About me:
http://www.lmu.ac.uk/businessincubator/index1.htm [accessed on 12/02/09]
Sales – Elevator pitch:
http://business.timesonline.co.uk/tol/business/entrepreneur/article556584.ece [accessed on 24/02/09]
www.speechtips.com [accessed on 24/2/09]
Proposition:
Porter, M. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York
Prahalad, C.K., Hamel, G. (1990), "The core competence of the corporation", Harvard Business Review, May/June pp.79-91
Business Law:
www.acas.org.uk [accessed on 04/03/09]
http://www.businesslink.gov.uk/bdotg/action/detail?r.lc=en&type=RESOURCES&itemId=1073791786&r.s=sl [accessed on 20/02/09]
http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858805&topicId=1073858787&r.lc=en&r.s=m. [accessed on 04/04/09]
www.companieshouse.gov.uk/ [accessed on 04/02/09]
www.duhaime.org/legaldictionary/p/passingoff.aspx [accessed on 20/02/09]
www.hse.gov.uk [accessed on 04/02/09]
www.ipo.gov.uk [accessed on 11/03/09]
www.itma.org.uk [accessed on 11/03/09]
http://www.lawsociety.org.uk/choosingandusing/helpyourbusiness/foryourbusiness.law, [accessed on 05/04/09]
www.oft.gov.uk [accessed on 10/03/09]
www.patent.gov.uk [accessed on 04/04/09]
www.123reg.co.uk [accessed on 16/02/09]
Cohen, D. (1986), “Trademark Strategy”, Journal of Marketing, 50 pp.67-74
Gonzalez, R. G., Gil, R. (2008), “Semantic Copyright Management for internet-wide knowledge sharing and reuse”, Online Information Review, 32 (5) pp.585-595
Oddie, C. (1999), “Copyright protection in the digital age”, Journal of Management & Computer Security, 7 (5), pp.239-240
Parliamentary Copyright, Designs & Patents Act (1988)
Business Accounting:
www.courtservice.gov.uk [accessed on 16/03/09]
http://www.hmrc.gov.uk/vat/start/register/index.htm [accessed on 10/04/09]
www.hmrc.gov.uk [accessed on 10/04/09]
http://www.opsi.gov.uk/acts/acts2006/ukpga_20060046_en_13 [accessed on 10/04/09]
www.inlandrevenue.gov.uk [accessed on 15/03/09]
www.hmce.gov.uk [accessed on 15/03/09]
www.payontime.co.uk [accessed on 15/03/09]
www.icm.org.uk [accessed on 15/03/09]
Marketing:
www.britishchambers.org.uk/ [accessed on 19/03/09]
www.marketresearch.org.uk [accessed on 19/03/09]
www.statistics.gov.uk [accessed on 20/03/09]
www.mintel.co.uk [accessed on 20/03/09]
www.yell.com [accessed on 20/03/09]
www.cim.co.uk [accessed on 26/03/09]
McCarthy, E. J. (1964), Basic Marketing, Richard D. Irwin, Homewood, Illinois
Porter, M. (1985), Competitive Advantage; creating and sustaining superior performance, Free Press
Marketing Applications:
www.ipa.co.uk [accessed on 28/03/09]
www.adassoc.org.uk [accessed on 28/03/09]
www.wilsonweb.com [accessed on 28/03/09]
El-Ansary, A. I. (2006), "Marketing strategy: taxonomy and frameworks", European
Business Review,18 (4) pp. 266-293
Professional Selling:
www.justsell.com [accessed on 27/03/09]
www.dsa.org.uk [accessed on 27/03/09]
www.theidm.co.uk [accessed on 27/03/09]
Professional selling contact methodology:
www.changingminds.org [accessed on 04/04/09]
http://www.avnmembers.co.uk/knowledgebase/Business/pdf/priceobjections.pdf [accessed on 04/04/09]
www.entrepreneur.com [accessed on 04/04/09]
www.allbusiness.com [accessed on 05/04/09]
www.24techniquesforclosingthesale.com [accessed on 05/04/09]
http://www.allbusiness.com/sales/selling-techniques/373097-1.html [accessed 05/04/09]
Neuro Linguistic Programming:
www.satsuma-nlp.co.uk [accessed on 06/04/09]
www.nlp3.co.uk [accessed on 06/04/09]
www.ciauk.com [accessed on 06/04/09]
http://www.youlied.org/CWFIA%20Class%20Summary.htm [accessed on 06/04/09]
Nancarrow, C. (1998), “Rapport in telemarketing – mirror, mirror on the call?”, Marketing Intelligence & Planning, 16 (1), pp.12-21
Yemm, G. (2006), “Can NLP help or harm your business?”, Industrial and Commercial Training, 38 (1), pp.12-17
Networking:
http://press.linkedin.com/about [accessed on 12/04/09]
www.ukinventure.com [accessed on 12/04/09]
http://www.aim.com.au/publications/bkchapters/influence_ch5.html [accessed on 11/04/09]
www.businesslink.gov.uk [accessed on 11/04/09]
www.britishchambers.org.uk [accessed on 11/04/09]
www.Linkedin.com [accessed on 11/04/09]
Hunt, D.S., Morgan, M.R. (1994), "Relationship marketing in the era of network competition", Marketing Management, 3 (1) pp.18-28
Top tips:
www.barclaysmicrosites.co.uk/business/startingyourbusiness.html [accessed on 12/04/09]
Sunday, 19 April 2009
Post 14: Top Tips
Based on my experience and what I have achieved, these would be my top tips for you and you new business:
1. Come up with an original idea that you are passionate about.
2. Research this market, find out if it is growing and what level of competition there is.
3. Put your thoughts down on paper, and try to define them as concisely as possible.
4. Get help and advice on refining the idea from places like business link, but I would also recommend getting a copy of the Barclays Business planning start-up pack from their website.
https://www.barclaysmicrosites.co.uk/business/startingyourbusiness.html
5. Define your company proposition (what are you selling, to whom, how will you position it, what are you USPs).
6. Know your competition (who does what we do, what do they sell on, what can we learn from them, are there other niches in this market).
7. Start networking and immersing yourself as much as possible in this industry.
8. Start Prospecting (based on your market segmentation) and develop a list of potential contacts via phonebooks, trade listings, or purchasing lists.
9. Qualify you prospects via websites, telemarketing, email.
10. Develop a script to use on each prospecting call, which details you process and also how to handle possible objections.
11. Don’t be afraid of calling people, after all someone can only say no.
12. Keep making sure you are committed and that this is what you really want moving forwards.
1. Come up with an original idea that you are passionate about.
2. Research this market, find out if it is growing and what level of competition there is.
3. Put your thoughts down on paper, and try to define them as concisely as possible.
4. Get help and advice on refining the idea from places like business link, but I would also recommend getting a copy of the Barclays Business planning start-up pack from their website.
https://www.barclaysmicrosites.co.uk/business/startingyourbusiness.html
5. Define your company proposition (what are you selling, to whom, how will you position it, what are you USPs).
6. Know your competition (who does what we do, what do they sell on, what can we learn from them, are there other niches in this market).
7. Start networking and immersing yourself as much as possible in this industry.
8. Start Prospecting (based on your market segmentation) and develop a list of potential contacts via phonebooks, trade listings, or purchasing lists.
9. Qualify you prospects via websites, telemarketing, email.
10. Develop a script to use on each prospecting call, which details you process and also how to handle possible objections.
11. Don’t be afraid of calling people, after all someone can only say no.
12. Keep making sure you are committed and that this is what you really want moving forwards.
Saturday, 18 April 2009
Post 13: Conclusion - What I Have Achieved
What We Have Achieved
I found the workshops, presented by VFM business advisors to be really useful and cover the major topics necessary in this stage of my business career. The content was delivered in small understandable pieces, with plenty of time for Q&A. Steve in particular stood out as knowledgeable and someone who's advice you could trust. The way he drew on his real life experiences to contextualise issues helped with my understanding and made for interesting listening.
My ideas about the business have changed drastically as a result of this experience. At the first workshop I was preparing to sell safety equipment, but after group discussions and one to one meetings with the supportive team at Old Broadcasting House, I now find myself embarking on an exciting joint venture with ELHFA.
The workshops have helped me to cement my ideas, and given me the direction and drive to take the first steps. Completing all of the exercises discussed during the workshops along the way, complemented by an extensive consultancy project for ELHFA, has now provided me with the basic tools and a ‘road map’ to get going.
I have achieved the following:
Elevator Pitch – defining TEDA concisely
Defined USPs of products, and TEDA to form our company proposition
Decided on Limited company status - with day to day operations under my jurisdiction
Named the company – The Ethnic Diet Association
Understood Terms of Business requirements – and begun to compose drafts
Realised how to maintain control – through holding the casting vote with 51% share
Gained insight on intellectual property
issues - discussed potential patent for VTAs
Understanding of book-keeping and basic
records – Cash Book, Bank Reconciliations, Petty Cash, and Invoicing
Gained insight on year end accounts – when they are due, and what they must include
Learnt about my responsibilities as a director
Completed analysis of the marketing environment, buyer behaviour and competitors
Completed a PEST analysis for TEDA
Performed a competitive sweep for TEDA
Segmented the market through Porters 5 Forces
Learnt about generic marketing strategies – including differentiation and marketing management
Created a marketing mix for TEDA – product, price, place, promotion
Gathered prospecting data – and learnt where to source this information
Created a direct mailer for TEDA – and learnt about the correct approach
Prepared a cold calling script – including qualification questions and objection handling
Identified features and benefits
Learnt how to close a deal
Gained a basic understanding of how to apply NLP and its various advantages
Realised the importance of networking - how it is a life skill, and gained some practice
Learnt where to network and about online resources
How to market yourself as ‘brand you’
It’s easy to see that I’ve learnt an awful lot during the incubator workshops, more than ever I’m feeling prepared and confident about being self employed and following my dream.
If you’re interested in business or perhaps thinking of going to uni, and still looking for that killer course then I would recommend doing BA Hons Business Creation and Enterprise, as it is more hands on than many courses and a great starting point for your business. Everyone here has been really helpful and a pleasure to work with.
I hope this blog has been interesting and given you some helpful hints – if not then check out my post with my 12 top tips for business start-ups!
I found the workshops, presented by VFM business advisors to be really useful and cover the major topics necessary in this stage of my business career. The content was delivered in small understandable pieces, with plenty of time for Q&A. Steve in particular stood out as knowledgeable and someone who's advice you could trust. The way he drew on his real life experiences to contextualise issues helped with my understanding and made for interesting listening.
