Once your business is out in the open, there will be no shortage of people bombarding you with well-intentioned thoughts and ideas of how you can improve, expand or simply change your business model. The more public-focused your model, the more frequent this input will be, so if you are running a pub or cafe every third customer will want you to hear their input.
These ideas will, of course rage from outlandish, through varying degrees of impractical to useful and sometimes immediate action. The real challenge lies in managing your own though process and avoiding running off at tangents to the detriment of your core business.
One poster - very sensibly - suggested that it was remiss of me not to run courses in the summer as that is when teachers have most time on their hands. The temptation was to make a sudden and determined foray into this market offering, say 2 X 1/2 day courses. Fortunately I was saved by the sheer impracticality of targeting on-holiday teachers and will be concentrating on my original plan to start after the school holidays.
Meanwhile, on my little jotter there are currently 5 ideas for expansion. And the business hasn't started yet.
Friday 29 July 2011
Thursday 28 July 2011
The great website myth
'Give a man a £10,000 marketing budget and the first thing he will do is blow £9,500 on a website'
I think I am being gender-specific here. This is partly because we are all a bit geeky but far more so we do it on the principle that if we build a better website, the world will beat a path to our door. Sometimes this takes an extreme form - such as a local tradesman with a fully-functional Flash site - not only will this not help your business, it will actually turn business away.
I (rather smugly) like to tell people that a website can be one of 3 things:
Only once you have decided on the function of your site should you decide what you want it to look like and what the content should be. In the course of my job I generally look at a site to find out about more about a prospective client's business. Drawn below is my own personal list of observations on how to get the best front-end results on a site.
I think I am being gender-specific here. This is partly because we are all a bit geeky but far more so we do it on the principle that if we build a better website, the world will beat a path to our door. Sometimes this takes an extreme form - such as a local tradesman with a fully-functional Flash site - not only will this not help your business, it will actually turn business away.
I (rather smugly) like to tell people that a website can be one of 3 things:
- A shop.
- A source of information and reference.
- A millstone.
Only once you have decided on the function of your site should you decide what you want it to look like and what the content should be. In the course of my job I generally look at a site to find out about more about a prospective client's business. Drawn below is my own personal list of observations on how to get the best front-end results on a site.
- Download speeds. Things like Flash animation and over-use of graphics slow your site down. In certain sectors these are relevant and necessary, but otherwise there is no need to burden your site with them.
- Images / pictures. A purely personal viewpoint - but I have no time at all for boring, generic library pictures (almost every money-based website I visit seems to have a picture of someone in a suit looking up at a tall building and a pile of coins at a jaunty angle. Why?). Try wherever possible to use interesting and personalised images of your people, your products or at least something relevant. A lot of people don't agree with me on this.
- Rolling content. Can there be anything more moribund than a news section whose only entry reads 'Oct 2008 - We are pleased to announce the launch of our new website'. If you are going for rolling content, then there must be a commitment to keep it current, relevant and interesting.
- Gobbledygook. If you are only interested in attracting visitors with commitment to Nuclear Fusion, then it might be appropriate to fill your home page with jargon; however the majority of sites are designed for a mixed audience, so the core information should be comprehensible to all and not riddled with superlatives and management-speak. There is other opportunity on the site to connect with the technical crowd. I kid you not, there have been many occasions where, having visited a website I have had to go back to the customer to ask what they do. (I accept this is partly for SEO, but that shouldn't preclude a clear statement).
- Who are you? It is essential somewhere on your site to say who you are - legal company/partnership/sole trader details and a form of direct contact other than an auto-email. Not only is this a legal requirement, it also builds a lot more confidence in your business.
- Spelling & grammar. The focus of much recent press, visitors to your site will judge you on spelling and grammar. OK, if you are a local tradesman it might not be a big problem, but there are only 2 safe assumptions: first no-one will think badly of you for using good spelling and grammar and second, your web designer will not correct it for you. We all make typos and many of us can't claim to have perfect grammar, which is why your content should be critically checked by several sets of eyes before going live.
Wednesday 27 July 2011
Wasted marketing
Quick question - how much of your marketing material is wasted?
For clarity, I'm not referring to whether the reciprient reads (or even receives) it, or whether it is effective at a campaign level - I'm actually referring to the millions of brochures, pens, keyrings and even business cards that sit in a cupboard only to be binned when they are deemed out of date. Think about it - every single item that goes in the bin is actually a wasted opportunity and no-one will call you because you have a drawer full of keyrings.
