Tag Archives: sharing ideas

Eight tips for business start-ups    

Share your start-up ideas

You may be tempted to think your business idea is so clever that others will steal your idea as soon as they hear about it. Chances are your idea isn’t so unique, and you have more to gain from telling everyone who is prepared to listen than keeping your cards close to your chest. Unless you have a potentially patentable product, don’t waste time and money on protection – even with a patent you probably can’t afford to defend it. https://youngfoundation.org/social-innovation-investment/social-enterprise-mistakes-worrying-that-someone-will-steal-your-idea/

Consider a lean start-up

We talk about finishing a business plan before launching a business to lay solid foundations to give the business the best chance of success. In reality, a business plan is never finished – it’s a promise not proof and sometimes waiting to ‘get it right’ is an excuse for doing nothing. Sometimes it’s good to jump in before all the details are worked out. At that ‘test trading/ piloting’ stage you’re doing real life market research and you’ll probably be more willing to make changes because the plan is less fixed and you’ve committed less time to it. https://enterpriseessentials.wordpress.com/2014/03/06/running-on-fumes-a-case-for-lean-business-start-up

Things always take longer than you want/ expect

When you’re fired up about your business idea, you don’t want to be told that it won’t develop as quickly as you’d like; that things won’t follow the time-line in your well-worked business plan. You’ll want to keep the momentum going but remember – your timetable is no one else’s. If you’re collaborating with others and depending on the support of partners who have less interest in your success than you do, you may have to be patient – they have their own timetables.

Passion is rarely enough

People are too eager to say that passion is all you need for starting a business (it certainly helps) and if you want it badly enough you’ll succeed. The latter is not true and sets up people to fail. Some business ideas and the people behind them have no chance of success and ‘managing expectations’, if not actually damping down their enthusiasm, is often kinder in the long run. That said, being proved wrong is always a delight! https://enterpriseessentials.wordpress.com/2013/10/27/lesson-1-roots-wings-and-balance

Be prepared to stop making products you want to sell and start making products that people want to buy.

The paying customers is (almost) always right – if they want it, make it. Business is business – don’t let your personal views stop a sale (unless it’s a commission that simply won’t work).

If you’re making products, you’ll probably take pride in your creation having spent a lot of time and effort in the process. But you have to let go – in business you must be prepared to sell your favourite pieces, even to people who don’t appreciated your talent. You may also have to compromise your standards and at times; accept ‘good enough’ to operate competitively. https://enterpriseessentials.wordpress.com/2015/11/25/the-paying-customer-is-always-right

Keep it simple and limit choice

Whether it’s pricing and discounts / membership processes and application forms / product and service ranges, keep it simple. You shouldn’t need a degree to work out the price of an item after taking off the discount, adding delivery and VAT etc. It’s also proven that limiting choice will result in higher overall sales. So, don’t display 15 different ‘bespoke’ mirrors – put 5 in the spotlight and keep 10 under the counter.

The ‘right way’ is rarely clear cut

‘Getting it right’ is usually a question of balancing different options. Whether it’s balancing social and financial objectives, pricing for affordability vs pricing for viability, and balancing quality against cost-effective production, there’s usually a judgement to be made. Making 150 bird boxes is good for business but not for the wellbeing of workers who want to be creative.

You can’t run a business on fresh air and goodwill

You can go a long way by appealing to your friends and family and tapping into the time and expertise of volunteers – there’s a lot of free support and advice around, particularly for start-ups. But sustaining a functioning business in the longer term, is likely to need at least some paid staff input. A contract of employment is important for underpinning commitment and reliability.

For more start-up lessons go to https://enterpriseessentials.wordpress.com/category/learning-about-earning

 

Advertisements

Enterprise essentials – 21 tips from StartUp 2018

It’s January 13th 2018 and hundreds of entrepreneurs both young and old (but mainly young) are gathered in East London to consider anything and everything to do with starting a business. A great day with loads on on offer – so ‘pick and mix’ was the way to go.

The event was also refreshingly free from business bullshit and the hero-worshipping of edgy, sweary entrepreneurs spouting ‘awesome’, ‘cool’ and ‘disruptive’ all day. In no particular order (as they say on Strictly) I picked up the following tips by keeping my ears pinned back during the day.

