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I've been working for the same large company pretty much since I graduated (about 18 years ago). It's mostly been great, but I've been pretty frustrated there for a while and want to leave in the next year or so.
I've just started my own business - it's pretty small at the moment, but I hope it'll grow enough to allow me to leave my current job.
It's exciting and terrifying and I swing daily between knowing it's absolutely the right thing to do and completely losing confidence in the whole project.
When you were starting your business, what's the best piece advice you were given? And what do you know now that you wish you had at the beginning?
I've just started my own business - it's pretty small at the moment, but I hope it'll grow enough to allow me to leave my current job.
It's exciting and terrifying and I swing daily between knowing it's absolutely the right thing to do and completely losing confidence in the whole project.
When you were starting your business, what's the best piece advice you were given? And what do you know now that you wish you had at the beginning?
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In reply to chris_s:
Its not advice that was ever 'given' to me, but it's an old adage I've found to be very true:
"It's not what you know, it's who you know."
Not in an old boys' club way; rather capitalising on those existing connections you might have that could help your business grow, whether that be in sales or offering skills / expertise / advice.
The very best of luck with your venture.
Its not advice that was ever 'given' to me, but it's an old adage I've found to be very true:
"It's not what you know, it's who you know."
Not in an old boys' club way; rather capitalising on those existing connections you might have that could help your business grow, whether that be in sales or offering skills / expertise / advice.
The very best of luck with your venture.
1
In reply to chris_s:
Do you aim to be a one man band or build up to a larger enterprise?
You could do a lot worse than looking at Gerber's- The E-Myth Revisited, so you get your focus and direction sorted from the beginning!
Good luck!!!
Do you aim to be a one man band or build up to a larger enterprise?
You could do a lot worse than looking at Gerber's- The E-Myth Revisited, so you get your focus and direction sorted from the beginning!
Good luck!!!
In reply to chris_s:
Don't forget your pension, I'm sure your accountant will remind you, but try to hit the right balance between having a "slush fund" for quiet times and keeping your pension topped up to give you sufficient for your dotage.
Don't forget your pension, I'm sure your accountant will remind you, but try to hit the right balance between having a "slush fund" for quiet times and keeping your pension topped up to give you sufficient for your dotage.
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In reply to chris_s:
I've had a couple of small ventures into the own business world. I learnt that I hate marketing things, and that I suck at doing things I hate, and that if I don't market things, it's not easy for me to sell them.
I've worked for a small business, and I've had plenty of small businesses work for me and/or supply me. There is one recurring issue that I've come across. Cash-flow. Lots of small businesses that are profitable "on paper" die on their arse due to problems having money on hand when its needed. Model your cash reserves on a day-by-day basis and make sure they're never negative. Do this quite separately to keeping the books required for tax purposes.
That's what I thought both times I started something small - but I never really committed because I had a steady pay check and a limited amount of time to devote to the enterprise. Perhaps if I'd quit my regular job and focused on the small, own business it would have become a lot more successful.
Edit: Have fun - although mine went nowhere I learnt a lot. Also, good luck.
I've had a couple of small ventures into the own business world. I learnt that I hate marketing things, and that I suck at doing things I hate, and that if I don't market things, it's not easy for me to sell them.
I've worked for a small business, and I've had plenty of small businesses work for me and/or supply me. There is one recurring issue that I've come across. Cash-flow. Lots of small businesses that are profitable "on paper" die on their arse due to problems having money on hand when its needed. Model your cash reserves on a day-by-day basis and make sure they're never negative. Do this quite separately to keeping the books required for tax purposes.
> I've just started my own business - it's pretty small at the moment, but I hope it'll grow enough to allow me to leave my current job.
That's what I thought both times I started something small - but I never really committed because I had a steady pay check and a limited amount of time to devote to the enterprise. Perhaps if I'd quit my regular job and focused on the small, own business it would have become a lot more successful.
Edit: Have fun - although mine went nowhere I learnt a lot. Also, good luck.
Post edited at 00:17
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In reply to chris_s:
You don't get rich by spending your money.
If something needs doing and it looks hard, do it yourself. You'll learn something and you will lower your overheads.
If something is easy and you're getting busy, pay someone to do it. You didn't quit your job to clean toilets or drive a van and deliver stuff. Your own business can be a 24hr job if you want it to be. Value your time. If you hate cutting the grass at home but love web design, don't cut the grass yourself at the weekend.
Use Xero
You only need to be consistently slightly better than your competition and you'll be fine. If they are doing something illegal and getting away with it, you won't. (eg. Bribes to get work, avoiding VAT etc.) Avoid these industries.
You don't get rich by spending your money.
If something needs doing and it looks hard, do it yourself. You'll learn something and you will lower your overheads.