I doubt even the most precise marketeer on here would have 100% control of their stocks of marketing materials, so everything left after the campaign sits in the cupboard - sort of 'saving it for best'.
Just to put this in perspective - instead of putting a box of brochures in a bin, what about if you simply spread them around the carriages of your morning train, or around the pubs in the town centre? What are the odds of someone picking one up and being interested (perhaps not today, but perhaps next year)? I've no idea - one in a thousand? OK, not terribly responsible but not bad odds for free marketing really.
A little story - this sounds unbelievable but I can assure you it is true (It can even be verified). One day, several years ago I had arranged to meet a girlfriend in central London after work. She was notoriously late but I, the consumate gent, felt I should arrive on time and be close to the arranged meeting place. To fill my time (and not be drunk when she arrived) I walked around offices stuffing brochures through doors. Several months later we received a phone call - it was from the managing agent of an office - it went something like this 'I've picked up your leaflet from one of our premises which is unoccupied. Funnily enough I was talking to another tenant who is actually looking to lease some equipment, should I put you in touch with them?'
Cut to the chase - this went on to be our first £1 million transaction and was for several years our largest client. Because I stuffed a brochure through the door of an empty office.
So, simple message - go to your stationery cupboard, pull out any marketing material - and do something with it!
For clarity, I'm not referring to whether the reciprient reads (or even receives) it, or whether it is effective at a campaign level - I'm actually referring to the millions of brochures, pens, keyrings and even business cards that sit in a cupboard only to be binned when they are deemed out of date. Think about it - every single item that goes in the bin is actually a wasted opportunity and no-one will call you because you have a drawer full of keyrings.
I doubt even the most precise marketeer on here would have 100% control of their stocks of marketing materials, so everything left after the campaign sits in the cupboard - sort of 'saving it for best'.
Just to put this in perspective - instead of putting a box of brochures in a bin, what about if you simply spread them around the carriages of your morning train, or around the pubs in the town centre? What are the odds of someone picking one up and being interested (perhaps not today, but perhaps next year)? I've no idea - one in a thousand? OK, not terribly responsible but not bad odds for free marketing really.
A little story - this sounds unbelievable but I can assure you it is true (It can even be verified). One day, several years ago I had arranged to meet a girlfriend in central London after work. She was notoriously late but I, the consumate gent, felt I should arrive on time and be close to the arranged meeting place. To fill my time (and not be drunk when she arrived) I walked around offices stuffing brochures through doors. Several months later we received a phone call - it was from the managing agent of an office - it went something like this 'I've picked up your leaflet from one of our premises which is unoccupied. Funnily enough I was talking to another tenant who is actually looking to lease some equipment, should I put you in touch with them?'
Cut to the chase - this went on to be our first £1 million transaction and was for several years our largest client. Because I stuffed a brochure through the door of an empty office.
So, simple message - go to your stationery cupboard, pull out any marketing material - and do something with it!
Tuesday 26 July 2011
Cashflow - the vital business ingredient
Frankly, this is really too important a topic for what is supposed to be a relatively light-hearted business blog - it is also in danger of turning into a rant, so I will keep it simple.
On my course I tend to ask the simple question 'what is cashflow?' this is often met by quizzical looks - either because it's a stupid question (the rule is there is no such thing as a stupid question, so that's out), or because people simply don't know. Often, the response comes along the lines of 'it's profit' or 'it's the same as turnover' which, in the context of business success is deeply alarming.
So, in a nutshell, turnover and profit are paper or accounting functions - they are not real money. Cashflow is real, hard money. Some simple examples (ignoring concepts like fixed and variable cost):
XYZ engineering sells specialist components to K Motors for £1000. Their buy-in cost is £400 which must be paid up front. XYZ agree to pay on 30 days, but in reality will aim to spin that out to 60 or even 90 days.
Whereas Super-Dupermarket buys a job lot of carrots from Farmer Palmer for £1000 and sells them within a week for cash at £1,200. They won't pay Farmer Palmer for 90 days.
So, who has the best business? XYZ are the more profitable by quite a wide margin, but they are also the ones who are likely to go bust - because they don't have any cash!
Superdupermarket can re-invest Farmer Palmer's money up to 13 times before they have to pay him, whilst XYZ are funding an overdraft (or factoring facility) whilst they are waiting for payment and, effectively bankrolling K Motors' business.
