. The consequences for not getting government spending into shape are far worse than for doing so. Interest rates would shoot up, the cost of government borrowing increasing would mean the cuts, when they come, would have to be even deeper. Something has to give.
The real lesson here is that government, like us, has to live within its means and cannot adopt again the kind of profligate spending polices that we have seen over the last 13 years.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i think that any small business starting now must be brave or very foolhardy.
with public sector job losses plus the knock on effect, there is little spare cash washing around for small businesses to make a profit on.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
As I said Howard - there is not better time to start a small business than at the bottom of a recession. Any small business must have a business model and concept strong enough to be able to thrive in both good and in hard times. As for courage, it always takes courage to go it alone and take the risks and that is why small businesses deserve all the help and support they can get from HMG.
I went self-employed at the peak of a cycle and had to learn 'on the hoof' to survive the downturn that happened a year or so after, it was touch and go, my wife was often in despare about how we would get through it. I managed and never looked back. If I started up a year or so later it would actually have been easier for me to build up before the next recession with a clear run prepared, experienced and ready to survive.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
what sort of new business can survive by starting in a downturn?
i supposed that there must be some, fascinated to know what would work.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Many do Howard and are all better for it, no better time. The number of business start-ups last year was a record high.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
but what sort of businesses would thrive?
i can only see pawnbrokers, nice people on the television offering money in exchange for our soul, and that sort of thing.
no independent one man shows amongst that lot.
my memory of past recessions is of large companies taking advantage of small businesses that supplied them by taking 90 days to pay a 30 days credit invoice.
Guest 671- Registered: 4 May 2008
- Posts: 2,095
BarryW.
You could not have me more wrong, I do not have your knowledge in politics or business but I do want to understand more. I have learnt a lot from many forumites across the board. You are right that I vote labour and although I think they made mistakes whilst in office, I will continue to support them until I think someone else will do a better job for everyone. I am sorry if you feel my questions are too simple for you but they are important to me. I am not saying I will agree with your answers but I will take something from them, if you ever bother to answer any that I actually ask?
"My New Year's Resolution, is to try and emulate Marek's level of chilled out, thoughtfulness and humour towards other forumites and not lose my decorum"
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Howard - that is why you are not an entrepeneur......
GaryC - I take your point.
Seize the day, chaps - onwards and upwards!!
Carpet bombing Bern? Oh, sorry, carpe diem. I always thought that a fishy saying.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
the reds would never allow full autonomy for scotland and wales.
too many votes for them there.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
sorry wrong thread, should have been on the one about lib dems defecting to labour.
Been a long day Howard?
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i notice that entreprenuerial barry does not answer my question about what would be a good business idea at the present time.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Howard - I have only just seen that question.
I am too busy with my own businesses without trying to think of another opportunity right now. I have spent almost all day today networking, starting at 6am, finishing around 11.30pm.
I have spoken to, what, over 50 odd people running different types of businesses (plus council officers, council members and our honourable MP), some businesses report that they have never been busier like a double glazing company director client of mine for instance, while others report things are quiet. As far as I am able to discerne there is no real pattern.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
that surprises me, i would have thought that something like double glazing would be on the back burner for many people.
mind you having said that where i live there always seems to be at least one window company busy installing at any one time.