If something is easy and you're getting busy, pay someone to do it. You didn't quit your job to clean toilets or drive a van and deliver stuff. Your own business can be a 24hr job if you want it to be. Value your time. If you hate cutting the grass at home but love web design, don't cut the grass yourself at the weekend.
Use Xero
You only need to be consistently slightly better than your competition and you'll be fine. If they are doing something illegal and getting away with it, you won't. (eg. Bribes to get work, avoiding VAT etc.) Avoid these industries.
Post edited at 04:55
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In reply to chris_s:
Cash flow cash flow cash flow.
Being a small business owner I know and deal with lots of other small businesses and the key trend I see is people taking even last penny out of the business, they live in nice houses and drive nice cars and Wear expensive clothes and when hard times bite they go out of business.
My business model is keep it in the business.
I like to run with a healthy bank balance.
This allows 2 key things.
Money to pay the bills when times are hard.
Money to invest in things you need.
In 2013 I was able to buy a building from a guy who went bust because I had the 50% deposit that the bank wanted for a mortgage.
2 years later next door came up for sale so I snapped it up again with a 50% dipper and knocked through.
Now this put a hole in my funds but there was still enough left that I have been able to set on 2 new people and negotiate a new distributorship for a product line and place a 50k stock order whilst having 150k tied up in machines bought in for customers who I now can't supply because they were flooded at Christmas and either are not up and running yet or they took the insurance and called it a day.
Typically I like to run with at least 1 years operating cash in the bank, that's wages, bills, mortgages etc.
Edit to add a bit.
It's the sort of thing you expect management consultants to come out with but this one works and it's what we try to do.
Sell the solution you provide, not the product you sell.
Cash flow cash flow cash flow.
Being a small business owner I know and deal with lots of other small businesses and the key trend I see is people taking even last penny out of the business, they live in nice houses and drive nice cars and Wear expensive clothes and when hard times bite they go out of business.
My business model is keep it in the business.
I like to run with a healthy bank balance.
This allows 2 key things.
Money to pay the bills when times are hard.
Money to invest in things you need.
In 2013 I was able to buy a building from a guy who went bust because I had the 50% deposit that the bank wanted for a mortgage.
2 years later next door came up for sale so I snapped it up again with a 50% dipper and knocked through.
Now this put a hole in my funds but there was still enough left that I have been able to set on 2 new people and negotiate a new distributorship for a product line and place a 50k stock order whilst having 150k tied up in machines bought in for customers who I now can't supply because they were flooded at Christmas and either are not up and running yet or they took the insurance and called it a day.
Typically I like to run with at least 1 years operating cash in the bank, that's wages, bills, mortgages etc.
Edit to add a bit.
It's the sort of thing you expect management consultants to come out with but this one works and it's what we try to do.
Sell the solution you provide, not the product you sell.
Post edited at 06:01
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In reply to chris_s:
As others have said, for a small business, cash flow is the vital thing to watch and control.
Be positive but conservative.
You should know fairly quickly if it's a runner but it might not be where you want to get for 5-7-10 years time.
If you are reinvesting profits into the business to build up cash reserves etc, consider running it through a company as thus may be cheaper in tax terms - flat rate of 20% and falling. As a sole trader or partnership, you're taxed on profits regardless (potentially at up to 45%). Companies are a bit more hassle to run but there are various benefits, particularly if reinvesting profits.
As others have said, for a small business, cash flow is the vital thing to watch and control.
Be positive but conservative.
You should know fairly quickly if it's a runner but it might not be where you want to get for 5-7-10 years time.
If you are reinvesting profits into the business to build up cash reserves etc, consider running it through a company as thus may be cheaper in tax terms - flat rate of 20% and falling. As a sole trader or partnership, you're taxed on profits regardless (potentially at up to 45%). Companies are a bit more hassle to run but there are various benefits, particularly if reinvesting profits.
In reply to chris_s:
Don't forget tax. I actually took out and banked (special "tax" account) the tax element from every fee I received from the moment I received it. That way you start to build up sufficient reserves to meet your tax bill when it's due. It also is an excellent discipline for building up savings because being a crude calculation you build up an excess which accumulates and earns interest over the years and you never have a desperate struggle to meet your tax bill.
When I became VAT registered I did the same for VAT.
If you do it from the start it doesn't hurt.
Also as someone has said don't forget to do some form of pension saving either by regular contributions or investing in property, maybe the building from which you conduct your business? If working from home seek advice on the rules relating to what proportion of the home legally counts as "business" and what is "residential". This can be complex depending on whether you have a dedicated purely business area/rooms where customers visit etc.etc. but it MIGHT affect things like council tax/ business rates, and possible proportional capital gains tax liability if you sell the house. Generally this won't apply to a small one man band type business from home, but do seek advice first.