Pretty obvious in theory, isn't it, but as long as K motors are OK and are going to pay, why should you worry?
You should worry because:
1. However good your credit checking, there is always a risk that K motors won't pay, in which case you lose not just your profit but your capital input.
2. Cash is more valuable than profit.
To use a harsh analogy:
Losses are like cancer - they will kill you slowly. Cahflow is a heart-attack - it can kill you instantly.
One of the most constantly naive assumptions we see on business plans is that customers will pay on time (indeed that they will agree to your credit terms in the first place), thus we are presented by healthy looking cashflows which show goods being bought on 30 day trade terms, and customers paying on 30 day trade terms, so in context of 'stress testing' - you are a new business, what if you can't get trade terms? And what if your customer (assuming they agree to 30 days which most supermarkets, for example, won't) then doesn't pay for 60 or even 90 days (which is by no means uncommon) - does the cashflow still work?
There are many issues here - forecasting, negotiation, credit/collection procedures but far and away the most important facet in business is that cashflow is everything!
Sorry, I'll try to be more jolly tomorrow.
On my course I tend to ask the simple question 'what is cashflow?' this is often met by quizzical looks - either because it's a stupid question (the rule is there is no such thing as a stupid question, so that's out), or because people simply don't know. Often, the response comes along the lines of 'it's profit' or 'it's the same as turnover' which, in the context of business success is deeply alarming.
So, in a nutshell, turnover and profit are paper or accounting functions - they are not real money. Cashflow is real, hard money. Some simple examples (ignoring concepts like fixed and variable cost):
XYZ engineering sells specialist components to K Motors for £1000. Their buy-in cost is £400 which must be paid up front. XYZ agree to pay on 30 days, but in reality will aim to spin that out to 60 or even 90 days.
Whereas Super-Dupermarket buys a job lot of carrots from Farmer Palmer for £1000 and sells them within a week for cash at £1,200. They won't pay Farmer Palmer for 90 days.
So, who has the best business? XYZ are the more profitable by quite a wide margin, but they are also the ones who are likely to go bust - because they don't have any cash!
Superdupermarket can re-invest Farmer Palmer's money up to 13 times before they have to pay him, whilst XYZ are funding an overdraft (or factoring facility) whilst they are waiting for payment and, effectively bankrolling K Motors' business.
Pretty obvious in theory, isn't it, but as long as K motors are OK and are going to pay, why should you worry?
You should worry because:
1. However good your credit checking, there is always a risk that K motors won't pay, in which case you lose not just your profit but your capital input.
2. Cash is more valuable than profit.
To use a harsh analogy:
Losses are like cancer - they will kill you slowly. Cahflow is a heart-attack - it can kill you instantly.
One of the most constantly naive assumptions we see on business plans is that customers will pay on time (indeed that they will agree to your credit terms in the first place), thus we are presented by healthy looking cashflows which show goods being bought on 30 day trade terms, and customers paying on 30 day trade terms, so in context of 'stress testing' - you are a new business, what if you can't get trade terms? And what if your customer (assuming they agree to 30 days which most supermarkets, for example, won't) then doesn't pay for 60 or even 90 days (which is by no means uncommon) - does the cashflow still work?
There are many issues here - forecasting, negotiation, credit/collection procedures but far and away the most important facet in business is that cashflow is everything!
Sorry, I'll try to be more jolly tomorrow.
Friday 22 July 2011
Herding cats
Back in January, for a variety of reasons, I took it upon myself to organise my local pub's Curry Club. Not terribly taxing, get a list of email addresses select a curry house and get people together once a month.
There was lots of enthusiasm and people were coming up asking to be put on the list (I think there is an inclusion thing - people were terrified of being left off the list even if they didn't like curry). The list now consists of almost 50 names.
The routine was quite simple - early in the month I would send a notifier of the date and chosen curry house. Based on responses I would book a table for about 20% more people than had responded and send an email confirming I had done this then, 3 days before the event send a reminder.
Outcome - attendance never bore any resemblance to commitment (neither direct nor statistical). People would turn up without having responded, people who had responded would fail to turn up (sometimes with apologies sometimes without). Interestingly people who had made special requests to be added to the list would neither respond nor turn up. Overall, it didn't really matter, since a curry for 3 is as engaging and fun as a curry for a group of 12 - the major embarrasment for me was when 3 people turned up to a restaurant which had prepared a table for 12.