My ideas about the business have changed drastically as a result of this experience. At the first workshop I was preparing to sell safety equipment, but after group discussions and one to one meetings with the supportive team at Old Broadcasting House, I now find myself embarking on an exciting joint venture with ELHFA.
The workshops have helped me to cement my ideas, and given me the direction and drive to take the first steps. Completing all of the exercises discussed during the workshops along the way, complemented by an extensive consultancy project for ELHFA, has now provided me with the basic tools and a ‘road map’ to get going.
I have achieved the following:
Elevator Pitch – defining TEDA concisely
Defined USPs of products, and TEDA to form our company proposition
Decided on Limited company status - with day to day operations under my jurisdiction
Named the company – The Ethnic Diet Association
Understood Terms of Business requirements – and begun to compose drafts
Realised how to maintain control – through holding the casting vote with 51% share
Gained insight on intellectual property
issues - discussed potential patent for VTAs
Understanding of book-keeping and basic
records – Cash Book, Bank Reconciliations, Petty Cash, and Invoicing
Gained insight on year end accounts – when they are due, and what they must include
Learnt about my responsibilities as a director
Completed analysis of the marketing environment, buyer behaviour and competitors
Completed a PEST analysis for TEDA
Performed a competitive sweep for TEDA
Segmented the market through Porters 5 Forces
Learnt about generic marketing strategies – including differentiation and marketing management
Created a marketing mix for TEDA – product, price, place, promotion
Gathered prospecting data – and learnt where to source this information
Created a direct mailer for TEDA – and learnt about the correct approach
Prepared a cold calling script – including qualification questions and objection handling
Identified features and benefits
Learnt how to close a deal
Gained a basic understanding of how to apply NLP and its various advantages
Realised the importance of networking - how it is a life skill, and gained some practice
Learnt where to network and about online resources
How to market yourself as ‘brand you’
It’s easy to see that I’ve learnt an awful lot during the incubator workshops, more than ever I’m feeling prepared and confident about being self employed and following my dream.
If you’re interested in business or perhaps thinking of going to uni, and still looking for that killer course then I would recommend doing BA Hons Business Creation and Enterprise, as it is more hands on than many courses and a great starting point for your business. Everyone here has been really helpful and a pleasure to work with.
I hope this blog has been interesting and given you some helpful hints – if not then check out my post with my 12 top tips for business start-ups!
Post 12: Networking
“Your professional network of trusted contacts gives you an advantage in your career, and is one of your most valuable assets” http://press.linkedin.com/about
Having gained some really useful business insights from the workshops so far, and met some interesting people, our final workshop looked at Networking and how to market yourself – after all, it’s not what you know in business, it’s who you know!
Anyone can be an effective networker, but it helps to be outgoing and able to build that all important rapport. It’s said that effective networkers aren’t born, but created through practice - opportunities for this are everywhere. For example meeting someone new at a bar or chatting to the person next to you on the train.
Networking should be viewed as a life skill, and it’s a process which takes time and dedication to build strong, meaningful and profitable relationships – for the long-term.
Before getting stuck into some live practice, try asking yourself these questions:
Why are you networking? –
When trying to grow a small business, reasons may include: gaining support for a major project, finding funding, or searching for a new partner/company director with specialist skills. Networking is also a great way of meeting with other local businesses to form joint ventures or referral networks.
While networking on behalf of TEDA, it will be for many of the above reasons and specifically to enable meetings with key decision makers in local governments who may buy the product, and also attempting to construct the TEDA brand through word of mouth.
What’s your personal/professional goal? –
It is important to bear in mind not only your goal in networking, but also what the recipient’s goal may be, always go in with the attitude “what can I do for others, how can I be of help”. Going in with this attitude will create a ‘win-win’ situation as people are much more likely to respond to you.
While networking for TEDA recipients may need to meet educational objectives around diet for ethnic groups, and in helping to service their need I may be able to achieve my goal of making ‘the right connections’ while building the brand.
What are your strengths to help you market yourself? –
Never network from a position of weakness, always from a position of strength. Try to keep in the back of your mind something of value you have to offer (personally and for your company), or you could risk being seen as an annoyance. Knowing your strengths will also help you to feel confident, and market your offering successfully.
While speaking to companies who require products like TEDA’s to meet the objective of their organisation (schools, hospitals), then it puts TEDA in a position of strength as it has a valuable commodity in its unique VTAs.
What Events? –
Networking events are all around you, once you start to look for them you will be surprised at how many you find – take a look at http://www.ukinventure.com/, a site that I became a member of after the incubation workshops. Remember to keep focussed and attend events where you have something to offer the other delegates, or where there are likely to be ‘like-minded people’. Try searching for events through Business Link and the Chamber of Commerce.
The internet offers new capabilities for networking, in terms of finding networking events, and in its own right becoming a networking forum through sites such as www.LinkedIn.com. This site has over 38 million members in over 200 countries, with a new member joining approximately every second. This includes executives from all of the Fortune 500 companies, and can be used for:
• Recruitment
• Sharing ideas
• Finding industry experts
• Sharing industry news
Given our target audience, events where Primary Care Trust, councils, schools, and other members of the trade in the wider VTA market (other distributors), are involved. This is a very specific search criteria, however, I have already attended a number at Old Broadcasting House in Leeds covering topics such as ‘obesity and the NHS’, and ‘Social Enterprise in Leeds’. Maybe it’s beginners luck, or from learning the lessons of the workshops, but I met some valuable contacts with whom I still have ongoing contact.
How will you know when you’ve been successful? –
This is obviously specific to your goals, but for TEDA we are looking to develop an extensive contact list of decision makers within our target audience, along with manufacturers and other distributors. This will allow us to build our sales channels and gain credibility through association with influential organisations such as the NHS.
Marketing Yourself
When marketing yourself it is important to be aware of your USPs, in order to create ‘brand you’. Networking can be used to market ‘brand you’, and the company you represent. The key is to let people know what you have to offer in a professional manner, so that people buy into your company brand, but also ‘brand you’ as “people buy from people”. This again relates to the lessons learnt from NLP.
All of the considerations raised above from the workshop are reiterated in an excellent website for networking tips under the ‘laws of networking’:
http://www.aim.com.au/publications/bkchapters/influence_ch5.html
1) The law of abundance - There are plenty of opportunities for everyone.
2) The law of reciprocity - What you give out comes back tenfold.
3) The law of giving without expectation - You do something for someone not to get something back, but because you want to help them achieve their goal.
Conclusion
Hunt & Morgan (1994) have identified the importance of fostering successful relationships, internally and externally, and the link to strategic advantage. The workshop discussed the specific importance of networking and marketing yourself when part of a small business as a cost effective tool for sales generation and reducing business costs.
I thought it was an interesting event and have enjoyed practicing since, with some great outcomes. I would recommend that you practice networking in everyday scenarios before translating into a business setting e.g next time you are on a bus or train, try and learn 3 things about the person sat near you to build your confidence.
Recommended links:
• http://www.aim.com.au/publications/bkchapters/influence_ch5.html
• www.businesslink.gov.uk
• www.britishchambers.org.uk
• www.Linkedin.com
Having gained some really useful business insights from the workshops so far, and met some interesting people, our final workshop looked at Networking and how to market yourself – after all, it’s not what you know in business, it’s who you know!
Anyone can be an effective networker, but it helps to be outgoing and able to build that all important rapport. It’s said that effective networkers aren’t born, but created through practice - opportunities for this are everywhere. For example meeting someone new at a bar or chatting to the person next to you on the train.
Networking should be viewed as a life skill, and it’s a process which takes time and dedication to build strong, meaningful and profitable relationships – for the long-term.
Before getting stuck into some live practice, try asking yourself these questions:
Why are you networking? –
When trying to grow a small business, reasons may include: gaining support for a major project, finding funding, or searching for a new partner/company director with specialist skills. Networking is also a great way of meeting with other local businesses to form joint ventures or referral networks.
While networking on behalf of TEDA, it will be for many of the above reasons and specifically to enable meetings with key decision makers in local governments who may buy the product, and also attempting to construct the TEDA brand through word of mouth.
What’s your personal/professional goal? –
It is important to bear in mind not only your goal in networking, but also what the recipient’s goal may be, always go in with the attitude “what can I do for others, how can I be of help”. Going in with this attitude will create a ‘win-win’ situation as people are much more likely to respond to you.
While networking for TEDA recipients may need to meet educational objectives around diet for ethnic groups, and in helping to service their need I may be able to achieve my goal of making ‘the right connections’ while building the brand.
What are your strengths to help you market yourself? –
Never network from a position of weakness, always from a position of strength. Try to keep in the back of your mind something of value you have to offer (personally and for your company), or you could risk being seen as an annoyance. Knowing your strengths will also help you to feel confident, and market your offering successfully.
While speaking to companies who require products like TEDA’s to meet the objective of their organisation (schools, hospitals), then it puts TEDA in a position of strength as it has a valuable commodity in its unique VTAs.
What Events? –
Networking events are all around you, once you start to look for them you will be surprised at how many you find – take a look at http://www.ukinventure.com/, a site that I became a member of after the incubation workshops. Remember to keep focussed and attend events where you have something to offer the other delegates, or where there are likely to be ‘like-minded people’. Try searching for events through Business Link and the Chamber of Commerce.
The internet offers new capabilities for networking, in terms of finding networking events, and in its own right becoming a networking forum through sites such as www.LinkedIn.com. This site has over 38 million members in over 200 countries, with a new member joining approximately every second. This includes executives from all of the Fortune 500 companies, and can be used for:
• Recruitment
• Sharing ideas
• Finding industry experts
• Sharing industry news
Given our target audience, events where Primary Care Trust, councils, schools, and other members of the trade in the wider VTA market (other distributors), are involved. This is a very specific search criteria, however, I have already attended a number at Old Broadcasting House in Leeds covering topics such as ‘obesity and the NHS’, and ‘Social Enterprise in Leeds’. Maybe it’s beginners luck, or from learning the lessons of the workshops, but I met some valuable contacts with whom I still have ongoing contact.
How will you know when you’ve been successful? –
This is obviously specific to your goals, but for TEDA we are looking to develop an extensive contact list of decision makers within our target audience, along with manufacturers and other distributors. This will allow us to build our sales channels and gain credibility through association with influential organisations such as the NHS.
