IT was while lying on a beach in the Maldives in 2001 that my wife April and I first considered starting up a wine merchant's business.

Perhaps you could say it was a moment of clarity, as we were in a country where alcohol was illegal.

At that moment we hadn't considered that it would be our last holiday for five years.

We were looking to start a new business together, we had importing experience and had both developed a keen interest in wine, but we were aware that many merchants were decades or even centuries old. We realised it wasn't going to be easy.

As I had spent most of my working life either self-employed or running small businesses and April had 15 years' experience in sales and management with several multi-national companies, we were happy with our qualifications, but we realised we didn't have the knowledge of our competitors.

The only way to combat that was to embark on a steep learning curve and to get stuck in. Before we left our jobs with DHL, we'd done months of research and realised there was a gap in the market supplying not just restaurants, but the new wave of food or gastro pubs. Our fresh, straightforward approach would actually be a strength in an often-complicated industry.

The early days were typical of many business start-ups — long hours and begging all the free help you can. My retired father Trevor was perfect for the role of unpaid delivery driver and he had his own car, so free fuel.

As the business has grown so has the opportunity to employ more staff. We now have a good team of seven with experience and strengths in different areas. We are fortunate to have people who have managed bars and owned successful pubs and restaurants.

Despite the economic situation we are excited to have just recruited our newest member of staff, who has more than 25 years' experience in the industry. Giving local people jobs is rewarding, but with a small team you need flexibility and people who are happy to give that little bit extra. Fortunately, we have them.

A high was when we opened a new warehouse, office and modern wine shop at Apple Lane, Sowton. Another was when after only three years we were presented with an award from a national wine magazine in 2004.

We develop close relationships with customers, so naturally some of the lowest points we have experienced have been in the last couple of years when we have seen locally owned pubs and restaurants fail despite owners putting in so much hard work. I would urge people to support Exeter's small, locally owned businesses and keep their money in the local economy.

As someone who owns a small business I'm not going to say now is a bad time to start up. There are many opportunities out there, and we're still achieving good growth, but you can't ignore the fact that things are tough, so be cautious.

If you do go for it you're going to be very busy, but always make time for your paperwork. You may think you're making money, but you'll be surprised how much those overheads mount up. Take some time to set sales and expenditure targets, but be realistic and base them on something other than your self-belief (your bank manager will like this).

In the current climate be wary of setting margins too low. If you are in competition with national firms, it's a game you're unlikely to win. Instead ensure customers know your strengths and try to offer more for the money.

Think carefully before offering credit just because your competitors do. Can you afford to lend people interest-free money? I'm not one for corporate speak, but one phrase worth remembering is: a sale is not a sale until it's been paid for.

Think about alternatives, for instance a nice discount for payment on delivery. It may take a bit of your margin but it's money in the bank that you won't have to spend time chasing. Good luck.