The point here is that this was organising something that people clearly wanted, at no additional cost to them, amongst friends, yet it was still virtually impossible to get them together as agreed at the right time and in the right place (accepting that I could have phoned and confirmed which was somewhat beyond the spirit of things).
Anyway, the point here is that the course I run clearly catches people's imagination and there is much potential interest - even getting them to pay an advance deposit doesn't appear to be a problem - confirming dates for a 6-week span, however, does. I want to be flexible, but it is important to fix some firm dates very soon - do I accommodate the majority or those who appear most committed?
1st week of August my dates will become definite, though I cannot really win, I hate to lose customers!
There was lots of enthusiasm and people were coming up asking to be put on the list (I think there is an inclusion thing - people were terrified of being left off the list even if they didn't like curry). The list now consists of almost 50 names.
The routine was quite simple - early in the month I would send a notifier of the date and chosen curry house. Based on responses I would book a table for about 20% more people than had responded and send an email confirming I had done this then, 3 days before the event send a reminder.
Outcome - attendance never bore any resemblance to commitment (neither direct nor statistical). People would turn up without having responded, people who had responded would fail to turn up (sometimes with apologies sometimes without). Interestingly people who had made special requests to be added to the list would neither respond nor turn up. Overall, it didn't really matter, since a curry for 3 is as engaging and fun as a curry for a group of 12 - the major embarrasment for me was when 3 people turned up to a restaurant which had prepared a table for 12.
The point here is that this was organising something that people clearly wanted, at no additional cost to them, amongst friends, yet it was still virtually impossible to get them together as agreed at the right time and in the right place (accepting that I could have phoned and confirmed which was somewhat beyond the spirit of things).
Anyway, the point here is that the course I run clearly catches people's imagination and there is much potential interest - even getting them to pay an advance deposit doesn't appear to be a problem - confirming dates for a 6-week span, however, does. I want to be flexible, but it is important to fix some firm dates very soon - do I accommodate the majority or those who appear most committed?
1st week of August my dates will become definite, though I cannot really win, I hate to lose customers!
Thursday 21 July 2011
One-touch admin
This is a busy week, full of networking events - sort of a storm before the summer lull.
The flaw in networking for these courses is that most of the attendees have already established their business so are out of my target range. However lets not forget the second contact effect, as those (particularly quite new) businesses can be great referrers as they are only too aware of those little mistakes that cost time and money.
Anyway, to the point, time out of the office = backlog in admin. There are purists who suggest that a piece of paper should only be touched once - IE open - deal - file.
I am not a purist, so adopt my own variation of this principle and have 'one touch sessions' - quite often a Friday afternoon, where every piece of paper littering my desk must be dealt with effectively. The process can be quick or prolonged, but in my view dealing with bulk is immensely satisfying.
The flaw in networking for these courses is that most of the attendees have already established their business so are out of my target range. However lets not forget the second contact effect, as those (particularly quite new) businesses can be great referrers as they are only too aware of those little mistakes that cost time and money.
Anyway, to the point, time out of the office = backlog in admin. There are purists who suggest that a piece of paper should only be touched once - IE open - deal - file.
I am not a purist, so adopt my own variation of this principle and have 'one touch sessions' - quite often a Friday afternoon, where every piece of paper littering my desk must be dealt with effectively. The process can be quick or prolonged, but in my view dealing with bulk is immensely satisfying.
Wednesday 20 July 2011
Some criticism
I'm delighted to say that feedback on my blog has been largely positive, though there have been a couple of criticisms which I feelI should address and explain.
Firstly, a few people have pointed out that, for someone teaching people how to set up in business I seem to be making a lot of mistakes in mine. This is technically true, but most of my mistakes are by way of deliberate testing, and treading in areas which I know are outside my general area of expertise; probably akin to a chef trying a new recipe - he may get it wrong a couple of times, but that doesn't make him a bad chef does it? Also, I am quite deliberately reporting mistakes partly to help others avoid them and partly to reassure those who see mistakes as a form of failure.
The second criticism is that not much appears to be happening. Unfortunately there isn't much I can do about this; due to the summer lull, it seemed sensible not to run courses in school holidays which, in turn meant that I couldn't start before the holidays as each course runs for 6 weeks.
Every business is different - if you are selling low value items it is possible to produce revenues more or less from day one, whereas if you are developing a product a revenue stream might be months or even tyears away, In my case income cannot take plavce until a course date (even if I take deposits, which will not be recognised until the course commences).
I hope that helps - things should start to happen soon!
