There’s never been a better time to get your company formation underway

Why the credit crunch doesn’t have to spell disaster for small businesses and start-ups.

The BBC has recently been following the fortunes of ten small businesses across the UK as they continue to succeed in the face of the economic downturn.

The ten small businesses are run by people from all walks of life and cover a multitude of industries, from chocolate factory owners, to joiners, to digital web designers to dental supplies manufacturers and more.

Each and every one of the ten companies are either matching their sales figures for this time last year, or, in the majority of cases, experiencing a growth in sales.

The BBC’s Business team will be following the ten small businesses throughout 2009, tracking their progress against last year’s achievements.

One of the ten small business owners, hotelier David Groocock says he is on track for one of his "best years", whilst chocolate factory owner Steve Valentine is taking on extra staff to deal with an increase in orders.

Andrew Millet, Practice Principal of Wisteria Chartered Accountants, based in North London, has recently launched Wisteria Formations, an online company incorporation service for business start-ups.

The service, available at http://www.wisteriaformations.co.uk offers a simple and straight-forward incorporation solution which guides the user through the process of setting up a limited company (Ltd) using an innovative animated character as a guide.

Millet notes, “We were surprised at the huge take-up of the service given the current economic turmoil, but people genuinely seem to feel that now is as good a time as any to start a new small business.”

London-based entrepreneur and owner of SuccessTrack, Jonathan Jay is convinced that now is the perfect time for company formation. He sums up his reasoning in seven points:

1. The nervous will be getting out of your way – there is less competition from other start-ups.

2. The ‘top dog’ in any industry is often so weighed down in administration and tradition they will struggle and make cutbacks. You can enter markets the big companies can’t afford to market to any more.

3. The job market will be flooded with talented people made redundant by struggling businesses. These people have the fire in their belly to work with you to be the next market leader.

4. Commercial rents are lower and you can pick up good property bargains.

5. While everyone else is moaning about how bad everything is, you have the opportunity to build your own empire.

6. Excellent sales and marketing always wins and if you focus on these two areas of your business and don’t get your attention diverted by other details you will come out of any recession stronger as a result.

7. Get used to not using credit and build a strong business out of cash flow; negotiate harder and get discounts wherever possible; if you can make it happen in lean times you will be the winner in better times.

Whilst experts are predicting there is light at the end of a very long tunnel, entrepreneurs who are willing to take a risk could see themselves cashing in in the long-run.

About US: The easy-to-use new company formation service and For more information on the BBC’s ten small businesses, visit http://news.bbc.co.uk/1/hi/business/8148080.stm.