Tag Small Business

what every start-up business needs…

caroline hughes Leave a comment

When you’re trying to start your own business (or in our case, trying to start four businesses pretty much simultaneously, on a shoestring and without physically coming to blows), it is very important that you surround yourselves with things that will increase your chance of success.

We’ve had the post-its for a long time now.  I now class those as essentials.  We’ve had a few recent issues with some dropping off the walls due to our desperate open balcony door – floor fan – open bedroom window breeze inducing triangulation.  But we’re taking it all in our stride.

I keep getting The Mack to put new bulbs in all of the ceiling spots.  As if, somehow, the extra wattage will illuminate my ideas and stop them being so bloody dim.  It mainly just shows up all the dust.  And gives The Mack eye strain.

I’ve bought some plants.  For that all-important 4pm oxygen hit.  And for the seed-nurture-growth symbolism.  And finally, for sustenance – if all the projects should fail, we will be able to live off two different types of basil.  The mint plant has contracted some sort of blight.  It’s essentially dead from the roots up.  I’m choosing not to see that as symbolic.

But now that the launch of Be Neighbourly is imminent, I felt we needed something more.  Something that would make us feel importantly business-like, but that wouldn’t break the bank.  Something that we could, quite literally, pin our dreams on.

So I invested twenty-five quid and bought us a whiteboard.  It was delivered yesterday.  And it is magnificent.

Already, I can see how it’s helping.  Just looking at it makes me think of all the graphs I could be plotting, the targets we can set (Q3 and Q4), the inspirational Steve Jobs or Katie Price quotes I can write every morning.

The pens were missing from the delivery, but that’s just a minor setback.

I feel certain that the whiteboard, in all its splendid 1200mm x 900mm oversized impracticality, will give us that competitive edge.  The reverse side is magnetic.  So we can multi-task – conceptual mind-maps on front, securely fastened important documents on the back.

The magnets were missing from the delivery, too, but, again, no biggie.

It is the size of our dining table.  We don’t really have anywhere to put it (maybe we could get rid of the dining table?), and it is so cheaply constructed that the whiteboard surface has a definite ripple effect when viewed from the side.  But I don’t care.  It has a flip out tray for the missing marker pens.  It has an eraser.  And it makes me feel so goddamn businesslike, I want to air punch every time I look at it.

behold its splendour

behold its splendour

eliminating obstacles to success…one at a time

caroline hughes Leave a comment

I realised today, whilst strolling along deserted beaches to a beautiful lagoon in Tibau do Sul, Brazil, that I’ve written a lot recently about my travels and not quite so much about my business. Which probably leads most of you to think that all this “business” stuff is just my way of saying that I couldn’t hack it in the rat race and have decided to give myself the rest of my life off.

Nearly, but not quite.

If you remember, the idea wasn’t so much to drop off the grid entirely, it was more to set the grid to roaming. Seeing if it were possible to have a work/travel/bank balance.  Not spending more than 4 months at a time in the UK unless there was a very good reason (either I was incarcerated, or in traction, or my mum simply forbade me from flitting off again).  But getting some sort of business up and running to pay for the travels, so that I wasn’t burning through my cash.

Again.  Nearly, but not quite.  (Getting there.)

At the time I started all this, I hadn’t factored on The Mack getting in on the act.  With hindsight, it’s probably one of the reasons that we got together.  But I was so busy thinking that he’d Derren Brown-ed me into being his girlfriend that I wasn’t paying attention.  All that tappety-tap-tapping my shoulder and repeating seemingly innocuous words.  And leaving a trail of gingerbread men on my route to our first date.  I mean.  The Mack is ginger.  And he’s a man.  The fact that I didn’t see them because they’d been squashed by passing commuters didn’t stop their subliminal power.

Anyway, much as I would love to lay the blame for my lack of results squarely at The Mack’s door by saying that he’s diverted my focus, jumped on the start-up bandwagon, addled my brain with wantrepreneurial jargon… that would be (1) wrong, (2) wrong and (3) wrong.  Because, if the truth be told, I probably wouldn’t have got as far as I have if it weren’t for him.