Marketing Yourself
When marketing yourself it is important to be aware of your USPs, in order to create ‘brand you’. Networking can be used to market ‘brand you’, and the company you represent. The key is to let people know what you have to offer in a professional manner, so that people buy into your company brand, but also ‘brand you’ as “people buy from people”. This again relates to the lessons learnt from NLP.
All of the considerations raised above from the workshop are reiterated in an excellent website for networking tips under the ‘laws of networking’:
http://www.aim.com.au/publications/bkchapters/influence_ch5.html
1) The law of abundance - There are plenty of opportunities for everyone.
2) The law of reciprocity - What you give out comes back tenfold.
3) The law of giving without expectation - You do something for someone not to get something back, but because you want to help them achieve their goal.
Conclusion
Hunt & Morgan (1994) have identified the importance of fostering successful relationships, internally and externally, and the link to strategic advantage. The workshop discussed the specific importance of networking and marketing yourself when part of a small business as a cost effective tool for sales generation and reducing business costs.
I thought it was an interesting event and have enjoyed practicing since, with some great outcomes. I would recommend that you practice networking in everyday scenarios before translating into a business setting e.g next time you are on a bus or train, try and learn 3 things about the person sat near you to build your confidence.
Recommended links:
• http://www.aim.com.au/publications/bkchapters/influence_ch5.html
• www.businesslink.gov.uk
• www.britishchambers.org.uk
• www.Linkedin.com
Friday, 17 April 2009
PRODUCT & SALES INFORMATION
All cultures from around the world use traditional foods and ingredients to maintain a healthy and balanced diet. Often though, as populations move and migrate, the foods they are familiar with become unavailable or too expensive to buy, so diets become mixed given new ideas and foods.
Ethnic groups often don’t realise that their new favourite foods are making their diets less healthy. This can lead to life threatening health problems, and could explain why minorities are prone to specific dietary related illnesses. For example 31% of Pakistani men have angina compared with 13% of men in the general population, and Bangladeshi women report high levels of stroke (12%) compared with 5% in the general population, The Health & Social Care Information Centre (2006).
To help tackle this trend, East Leeds Health For All (ELHFA) a charity based in Lincoln Green, Leeds, developed five ‘Multicultural Food Map Visual Teaching Aids’ (VTAs) which offer education on how to maintain a balanced diet.
As you may know from reading the rest of my blog, I am working alongside ELHFA in an effort to nationally distribute the VTAs through a joint venture, social enterprise business.
Our VTA products are bi-lingual and use cultural foods traditionally eaten by the 5 ethnic groups:
• Ethiopian
• Pakistani
• Sudanese
• Somalian
• Bangladeshi
The VTAs are A2 sized flip charts, which use a bespoke hardwearing folder design. They are easy to dismantle / store, presented in full colour and offer teacher notes on the reverse of each page. Take a look at some example pictures below:
VTA in flip chart position:
VTA folding design:
The teacher assistance on the reverse of each folding page offers guidance on how to deliver the material, and provide holistic diet information to the audience. There are plenty of interesting hints and tips which engage delegates and promote participation.
The VTAs are based around the Food Standards Agency ‘Eatwell Plate’ and cover:
• The 5 main food groups and suggested daily intake
• Types of vegetables & how to cook them
• Bread, rice, pasta types and how to cook them
• Types of meat, fish, beans & eggs and how to cook them
• Milk & dairy foods, intake information and children guidance
• Food types high in fat or sugar, intake guidelines
As these products are educational aids we are looking to sell them to local authorities, Primary Care Trusts (PCTs), universities, community centres and immigration centres.
If you know anyone who works in these types of organisations, please forward them a link to my blog!
The VTA’s are built to last and comprise a unique design which is easy to transport and store, meaning they can be used anywhere. Given this unique design they are competitively priced at £99, although for multiple purchases a 15% discount is offered.
If you would like to purchase a VTA, or are interested in finding out more (without obligation) then please email me. Click the envelope (top left), or the link below:
Email me
For general enquiries you could always post a comment at the bottom of the page.
I look forward to hearing from you,
Rowan
Ethnic groups often don’t realise that their new favourite foods are making their diets less healthy. This can lead to life threatening health problems, and could explain why minorities are prone to specific dietary related illnesses. For example 31% of Pakistani men have angina compared with 13% of men in the general population, and Bangladeshi women report high levels of stroke (12%) compared with 5% in the general population, The Health & Social Care Information Centre (2006).
To help tackle this trend, East Leeds Health For All (ELHFA) a charity based in Lincoln Green, Leeds, developed five ‘Multicultural Food Map Visual Teaching Aids’ (VTAs) which offer education on how to maintain a balanced diet.
As you may know from reading the rest of my blog, I am working alongside ELHFA in an effort to nationally distribute the VTAs through a joint venture, social enterprise business.
Our VTA products are bi-lingual and use cultural foods traditionally eaten by the 5 ethnic groups:
• Ethiopian
• Pakistani
• Sudanese
• Somalian
• Bangladeshi
The VTAs are A2 sized flip charts, which use a bespoke hardwearing folder design. They are easy to dismantle / store, presented in full colour and offer teacher notes on the reverse of each page. Take a look at some example pictures below:
VTA in flip chart position:
VTA folding design:
The teacher assistance on the reverse of each folding page offers guidance on how to deliver the material, and provide holistic diet information to the audience. There are plenty of interesting hints and tips which engage delegates and promote participation.
The VTAs are based around the Food Standards Agency ‘Eatwell Plate’ and cover:
• The 5 main food groups and suggested daily intake
• Types of vegetables & how to cook them
• Bread, rice, pasta types and how to cook them
• Types of meat, fish, beans & eggs and how to cook them
• Milk & dairy foods, intake information and children guidance
• Food types high in fat or sugar, intake guidelines
As these products are educational aids we are looking to sell them to local authorities, Primary Care Trusts (PCTs), universities, community centres and immigration centres.
If you know anyone who works in these types of organisations, please forward them a link to my blog!
The VTA’s are built to last and comprise a unique design which is easy to transport and store, meaning they can be used anywhere. Given this unique design they are competitively priced at £99, although for multiple purchases a 15% discount is offered.
If you would like to purchase a VTA, or are interested in finding out more (without obligation) then please email me. Click the envelope (top left), or the link below:
Email me
For general enquiries you could always post a comment at the bottom of the page.
I look forward to hearing from you,
Rowan
Wednesday, 15 April 2009
Post 11: Neuro Linguistic Programming
So I’ve learnt some basic sales skills and techniques, which is half of the battle, but a lot of people speak about ‘the psychology of sales’ to give them the competitive edge. We learnt more about this psychology and how it can be used in business by attending a lecture on NLP, provided by Caroline Edwards of Satsuma-NLP.
Like many people, I have encountered NLP in the past (my secret love of Derren Brown), but it was great to finally speak to a professional and learn the ‘nitty-gritty’ of the subject.
So, NLP, it’s a fancy title, but what does it mean?
In its simplest form, NLP is a system of communication to get results. It was first devised in 1949 and evolved by John Grinder and Richard Bandler in the mid 70s. The 2 college friends admired successful therapists such as Erickson and Jung, and ‘elicited the strategies’ of these top professionals to turn them into a model of how language is processed by the brain. This information could then be taught to anyone to improve their listening and communication skills.
Grinder and Bandler argue that the language we use can have a powerful affect on the unconscious neurological processes of the listener. By employing NLP techniques, it is possible to gain an insight into how others want you to communicate with them to best effect, and build rapport quickly for successful selling, Yemm (2006).
Modern NLP practitioners identify 5 types of people based on the 5 different senses (usually one or two senses are prevalent), and they suggest you adopt specific approaches when communicating with each type of person. i.e. when selling to a ‘Visual Person’ (uses language like “I can’t see that product fitting in here”) you should use descriptive language to create pictures for them.
The 5 Different Categories
Below is a table detailing the types of person, the characteristics to spot in identifying each type, and then how to communicate/sell to these people for best effect.
Obviously everyone was keen to hear Caroline’s ‘diagnosis’ on their NLP type to see if the theory worked. Caroline said she felt I was predominately auditory, with some kinaesthetic traits. I imagined I would have had a visual/audio mix given my tendency to imagine pictures, love of music and use of ‘proper language’, so although I was surprised with the result, I agree with her.
Rapport
Rapport happens all around us, and most of the time we barely even notice, it’s that hour long conversation with a friend over coffee that seemed like it lasted 10 minutes. Both parties are deeply engaged in conversation and active listening – you could call this ‘subconsciously connecting’.
In a business scenario, rapport is making this connection and engagement which improves a seller’s chances of success. NLP can be used to quickly build a rapport, Nancarrow (1998), and applies to all interactions, including clients, suppliers and potential customers.
Caroline mentioned only around c7% of communication comes from the spoken word, with 55% from physiology (body language), and 38% tonality (use of pitch/tone).
Whereas traditional NLP techniques related purely to language, modern techniques build on more physiological aspects such as ‘Mirroring’ body language and breathing patterns. By employing these NLP techniques further subconscious rapport can often be established quickly. However, you must approach this with caution; being too obvious in mirroring body movements could most likely make others feel uncomfortable.
Improper use of NLP techniques, as mentioned above, could cause ‘Synaesthesia’ in the recipient. This isn’t a good thing, as essentially 2 of their senses overlap and they become subconsciously confused, uncomfortable and therefore stop absorbing information.
I was fascinated when Caroline said she could always spot a liar through their eyes. NLP practitioners recognise that your eyes tend to move in different places dependent on brain function, and that these movements can be generalised for most people.
So the picture above shows the most common eye positions which give insight into how people’s brains are processing data. To put this into perspective if you asked someone if they like the Rolling Stones, as they think of their answer they will probably look to the left as they remember the sound, if kinaesthetic, they may look down and to the right, while they connect with their feelings about the Rolling Stones.
Constantly monitoring people’s eye movement in everyday life is a little extreme, but if you are in a specific situation looking for patterns of where people’s eyes are during speech may it may offer further insight to their true thoughts/feelings.
Conclusion
I definitely believe that the workshop on NLP helped to improve my confidence and knowledge going into sales situations, for example:
- When completing market research I spoke to various existing VTA distributors and potential suppliers, paying particular attention to their use of language. By picking up on subtle suggestions, managed to turn a telephone interview into a sales pitch with one of the largest distributors in the UK.
- I know the importance of varying my tone in conversations, especially telephone calls where physiological signals can’t be projected. This will also appeal specifically to auditory people.
- Not to try too hard to notice the NLP signals – I now find myself trying to ‘decode’ people, and barely hear a word of what they’re saying!