Firstly, a few people have pointed out that, for someone teaching people how to set up in business I seem to be making a lot of mistakes in mine. This is technically true, but most of my mistakes are by way of deliberate testing, and treading in areas which I know are outside my general area of expertise; probably akin to a chef trying a new recipe - he may get it wrong a couple of times, but that doesn't make him a bad chef does it? Also, I am quite deliberately reporting mistakes partly to help others avoid them and partly to reassure those who see mistakes as a form of failure.
The second criticism is that not much appears to be happening. Unfortunately there isn't much I can do about this; due to the summer lull, it seemed sensible not to run courses in school holidays which, in turn meant that I couldn't start before the holidays as each course runs for 6 weeks.
Every business is different - if you are selling low value items it is possible to produce revenues more or less from day one, whereas if you are developing a product a revenue stream might be months or even tyears away, In my case income cannot take plavce until a course date (even if I take deposits, which will not be recognised until the course commences).
I hope that helps - things should start to happen soon!
Tuesday 19 July 2011
Got my logo!
I am delighted to have taken delivery of my logo - featured above. The designer is concerned that it's not good enough - frankly I will say he is wrong - I love it and will be adding it to anything I can.
So my thanks to the collaboration that produced it, effectively for free (I think it might cost a drink or two).
This morning I attended a very interesting seminar on marketing which, amongst other things, helped me to recognise that there is no magic in social media - it is really largely about getting a good base of followers. Sort of 'do lots of marketing so you can market effectively' - so if you thought you were missing some magic - no - it's just all about what you put in!
Also delighted to meet a lady who has left the Public Sector to set up a successful business - always encouraging!
So my thanks to the collaboration that produced it, effectively for free (I think it might cost a drink or two).
This morning I attended a very interesting seminar on marketing which, amongst other things, helped me to recognise that there is no magic in social media - it is really largely about getting a good base of followers. Sort of 'do lots of marketing so you can market effectively' - so if you thought you were missing some magic - no - it's just all about what you put in!
Also delighted to meet a lady who has left the Public Sector to set up a successful business - always encouraging!
Friday 15 July 2011
Sending e-mailers and newsletters.
Today I sent my first newsletter using a Mailchimp - a free online service mentioned previously. Without wanting to sound like an evangelist - it was remarkably easy and the end result was pretty professional (if I say so myself).
To put it into context, I have only 'normal' computer skills (ie I know my way around most standard Microsoft products) and am certainly not a graphic designer. This first test newsletter took me 2 hours to compile, but much of this time was spent familiarising myself with the specific workings of Mailchimp - so I expect my next one to be rather quicker.The timing ignores the fact that content has been spinning in my head for a few days.
On a cautionary note, because it is so easy it is also easy to 'save and send' without sufficient checking. Always send tests to a couple of critical friends - better to wait a day than send errors in what is supposed to be a professional document (NB spell check is in American and I don't think you can change it).
Also, I have been warned, but not yet experienced that some recipients will reject you automatically for using automated senders - I don't know a way around this.
Obviously the success of the mailing comes down to good data - this was a test to the first part of my cleansed database, kind of a reward for a few days of burgers..
As they say on the BBC, other providers are available.
To put it into context, I have only 'normal' computer skills (ie I know my way around most standard Microsoft products) and am certainly not a graphic designer. This first test newsletter took me 2 hours to compile, but much of this time was spent familiarising myself with the specific workings of Mailchimp - so I expect my next one to be rather quicker.The timing ignores the fact that content has been spinning in my head for a few days.
On a cautionary note, because it is so easy it is also easy to 'save and send' without sufficient checking. Always send tests to a couple of critical friends - better to wait a day than send errors in what is supposed to be a professional document (NB spell check is in American and I don't think you can change it).
Also, I have been warned, but not yet experienced that some recipients will reject you automatically for using automated senders - I don't know a way around this.
Obviously the success of the mailing comes down to good data - this was a test to the first part of my cleansed database, kind of a reward for a few days of burgers..
As they say on the BBC, other providers are available.
Thursday 14 July 2011
When the money has gone..
OK, so I have invested in some local advertising and blown all but £10 of my budget! With hindsight I wish I had upgraded and not left a paltry £10 sitting around!
The ads appear in 2 weeks, so I will report on results. Fortunately the business has no recurring costs so I will concentrate my efforts on my small tasks (elephant burgers) and building my presence on social media. (Interestingly from placing ads I discovered some appropriate local sites for this purpose).