Thanks to The Mack, I’ve identified the top 3 things that have been stopping me making progress on the business side of things and I’ve figured out a solution to each of them.

Issue #1:  Never Seeing Anything Through to the End

I am excellent at starting things.  And doing a nice design.  I am less successful when it comes to completing anything.  Or caring at all after about 2 weeks.  Or when someone distracts me with something shiny.

Apparently, this lack of motivation for really pushing through on my projects is down to my inherent pessimism.

You say pessimist, I say realist.  Let’s call the whole thing off…

Solution #1:  Learned Optimism

The Mack bought me a great book by a guy who made up the idea that you can learn to be more optimistic and that it will transform your life.  I was a little sceptical.  Oh wait…

I started reading it and my productivity levels went right up.

Unfortunately, I **accidentally** left it in the seat back of the plane to Buenos Aires.

What a downer.

Issue #2:  Contrasting Working Styles

I have discovered through this process that I’m quite difficult to work with.  I can’t quite put my finger on exactly why that is, but it seems to have something to do with the fact that I need to get my own way on everything because my way is the right way and everybody else is stupid and wrong.

I don’t know.  It might be that.  It probably isn’t though.  Probably it’s The Mack’s fault.  For being stupid and wrong.

Solution #2:  Working Space

I think that space is very important when you’re a couple working together.  Right now it’s about 4,500 miles and things seems to be going well.

Issue #3:  Hating the Game

I have a slight problem with the whole start up scene.  I think it’s the combination of self-congratulation and jaw-dropping naivety that sticks in my craw.  And when I say slight problem: what I mean is utter contempt.

I’m not even sure how I ended up working on start ups.  I think my plan was just to have my own business.  I don’t remember ever talking about wanting to build a start up.  Tappety-tap-tap….

Solution #3:  Hate the Player

Hell, this one’s easy.  Every time I catch The Mack reading one of Paul Graham’s essays or signing up to a General Assembly workshop, I openly despise him.

I think now that I’ve eliminated these issues, progress will come in leaps and bounds.  Stay tuned, people.

what’s the tweeting point?

caroline hughes Leave a comment

I’ve noticed a trend recently.

I’ve been spending a fair amount of time in various pubs.  Ahhh, I hear you think.  No job.  Slippery slope.  I saw this coming. Tragic waste.

Um, that’s not the trend I’m talking about, but thanks for your concern.

That said, I do now understand where Cheers was coming from. When your only company most days is the real housewives of [insert place with readily available plastic surgery], you find solace where you can.  And now that cafes are called “coffee shops” and are overrun with speccy beardie types brooding oh so creatively over their macbook airs, it’s no wonder I need something stronger…

But I digress.

So what I’ve noticed is how many pubs (and cafés and bars and local shops and hairdressers and and and…) now have their own Facebook and Twitter accounts.

Firstly, what I love is how there’s still no other way to advertise your adoption of that most modern of marketing media than by putting up crappy posters around the place.  Delicious irony.

Secondly, I love that the language of Facebook and Twitter makes insecure schoolgirls of us all. Like me. Follow me. Why don’t you like me? Why won’t you follow me? You like Zara but you don’t like me? Am I not pretty enough?  **sob**  Terribly damaging stuff.  I’m sure there’s a PhD thesis in there somewhere.

But mainly I’m wondering what the tweeting point of it is?

Sure, I can see merit in having a Facebook page instead of a website. It’s cheap, quick and you can get your minimum-wage student bar staff to update it, since they’re probably spending most of their working time on Facebook anyway.  I get that it provides a way to let punters know about the Wednesday pub quiz or Friday night’s covers band.  I get that you can offer discounts and exclusives for Likers.

But I find it bizarre that loads of little businesses now seem to think that they need to have an all-singing-all-dancing fully integrated social media marketing campaign.   Why oh why oh why??

I’m going to go out on a limb here and suggest that Facebook and Twitter are a humungous waste of time for most small businesses.

I mean, what on earth are you going to tweet about?  That you’ve just changed the barrel on the Erdinger?  That most of your female clients are going Hollywood over Brazilian this season, so you’d better get strimming?  I have visions of pub landlords and artisan bakers having sleepless nights as they desperately try to think of enticing status updates and witty tweets about buns and baps.

I’d hazard a guess that most of us are happy just to turn up to the pub and see what’s occurring.  And most of us stick to local pubs, so we already know what’s going on. Because we go there. And they have it written down on boards with brightly coloured chalk.

The truth about Twitter (as in life) is that the followed are few and the followers are many.  So unless you already have a loyal bunch of customers who just happen to also be very widely followed on Twitter, you’re unlikely to pick up any new business that way.  It’s like the old philosophical conundrum:  if a business tweets in a forest but no-one’s around to hear it, does it make a sound??

Facebook and Twitter can work well for big businesses.  That’s because they have lots of money to create marketing content that they can then spread via social media.  For those companies, it’s not radically different from the advertising model of the 80s.  They spend money and they get customer eyeballs.  We’ve just swapped TV for Facebook.  Same audience, same spiel.  No-one’s doing anything particularly cool or innovative.  There’s a formula to it, just like with any other type of marketing.  And those which are most successful at it are those who already have a strong brand presence and have the money to do it properly.

But if you’re a small business, I’d say don’t bother.  The pickings are slim and the maintenance is tedious.  I would do a leaflet-drop over a twitter campaign any day – it’s targeted, relevant and proactive.  Leave the F-ing and T-ing to the big boys.  They’ve convinced themselves that it’s an essential part of their marketing strategy.  And maybe it is, just like TV advertising was in the 80s….

business planning 101

caroline hughes Leave a comment

Business plans have a bad rep these days.  I’m not sure what happened.  Maybe they let themselves go, piled on a few pounds and stopped returning calls…

I suspect that the issue lies with the idea of what a business plan should be (dense and serious) and what it should contain (lots of dry facts and figures, a liberal sprinkling of pie charts).

Whatever the reason, whenever I talk to someone about their fledgling business, nothing gets me stonewalled quicker than asking them how they put their business plan together.  Particularly in the tech or creative sectors.  Business plans are seen as old-school, flabby and a waste of time that could be spent creating an amazing viral campaign.

Well, call me old-fashioned and pour me a sherry, but I’m pretty certain that they still have their place.  I’ve yet to be in an investor meeting where the money guys have said “we’re not interested in your business plan, just show us that cool remote-controlled egg timer app again”.  (If you do know money guys like that, please send them my way.  Especially if they want to invest in egg timer apps.  I sense a real opportunity in emerging markets).

I actually think that if you were to ask most people running a business what’s the one thing they wished they’d done better at the beginning – the response would be: planning how to manage their business and make money from it.

So in the immortal words of Tag Team – Whoomp There It Is… I’m takin’ it back to the old school…’Cause I’m an old fool who’s so cool (they said it, not me)… and below are some suggested questions to help you generate your very first business plan.

BUSINESS PLAN QUESTIONNAIRE *

1.  PRODUCTS / SERVICES:

  • What products / services are you planning to offer to customers?  Describe in detail.
  • What differentiates your products / services from similar products / services in the market?
  • Who are your competitors? List categories and specific businesses.
  • What does your business stand for (e.g. value-for-money, quality, craftsmanship, innovation, philanthropy)?
  • What testing have you done to ensure that there is a market for your product / services?

2.  CUSTOMERS:

  • Who are your target customers? Describe demographic and customer characteristics.
  • What are your customers’ needs and expectations and how will you service these?
  • How will you attract new customers? (e.g. word of mouth, advertising, discount marketing – groupon, wowcher etc.)
  • How will you encourage customer retention / repeat custom? (e.g. loyalty programmes, refer-a-friend discounts, package deals)

3.  MARKETING:

  • What existing marketing tools/materials do you have? (e.g. current customers who can give testimonials)
  • What are the best marketing tools to reach your target customer audience? (e.g. website, flyers, word of mouth, social media)
  • What experience do you have in marketing and / or what budget have you allocated for marketing?