As other have said, keep a sound eye on your cash flow. Do regular profit and loss account exercises, so that you know your true financial state all the time.
Don't forget tax. I actually took out and banked (special "tax" account) the tax element from every fee I received from the moment I received it. That way you start to build up sufficient reserves to meet your tax bill when it's due. It also is an excellent discipline for building up savings because being a crude calculation you build up an excess which accumulates and earns interest over the years and you never have a desperate struggle to meet your tax bill.
When I became VAT registered I did the same for VAT.
If you do it from the start it doesn't hurt.
Also as someone has said don't forget to do some form of pension saving either by regular contributions or investing in property, maybe the building from which you conduct your business? If working from home seek advice on the rules relating to what proportion of the home legally counts as "business" and what is "residential". This can be complex depending on whether you have a dedicated purely business area/rooms where customers visit etc.etc. but it MIGHT affect things like council tax/ business rates, and possible proportional capital gains tax liability if you sell the house. Generally this won't apply to a small one man band type business from home, but do seek advice first.
As other have said, keep a sound eye on your cash flow. Do regular profit and loss account exercises, so that you know your true financial state all the time.
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In reply to chris_s:
I set up a small business 20 years ago and, several ventures later, including a period as a "fat cat" Plc director, I now have a medium-sized privately-owned one. There has been some good advice already, particularly relating to cashflow, but I'm not sure that anyone has yet touched on my first piece of advice to all budding entrepreneurs.
You will always find someone to sell you something, but it's harder to find one who'll buy off you.
In other words, at the early stages of a business, most would-be entrepreneurs place undue priority on getting their supply chain in place at the expense of finding customers. This is a recipe for (expensive) failure. Market knowledge and an effective sales strategy are the key to business success.
One of my mentors put this another way when he said: "you will always hit your expenditure budget, but will you hit your sales target? It's a matter of life and death."
I set up a small business 20 years ago and, several ventures later, including a period as a "fat cat" Plc director, I now have a medium-sized privately-owned one. There has been some good advice already, particularly relating to cashflow, but I'm not sure that anyone has yet touched on my first piece of advice to all budding entrepreneurs.
You will always find someone to sell you something, but it's harder to find one who'll buy off you.
In other words, at the early stages of a business, most would-be entrepreneurs place undue priority on getting their supply chain in place at the expense of finding customers. This is a recipe for (expensive) failure. Market knowledge and an effective sales strategy are the key to business success.
One of my mentors put this another way when he said: "you will always hit your expenditure budget, but will you hit your sales target? It's a matter of life and death."
Post edited at 08:29
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Wow, loads of good stuff here...
I'll be starting as a one-man band, with a bit of freelance help. I'd probably rather keep it that way, though it'll ultimately limit the size of the business. My product is intellectual property, so no need for buildings/warehouses etc and I'll be working from a home office.
Great tips on pensions, tax and cash flow (and grass cutting).
Wintertree - I take your point, leaving a regular wage/pension etc is going to be hard.
I'll be starting as a one-man band, with a bit of freelance help. I'd probably rather keep it that way, though it'll ultimately limit the size of the business. My product is intellectual property, so no need for buildings/warehouses etc and I'll be working from a home office.
Great tips on pensions, tax and cash flow (and grass cutting).
Wintertree - I take your point, leaving a regular wage/pension etc is going to be hard.
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In reply to chris_s:
Lots of good things here. Cash flow and sales are critical.
There's that old adage 'Turnover is vanity, profit is sanity, but cash is king'. It always seems hard to ask for money up front or stage payments, but it makes the world of difference to staying cash positive.
The other thing to remember is that you can't bank a promise. 'Nothing's agreed until it's all agreed,' so beware of making costly commitments before you have a proper deal.
Be clear about where your business is coming from and be quite clear who is going to make the decision and who has the money. The person you are talking to may be your customer, but may be neither of these. Find out who they are and work out if there is anything you can do in relation to them.
Understand the value of what you do to your customer. What issues do they have that your service resolves? Are the decision makers' issues the same as your customer's? Understand these to make sure that you know what's good about what you do in their eyes. Once you know that, check it with them and see if they agree. Once you're all starting to agree, you're in a better place to price well, and get good payment terms.
Lots of good things here. Cash flow and sales are critical.
There's that old adage 'Turnover is vanity, profit is sanity, but cash is king'. It always seems hard to ask for money up front or stage payments, but it makes the world of difference to staying cash positive.
The other thing to remember is that you can't bank a promise. 'Nothing's agreed until it's all agreed,' so beware of making costly commitments before you have a proper deal.