I also have half a box of my original postcards, which I must get out on boards or in hands - golden rule of marketing material - use it, don't save it. Every card or flyer that is left over (This often refers to companies changing details or rebranding) is a wasted opportunity.
The ads appear in 2 weeks, so I will report on results. Fortunately the business has no recurring costs so I will concentrate my efforts on my small tasks (elephant burgers) and building my presence on social media. (Interestingly from placing ads I discovered some appropriate local sites for this purpose).
I also have half a box of my original postcards, which I must get out on boards or in hands - golden rule of marketing material - use it, don't save it. Every card or flyer that is left over (This often refers to companies changing details or rebranding) is a wasted opportunity.
Tuesday 12 July 2011
Elephant burgers (AKA how to eat an elephant.)
From somewhere in the dark recesses of my mind I recently recalled a course many moons ago run by TMI (Time Manager International) and entitled 'how to eat an elephant' - a concept which is outlined here - how to eat an elephant.
Our elephants are all around us, in both the work and home environments and whilst mowing the lawns over the weekend (something of an elephant itself, as the management company have only done it twice this year) I thought about this in the context of the business plan. Largely through necessity and pressure from banks or investors most business plans rely on big round figures which are sometimes backed up by a breakdown of the underlying assumptions; thus a business relying on tele-selling might have monthly revenue £10,000 = 100 calls per day (20 days per month), average 5% conversion, average order value £100. The visible plan won't show the testing or flex in these assumptions - such as the fact that - whilst 100 calls a day is feasible - it is unlikely to be a realistic average. It is easy to suspect that in a lot of cases the underlying stats are adjusted to the end result rather than the other way around.
Unconstrained by the need to impress investors or banks, I have set about rebuilding my business plans (2 businesses) based on lots of bite-sized goals set daily, weekly, monthly. Thus, rather than making X number of calls, I have set my goal to get in touch with 2 existing 'live' contacts, and to make contact with 3 new (named) business introducers or prospective clients. Of course, this might be 5 phone calls or 100.
There are about 6 of these 'burgers' each day, some bigger than others; on a purely temporary basis I have removed any kind of financial parameters until the underlying assumptions are tested. The burgers won't fill the day for a number of reasons, such as that the main goal is to stimulate incoming enquiries, which must then take top priority, plus there will always be random items and tasks to do (something which almost every business plan ignores). If my day ends at 2.00 PM I can always add more or treat myself to an afternoon off, which is supposed to be the benefit of running a small business!
Looked at in isolation the plan looks extremely unambitious but, interestingly, if achieved it should actually produce good results.I am looking forward to testing and refining it over the next couple of months.
Incidentally, my biggest commercial elephant is my database which comprises about 1000 contacts (many probably obsolete) and is spread over 3 different media. I have decided to set my email-marketing database up on Mailchimp - a free email marketing service about which I have heard mainly good things, and to test and transfer 5 items a day - it will take a long time, but at least it will get done,
Our elephants are all around us, in both the work and home environments and whilst mowing the lawns over the weekend (something of an elephant itself, as the management company have only done it twice this year) I thought about this in the context of the business plan. Largely through necessity and pressure from banks or investors most business plans rely on big round figures which are sometimes backed up by a breakdown of the underlying assumptions; thus a business relying on tele-selling might have monthly revenue £10,000 = 100 calls per day (20 days per month), average 5% conversion, average order value £100. The visible plan won't show the testing or flex in these assumptions - such as the fact that - whilst 100 calls a day is feasible - it is unlikely to be a realistic average. It is easy to suspect that in a lot of cases the underlying stats are adjusted to the end result rather than the other way around.
Unconstrained by the need to impress investors or banks, I have set about rebuilding my business plans (2 businesses) based on lots of bite-sized goals set daily, weekly, monthly. Thus, rather than making X number of calls, I have set my goal to get in touch with 2 existing 'live' contacts, and to make contact with 3 new (named) business introducers or prospective clients. Of course, this might be 5 phone calls or 100.
There are about 6 of these 'burgers' each day, some bigger than others; on a purely temporary basis I have removed any kind of financial parameters until the underlying assumptions are tested. The burgers won't fill the day for a number of reasons, such as that the main goal is to stimulate incoming enquiries, which must then take top priority, plus there will always be random items and tasks to do (something which almost every business plan ignores). If my day ends at 2.00 PM I can always add more or treat myself to an afternoon off, which is supposed to be the benefit of running a small business!
Looked at in isolation the plan looks extremely unambitious but, interestingly, if achieved it should actually produce good results.I am looking forward to testing and refining it over the next couple of months.
Incidentally, my biggest commercial elephant is my database which comprises about 1000 contacts (many probably obsolete) and is spread over 3 different media. I have decided to set my email-marketing database up on Mailchimp - a free email marketing service about which I have heard mainly good things, and to test and transfer 5 items a day - it will take a long time, but at least it will get done,
Friday 8 July 2011
Buying advertising
There is an old adage that says the the easiest person to sell to is a salesman. Having spent my entire career in sales, I would qualify that somewhat by saying that a salesman will buy from a salesman or, more simply I'm a bit of a pushover if you know what you're doing.
On the flip side, I'm often tempted to walk away when faced with indifference or incompetence, even if I like the product.
In previous businesses we have put considerable amounts of money and effort into direct marketing and promotion on a national basis, but have never really advertised, hence I am a relative novice to this game. A fact that I clearly illustrated with my first question 'what does it cost'. (I was happy to show I was a novice since I was seeking information before placing my ad).
So, I'm quite clear in which journal I'm going to use, but have some questions about placement, timings etc. Surely they can help me with this? My first call to the advertising department of the paper in question was a week ago, and went something like this:
ME: I'm thinking of running an ad, and wondered if you could give me an idea of prices?'
HER: 'Well, it depends on how many words you want and where you want it placed'
ME: 'Yes, I appreciate that. It won't be a big ad; it's for a business start up course so I'm thinking that it might be best in the job section?'
HER: 'Yes, the job section would be OK. Do you want to give me the ad now?'
ME: 'Well I really need to understand how your pricing works and if its better to go for a series and what choice I have in placement'
HER 'Well, that depends on how many words you want'
ME; 'OK. can you email me a rate chart?'
HER: 'Ok, whats the email address?'
She took the address and checked it; to date no email has been received. With my salesman's hat on - well done, she tried to close, but she made no attempt at all to discuss needs or wants and didn't follow up. Bad!
Yesterday I emailed a request for a rate chart again,. As yet no response. I actually want to advertise but they might yet prevent me from doing so!
PS. 'Doh!' moment: I spent several hours yesterday in the company of a seasoned journalist (mainly discussing News of the World) and didn't even think to ask him if he knew any local business editors. Journos are like a club - they all know each other. Silly me!
On the flip side, I'm often tempted to walk away when faced with indifference or incompetence, even if I like the product.
In previous businesses we have put considerable amounts of money and effort into direct marketing and promotion on a national basis, but have never really advertised, hence I am a relative novice to this game. A fact that I clearly illustrated with my first question 'what does it cost'. (I was happy to show I was a novice since I was seeking information before placing my ad).
So, I'm quite clear in which journal I'm going to use, but have some questions about placement, timings etc. Surely they can help me with this? My first call to the advertising department of the paper in question was a week ago, and went something like this:
ME: I'm thinking of running an ad, and wondered if you could give me an idea of prices?'
HER: 'Well, it depends on how many words you want and where you want it placed'
ME: 'Yes, I appreciate that. It won't be a big ad; it's for a business start up course so I'm thinking that it might be best in the job section?'
HER: 'Yes, the job section would be OK. Do you want to give me the ad now?'
ME: 'Well I really need to understand how your pricing works and if its better to go for a series and what choice I have in placement'
HER 'Well, that depends on how many words you want'
ME; 'OK. can you email me a rate chart?'
HER: 'Ok, whats the email address?'
She took the address and checked it; to date no email has been received. With my salesman's hat on - well done, she tried to close, but she made no attempt at all to discuss needs or wants and didn't follow up. Bad!
Yesterday I emailed a request for a rate chart again,. As yet no response. I actually want to advertise but they might yet prevent me from doing so!
PS. 'Doh!' moment: I spent several hours yesterday in the company of a seasoned journalist (mainly discussing News of the World) and didn't even think to ask him if he knew any local business editors. Journos are like a club - they all know each other. Silly me!
Thursday 7 July 2011
The size perception
In these days of broadband, web-based business and super-connectivity it is relatively easy for a bedroom-based business to create an impression of size and (by implication) competence. If you are looking for national contracts or are aiming to compete on scale this can be a real benefit, but all too often it is pure vanity. A vanity I must confess that I have been guilty of without even realising it!