Due to my previous interest in NLP I went straight home and did some research. My impression is that the pragmatic approach of the originators (Grinder & Bandler) has now been swamped in a huge industry of ‘gimmicky’ theories and false promises. I do however acknowledge NLP is an effective tool if used wisely.
Recommended links:
• www.satsuma-nlp.co.uk (Caroline’s company)
• www.nlp3.co.uk
• NLP in business – www.ciauk.com
Like many people, I have encountered NLP in the past (my secret love of Derren Brown), but it was great to finally speak to a professional and learn the ‘nitty-gritty’ of the subject.
So, NLP, it’s a fancy title, but what does it mean?
In its simplest form, NLP is a system of communication to get results. It was first devised in 1949 and evolved by John Grinder and Richard Bandler in the mid 70s. The 2 college friends admired successful therapists such as Erickson and Jung, and ‘elicited the strategies’ of these top professionals to turn them into a model of how language is processed by the brain. This information could then be taught to anyone to improve their listening and communication skills.
Grinder and Bandler argue that the language we use can have a powerful affect on the unconscious neurological processes of the listener. By employing NLP techniques, it is possible to gain an insight into how others want you to communicate with them to best effect, and build rapport quickly for successful selling, Yemm (2006).
Modern NLP practitioners identify 5 types of people based on the 5 different senses (usually one or two senses are prevalent), and they suggest you adopt specific approaches when communicating with each type of person. i.e. when selling to a ‘Visual Person’ (uses language like “I can’t see that product fitting in here”) you should use descriptive language to create pictures for them.
The 5 Different Categories
Below is a table detailing the types of person, the characteristics to spot in identifying each type, and then how to communicate/sell to these people for best effect.
Obviously everyone was keen to hear Caroline’s ‘diagnosis’ on their NLP type to see if the theory worked. Caroline said she felt I was predominately auditory, with some kinaesthetic traits. I imagined I would have had a visual/audio mix given my tendency to imagine pictures, love of music and use of ‘proper language’, so although I was surprised with the result, I agree with her.
Rapport
Rapport happens all around us, and most of the time we barely even notice, it’s that hour long conversation with a friend over coffee that seemed like it lasted 10 minutes. Both parties are deeply engaged in conversation and active listening – you could call this ‘subconsciously connecting’.
In a business scenario, rapport is making this connection and engagement which improves a seller’s chances of success. NLP can be used to quickly build a rapport, Nancarrow (1998), and applies to all interactions, including clients, suppliers and potential customers.
Caroline mentioned only around c7% of communication comes from the spoken word, with 55% from physiology (body language), and 38% tonality (use of pitch/tone).
Whereas traditional NLP techniques related purely to language, modern techniques build on more physiological aspects such as ‘Mirroring’ body language and breathing patterns. By employing these NLP techniques further subconscious rapport can often be established quickly. However, you must approach this with caution; being too obvious in mirroring body movements could most likely make others feel uncomfortable.
Improper use of NLP techniques, as mentioned above, could cause ‘Synaesthesia’ in the recipient. This isn’t a good thing, as essentially 2 of their senses overlap and they become subconsciously confused, uncomfortable and therefore stop absorbing information.
I was fascinated when Caroline said she could always spot a liar through their eyes. NLP practitioners recognise that your eyes tend to move in different places dependent on brain function, and that these movements can be generalised for most people.
So the picture above shows the most common eye positions which give insight into how people’s brains are processing data. To put this into perspective if you asked someone if they like the Rolling Stones, as they think of their answer they will probably look to the left as they remember the sound, if kinaesthetic, they may look down and to the right, while they connect with their feelings about the Rolling Stones.
Constantly monitoring people’s eye movement in everyday life is a little extreme, but if you are in a specific situation looking for patterns of where people’s eyes are during speech may it may offer further insight to their true thoughts/feelings.
Conclusion
I definitely believe that the workshop on NLP helped to improve my confidence and knowledge going into sales situations, for example:
- When completing market research I spoke to various existing VTA distributors and potential suppliers, paying particular attention to their use of language. By picking up on subtle suggestions, managed to turn a telephone interview into a sales pitch with one of the largest distributors in the UK.
- I know the importance of varying my tone in conversations, especially telephone calls where physiological signals can’t be projected. This will also appeal specifically to auditory people.
- Not to try too hard to notice the NLP signals – I now find myself trying to ‘decode’ people, and barely hear a word of what they’re saying!
Due to my previous interest in NLP I went straight home and did some research. My impression is that the pragmatic approach of the originators (Grinder & Bandler) has now been swamped in a huge industry of ‘gimmicky’ theories and false promises. I do however acknowledge NLP is an effective tool if used wisely.
Recommended links:
• www.satsuma-nlp.co.uk (Caroline’s company)
• www.nlp3.co.uk
• NLP in business – www.ciauk.com
Tuesday, 14 April 2009
Post 10: Marketing Strategies
Our second marketing workshop looked at building on the completed market research and turning this into a feasible marketing strategy i.e how to reach you customers in the most effective way. Steve discussed a number of generic marketing strategies which include:
Overall cost leadership – being able to consistently manufacture goods at lower prices than competitors due to economies of scale. For example 'Ford' motorcars selling large volumes of stock based on a lower profit margin than competitors.
Focus – operating within a niche market and having an overwhelming appeal to this audience, using a premium pricing strategy. For example 'Sunseeker' yachts who sell small volumes to a specific target audience based on a high profit margin.
Differentiation – This strategy falls into two categories, undifferentiated and differentiated. Undifferentiated markets are based around commodity products such as salt; obviously the only variables are quality and price.
Differentiated markets are those where many similar products are competing, but gain competitive advantage through positioning within the market and differentiating features such as;
1 Performance
2 Durability
3 Conformance
4 Reliability
5 Style
6 Design
For example, the range of 'ipods' from Apple, differentiated from other MP3 players through design and functionality.
By defining my products’ USPs earlier while looking at TEDA’s proposition I feel I have a clear understanding of what differentiates my VTAs from the wider market, so don’t feel it necessary to complete the suggested differentiation table.
Further reading
Unsatisfied by 'pinning all of my hopes' on such a generic marketing strategy, which seems to contradict with my experience and one of the integral learning points from other modules on the course of gaining success using a targeted marketing strategy, I decided to do further research.
I found that people often amalgamate 2 separate areas of marketing under the banner of marketing strategy when in reality they are separate. These areas are; Marketing Strategies and Marketing Management.
El-Ansary (2006:266) defines marketing strategy as "segmentation, targeting, differentiation and positioning" i.e. understanding the market, segmenting it, finding you target segment, designing your product to meet the needs of the target market, differentiating it from competitors and positioning in the customers' minds.
Marketing management is then designing a program that takes this formulated strategy and implements it to "create the value (product/price), communicating the value (promotion) and delivering the value (place)".
This suggests that my differentiation strategy above is valid as a strategy, but my focus needs to be on my marketing management, and that's where the 4 P's is appropriate:
Product
From all of the research so far I have realised the following about the VTA products:
1 Only product catering for ethnic diets – USP which must be promoted and could form an integral part of the ventures branding as an ethnic health authority.
2 Un-exploited market by competitors – avoid detection to prevent copycat products.
3 Intellectual property owned relating to diet specifications, and translations – Promote the bi-lingual feature to potential customers. Use this to develop further spin off products with reduced development costs.
4 Bespoke product folder/stand – given lead time for manufacture adequate stock levels must be maintained. Functionality and durability of product must be adequately conveyed to target audience.
5 Includes teacher guidance – convey feature and benefit to target audience.
6 Wide age appeal – monitor purchasers to constantly evaluate the most profitable target audience ultimately allowing for tailored promotion.
7 Developed by a charity with experience in this field – promote this message during sales calls to gain credibility.
8 Adaptable to new languages/formats – use client feedback to produce new versions either by request or popular demand.
9 Holistic approach to dietary advice – further develop the content of the VTA to cover wider issues such as understanding food labeling, or how to detect health issues.
10 Requires no specialist equipment – Promote this feature and benefit to target audience.
Pricing
A key area to review when formulating a marketing strategy is the price charged for goods. There are various considerations involved which include:
Pricing objective – high sales with low profit margin OR low sales with a high profit margin
Demand sensitivity – the elasticity of demand
Production costs – which in turn define the mark-up hence profit margin
Competitors pricing – setting a price will determine the market positioning of goods
Selecting the actual price – based on all of the information above
From discussion during the seminar this can be refined by using the 3 c's model:
1 costs
2 competitors pricing
3 customer assessment
The decision framework used to formulate my companies products can be seen below:
Place
Place refers to the distribution and marketing channels employed when selling goods. Selecting the correct channels has various cost implications and will ultimately define the success of the company.
If I had more money (tough for a student) or resources available to me (a sales force), The Ethnic Diet Association's product could be distributed through more channels, but from my research it is clear that 3 main areas stand out for distribution as cost effective and feasible options - Creating a website with sales facilities, cold-calling to generate leads/appointments, selling through 3rd party distributors (prevalent within the VTA market and usually done through catalogues).
In the future, trade fairs could be approached, but these require too much capital investment, time and travel to be initially feasible.
Promotion
Deciding on the types of promotion employed to market the VTAs will have a direct impact on sales of the products. Given the limited resources available at this stage, promotion channels must be selected which are low risk and involve minimal capital expenditure for maximum impact.
Various options are available and include:
1 Personal selling
2 Direct marketing
3 Sales promotion
4 Advertising
5 Branding
Decisions about the final choice of promotion methods can be seen below;
Building up a brand will be very important for me, as I have the potential to become the authority and point of reference for ethnic dietary advice due to the lack of competition. If I manage this, it will then create high barriers to entry into the market for any new competitors through my brand and reputation.
At the minute this pressure to create a formidable brand is down to me and my sales abilities. Usually companies would put together a large advertising campaign to promote a new brand, but this requires too much investment - I shall be relying on my skills, website and 'word of mouth advertising', wish me luck!
Recommended Links:
• Role of price – www.bizpeponline.com (software used to calculate price)
• Advertising – www.ipa.co.uk (Institute of Practitioners in Advertising) and www.adassoc.org.uk (The Advertising Association)
• Internet marketing – www.adventivemarketing.com and www.wilsonweb.com
Overall cost leadership – being able to consistently manufacture goods at lower prices than competitors due to economies of scale. For example 'Ford' motorcars selling large volumes of stock based on a lower profit margin than competitors.
Focus – operating within a niche market and having an overwhelming appeal to this audience, using a premium pricing strategy. For example 'Sunseeker' yachts who sell small volumes to a specific target audience based on a high profit margin.