  1. The recommended maximum number of questions and completion time for market research surveys is 22 questions and seven minutes (after that there’s a severe drop in response rates)
  2. Success in starting  business is largely down to a combination of ideas, skills and persistence, and lot of them – 90% of business start-ups fail within a year, 47% of retail businesses survive for 10 years
  3. Making products is not business, selling products is the business
  4. Focus on your passions, understand the core mission of your new business, be clear why you are different from other similar businesses (the competition)
  5. The difference between masculine and feminine marketing is the difference between ‘hard sell’ and ‘heart sell’
  6. Talk to as many people as possible- share your ideas freely. Unless your product is technical, forget patents (they’re expensive) and concentrate on protecting your trade mark
  7. Get your products out there as soon as possible – stop talking, start selling – just do it!
  8. Write down 50 people you think should know about your new business, decide how you’re going to reach them, and tell them
  9. “Success is selling something that doesn’t come back to people who do” A cliche, but true.
  10. Work hard, be nice to people, do your research, know your customers, be prepared to sacrifice sleep
  11. Start small, never stop learning and the business will grow with you
  12. When you start out in business think about your definition of success – is it making money, making a difference, or what?
  13. Ideas are worthless, execution is everything
  14. In your business pitch start with the pain for your customers
  15. When you start business planning, list all your assumptions and test each one [before someone else asks you awkward questions]
  16. Mentors are great for keeping you on track and keeping you going, particularly at start-up stage
  17. The highs and lows are more extreme when starting your own business [rather than working in someone else’s]
  18. Know your strengths and [particularly] your weaknesses when starting a business
  19. Tough times at start-up stage can be a springboard for great business development
  20. Understand your brand, focus on the core of your mission, follow your passion, talk to lots of people
  21. Starting a business takes three times as long as you think it will

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

 

The business plan paradox

“If you don’t have a plan, you can’t change it”

In my work with young entrepreneurs, we set great store by them developing a business plan for each would-be enterprise. I describe it as the key that unlocks further support – including a start-up loan and a business mentor. And it can. That’s the carrot for young people hoping to start their own businesses and the stick is… well… it’s me giving them feedback on their various drafts at 1-2-1 meetings. It has to be  their business plan and after each encounter, I  hope they won’t give up; no one is going to force them to stay the course. Of course, many end up ‘doing their own thing’ and we lose touch.

But then I have mixed feelings about business plans. They are, at best, an informed estimate about how things might turn out. We know they’re out of date the minute the ink dries on the page and they can be knocked sideways, backwards, and forwards by unforeseen opportunities and obstacles in the weeks following. Business plans chart 12 months ahead in a linear, orderly fashion (with words and figures hopefully describing parallel journeys) but we know that real life – personal and professional twists and turns – mean that’s unlikely to happen. We say that the business plan should be a ‘living document’ – dynamic and being constantly updated – but I wonder how many really are…

Then there’s my guilty secret – in the three years I spent setting up The Repair Shed (a social enterprise in Hemel Hempstead) my business plan lay unopened,  unloved, and out-of-date on the shelf. In fairness, I did have a 12-month project plan for the funders and I spent a lot of time explaining why things didn’t turn out quite like I said they would.

And yet… and yet …

Young people starting a business plan, and progressing it from one draft to another, shows learning in action, and achievement – massive achievement is some cases – that is credit-worthy in itself. Transferring ideas from inside heads on to paper helps make thinking tangible and, can often clarify issues and gaps in knowledge. A written business plan can share understanding between strangers about the young entrepreneur and their new venture. Even if the business plan is abandoned, it can be retrieved at a later date – a lifeline if the business is floundering, a leg up if the business was never started. And there’s proof that the author of a well-worked business plan can become much more employable as a result of that planning exercise alone.

There’s a much-quoted saying “no business plan survives first contact with customers” but I’d be happy with that – it says our young entrepreneurs have actually started trading!

Coming soon – 10 questions your business plan should answer  

The power of networking

Many years ago I went to a talk in Cambridge by Hilton Catt, co-author of The Power of Networking. I don’t know whether the publicity was ambiguous or what but, it being Cambridge, there was a digital divide within the audience – one half thought it would be about virtual networks, the other half thought it would be about ‘real’ human networks.

I’m pleased to say it was about the power of the face-to-face – in Hilton Catt’s case, for job-hunting. I was unemployed at the time and, while the evening didn’t result in my immediate employment, it reinforced what I’d been told by other jobhunters and confirmed my belief in the benefit of seeking and nurturing contacts for both professional and personal progression.

To this day, I still think you can’t beat close encounters of the personal kind – even in our tech-rich, time-poor working lives – and more so in an age of faux online friends, false news, and reality TV shows that suggest that, in business, someone has to lose for you to win.

Call me old-fashioned, but my experience of working with small business start-ups for more than a decade is that they have far more to gain by sharing their ideas (rather than protecting them) and seeking partners for mutually beneficial relationships. I’m not starry-eyed about collaboration and co-operation (as opposed to competition) but I recommend it daily, and will do so until someone convinces me there’s a better way.

In my day-job I support young people in their efforts to turn business ideas into viable and hopefully sustainable enterprises. Entrepreneurship can be a lonely road to take, so I encourage then to seek out like-minded people – even the competition – for advice about mistakes made, lessons learnt, and what works well.

The young entrepreneurs are constantly astonished and delighted by the helpfulness of others (people who remember when they were starting out maybe) with no expectation of a payback. I also pull in my own personal and professional contacts when I can. In the last six months, I’ve fixed a fence erector up with a van, I’ve arranged a would-be photographer’s night at a music awards ceremony in London as professional snapper’s assistant, I’ve unearthed (pun intended) a garden designer to pass judgement on a newbie designer’s work, and I’ve steered others towards potential collaborators, including business networks.

The day that ‘who you know’ becomes less important than ‘what you know’ and online communications make face-to-face connections unnecessary, I think I’ll pack up and head for the hills (preferably somewhere there’s no broadband).