Be clear about where your business is coming from and be quite clear who is going to make the decision and who has the money. The person you are talking to may be your customer, but may be neither of these. Find out who they are and work out if there is anything you can do in relation to them.
Understand the value of what you do to your customer. What issues do they have that your service resolves? Are the decision makers' issues the same as your customer's? Understand these to make sure that you know what's good about what you do in their eyes. Once you know that, check it with them and see if they agree. Once you're all starting to agree, you're in a better place to price well, and get good payment terms.
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In reply to chris_s:
What business are you starting?
The worst part for me was marketing myself. Did loads of cold calls, got loads of knock backs and hated doing it, but it did lead to my early jobs, after which I started to get work from the last job or someone connected to the last job.
I also got some work early on from people per hour, but what with the cut they take, it was only worth it for the long term contacts generated (but it might be worth a shout if you're quiet). PPH is a bit of a minefield if you're VAT registered.
Depending on your business it might be worth joining local business 'breakfast clubs' and the like - I've never bothered because the people I need to buy my stuff don't go to them, it tends to be accountancy firms, web developers and similar.
LinkedIn may be a useful resource but in a 'soft' way - I wouldn't try and directly get a contract from it, but if you can spare the time it is a place where you can reasonably brag about your last job and post knowledgably about your specialism, 'raising your profile' and 'improving your branding' as the bovine scatologists would have it.
Good Luck
What business are you starting?
The worst part for me was marketing myself. Did loads of cold calls, got loads of knock backs and hated doing it, but it did lead to my early jobs, after which I started to get work from the last job or someone connected to the last job.
I also got some work early on from people per hour, but what with the cut they take, it was only worth it for the long term contacts generated (but it might be worth a shout if you're quiet). PPH is a bit of a minefield if you're VAT registered.
Depending on your business it might be worth joining local business 'breakfast clubs' and the like - I've never bothered because the people I need to buy my stuff don't go to them, it tends to be accountancy firms, web developers and similar.
LinkedIn may be a useful resource but in a 'soft' way - I wouldn't try and directly get a contract from it, but if you can spare the time it is a place where you can reasonably brag about your last job and post knowledgably about your specialism, 'raising your profile' and 'improving your branding' as the bovine scatologists would have it.
Good Luck
In reply to chris_s:
• Cash is king
• Build a product that doesn't depend on you if you want to create real business value
• Know your weaknesses
• Recruit people who are good enough to make you redundant
• Cash is king
• Build a product that doesn't depend on you if you want to create real business value
• Know your weaknesses
• Recruit people who are good enough to make you redundant
In reply to chris_s:
I wouldn't knock breakfast clubs because your potential customers won't be there. What you will do is meet other professionals and business people who might recommend their clients and friends to you if you are offering skills they don't provide or cover.
Networking can bring in a lot of business, so clubs like Round Table, Rotary are worth considering, in fact any club, even a climbing club will build up a circle of friends and contacts who will recommend you.
I found my main source of new work was from contacts, friends and recommendations or repeat business from previously satisfied customers. These take time to build up, so networking can get you on the road to that.
I wouldn't knock breakfast clubs because your potential customers won't be there. What you will do is meet other professionals and business people who might recommend their clients and friends to you if you are offering skills they don't provide or cover.
Networking can bring in a lot of business, so clubs like Round Table, Rotary are worth considering, in fact any club, even a climbing club will build up a circle of friends and contacts who will recommend you.
I found my main source of new work was from contacts, friends and recommendations or repeat business from previously satisfied customers. These take time to build up, so networking can get you on the road to that.
In reply to chris_s:
Lots of respect Chris, for taking such a big decision after 18 years in the same company. To remain in the same employ for 18 years you have to be a certain type of person and my guess is you've probably got 99% of the skills already to make it in the entrepreneurial World. You just need the experience now. Go get 'em!
I've been running my own businesses for 26 years and if I had a few nuggets of advice outside of the obvious, this would be them:
Research on every level is key to success.
Be patient.
Most loose before they win, learn to deal with failure.
Network lots and call in favours if you can.
Get grants if you can.
Be suspicious of people who talk about themselves too much and who make offers too good to be true; let people earn your trust.
If you have ip, get those NDAs ready and don't be afraid to ask colleagues and potential customers to sign them; anyone who refuses, probably doesn't have the best intentions in mind.
Have a good but cost-effective accountant and lawyer ready for when you need them, you may think you can't afford them but they are worth the investment.
Never give up and keep fighting.
Best of luck.
Lots of respect Chris, for taking such a big decision after 18 years in the same company. To remain in the same employ for 18 years you have to be a certain type of person and my guess is you've probably got 99% of the skills already to make it in the entrepreneurial World. You just need the experience now. Go get 'em!