Differentiation – This strategy falls into two categories, undifferentiated and differentiated. Undifferentiated markets are based around commodity products such as salt; obviously the only variables are quality and price.
Differentiated markets are those where many similar products are competing, but gain competitive advantage through positioning within the market and differentiating features such as;
1 Performance
2 Durability
3 Conformance
4 Reliability
5 Style
6 Design
For example, the range of 'ipods' from Apple, differentiated from other MP3 players through design and functionality.
By defining my products’ USPs earlier while looking at TEDA’s proposition I feel I have a clear understanding of what differentiates my VTAs from the wider market, so don’t feel it necessary to complete the suggested differentiation table.
Further reading
Unsatisfied by 'pinning all of my hopes' on such a generic marketing strategy, which seems to contradict with my experience and one of the integral learning points from other modules on the course of gaining success using a targeted marketing strategy, I decided to do further research.
I found that people often amalgamate 2 separate areas of marketing under the banner of marketing strategy when in reality they are separate. These areas are; Marketing Strategies and Marketing Management.
El-Ansary (2006:266) defines marketing strategy as "segmentation, targeting, differentiation and positioning" i.e. understanding the market, segmenting it, finding you target segment, designing your product to meet the needs of the target market, differentiating it from competitors and positioning in the customers' minds.
Marketing management is then designing a program that takes this formulated strategy and implements it to "create the value (product/price), communicating the value (promotion) and delivering the value (place)".
This suggests that my differentiation strategy above is valid as a strategy, but my focus needs to be on my marketing management, and that's where the 4 P's is appropriate:
Product
From all of the research so far I have realised the following about the VTA products:
1 Only product catering for ethnic diets – USP which must be promoted and could form an integral part of the ventures branding as an ethnic health authority.
2 Un-exploited market by competitors – avoid detection to prevent copycat products.
3 Intellectual property owned relating to diet specifications, and translations – Promote the bi-lingual feature to potential customers. Use this to develop further spin off products with reduced development costs.
4 Bespoke product folder/stand – given lead time for manufacture adequate stock levels must be maintained. Functionality and durability of product must be adequately conveyed to target audience.
5 Includes teacher guidance – convey feature and benefit to target audience.
6 Wide age appeal – monitor purchasers to constantly evaluate the most profitable target audience ultimately allowing for tailored promotion.
7 Developed by a charity with experience in this field – promote this message during sales calls to gain credibility.
8 Adaptable to new languages/formats – use client feedback to produce new versions either by request or popular demand.
9 Holistic approach to dietary advice – further develop the content of the VTA to cover wider issues such as understanding food labeling, or how to detect health issues.
10 Requires no specialist equipment – Promote this feature and benefit to target audience.
Pricing
A key area to review when formulating a marketing strategy is the price charged for goods. There are various considerations involved which include:
Pricing objective – high sales with low profit margin OR low sales with a high profit margin
Demand sensitivity – the elasticity of demand
Production costs – which in turn define the mark-up hence profit margin
Competitors pricing – setting a price will determine the market positioning of goods
Selecting the actual price – based on all of the information above
From discussion during the seminar this can be refined by using the 3 c's model:
1 costs
2 competitors pricing
3 customer assessment
The decision framework used to formulate my companies products can be seen below:
Place
Place refers to the distribution and marketing channels employed when selling goods. Selecting the correct channels has various cost implications and will ultimately define the success of the company.
If I had more money (tough for a student) or resources available to me (a sales force), The Ethnic Diet Association's product could be distributed through more channels, but from my research it is clear that 3 main areas stand out for distribution as cost effective and feasible options - Creating a website with sales facilities, cold-calling to generate leads/appointments, selling through 3rd party distributors (prevalent within the VTA market and usually done through catalogues).
In the future, trade fairs could be approached, but these require too much capital investment, time and travel to be initially feasible.
Promotion
Deciding on the types of promotion employed to market the VTAs will have a direct impact on sales of the products. Given the limited resources available at this stage, promotion channels must be selected which are low risk and involve minimal capital expenditure for maximum impact.
Various options are available and include:
1 Personal selling
2 Direct marketing
3 Sales promotion
4 Advertising
5 Branding
Decisions about the final choice of promotion methods can be seen below;
Building up a brand will be very important for me, as I have the potential to become the authority and point of reference for ethnic dietary advice due to the lack of competition. If I manage this, it will then create high barriers to entry into the market for any new competitors through my brand and reputation.
At the minute this pressure to create a formidable brand is down to me and my sales abilities. Usually companies would put together a large advertising campaign to promote a new brand, but this requires too much investment - I shall be relying on my skills, website and 'word of mouth advertising', wish me luck!
Recommended Links:
• Role of price – www.bizpeponline.com (software used to calculate price)
• Advertising – www.ipa.co.uk (Institute of Practitioners in Advertising) and www.adassoc.org.uk (The Advertising Association)
• Internet marketing – www.adventivemarketing.com and www.wilsonweb.com
Sunday, 12 April 2009
Post 9: Marketing Introduction
The first of the workshops on marketing provided by Steve of VFM business advisers opened with a group discussion about what the term marketing actually means. The general consensus was that marketing is often misconceived as only focussing on the advertising and promotion of a company’s goods.
Steve went on to define marketing as:
“A process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”
This definition encompasses many different core business functions and suggests that marketing is in fact one of the most important functions of any modern business. This concurs with the views of McCarthy (1964) who defined a framework, the 'Marketing Mix' or 4Ps which is still widely used today as a tool for decision making in marketing. I will refer back to this in a later post, but there is various 'groundwork' to do first...
Steve went onto show a diagram explaining the marketing process overview shown below:
Analysis – Market Research
The first stage of designing any marketing campaign is gathering market research which can later be used to analyse:
1 The marketing environment
2 Buying behaviour
3 Competitors
There are two types of market research data, primary and secondary. Primary data is that gathered by directly asking questions using focus groups, questionnaires, or interviews. Secondary data comes from third party sources such as government reports, internet research, commercial data or websites such as Mintel or Emerald.
Making the right decisions about what market research to gather and from where can be complex, however using the table provided by Steve, I have identified the following for my business:
External Environmental Analysis - PEST
Market research should highlight key areas of the Macro factors affecting an organisation, as these factors have significant influence over the success and growth of new and established companies. A traditional method of analysing the Macro environment for a company is a PEST analysis, this covers the following factors:
Political – legislation, enforcement, trends
Economic - spending patterns, industry growth, demand for goods/services
Social – demographic, trends, culture
Technological – new technologies and the pace of change
Market research completed for my business The Ethnic Diet Association shows the following:
Business Buyer Behaviour
Steve suggested that business to consumer, and business to business (b2b) sales differ in terms of the selling process. As my business is b2b this market is defined by:
1 Few purchasers
2 Larger buyers
3 Close relationships with suppliers
4 Inelastic demand
5 Professional purchasing
6 Several buying influences
Competitive Sweep
Understanding the competition is essential for any business, and market research can offer some excellent insights into the strategies others employ, ultimately allowing for an appropriate market entry strategy to be formulated in the case of new entrants.
Key issues Steve suggested need consideration are:
1 The number of sellers – how many competitors
2 Degree of differentiation – how different are the products
3 Entry and mobility barriers – is this a difficult market to get into due to cost or qualifications?
4 Cost structures- comparing the costs of you and your competitors.
5 Vertical integration – are you able to penetrate a market.
Using the research techniques explained previously the following findings have been found for competing companies for my business, The Ethnic Diet Association:
Market Segmentation
Irrelevant of industry or size, companies should always segment the market in order to ultimately ascertain their target audience, i.e. those who are most likely to purchase their product or service. Basic methods of market segmentation include:
1 Geographic location
2 Area of operation
3 Purchasing potential
How best to segment, enter a market and gain competitive advantage leading to profit is often determined by assessing competitors within a market, and how influence/power from different areas affect levels of competition. This theory was devised by Porter (1985) as his 5 forces theory, see below:
Having established that for my product there are no directly competing products, although the threat of substitutes is high due to copyright infringement, I concluded that there would few barriers to entry, relatively low level of competition within the ethnic niche, although competing with larger established brands will be difficult at first, due to a lack of credibility and reputation.
Recommend Links:
• Market research – www.britishchambers.org.uk (Chamber of Commerce) and www.marketresearch.org.uk
• Data Sources – www.statistics.gov.uk and www.mintel.co.uk and www.yell.com
• Marketing – www.cim.co.uk (Chartered Institute of Marketing)
Steve went on to define marketing as:
“A process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”
This definition encompasses many different core business functions and suggests that marketing is in fact one of the most important functions of any modern business. This concurs with the views of McCarthy (1964) who defined a framework, the 'Marketing Mix' or 4Ps which is still widely used today as a tool for decision making in marketing. I will refer back to this in a later post, but there is various 'groundwork' to do first...
Steve went onto show a diagram explaining the marketing process overview shown below:
Analysis – Market Research
The first stage of designing any marketing campaign is gathering market research which can later be used to analyse:
1 The marketing environment
2 Buying behaviour
3 Competitors
There are two types of market research data, primary and secondary. Primary data is that gathered by directly asking questions using focus groups, questionnaires, or interviews. Secondary data comes from third party sources such as government reports, internet research, commercial data or websites such as Mintel or Emerald.
Making the right decisions about what market research to gather and from where can be complex, however using the table provided by Steve, I have identified the following for my business:
External Environmental Analysis - PEST
Market research should highlight key areas of the Macro factors affecting an organisation, as these factors have significant influence over the success and growth of new and established companies. A traditional method of analysing the Macro environment for a company is a PEST analysis, this covers the following factors:
Political – legislation, enforcement, trends
Economic - spending patterns, industry growth, demand for goods/services
Social – demographic, trends, culture
Technological – new technologies and the pace of change
Market research completed for my business The Ethnic Diet Association shows the following:
Business Buyer Behaviour
Steve suggested that business to consumer, and business to business (b2b) sales differ in terms of the selling process. As my business is b2b this market is defined by:
1 Few purchasers
2 Larger buyers
3 Close relationships with suppliers
4 Inelastic demand
5 Professional purchasing
6 Several buying influences
Competitive Sweep
Understanding the competition is essential for any business, and market research can offer some excellent insights into the strategies others employ, ultimately allowing for an appropriate market entry strategy to be formulated in the case of new entrants.
Key issues Steve suggested need consideration are:
1 The number of sellers – how many competitors
2 Degree of differentiation – how different are the products
3 Entry and mobility barriers – is this a difficult market to get into due to cost or qualifications?
4 Cost structures- comparing the costs of you and your competitors.
5 Vertical integration – are you able to penetrate a market.
Using the research techniques explained previously the following findings have been found for competing companies for my business, The Ethnic Diet Association:
Market Segmentation
Irrelevant of industry or size, companies should always segment the market in order to ultimately ascertain their target audience, i.e. those who are most likely to purchase their product or service. Basic methods of market segmentation include:
1 Geographic location
2 Area of operation
3 Purchasing potential
How best to segment, enter a market and gain competitive advantage leading to profit is often determined by assessing competitors within a market, and how influence/power from different areas affect levels of competition. This theory was devised by Porter (1985) as his 5 forces theory, see below:
Having established that for my product there are no directly competing products, although the threat of substitutes is high due to copyright infringement, I concluded that there would few barriers to entry, relatively low level of competition within the ethnic niche, although competing with larger established brands will be difficult at first, due to a lack of credibility and reputation.
Recommend Links:
• Market research – www.britishchambers.org.uk (Chamber of Commerce) and www.marketresearch.org.uk
• Data Sources – www.statistics.gov.uk and www.mintel.co.uk and www.yell.com
• Marketing – www.cim.co.uk (Chartered Institute of Marketing)
Friday, 10 April 2009
Post 8: Professional Selling - Contact Methodology
Qualification Questions
Qualifying customers is arguably one of the most important parts of the selling process, as spending time pursuing those who can’t afford or simply don't have a need for your product is time wasted.
Key qualification questions include:
• Will your business make a difference to the client
• Does the client need/want your product or service
• Can the client afford / is willing to pay for your product or service.
• Is it the right point in the buying cycle
The key to effectively qualifying prospects as discussed during the second sales workshop is to really listen to prospects and ask plenty of open questions such as, who, what, where, why, how.
Further reading since the workshops had identified that good qualification questions fall into three main categories: Money, Method and Motivation.
http://www.allbusiness.com/sales/selling-techniques/373097-1.html
Applying the theory covered in this workshop gave the following qualification questions for my business:
Money:
• How much of your budget it assigned to tackling obesity, and specifically for preventative medicine products such as these?
• What is the source of your funding and when is it renewed?
• How much do you normally pay for VTA products?
Method:
• What criteria does this product need to meet to be approved
• What steps do I need to make to convince you to purchase – product pictures or full personal demonstration?
• If you were to purchase, when would you need delivery?
Motivation:
• Why do you need this type of product? (core business function i.e. schools with specific healthy eating targets)
• What happens if you don’t get this product?
Features VS Benefits
Every product or service available offers the purchasers features and benefits. Demonstrating these to prospects can be an excellent method of generating credibility, sales, and a gaining competitive advantage.
The two can however often be confused. For an explanation of the difference please see the example of an electric toothbrush below:
During the workshop, Steve explained that by putting yourself in the shoes of your clients and understanding their needs you are able to recognise the features and benefits that will be of interest to them.
The features and benefits of the VTAs I am looking to distribute are;
Objection Handling
A major problem encountered by sales people are objections like;
“I don't want or need your product”
“I can't afford it”
“I already have one”
“We have a Preferred Supplier List (PSL)”
Being able to overcome these types of objections will massively increase the chances of making a sale, although to do this effectively your response must be instant, convincing, and confident. It was therefore highly recommended by Steve that we prepare for objections before making sales calls. The result of which are:
I have found since the workshop that keeping an accurate list of objections given during live calls is an excellent way of being prepared for any objection posed.
Closing Sales
For many sales appointments signing the order can be a formality. Likewise, at the end of an appointment a salesperson may realise that this prospect is never going to agree to a deal.
There are however times when a prospect is still unsure, and can be swayed into the decision the seller is looking for, this process is known as closing.
For many salespeople this can be the most difficult part of the process even though it is simply down to asking the question; Can I have the business?
Asking this will give either a yes or no answer, if no then it’s time to go back to the objection handling process discussed earlier, and if yes then fantastic, a sale has been made!
During the second sales workshop Steve described the closing process as:
- Ask a question
- Overcome any objections and push them aside
- Repeat asking for the business
As my company is currently at a pre-trading stage I have been unable to put this theory into practice although I fully appreciate that closing sales is more a question of effective objection handling which can be practised in advance.
Recommended links:
• Objection handling – www.changingminds.org
• Objection handling script - http://www.avnmembers.co.uk/knowledgebase/Business/pdf/priceobjections.pdf
• Closing sales – www.entrepreneur.com and www.allbusiness.com and www.24techniquesforclosingthesale.com
Qualifying customers is arguably one of the most important parts of the selling process, as spending time pursuing those who can’t afford or simply don't have a need for your product is time wasted.
Key qualification questions include:
• Will your business make a difference to the client
• Does the client need/want your product or service
• Can the client afford / is willing to pay for your product or service.
• Is it the right point in the buying cycle
The key to effectively qualifying prospects as discussed during the second sales workshop is to really listen to prospects and ask plenty of open questions such as, who, what, where, why, how.
Further reading since the workshops had identified that good qualification questions fall into three main categories: Money, Method and Motivation.
http://www.allbusiness.com/sales/selling-techniques/373097-1.html
Applying the theory covered in this workshop gave the following qualification questions for my business:
Money:
• How much of your budget it assigned to tackling obesity, and specifically for preventative medicine products such as these?
• What is the source of your funding and when is it renewed?
• How much do you normally pay for VTA products?
Method:
• What criteria does this product need to meet to be approved
• What steps do I need to make to convince you to purchase – product pictures or full personal demonstration?
• If you were to purchase, when would you need delivery?
Motivation:
• Why do you need this type of product? (core business function i.e. schools with specific healthy eating targets)
• What happens if you don’t get this product?
Features VS Benefits
Every product or service available offers the purchasers features and benefits. Demonstrating these to prospects can be an excellent method of generating credibility, sales, and a gaining competitive advantage.
The two can however often be confused. For an explanation of the difference please see the example of an electric toothbrush below:
During the workshop, Steve explained that by putting yourself in the shoes of your clients and understanding their needs you are able to recognise the features and benefits that will be of interest to them.
The features and benefits of the VTAs I am looking to distribute are;
Objection Handling
A major problem encountered by sales people are objections like;
“I don't want or need your product”
“I can't afford it”
“I already have one”
“We have a Preferred Supplier List (PSL)”
Being able to overcome these types of objections will massively increase the chances of making a sale, although to do this effectively your response must be instant, convincing, and confident. It was therefore highly recommended by Steve that we prepare for objections before making sales calls. The result of which are:
I have found since the workshop that keeping an accurate list of objections given during live calls is an excellent way of being prepared for any objection posed.
Closing Sales
For many sales appointments signing the order can be a formality. Likewise, at the end of an appointment a salesperson may realise that this prospect is never going to agree to a deal.
There are however times when a prospect is still unsure, and can be swayed into the decision the seller is looking for, this process is known as closing.
For many salespeople this can be the most difficult part of the process even though it is simply down to asking the question; Can I have the business?
Asking this will give either a yes or no answer, if no then it’s time to go back to the objection handling process discussed earlier, and if yes then fantastic, a sale has been made!
During the second sales workshop Steve described the closing process as:
- Ask a question
- Overcome any objections and push them aside
- Repeat asking for the business
As my company is currently at a pre-trading stage I have been unable to put this theory into practice although I fully appreciate that closing sales is more a question of effective objection handling which can be practised in advance.
Recommended links:
• Objection handling – www.changingminds.org
• Objection handling script - http://www.avnmembers.co.uk/knowledgebase/Business/pdf/priceobjections.pdf
• Closing sales – www.entrepreneur.com and www.allbusiness.com and www.24techniquesforclosingthesale.com
Tuesday, 7 April 2009
Post 7: Professional Selling Process
Everyone knows that to do business and succeed it all about the sales and closing deals, but how do you turn yourself from being a novice to someone "that could sell ice to the eskimos"?
Some people are born salespeople, but there are some simple steps to follow to drastically improve the chances of closing deals if you are not one of the lucky few natural sellers.
During the first workshop it was discussed that start-up business should initially sell to people they know, and make use of effective networking to source further prospects. Steve explained that generating sales is much like a funnel whereby many initial sales calls must be made in order to close a far smaller number. This is best demonstrated in the picture below:
Steve also explained that there is a framework used when selling professionally which can be seen below:
Step 1 of the Professional Selling Process - Prospecting
The first step of the professional sales process is prospecting. This involves compiling a list of potential purchasers for your product or service who are most likely to be interested. As the VTAs I am looking to sell target a very specific niche market, a focus must be paid to the quality of records as opposed to the quantity, the main sources of prospecting data include:
• Telephone directories
• Trade listings
• Chamber of Commerce
• Purchased information from a market researchers
• Business reports
To get people thinking about where to find prospecting data the following table was provided by Steve and has been completed for my company, The Ethnic Diet Association:
Unsurprisingly the largest source of prospecting data comes from the internet given the various telephone directories and government information websites available on-line. From the workshop I also came to realise how easy it is to purchase data from places such as the Chamber of Commerce and local councils. Steve mentioned that these records can cost as little as 18p each, and are usually up to date and accurate.
Although the sources mentioned have provided many names and numbers, I think only a very small fraction of these will actually be fit for purpose. I’m sure I’ll find out when I give them a call!
Initial Sales Contact
To offer the best chance of a sale with each new prospect a number of key points were discussed during the first workshop, these include:
1) Getting noticed by being prepared – use referrals and name drop to build instant credibility with a new prospect, or gather as much useful information as possible about each prospect before making the call as this will help to build rapport.
2) Send a mailer out to prospects before the first conversation - to get your company lodged in their mind.
3) Send a second mailer to remind people of your product/service – obviously this must be different to the first.
4) Telephone the prospect – using a warm, friendly and professional tone.
Steve suggested that steps 2, 3, and 4 should all be completed within approximately 1 week so as the information is fresh within a prospects mind upon the first conversation.
Although a lot of time is spent researching using this approach ultimately reducing the number of sales calls, it means that each call is well researched and professional which should have a positive impact on the number of sales, and the impression prospects are left with after the conversation.
Creating a Mailer
American studies have found that on average people are exposed to over 3000 adverts per day, www.ucsusa.org/publications/guide.ch1.html.
In order to make a mailer stand out Steve discussed some key principles for the design:
Addressing the correspondence personally – as people are always more likely to read on.
Grab their attention – use a picture or statement to gain intrigue to promote further reading.
Provide useful information – show you understand their issues to gain credibility
Prove you are worth talking to – demonstrate in the mailer that you are able to assist their business.
Ask them to take action steps – such as looking at your website or sending an email of their requirements.
Based on the information and approach suggested in the workshop a mailer for The Ethnic Diet Association can be seen below:
Preparing a Calling Script
Based on the professional sales approach discussed earlier, having sent prospects a couple of sales letters it is now time to begin cold calling. It’s no secret that this is one of the jobs people dislike, but it is a highly cost effective way of generating business.
Steve touched on the fact that 80% of the response gained from people you are calling is based on how you come across, as opposed to what you say. A happy, positive and professional approach will always get a better response than one where the salesperson sounds bored, nervous and amateur. It was suggested that practicing using a Dictaphone is an excellent way of perfecting tone and pitch.
As salespeople will tell you, selling is a numbers game and every “no” is another step towards getting a “yes”. Remember that good sales people don't take negative responses personally and are thick skinned to rejection.
The following was suggested as a good general plan for sales calls:
• Introduce yourself and your business
• Provide some form of context
• Ask them an open question
• Talk through their issues
• Ask for an appointment
• Thank them and end the call
To implement this strategy for The Ethnic Diet Association, the following calling script has been prepared:
I know that some of you will be scared by the thought of 'cold calling', but if you follow these steps you can make yourself as prepared as possible. I suppose I'm lucky in that talking to strangers has never phased me, and I've had experience of cold calling like this before, but this workshop still allowed me to add structure and utilise the calls effectively to gain my objectives.
For people that are worried think about it this way, the worse that can happen is they say no, or are rude - it may get you down a bit at first but remember that you are only a voice to them and you may never have to speak to them again. Don't take it personally, they're the ones that are missing out on your fantastic product!
For people who are struggling with making cold calls it is suggested that they:
• Allocate time to make the calls, and stick to this allocation
• Ignore negative responses, unless they have a good point which could help improve the later calls.
• Prepare for each call thoroughly which should build confidence
• If negative responses are still prominent then improve the prospecting list and calling script.
Another common problem with cold calling is overcoming objections, discussed in my next post.
Recommended Links:
• Writing sales letters – www.justsell.com
• Direct Selling Association – www.dsa.org.uk
• Institute of Direct Marketing - www.theidm.co.uk
Some people are born salespeople, but there are some simple steps to follow to drastically improve the chances of closing deals if you are not one of the lucky few natural sellers.
During the first workshop it was discussed that start-up business should initially sell to people they know, and make use of effective networking to source further prospects. Steve explained that generating sales is much like a funnel whereby many initial sales calls must be made in order to close a far smaller number. This is best demonstrated in the picture below:
Steve also explained that there is a framework used when selling professionally which can be seen below:
Step 1 of the Professional Selling Process - Prospecting
The first step of the professional sales process is prospecting. This involves compiling a list of potential purchasers for your product or service who are most likely to be interested. As the VTAs I am looking to sell target a very specific niche market, a focus must be paid to the quality of records as opposed to the quantity, the main sources of prospecting data include:
• Telephone directories
• Trade listings
• Chamber of Commerce
• Purchased information from a market researchers
• Business reports
To get people thinking about where to find prospecting data the following table was provided by Steve and has been completed for my company, The Ethnic Diet Association:
Unsurprisingly the largest source of prospecting data comes from the internet given the various telephone directories and government information websites available on-line. From the workshop I also came to realise how easy it is to purchase data from places such as the Chamber of Commerce and local councils. Steve mentioned that these records can cost as little as 18p each, and are usually up to date and accurate.
Although the sources mentioned have provided many names and numbers, I think only a very small fraction of these will actually be fit for purpose. I’m sure I’ll find out when I give them a call!
Initial Sales Contact
To offer the best chance of a sale with each new prospect a number of key points were discussed during the first workshop, these include:
1) Getting noticed by being prepared – use referrals and name drop to build instant credibility with a new prospect, or gather as much useful information as possible about each prospect before making the call as this will help to build rapport.
2) Send a mailer out to prospects before the first conversation - to get your company lodged in their mind.
3) Send a second mailer to remind people of your product/service – obviously this must be different to the first.
4) Telephone the prospect – using a warm, friendly and professional tone.
Steve suggested that steps 2, 3, and 4 should all be completed within approximately 1 week so as the information is fresh within a prospects mind upon the first conversation.
Although a lot of time is spent researching using this approach ultimately reducing the number of sales calls, it means that each call is well researched and professional which should have a positive impact on the number of sales, and the impression prospects are left with after the conversation.
Creating a Mailer
American studies have found that on average people are exposed to over 3000 adverts per day, www.ucsusa.org/publications/guide.ch1.html.
In order to make a mailer stand out Steve discussed some key principles for the design:
Addressing the correspondence personally – as people are always more likely to read on.
Grab their attention – use a picture or statement to gain intrigue to promote further reading.
Provide useful information – show you understand their issues to gain credibility
Prove you are worth talking to – demonstrate in the mailer that you are able to assist their business.
Ask them to take action steps – such as looking at your website or sending an email of their requirements.
Based on the information and approach suggested in the workshop a mailer for The Ethnic Diet Association can be seen below:
Preparing a Calling Script
Based on the professional sales approach discussed earlier, having sent prospects a couple of sales letters it is now time to begin cold calling. It’s no secret that this is one of the jobs people dislike, but it is a highly cost effective way of generating business.
Steve touched on the fact that 80% of the response gained from people you are calling is based on how you come across, as opposed to what you say. A happy, positive and professional approach will always get a better response than one where the salesperson sounds bored, nervous and amateur. It was suggested that practicing using a Dictaphone is an excellent way of perfecting tone and pitch.
As salespeople will tell you, selling is a numbers game and every “no” is another step towards getting a “yes”. Remember that good sales people don't take negative responses personally and are thick skinned to rejection.
The following was suggested as a good general plan for sales calls:
• Introduce yourself and your business
• Provide some form of context
• Ask them an open question
• Talk through their issues
• Ask for an appointment
• Thank them and end the call
To implement this strategy for The Ethnic Diet Association, the following calling script has been prepared:
I know that some of you will be scared by the thought of 'cold calling', but if you follow these steps you can make yourself as prepared as possible. I suppose I'm lucky in that talking to strangers has never phased me, and I've had experience of cold calling like this before, but this workshop still allowed me to add structure and utilise the calls effectively to gain my objectives.
For people that are worried think about it this way, the worse that can happen is they say no, or are rude - it may get you down a bit at first but remember that you are only a voice to them and you may never have to speak to them again. Don't take it personally, they're the ones that are missing out on your fantastic product!
For people who are struggling with making cold calls it is suggested that they:
• Allocate time to make the calls, and stick to this allocation
• Ignore negative responses, unless they have a good point which could help improve the later calls.
• Prepare for each call thoroughly which should build confidence
• If negative responses are still prominent then improve the prospecting list and calling script.
Another common problem with cold calling is overcoming objections, discussed in my next post.
Recommended Links:
• Writing sales letters – www.justsell.com
• Direct Selling Association – www.dsa.org.uk
• Institute of Direct Marketing - www.theidm.co.uk
Monday, 6 April 2009
Post 6: Book-keeping & Accounts
Having established the legal framework for TEDA and taken some steps to implement this, the next workshop was conducted by VFM and introduced business accounting.
I’ve never been the best with numbers, and always thought to play it safe I’d just employ a professional, but it was discussed that although an accountant is necessary, a lot of the basics are easy to do once you know the process. This also saves money when you do have to employ an accountant by reducing their workload.
The first areas covered, and the most relevant to TEDA were book-keeping and discussion on basic records to hold, which are essential for traceability, to understand profitability and maintain cash flow. It is advised that these are kept up to date, especially during a recession.
These include:
Cashbook
Record of all business transactions and monies coming in and out of the company. Always keep your cashbook up to date, as this is the most accurate account of money for your business.
Cash Book spreadsheet I prepared for TEDA
• Always enter data from source documentation e.g. cheque number/paying in number
• Banks make mistakes – always check against originals
• Only enter payments in cashbook when cheques clear
• Keep paid and unpaid invoices separate
• Always cross reference
Bank Reconciliations/Statements
Much like the bank statement you receive on a monthly basis for your personal account, this document offers a monthly reconciliation for businesses. Remember some cheques and wireless transactions take time to clear which can make the monthly reconciliation document inaccurate.
Petty cash book (PCB)
Businesses need a small amount of cash for miscellaneous items (transport, stationery etc), which still need to be recorded. Your PCB keeps a record of these transactions. When using a PCB, it’s essential to record all transactions, order data logically and keep receipts to check against and form basis for business expenses (non-taxable). For TEDA, I will use this to record expenses such as petrol for meetings and lunch at events etc.
Sales Book
A sales book is purely used to record sales, and can be done in a ‘per day’ format, ‘per week’ or others dependent on your level of sales. It records sales in a sequential format, and if a number is missed, it is also recorded. You need to keep a copy of all invoices issues, filed numerically, and note in the sales book the dates of payment for each sale.
In the initial period with an expected level of 10 sales per month, keeping track of this should be easy. When sales increase, it will include distributor sales, individual sales and bulk sales to customers.
Payroll Records
Keeping track of a company’s payroll can be done manually or using software such as Sage. It is important to keep records to produce year-end returns for the HMRC P35’s etc. Payroll can be tedious and is often outsourced at little cost to payroll bureau. As there are no employees, payroll will purely be in the form of dividends (payment received by directors).
VAT Records
You are only required to register VAT records if the business has a turnover of more than £67,000 (figure as of April 2009 from http://www.hmrc.gov.uk/vat/start/register/index.htm.). VAT can become a complex issue as there are different methods of VAT accounting and I’d strongly recommend you speak to an accountant for the best method for you. In the first year I do not anticipate to reach this threshold, however could become VAT registered at any point once the threshold is reached.
Purchase Invoices
To keep a record of all purchases/transactions from my suppliers all purchase invoices will be filed alphabetically, and will be used to cross reference against other records, such as the cashbook.
Sales Ledger
Used as part of the ‘double-entry’ system and keeps track of sales. It must be reconciled regularly, and is usually most appropriate when a large number of credit sale transactions occur.
Purchase Ledger
As with the sales ledger, this is most applicable if making a large number of purchases on credit. Forms basis of double-entry system and will be regularly used for cross checking.