My early career was spent working in major banks, so the scale wasn't illusory. When I set up my first brokerage my partner and I instinctively adopted the 'national presence' image without really thinking about whether this was beneficial - we even took this to the extent of setting up the business as a Plc (which involves quite a lot of extra hassle and cost). With the wisdom that comes with hindsight, I would seriously question whether this 'look how big we are' approach actually alienates a large part of your potential client base.
Anyway, Kickstart really is about me engaging directly with individuals, so there is no doubt that it's all about being a small business (and living below the VAT threshold); so why do I constantly find myself playing the 'big' card - referring to myself as 'we' and trying to look corporate?
It really is all about me, working from home in a Surrey village. Slapped wrist every time I pretend otherwise!
PS. I haven't a clue why my titles are sometimes red and sometimes grey; any ideas?
My early career was spent working in major banks, so the scale wasn't illusory. When I set up my first brokerage my partner and I instinctively adopted the 'national presence' image without really thinking about whether this was beneficial - we even took this to the extent of setting up the business as a Plc (which involves quite a lot of extra hassle and cost). With the wisdom that comes with hindsight, I would seriously question whether this 'look how big we are' approach actually alienates a large part of your potential client base.
Anyway, Kickstart really is about me engaging directly with individuals, so there is no doubt that it's all about being a small business (and living below the VAT threshold); so why do I constantly find myself playing the 'big' card - referring to myself as 'we' and trying to look corporate?
It really is all about me, working from home in a Surrey village. Slapped wrist every time I pretend otherwise!
PS. I haven't a clue why my titles are sometimes red and sometimes grey; any ideas?
Wednesday 6 July 2011
PR - Press Releases
This is an area which I freely admit to knowing little or nothing about, but I am aware that for this type of business a bit of publicity in the local press is worth any amount of advertising.
So, the pointers I have picked up from asking around:
I think that the angle is that I'm using local pubs - user friendly & supporting local business - or the potential resource to those facing redundancy; but that will only work if the publication in question is running an article on jobs and redundancy.
Time to put my thinking cap on - ideally I would like something to appear about 2 weeks from now.
So, the pointers I have picked up from asking around:
- Have an 'angle' or appeal to public interest - pure advertorial won't make it.
- Send copy to a relevant, named individual, not just to an 'editorial' email address.
- Adapt copy to the house style of the publication you are targeting. (cue a little ditraction time. Topless photo of previous student 'Tania, 22 from Essex says...' or, for the Daily Mail 'Imigrants benefit from business course..' Sorry).
I think that the angle is that I'm using local pubs - user friendly & supporting local business - or the potential resource to those facing redundancy; but that will only work if the publication in question is running an article on jobs and redundancy.
Time to put my thinking cap on - ideally I would like something to appear about 2 weeks from now.
Monday 4 July 2011
Success and failure
Today I was asked a problem which was both obvious and interesting - namely 'when will you know whether your project is a success or a failure?'
It is obvious (the question, not the answer), because I have clearly set this up as a challenge. It is interesting because there are 2 distinct and possible contradictory levels of failure. at a challenge level I will fail as soon as my outgoings exceed £100 but can easily go on to succeed as a business. It would, of course be extremely foolish to allow a business to fail by deliberately starving it of investment, on the other hand it is a common failing of business people that they continue to throw money in in the belief that 'everything will turn out ok'.
So, to give as honest an answer as possible, this stage of my journey will end when I can see a revenue stream (It isn't currently my plan to incur extra overheads or to grow the business in terms of people or resource). At a challenge level I have a figure in my head to which I will invest, so that the challenge can fail without stopping the business.
Unless of course it's a sure chance..
It is obvious (the question, not the answer), because I have clearly set this up as a challenge. It is interesting because there are 2 distinct and possible contradictory levels of failure. at a challenge level I will fail as soon as my outgoings exceed £100 but can easily go on to succeed as a business. It would, of course be extremely foolish to allow a business to fail by deliberately starving it of investment, on the other hand it is a common failing of business people that they continue to throw money in in the belief that 'everything will turn out ok'.
So, to give as honest an answer as possible, this stage of my journey will end when I can see a revenue stream (It isn't currently my plan to incur extra overheads or to grow the business in terms of people or resource). At a challenge level I have a figure in my head to which I will invest, so that the challenge can fail without stopping the business.
Unless of course it's a sure chance..
Subscribe to:
Posts (Atom)