I've been running my own businesses for 26 years and if I had a few nuggets of advice outside of the obvious, this would be them:
Research on every level is key to success.
Be patient.
Most loose before they win, learn to deal with failure.
Network lots and call in favours if you can.
Get grants if you can.
Be suspicious of people who talk about themselves too much and who make offers too good to be true; let people earn your trust.
If you have ip, get those NDAs ready and don't be afraid to ask colleagues and potential customers to sign them; anyone who refuses, probably doesn't have the best intentions in mind.
Have a good but cost-effective accountant and lawyer ready for when you need them, you may think you can't afford them but they are worth the investment.
Never give up and keep fighting.
Best of luck.
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In reply to Valaisan:
Depends on the IP of course but definitely not always true, you're unlikely to ever get an angel or VC to talk to you with that approach.
> If you have ip, get those NDAs ready and don't be afraid to ask colleagues and potential customers to sign them; anyone who refuses, probably doesn't have the best intentions in mind.
Depends on the IP of course but definitely not always true, you're unlikely to ever get an angel or VC to talk to you with that approach.
In reply to JR:
Every VC and business Angel I have ever met has been perfectly happy to sign an NDA, even 3i.
Every VC and business Angel I have ever met has been perfectly happy to sign an NDA, even 3i.
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In reply to Valaisan:
It really depends on the product you're looking for capital for, but I'd say it's not generally the case. Why would they sign something that puts them at risk, and is not easily enforceable, or could have costs associated with it for checking by a lawyer, when you're just presenting your pitch? If you're super sought after as an investment, or have IP that is totally reliant on secrecy, materials for example, then fine. But in any case, you wouldn't be sharing the confidential IP at pitch deck stage, if you're beyond that you'll have an understanding of the trust you're going to have to build if they come on board as an investor (and they'll have an understanding of whether it's necessary).
Clearly you have had a different experience, but in the education or general tech world, they'll probably ignore you (I have actually had a few sign them, but none of those that did invested). And so would I on the angel side of the fence, unless it's obviously something reliant on specific secret. You can't own an idea.
There's literally thousands of blogs out there on this...
https://www.angelinvestmentnetwork.co.uk/why-dont-sign-ndas-usually-
It really depends on the product you're looking for capital for, but I'd say it's not generally the case. Why would they sign something that puts them at risk, and is not easily enforceable, or could have costs associated with it for checking by a lawyer, when you're just presenting your pitch? If you're super sought after as an investment, or have IP that is totally reliant on secrecy, materials for example, then fine. But in any case, you wouldn't be sharing the confidential IP at pitch deck stage, if you're beyond that you'll have an understanding of the trust you're going to have to build if they come on board as an investor (and they'll have an understanding of whether it's necessary).
Clearly you have had a different experience, but in the education or general tech world, they'll probably ignore you (I have actually had a few sign them, but none of those that did invested). And so would I on the angel side of the fence, unless it's obviously something reliant on specific secret. You can't own an idea.
There's literally thousands of blogs out there on this...
https://www.angelinvestmentnetwork.co.uk/why-dont-sign-ndas-usually-
Post edited at 16:04
In reply to chris_s:
Loads
" cash is king".
I too operate with 1 years operating cash in the bank.
Although my accountants tell me that its too high a comfort pillow.When you actually look round the most secure business's are those where the business is rich and the owner is poor ( well relatively). It is surprising how quick a cash buffer can build up in a business when you put your mind to it.
Understand finance and understand marketing/ sales processes. get a grasp of how banks operate.
Search for new customers all the time.
really understand the market you operate in and why people buy from you. Ask for referrals and references.
Learn to say " no" to your customers . As a small business there is a natural instinct to say yes to everything and do it for free.
Search for new customers all the time.
remember your employees will in all probablity never have the same commitment, and treat them with respect.
Search for new customers all the time.
You get the idea- search for new cusomers all the time.
Loads
" cash is king".
I too operate with 1 years operating cash in the bank.
Although my accountants tell me that its too high a comfort pillow.When you actually look round the most secure business's are those where the business is rich and the owner is poor ( well relatively). It is surprising how quick a cash buffer can build up in a business when you put your mind to it.
Understand finance and understand marketing/ sales processes. get a grasp of how banks operate.
Search for new customers all the time.
really understand the market you operate in and why people buy from you. Ask for referrals and references.
Learn to say " no" to your customers . As a small business there is a natural instinct to say yes to everything and do it for free.
Search for new customers all the time.
remember your employees will in all probablity never have the same commitment, and treat them with respect.
Search for new customers all the time.
You get the idea- search for new cusomers all the time.
