Enterprise essentials #2 – 21 more tips from StartUp Saturday

It was the first day of September – a good time to be thinking about starting a business. We’re at the wonderful British Library Business and Intellectual Property Centre in central London for a StartUp Saturday business class led by Enterprise Nation founder Emma Jones. There’s an expectant buzz within the group of 30 aspiring business owners and, interestingly (to me at least), 75% are women; confirming my theory about women and entrepreneurship. It was a day that was rich in experience, of both Emma Jones and the participants, inspiring an intriguing array of start-up businesses at different stage in their development.

I’ve now been in business advice roles of various kinds for nearly two decades and I never stop learning – the following 21 insights, quotes and tips made it into my notebook…

1. According to the Henley Business School, developing a ‘side hustle’ [a secondary business or job that brings in, or has the potential to bring in, extra income] applies to 25% of all adults, with the figures for employees rising to nearly 40%

2. If you’re thinking of setting up a side hustle alongside your main employment… it’s a good idea to check what your contract says, informally check out company policy, and get advice from ACAS (the Advisory, Conciliation and Arbitration Service) if necessary

3. Would-be entrepreneurs see a niche business as narrowing the potential market for the products or services on offer, creating a disadvantage. In practice, it deepens the market which can mean lower marketing costs and higher customer loyalty

4. The secret to success in services such as photography, PR [public relations] and events is often to go for a niche part of the market. Hone in on deciding exactly who your business is for – photos for parents of new-born babies maybe

5. It’s always worth re-quoting the cliché ‘There may be a gap in the market, but is there a market in the gap?’

6. There are three broad sources for most business ideas: A gap in the market (no one else is doing it), a passion (I want to get paid for something I love), improvement (I can do it better)

7. IMOFF – a mnemonic for the main elements of a business plan – Idea, Market, Operations, Finances, Friends

8. 3 Bs to start-up and grow your business cost-effectively: beg, borrow, barter. And ‘surround yourself with experts’ when your business is young. Becoming ‘an expert’ yourself is good for profile-building

9. Avoid ‘friends and family focus groups’ they’ll usually want to please you, rather than tell you the truth. But a face-to-face focus group, even with your most loyal customers, can often give you greater insights than a larger arms-length consultation

10. When you can afford to… “Do what you do best and outsource the rest”. Carry out a simple cost-benefit analysis to see how you spend your time. What do you love (that generates income)  and how much time could you liberate if you outsourced what you don’t?

11. Crowdfunding is an increasingly popular way to raise finance to start a business. And some are even launching campaigns for the profile-raising, rather than fundraising, potential. Family and friends are still the most popular source for start-up finance

12. On business names… It’s best to have a name that is memorable and pronounceable. Your company, domain and trading names can be different [but some sort of association is helpful]

13. While honesty should be at the heart of all your business dealings, at times it may be expedient to tell ‘future truths’. [Positivity without porkies?]

14. 3 Cs to turn your passion into profit online – Content (around something you and others love) to build your Community (through social media) as the seedbed for Commercial development (jargon alert – monetization)

15. Selling is very much a numbers game needing perseverance and patience. But doing even simple things to increase sales can make a difference because so few people [in small businesses] do so.

16. People go to Pinterest to buy things (but can’t) which may explain why you can now buy on Instagram. Twitter and Facebook are not designed for sales (but Facebook ads work for small businesses)

17. Twitter is useful for sharing your expertise, Facebook is social (for building your following), LinkedIn is good for business-to-business and ‘selling’ via Groups), YouTube can substantiate your business or build a business in its own right

18. Measure what social media tools work best for your business, then focus on the one or two that are getting most engagement with your target audience

19. Events can bring your contacts and (potential) customers together. “If you connect your contacts to each other, you connect them ever closer to you”

20. DIY routes to making money. A commercial ‘how-to guide’ on YouTube is the entrepreneur’s dream – making money while you sleep. Putting on paid-for in-person training courses can both generate additional income and increase demand for your core services

21. An ABC of plate spinning to keep you sane in business – Administration (having control – money in, money out) Business development (attracting new customers) Customer care (keeping your customers and building loyalty)

Further start-up support: www.enterprisenation.com  and www.princes-trust.org.uk/help-for-young-people/support-starting-business

The first 21 StartUp tips: https://enterpriseessentials.wordpress.com/2018/01/15/enterprise-essentials-21-tips-from-startup-2018/

Men’s Sheds and bird boxes

Men’s Sheds are a vehicle to connect older men to like-minded people and the wider community bringing proven benefits in physical and mental wellbeing. How they do this varies greatly.

Despite there being over 1,000 Men’s Sheds in Australia and 200 in Ireland, with the UK catching up fast,  there is no typical Shed. Each aims to harness the resources of the particular locality to meet the needs of the men within it.

Just as Channel 4 TV’s ‘Shed of the Year’ awards stretches the definition of a shed, so too does the Men’s Shed movement. ‘Sheds’ in the East of England for example, include a former mortuary in Maldon, space in a community arts centre in Bedford, and a church building in Ipswich.

The Repair Shed in Hemel Hempstead occupies part of a warehouse and workshop space at the Hemel Food Garden – a horticultural social enterprise run by charity Sunnyside Rural Trust which works with learning-disabled adults to grow bedding plants under contract to Dacorum Borough Council.

Sheds, enterprise…

Making, mending and learning are three broad areas identified for income-generation in Hemel Hempstead. With a strong environmental emphasis on waste prevention, the plan is for the Repair Shed to turn reclaimed materials into functional items, for example furniture made from wooden pallets. An affordable repair service will run alongside free community repair events at which owners learn how to fix their broken items themselves. More formal learning by and for Repair Shed members – in repair, re-use and DIY skills – will be developed into paid-for training courses and one-off workshops for the wider community.

The Repair Shed itself aspires to be financially self-sufficient through selling goods and services, but it’s too early to know whether social enterprise is a route to a sustainable funding model. Elsewhere, the idea of income-generation and running a business operation doesn’t appeal to all Sheds.

Some Shed members like the continuity of structure, targets and plans – tapping into their commercial skills and experience – particularly when seeking to get back into employment. Others come to a Shed to get away from the stress of a business-oriented environment as Andy Wood, who helped set up the Norwich Men’s Shed, explains: “Making things to sell or offering paid-for services will be part of our business plan, but we are aware that this may cause pressure on participants to produce, which, in our view, would defeat the purpose of the project”.

… and bird boxes

That said, most Sheds do make things – whether for sale or for the satisfaction of being creative. Bird boxes are bread and butter for many Sheds – easy to make, great gifts for all ages in kit form or made-up, and a ‘nice little earner’ as Del Boy might say. At the new Maldon Shed it’s early days, but Bob Adams reports: “We have already been commissioned to make bird & bat boxes by Essex Wildlife Trust, and a few local pubs have asked us to make some flower troughs.” When the Men’s Shed in Aylesbury started, the group used bird box making as a team-building activity, making 75 in the weeks before Christmas and selling two thirds of them on a market stall before the festivities began.

The challenge of balancing ‘social’ and ‘enterprise’ activity, recognised by many social enterprises, is well illustrated by the recent bird box experience of another Buckinghamshire Men’s Shed, in Milton Keynes. A commission to make 150 bird boxes looks like good business but, for men not paid to join a production line, the loss of creativity that comes with making even 10 boxes can turn a hobby into a chore.

For more on Men’s Sheds around the UK go to www.ukmsa.org.uk