Continued rise in start-ups

It may seem counter-intuitive to start up a business during a recession but the upsurge will have been fuelled by redundant workers deciding to plunge their redundancy payouts into a new venture and becoming their own boss.

Hewlett Packard came into being in America’s Great Depression and more recently CNN was formed during a deep recession in 1980.

Great ideas and bold spirits will often flourish and the entrepreneurial spirit is still alive and kicking in the recent economic downturn.

While some set up with their own business idea from scratch, many prefer to buy a franchise which comes with the advantage of a known profile and tested business model.

One challenge which they face – particularly if they have not held a managerial position before – is to learn swiftly how to effectively lead, manage and motivate staff and keep them focussed on the business’s key performance targets.

New business owners also need to understand and be aware of a wide range of employment law and other regulations to ensure that they do not end up at a costly – and embarrassing - employment tribunal or in court.

“Starting up in business is demanding at the best of times and in a recession it can seem like a brave decision,” said Nick Pye, Managing Director of activHR Consulting, which provides online HR support to businesses.

“However, there are opportunities in any recession and many successful businesses have started up in bad times.  Many people who are made redundant see it as an opportunity to strike out in a new direction, using their settlements to invest in a business.

“They will have a lot to learn – and this is where activHR Consulting can help, by providing small companies and franchises with the HR support which previously could only be afforded by larger firms.  The online HR toolkit Youmanage, helps small firms punch above their weight when it comes to managing their workforce.”

Delivered as Software as a Service (SaaS), the easy-to-use Youmanage system allows a small business owner instant access to employee records at the click of a mouse – from anywhere they have access to the internet. Information only needs to be inputted once and is securely backed up.

As well as keeping records of basic information such as start dates and salaries, it stores performance reviews, annual appraisals, absences, holidays and even any disciplinary issues, the system provides up-to-date guidance on employment law and health and safety regulations.

A unique aspect of the service is the way it walks managers through step-by-step processes for common management tasks - from preparing for an interview, to handling a disciplinary situation in a way that complies with the law, to dealing with high absenteeism levels.

Managers are also presented with relevant guidance and information at each step of the way. The system incorporates training materials, a complete range of standard HR letters and forms, guidance notes, and other useful tools. It can be tailored to reflect the branding, policies and processes of each client.

“By investing a small amount of money in the Youmanage system, small business owners could save themselves a lot of money in the long run,” said Mr Pye.

“The online HR support will help them to keep their employees focussed on the essential targets of the business, while enabling managers to resolve difficult employment issues in a timely manner, enabling them to avoid unnecessary costs and to improve staff morale by maintaining a well-run, fair and transparent company.”

activHR Consulting, formerly ERM Solutions, was formed in 2003 and is helping businesses to deliver the quality, consistency and effectiveness of their HR and people management processes with software solutions and HR consulting services needed to underpin HR best practice and to improve efficiency and the overall performance of Managers and HR professionals.