1
In reply to chris_s:
Move to Crickethowell if that is an option
http://www.independent.co.uk/news/uk/crickhowell-welsh-town-moves-offshore-...
Move to Crickethowell if that is an option
http://www.independent.co.uk/news/uk/crickhowell-welsh-town-moves-offshore-...
In reply to chris_s:
I'm a buyer for a very large multinational, I weep for small businesses that I try my best to give business to. The hoops the different departments I have to consult with, put them through to get 'Approved' and then we ask them to re-apply every couple of years.
We pay them 60 days EOM ( sometimes) and I have no say in either of those processes, I am instructed what our conditions are, and payment terms, and if I don't get them, the bid is deemed ' non complient' Which is tougher on smaller businesses.
I also need a budget to pay for the initial approval of a new supplier, and that cost is added to the quote that that supplier has submitted, so that makes them look uncompetitive even though they might have submitted the best price.
I recently had to fight tooth and nail to be able to place an order on a small business that has been supplying to us for decades, now they have failed our new qualification process because it does not take into account previous orders successfully delivered! ( and still does not)
I'm sure not all big companies are as bad as that, but as dragons den will show you, it is often down to who you know to first get into those big companies.
( have you spoken to your own Sales and Procurement departments ?)
I'm a buyer for a very large multinational, I weep for small businesses that I try my best to give business to. The hoops the different departments I have to consult with, put them through to get 'Approved' and then we ask them to re-apply every couple of years.
We pay them 60 days EOM ( sometimes) and I have no say in either of those processes, I am instructed what our conditions are, and payment terms, and if I don't get them, the bid is deemed ' non complient' Which is tougher on smaller businesses.
I also need a budget to pay for the initial approval of a new supplier, and that cost is added to the quote that that supplier has submitted, so that makes them look uncompetitive even though they might have submitted the best price.
I recently had to fight tooth and nail to be able to place an order on a small business that has been supplying to us for decades, now they have failed our new qualification process because it does not take into account previous orders successfully delivered! ( and still does not)
I'm sure not all big companies are as bad as that, but as dragons den will show you, it is often down to who you know to first get into those big companies.
( have you spoken to your own Sales and Procurement departments ?)
Post edited at 09:43
In reply to Andy Hardy:
The business is podcasting. Yep, still sounds weird saying it, but there really is a business there. I'm a practitioner rather than a business expert, hence the need for advice.
I'm finding exactly the same with the marketing I've done so far - I hate it. A formula I heard years ago was "1. Make something really, really good. 2. Tell people about it." I love part one, but not enjoying the second bit at all.
The business is podcasting. Yep, still sounds weird saying it, but there really is a business there. I'm a practitioner rather than a business expert, hence the need for advice.
I'm finding exactly the same with the marketing I've done so far - I hate it. A formula I heard years ago was "1. Make something really, really good. 2. Tell people about it." I love part one, but not enjoying the second bit at all.
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In reply to neilh:
Which for my business would be growing an audience all the time - great advice.
> Search for new customers all the time.
Which for my business would be growing an audience all the time - great advice.
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In reply to chris_s:
Hi, Chris,
I'm at odds with your last paragraph, being in my 31st year of running businesses my experience is that it is more effective to find out what customers want and find ways of supplying that. It is put more eloquently in this very enjoyable TED talk:
https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?lang...
On a general point, and it's been made elsewhere, commit! If you are a climber you'll understand just how strong you get when you are committed to a hard move high above dodgy gear, it's the same with business, your current job is a safety net holding back your ability to fully discover your business's potential
Good luck and have fun
Hi, Chris,
I'm at odds with your last paragraph, being in my 31st year of running businesses my experience is that it is more effective to find out what customers want and find ways of supplying that. It is put more eloquently in this very enjoyable TED talk:
https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?lang...
On a general point, and it's been made elsewhere, commit! If you are a climber you'll understand just how strong you get when you are committed to a hard move high above dodgy gear, it's the same with business, your current job is a safety net holding back your ability to fully discover your business's potential
Good luck and have fun
Post edited at 09:07
In reply to chris_s:
You need to find a way of overcoming your issues on marketing . Its where many small businesses fail - along with cash flow.
Try reading books like "gorilla marketing" which may help. There was a good one by the guys who customised motorbikes in the USA. - Orange County or something like that.they give you different perspectives .
You need to find a way of overcoming your issues on marketing . Its where many small businesses fail - along with cash flow.
Try reading books like "gorilla marketing" which may help. There was a good one by the guys who customised motorbikes in the USA. - Orange County or something like that.they give you different perspectives .
In reply to Jim C:
I assume all those processes go pear shaped when the supplier has something you want and there are only1 or 2 options.
Lol . It's a situation I get into and basically I tell the purchasing team to " come up with a different proposal "........
I assume all those processes go pear shaped when the supplier has something you want and there are only1 or 2 options.
Lol . It's a situation I get into and basically I tell the purchasing team to " come up with a different proposal "........
In reply to Fruit:
The bigger your customer is, the worse they will be at paying. If you have very few large baskets for your eggs, you're going to get screwed at some point.
work life balance is important and nearly impossible to get 100% right.
Work on it from the start or you will pick up enduring habits which won't be good for your long term home life.
Factor in holiday pay, and take holiday.
home office is a double edge sword. Try not to integrate it into your home too much. Or use a way of being able to leave it alone, even if it's just have work clothes and get changed into casual clothes for leisure. It'll give a demarcation from work to leisure.
be efficient with your working time.
Don't buy anything from cold callers. They waste your time everytime. And you'll get a lot of them, it all adds up.
It takes guts to start and even more to know when to call it a day. Not all small businesses make it. There is no shame in having had a failed business, especially if you saw the time was right to fold it up. That's life, not failure. Pride can be expensive.
Good luck.
The bigger your customer is, the worse they will be at paying. If you have very few large baskets for your eggs, you're going to get screwed at some point.
work life balance is important and nearly impossible to get 100% right.
Work on it from the start or you will pick up enduring habits which won't be good for your long term home life.
Factor in holiday pay, and take holiday.
home office is a double edge sword. Try not to integrate it into your home too much. Or use a way of being able to leave it alone, even if it's just have work clothes and get changed into casual clothes for leisure. It'll give a demarcation from work to leisure.
be efficient with your working time.
Don't buy anything from cold callers. They waste your time everytime. And you'll get a lot of them, it all adds up.
It takes guts to start and even more to know when to call it a day. Not all small businesses make it. There is no shame in having had a failed business, especially if you saw the time was right to fold it up. That's life, not failure. Pride can be expensive.
Good luck.
1
In reply to neilh:
Of course, if we have no other options, we complete a single source form and explain to the management why We want to go there and why they will not agree to our conditions.
It does happen,on occasion that we have to 'single source' something significant , usually because Engineering has written the technical requirement around a particular product of a particular supplier) , but not that often that we also have to cede our conditions.
So it is not for Procurement to come up with a different proposal,we are not the specifiers , in fact it makes our job so much easier to have lots of options.
> I assume all those processes go pear shaped when the supplier has something you want and there are only1 or 2 options.
> Lol . It's a situation I get into and basically I tell the purchasing team to " come up with a different proposal "........
Of course, if we have no other options, we complete a single source form and explain to the management why We want to go there and why they will not agree to our conditions.
It does happen,on occasion that we have to 'single source' something significant , usually because Engineering has written the technical requirement around a particular product of a particular supplier) , but not that often that we also have to cede our conditions.
So it is not for Procurement to come up with a different proposal,we are not the specifiers , in fact it makes our job so much easier to have lots of options.
Post edited at 09:34
In reply to Jim C:
Most big companies are as bad.
I have been on the other side of that fence many time's and after reviewing the tender documents I often tell them to go whistle.
The big boys don't seem to understand my reluctance to work for a very small margin and in some cases a loss.
I had one recently where the job was fixed hours per task and to be fair for the actual time on site the hours were correct but it didn't take in to account generation of rams, initial site visits, 4 different ways that every job has to be reported back to them by my office and the hoops you jump through to book the site access in the first place.
A 2 hour job on site billed at 2 hours takes a further 2 hours to do the pre and post admin.
> I'm a buyer for a very large multinational, I weep for small businesses that I try my best to give business to. The hoops the different departments I have to consult with, put them through to get 'Approved' and then we ask them to re-apply every couple of years.
> We pay them 60 days EOM ( sometimes) and I have no say in either of those processes, I am instructed what our conditions are, and payment terms, and if I don't get them, the bid is deemed ' non complient' Which is tougher on smaller businesses.
> I also need a budget to pay for the initial approval of a new supplier, and that cost is added to the quote that that supplier has submitted, so that makes them look uncompetitive even though they might have submitted the best price.
> I recently had to fight tooth and nail to be able to place an order on a small business that has been supplying to us for decades, now they have failed our new qualification process because it does not take into account previous orders successfully delivered! ( and still does not)
> I'm sure not all big companies are as bad as that, but as dragons den will show you, it is often down to who you know to first get into those big companies.
Most big companies are as bad.
I have been on the other side of that fence many time's and after reviewing the tender documents I often tell them to go whistle.
The big boys don't seem to understand my reluctance to work for a very small margin and in some cases a loss.
I had one recently where the job was fixed hours per task and to be fair for the actual time on site the hours were correct but it didn't take in to account generation of rams, initial site visits, 4 different ways that every job has to be reported back to them by my office and the hoops you jump through to book the site access in the first place.
A 2 hour job on site billed at 2 hours takes a further 2 hours to do the pre and post admin.
In reply to Dax H:
If we are sensible ( and not all cost conscious Project Managers are) we will recognise that forcing a company into taking a low/no margin job, is frought with risks.If they get a half decent order from elsewhere with good margins, no guesses which one they will focus on delivering on time.
If course we too have our customers, and so we see both sides, I talk to our sales and Proposals teams daily , and they too have to go through a bid/ no bid evaluation, and weigh up the risks/ benefits of taking on an order in the first place. If I tell them that there is difficult supply chain available, then they have to take that into account. ( And they should perhaps not assume a ' buying gain' of 20% based on a single source , just so that they can justify bidding something and making a sale)
If we are sensible ( and not all cost conscious Project Managers are) we will recognise that forcing a company into taking a low/no margin job, is frought with risks.If they get a half decent order from elsewhere with good margins, no guesses which one they will focus on delivering on time.
If course we too have our customers, and so we see both sides, I talk to our sales and Proposals teams daily , and they too have to go through a bid/ no bid evaluation, and weigh up the risks/ benefits of taking on an order in the first place. If I tell them that there is difficult supply chain available, then they have to take that into account. ( And they should perhaps not assume a ' buying gain' of 20% based on a single source , just so that they can justify bidding something and making a sale)
In reply to Jim C:
Yes there are some realistic guys out there but there are also a lot of companies out there desperate for work who see a foot in the door as the start of bigger things but mostly it's not.
There are others out there who see the up front cost and think it's great but they don't look at their own back end costs and despite having a good turnover they don't make any money.
My business partner is one of these people.
We have many a heated discussion when I turn down work because there is no money in it, the whole cost analysis thing is totally lost on him, he just sees the "we can do 200k a year with them" and not the part about it costing us 199.99k a year to actually do the work.
Fortunately he does bring a lot of other skills to the table.
Yes there are some realistic guys out there but there are also a lot of companies out there desperate for work who see a foot in the door as the start of bigger things but mostly it's not.
There are others out there who see the up front cost and think it's great but they don't look at their own back end costs and despite having a good turnover they don't make any money.
My business partner is one of these people.
We have many a heated discussion when I turn down work because there is no money in it, the whole cost analysis thing is totally lost on him, he just sees the "we can do 200k a year with them" and not the part about it costing us 199.99k a year to actually do the work.
Fortunately he does bring a lot of other skills to the table.
1
In reply to neilh:
Don't monkey about with gorilla marketing. We go ape for guerilla marketing though.
> You need to find a way of overcoming your issues on marketing . Its where many small businesses fail - along with cash flow.
> Try reading books like "gorilla marketing" which may help. There was a good one by the guys who customised motorbikes in the USA. - Orange County or something like that.they give you different perspectives .
Don't monkey about with gorilla marketing. We go ape for guerilla marketing though.
Post edited at 11:09
In reply to Jim C:
I enjoy telling procurement or purchasing teams to " go away and rethink their payment terms. Always brings out a chuckle.
not all big companies are poor , I find big American companies very helpful. German companies are good , there again they at least do credit checks on you as part of the procurement process.
The trick here is not to sell a commodity product and for everybody to understand your usp.
I enjoy telling procurement or purchasing teams to " go away and rethink their payment terms. Always brings out a chuckle.
not all big companies are poor , I find big American companies very helpful. German companies are good , there again they at least do credit checks on you as part of the procurement process.
The trick here is not to sell a commodity product and for everybody to understand your usp.
1
In reply to neilh:
Payment Terms are bugger all to do with Procurement where I work, the head of the finance who looks after the company cash flow dictates the minimum terms, and that at the moment is 60 Days EOM which is tough on many small companies, that we need and may not be there if we are not more flexible.
I am on the side of my small suppliers, and on the whole ( in his heart) my Procurement Manager is too, but we have no say in it, so you don't need to tell Procurement ( in our case) to rethink Payment Terms, you need to tell the financial controllers.
> I enjoy telling procurement or purchasing teams to " go away and rethink their payment terms. Always brings out a chuckle.
Payment Terms are bugger all to do with Procurement where I work, the head of the finance who looks after the company cash flow dictates the minimum terms, and that at the moment is 60 Days EOM which is tough on many small companies, that we need and may not be there if we are not more flexible.
I am on the side of my small suppliers, and on the whole ( in his heart) my Procurement Manager is too, but we have no say in it, so you don't need to tell Procurement ( in our case) to rethink Payment Terms, you need to tell the financial controllers.
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