4.  CAPACITY/LOGISTICS:

  • How many hours per week can you devote to your business? If part-time, draw up a realistic schedule of available hours.
  • How / where will you provide the services/products (e.g. online, via a shop, at home, mail-order) and what type of costs are associated with your delivery method (e.g. travel, heating, lighting, electricity etc)?
  • Do you foresee any problems with your delivery method:
    • for you?
    • for your customers?
  • Do you have everything in place to begin providing the services or products?  If not, what preparation, money and time is required on your part to get you to this point?
  • What is your capacity (the maximum number of customers you can service)?  What would enable you to increase that capacity?
  • Do you need anyone else to help you deliver your product / service to your customers?  If so, how do you intend to work with that person / service provider (e.g. employee, contractor etc.)?
  • Do you have all the necessary licenses and business permits you need to operate your business?

5.  FINANCIAL:

  • What is your current monthly income?
  • How many hours do you currently work to generate that income?
  • How much of that income are you looking to replace with the income from your new business?
  • Is there any deadline for replacing some / all of that income (e.g. because your job is being made redundant, your company has cut back on your hours etc.)?
  • What is your proposed pricing schedule for your product / service? Make sure you list out any one-off fees, discounts, bulk-pricing etc.  How does this compare against your competitors’ prices?
  • What are your monthly costs of providing the services? For each cost on your list above, try to get as accurate an estimate of amounts as possible.
  • What capital expenditure (if any) will you need to spend in order to provide the services (e.g. on equipment, premises etc.) and when will you need to spend this?
  • How long will it be before you start to break even?  How long before you generate enough money to pay yourself a salary?
  • Who will manage your accounts for you?

6.  GENERAL:

  • Why do you want to start this business?  What are your drivers and goals?
  • What obstacles do you see to making this business a success?  How might you overcome these obstacles?
  • What help is available to your type of business (e.g. government grants, local enterprise schemes, mentor assistance, crowd funding)?
  • What are your current plans / timetable for expanding the business?  What capital would you need in order to achieve this?  Where will you obtain this investment?
  • If you had unlimited capital investment, what would you do with it to expand the business?

 

*DISCLAIMER: the above is not intended for you if you are pitching for capital investment.  You’re gonna need some pie charts for that…

hello hello

caroline hughes 3 Comments

Hello and welcome to my blog all about quitting my job and starting up my own business.

First blog posts are a bit strange.  You know that no-one except your mum and a few of your mates are going to read them.  So you feel a bit silly and self-indulgent writing great swathes of advice and anecdotes.  But that doesn’t stop you putting in hours of effort, just in case anyone else stumbles across your posts. 

Then you have that anxious anticipation, wondering how many followers you’ll get (and persuading your mum and mates to sign up from various random email addresses to boost your numbers…. ahem).

so why am I making myself do this..?

Mainly, to give me something to do whilst everyone else out there is making an honest living.

But also because even though I’ve been quite successful in my career, I always admired people who started up their own thing.  And even though I’ve helped run and shape businesses, I’ve still always had the sense that “starting a business” is this mystical thing that only natural born entrepreneurs can do.

I don’t feel like an entrepreneur.  I definitely don’t look like an entrepreneur.  Hmmmm, maybe I’m not cut out to be an entrepreneur….

how hard can it be?

I think that a lot of us (me included) are scared off by this idea that in order to be successful in business, you have to be this dynamic, well-connected, wheeler-dealer with big, game-changing ideas and ready-made speech bubbles of marketing spiel coming out of your mouth.

But then you look around and realise just how many people are starting and running their own businesses.  Your hairdresser, the local shopkeepers, your friend who does freelance graphic design.  And none of them look like Richard Branson.

So I’ve decided to write this blog to give myself a focus for starting up my own thing.  To jot down tips and advice that I find along the way and share that with you, my 3 loyal readers (thanks guys!).

I’m not a natural entrepreneur, but I am a natural encourager and if I can encourage just a couple of people to have a go at doing something for themselves, then it’ll all be worthwhile.

I would love to get feedback on posts (please play nicely!).  Also, if there are topics you’d like to know about, then shout and I’ll do my best to cover them.

Thanks for reading and hope to see you again soon.

Caroline x