So how do you start a business in a recession?

Start a business that helps people start businesses, that's how.

Setting up a business during a recession is difficult. So why not start a business during a recession that helps people establish their own businesses? This was the original thinking behind Yoodoo, a medium-sized business based in London's Soho that has grown to provide high-engagement e-learning for all sorts of clients, from banks to dentists.

"Yoodoo began as an idea for a kind of web home for new entrepreneurs", says Nick Saalfeld, head of content at Yoodoo. But like many new businesses, Yoodoo has morphed over the years, and now does things that are far afield from the original yoodoo.biz – a website that guides users through every stage of the process of starting a business, and making it succeed, with videos from leading business professionals, downloadable documents, quizzes and practical walkthroughs.

What happened, Saalfeld tells me, is that Yoodoo discovered their forte lay in making e-learning work, getting it to produce real outcomes. Where the original may have taught mobile hairdressers, for instance, the basics of business, Yoodoo now powers the way dentists learn about compliance, helps recruitment consultants practice more successfully and gives unemployed people the skills to find work. It’s in providing outcome-focused learning experiences for other established companies that their primary activities now lie, and business is good.

Starting up during a recession, however, has serious risks. But asking Nick why is something of a non-question – he's been an entrepreneur "since before the word ‘entrepreneur’ was cool", and starting companies is just what he does.

On the specifics he is resolute. "In a recession, there’s a depleted pot of finance, which is of course fundamental", Nick says. "But people ramble on about the availability of finance… yes, it’s hard to get hold of, but it’s not impossible. It demands greater fiscal probity and ideally a demonstrably skilled management team.

"The bigger issue now, I think, is that macro-economic issues are affecting the optimism, outlook and visible horizon for small businesses. All of a sudden people were (and are) thinking: what about Spain, what about Ireland? These huge macro-economic issues can affect me and my little company. That’s the real issue with starting up in difficult times."

But Nick insists that difficult conditions have hidden opportunities. "Change means opportunity in business – it just does. Evolutions in markets, disparities of income, location, access to raw materials, technologies… all these disruptive breaks represent new opportunities. Don’t get me wrong, times are tough, but there is still room for ventures that can absolutely pay off. Don’t expect an easy ride – you’ll need to get used to living on fresh air – but fortune still favours the entrepreneur’s key skills: resilience, doggedness, and sheer hard graft."

What can government do to help small and medium sized-businesses to succeed? "The problem for the government", Nick says "is that it only has two tools - money and laws, and they’re both pretty blunt instruments.

"There’s a big hoo-ha about red tape. Frankly that’s immaterial, absolutely meaningless. For small businesses – and 95% of British businesses have fewer than 5 employees – none of that is a concern and for the massive majority, red tape isn’t the problem."

In Nick’s experience, the major problem for small businesses that government ought to concern itself with is education. "Modern education has brought us a generation that is ill-equipped to conduct business, and that makes me very, very sad indeed.

"Problem-solving, ambition, the ability to comprehend long term strategy and construct an argument - these skills are not being taught, and it is crippling SMEs who are still finding it easier to recruit abroad, for example."

If you look at the figures, he says, Britain has dropped several places down the world education rankings, and it shows. "If the government really wants to help small and medium sized businesses," Nick says, "the best thing they can do in the long term is put their effort into education."

What currently hinders entrepreneurs? From Yoodoo’s experience, the problems entrepreneurs face are universal – finding the right idea and sticking with it. "There are entrepreneurs who are eternally glass half-full. That’s fine. But the real trick to being an entrepreneur is doggedness. Not doggedness to the point of stupidity, not re-mortgaging your house for something that’s never going to happen, but a determination to find new solutions to problems. Keeping that up is the main engine of entrepreneurship, and always will be. It’s a great British tradition – from Brunel to Dyson – to ask, 'Well, that’s not very good, so why can’t we do things differently?’"

Despite the economic uncertainties, Nick is full of encouragement for self starters. "I would never say to someone: don’t start your own business," he says. "Look, if I lose a client I might lose 10% or 20% of my income. If I’m employed and I lose my client, I lose 100% of my income. It’s madness to say that running your own business is so much riskier."

That seems to be Yoodoo’s message: if you’re self-employed it’s all up to you. But at least it’s not up to someone else.

This article originally appeared in Economia.

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A swimming pool and a bleeding toe put my medical competency in doubt

Doctors are used to contending with Google. Sometimes the search engine wins. 

The brutal heatwave affecting southern Europe this summer has become known among locals as “Lucifer”. Having just returned from Italy, I fully understand the nickname. An early excursion caused the beginnings of sunstroke, so we abandoned plans to explore the cultural heritage of the Amalfi region and strayed no further than five metres from the hotel pool for the rest of the week.

The children were delighted, particularly my 12-year-old stepdaughter, Gracie, who proceeded to spend hours at a time playing in the water. Towelling herself after one long session, she noticed something odd.

“What’s happened there?” she asked, holding her foot aloft in front of my face.

I inspected the proffered appendage: on the underside of her big toe was an oblong area of glistening red flesh that looked like a chunk of raw steak.

“Did you injure it?”

She shook her head. “It doesn’t hurt at all.”

I shrugged and said she must have grazed it. She wasn’t convinced, pointing out that she would remember if she had done that. She has great faith in plasters, though, and once it was dressed she forgot all about it. I dismissed it, too, assuming it was one of those things.

By the end of the next day, the pulp on the underside of all of her toes looked the same. As the doctor in the family, I felt under some pressure to come up with an explanation. I made up something about burns from the hot paving slabs around the pool. Gracie didn’t say as much, but her look suggested a dawning scepticism over my claims to hold a medical degree.

The next day, Gracie and her new-found holiday playmate, Eve, abruptly terminated a marathon piggy-in-the-middle session in the pool with Eve’s dad. “Our feet are bleeding,” they announced, somewhat incredulously. Sure enough, bright-red blood was flowing, apparently painlessly, from the bottoms of their big toes.

Doctors are used to contending with Google. Often, what patients discover on the internet causes them undue alarm, and our role is to provide context and reassurance. But not infrequently, people come across information that outstrips our knowledge. On my return from our room with fresh supplies of plasters, my wife looked up from her sun lounger with an air of quiet amusement.

“It’s called ‘pool toe’,” she said, handing me her iPhone. The page she had tracked down described the girls’ situation exactly: friction burns, most commonly seen in children, caused by repetitive hopping about on the abrasive floors of swimming pools. Doctors practising in hot countries must see it all the time. I doubt it presents often to British GPs.

I remained puzzled about the lack of pain. The injuries looked bad, but neither Gracie nor Eve was particularly bothered. Here the internet drew a blank, but I suspect it has to do with the “pruning” of our skin that we’re all familiar with after a soak in the bath. This only occurs over the pulps of our fingers and toes. It was once thought to be caused by water diffusing into skin cells, making them swell, but the truth is far more fascinating.

The wrinkling is an active process, triggered by immersion, in which the blood supply to the pulp regions is switched off, causing the skin there to shrink and pucker. This creates the biological equivalent of tyre treads on our fingers and toes and markedly improves our grip – of great evolutionary advantage when grasping slippery fish in a river, or if trying to maintain balance on slick wet rocks.

The flip side of this is much greater friction, leading to abrasion of the skin through repeated micro-trauma. And the lack of blood flow causes nerves to shut down, depriving us of the pain that would otherwise alert us to the ongoing tissue damage. An adaptation that helped our ancestors hunt in rivers proves considerably less use on a modern summer holiday.

I may not have seen much of the local heritage, but the trip to Italy taught me something new all the same. 

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear