Measure and Manage

It never ceases to amaze me, even in these very difficult times, how every day of the working week; people from all over the UK are forming new companies.

Sure, the numbers are down, but still respectable as the figures below from Companies House clearly show for the month of January.

04/01/2009

1,672

11/01/2009

6,077

18/01/2009

6,660

25/01/2009

6,790

01/02/2009

6,302

Over 6,000 companies were formed in the UK last week alone, companies that represent the hopes and dreams of many people from all over the country who are possibly making a new start.

There was a time once when many formations were purely done for specific purposes such as the purchase of a property or some other tax planning reason.  Now, one has to believe that most of these companies are for genuine trading purposes and represent real new businesses opening up like the first buds of spring.

Pessimists in the media will remind you of the high failure rate of new companies, but being a glass half full man, I also know that a percentage will survive and go on to be successful.

Of course, we have a particular interest in this environment as through our associated business at Companiesmadesimple.com, we are forming new companies every day, including the weekend, and  our formations constitute a major part of the Companies House statistics.

There can’t be many market sectors where you can so easily measure your market share.  We receive the figures from Companies House on a weekly basis and can then immediately calculate our share of the market. 

We are always in a position to measure and monitor the performance of our business and this is something I would encourage new businesses to do.  Knowing the numbers is key to growing a business.  As we make and implement decisions, it is only with this sort of data, that we can measure the extent to which they are successful.

Of course, not every company is able to get such up to date data on market share, but there are plenty of numbers in a business that can be readily ascertained and measured over time and far too few businesses actually do this.

Obviously, our activity at Companies Made Simple is a commercial venture aimed to make profits, but we also feel that we are doing our part in the recession making the process of forming a company as straightforward as possible.