Who needs banks

One of the first meetings an entrepreneur sets up, is with his bank manager to discuss opening a business account.

Many still believe this partnership between enterprise and bank is a marriage that will guide and support the business throughout its life.

My own experience and that of most business people suggests this hasn't been the case for some time and its getting worse. Service levels have dropped drastically over the last ten years while charges have risen and in some cases become quite devious. For instance Barclays allegedly deduct daily debits first, potentially putting the account into overdraft before applying credits.

If you are about to start a business, before you commit your future to a high street bank take a look at what else is on offer;

• PayPal is becoming an ever more trusted way of paying online


• The Post Office will accept cash deposits without charging whereas banks penalise those depositing cash


• Online accounts that don't offer branch access are often free, Investec is worth a look


• Funding a new venture shouldn't be difficult in an era when savings interest is so low. You just have to let potential investors know you are looking for funding. Write a micro business plan and email to people who might either invest or recommend you to a friend.

I'd far rather invest some of my money in an exciting start up than leave it in the hands of the banks.

Time to share

Perhaps its the recession or maybe there's an awakening that there could be more to life than serving a corporate god for the rest of our waking lives.

Over the past few weeks several friends and clients have asked to 'have a word' The 'words' have all been similar; change, new, different. The sentiment is always the same, they want to leave the 9 till 5 and start their own business.

Apparently most recessions breed a flurry of new businesses as people choose to set up on their own rather than search for a new job. This one looks to be no different. Unlike the early 90s when I made the leap some factors are easier now.

There's no need for premises or even a business phone line, simply get a decent Blackberry or iPhone and your office goes wherever you go. We all do our own typing anyway so you don't need to hire administrative support at the outset. Advertising is most effective online and its immediate, so there's no need to time your start up to coincide with the annual publication of the Yellow Pages.

Most importantly of all, size really doesn't matter! Most clients whether they be consumers or corporates now know that its the person that delivers service not the logo. If you can be trusted to deliver what you are selling you are well on your way.