Year-End Accounts
Irrelevant of the legal status of a business, accounts must be prepared annually for HMRC and as a measure of the venture’s success. Annual accounts are reviewed during loan applications and in the event of a business sale, therefore accurate year end accounts are vital.
Sole traders and partnerships have no legal obligation to employ an accountant and are able to keep these accounts private, but TEDA, as a limited company will employ an accountant and have to publish accounts through companies house where they can be requested by anyone.
There is flexibility in setting the date of year end accounts for tax and practical reasons, in most cases this is in line with the traditional tax year. Accounts must be prepared promptly, or penalties are incurred.
You may have heard of the term creative accounting, which comes from accountants being able to off-set specific items against tax, such as charitable donations or if a home office is used (like many of you out there do) you can off-set some utility/rent costs against tax. If you wish to investigate this further, try searching under:
- Disallowable items
- Private usage adjustments
- Depreciation/Capital Allowances
HMRC may adjust these types of calculations, so be aware that your year-end submission is not the final amount of tax you may have to pay.
Stock cut-off is important, and you must ensure that goods purchased close to the year-end are accounted for in the correct period. Also, if your business keeps some stock, they must be detailed in your accounts.
The remainder of the workshop went into more detail on VAT, obviously this is not relevant for me at present, but for more detail please see: www.hmrc.gov.uk under the ‘business & corporations section’, or post a comment through the blog and I'll answer any questions.
The Law & Directors’ Responsibilities
The other most relevant point I learnt for myself and TEDA was surrounding the law and Directors’ responsibilities. I was amazed to learn that there are about 50 separate duties placed on directors with regards to filing, which if ignored could result in disqualification for a minimum of 2, and maximum of 15 years – this could seriously affect my entrepreneurial aspirations!
I was interested to find that a register of company directors must be maintained, and changes notified to the Registrar of Companies within 14 days:
- Appointment by form 288a
- Resignation by form 288b
All directors are expected to act in the best interest of their company and must avoid conflicts of interest. In some cases, a director’s actions can be a criminal offence, usually as a result of ‘insider dealing’.
Directors are ultimately responsible for meeting the stringent accounting procedures, and that they show ‘true and fair view’ for HMRC. For more information please refer to Part 10 of the Companies Act 2006, available at:
http://www.opsi.gov.uk/acts/acts2006/ukpga_20060046_en_13.
The final part of this workshop involved a question and answer session about income tax bandings. If you would like to get up to date information on personal and corporate tax please see the HMRC website.
Recommended Links:
• Income tax & National Insurance – www.inlandrevenue.gov.uk
• VAT – www.hmce.gov.uk (HMRC)
• Managing Creditors & Debtors – www.payontime.co.uk
• Addressing cashflow problems – www.icm.org.uk (Institute of Credit Management)
• Issuing invoices and collecting debts – www.courtservice.gov.uk (Credit Service Association)
I’ve never been the best with numbers, and always thought to play it safe I’d just employ a professional, but it was discussed that although an accountant is necessary, a lot of the basics are easy to do once you know the process. This also saves money when you do have to employ an accountant by reducing their workload.
The first areas covered, and the most relevant to TEDA were book-keeping and discussion on basic records to hold, which are essential for traceability, to understand profitability and maintain cash flow. It is advised that these are kept up to date, especially during a recession.
These include:
Cashbook
Record of all business transactions and monies coming in and out of the company. Always keep your cashbook up to date, as this is the most accurate account of money for your business.
Cash Book spreadsheet I prepared for TEDA
• Always enter data from source documentation e.g. cheque number/paying in number
• Banks make mistakes – always check against originals
• Only enter payments in cashbook when cheques clear
• Keep paid and unpaid invoices separate
• Always cross reference
Bank Reconciliations/Statements
Much like the bank statement you receive on a monthly basis for your personal account, this document offers a monthly reconciliation for businesses. Remember some cheques and wireless transactions take time to clear which can make the monthly reconciliation document inaccurate.
Petty cash book (PCB)
Businesses need a small amount of cash for miscellaneous items (transport, stationery etc), which still need to be recorded. Your PCB keeps a record of these transactions. When using a PCB, it’s essential to record all transactions, order data logically and keep receipts to check against and form basis for business expenses (non-taxable). For TEDA, I will use this to record expenses such as petrol for meetings and lunch at events etc.
Sales Book
A sales book is purely used to record sales, and can be done in a ‘per day’ format, ‘per week’ or others dependent on your level of sales. It records sales in a sequential format, and if a number is missed, it is also recorded. You need to keep a copy of all invoices issues, filed numerically, and note in the sales book the dates of payment for each sale.
In the initial period with an expected level of 10 sales per month, keeping track of this should be easy. When sales increase, it will include distributor sales, individual sales and bulk sales to customers.
Payroll Records
Keeping track of a company’s payroll can be done manually or using software such as Sage. It is important to keep records to produce year-end returns for the HMRC P35’s etc. Payroll can be tedious and is often outsourced at little cost to payroll bureau. As there are no employees, payroll will purely be in the form of dividends (payment received by directors).
VAT Records
You are only required to register VAT records if the business has a turnover of more than £67,000 (figure as of April 2009 from http://www.hmrc.gov.uk/vat/start/register/index.htm.). VAT can become a complex issue as there are different methods of VAT accounting and I’d strongly recommend you speak to an accountant for the best method for you. In the first year I do not anticipate to reach this threshold, however could become VAT registered at any point once the threshold is reached.
Purchase Invoices
To keep a record of all purchases/transactions from my suppliers all purchase invoices will be filed alphabetically, and will be used to cross reference against other records, such as the cashbook.
Sales Ledger
Used as part of the ‘double-entry’ system and keeps track of sales. It must be reconciled regularly, and is usually most appropriate when a large number of credit sale transactions occur.
Purchase Ledger
As with the sales ledger, this is most applicable if making a large number of purchases on credit. Forms basis of double-entry system and will be regularly used for cross checking.
Year-End Accounts
Irrelevant of the legal status of a business, accounts must be prepared annually for HMRC and as a measure of the venture’s success. Annual accounts are reviewed during loan applications and in the event of a business sale, therefore accurate year end accounts are vital.
Sole traders and partnerships have no legal obligation to employ an accountant and are able to keep these accounts private, but TEDA, as a limited company will employ an accountant and have to publish accounts through companies house where they can be requested by anyone.
There is flexibility in setting the date of year end accounts for tax and practical reasons, in most cases this is in line with the traditional tax year. Accounts must be prepared promptly, or penalties are incurred.
You may have heard of the term creative accounting, which comes from accountants being able to off-set specific items against tax, such as charitable donations or if a home office is used (like many of you out there do) you can off-set some utility/rent costs against tax. If you wish to investigate this further, try searching under:
- Disallowable items
- Private usage adjustments
- Depreciation/Capital Allowances
HMRC may adjust these types of calculations, so be aware that your year-end submission is not the final amount of tax you may have to pay.
Stock cut-off is important, and you must ensure that goods purchased close to the year-end are accounted for in the correct period. Also, if your business keeps some stock, they must be detailed in your accounts.
The remainder of the workshop went into more detail on VAT, obviously this is not relevant for me at present, but for more detail please see: www.hmrc.gov.uk under the ‘business & corporations section’, or post a comment through the blog and I'll answer any questions.
The Law & Directors’ Responsibilities
The other most relevant point I learnt for myself and TEDA was surrounding the law and Directors’ responsibilities. I was amazed to learn that there are about 50 separate duties placed on directors with regards to filing, which if ignored could result in disqualification for a minimum of 2, and maximum of 15 years – this could seriously affect my entrepreneurial aspirations!
I was interested to find that a register of company directors must be maintained, and changes notified to the Registrar of Companies within 14 days:
- Appointment by form 288a
- Resignation by form 288b
All directors are expected to act in the best interest of their company and must avoid conflicts of interest. In some cases, a director’s actions can be a criminal offence, usually as a result of ‘insider dealing’.
Directors are ultimately responsible for meeting the stringent accounting procedures, and that they show ‘true and fair view’ for HMRC. For more information please refer to Part 10 of the Companies Act 2006, available at:
http://www.opsi.gov.uk/acts/acts2006/ukpga_20060046_en_13.
The final part of this workshop involved a question and answer session about income tax bandings. If you would like to get up to date information on personal and corporate tax please see the HMRC website.
Recommended Links:
• Income tax & National Insurance – www.inlandrevenue.gov.uk
• VAT – www.hmce.gov.uk (HMRC)
• Managing Creditors & Debtors – www.payontime.co.uk
• Addressing cashflow problems – www.icm.org.uk (Institute of Credit Management)
• Issuing invoices and collecting debts – www.courtservice.gov.uk (Credit Service Association)
Friday, 3 April 2009
Post 5: Law Business Basics
Now I have my big idea, company name and elevator pitch for direction, it’s time to make The Ethnic Diet Association a reality.
One of the areas that puts people off starting a business is a lack of understanding about the legal aspects involved, and implications of being self employed. I was pleased that my course offered help in this area, through a workshop with Philip Parkinson of McCombie & Co, and it seems it’s not as daunting as I thought.
During the workshop the basics of business law were discussed, and there were plenty of opportunities to ask questions specific to our circumstances. Philip covered key areas for new businesses, with my experience and views shown below, however don’t just take my word for it, always seek professional advice!
Take a look at this link of 10 top questions to ask your prospective solicitor: http://www.businesslink.gov.uk/bdotg/action/detail?r.lc=en&type=RESOURCES&itemId=1073791786&r.s=sl
So, first things first...
Company Legal Status
There are a number of legal structures available to companies, options include:
- Sole Trader
- Conventional Partnership/ Limited Liability Partnership
- Joint Venture
- Limited company
A decision needs to be made for the legal structure for the following reasons:
• Taxation
• Regulatory requirements
• Annual costs
• Accounting requirements/Publication of accounts
Once you have made this decision, as a sole trader/partnership you have to inform HMRC (Tax and NI) within 3 months and the VAT office. As a limited company you have to inform Companies House (for registration, usually £20), HMRC and VAT office.
From speaking to Phil, it was clear that The Ethnic Diet Association should operate under Limited company status, as this will protect both ELHFA (the joint venture partner) and me from having personal assets stripped if bad debt is accrued.
The formalised Limited status should also help to gain valuable credibility with the large corporate and government organisations we are targeting as customers.
The downside of a Limited company is that we have to adhere to stricter accounting controls, make our accounts public and therefore pay for an accountant (c£500/yr).
Trading Name
Obviously this is a key decision as a company’s name gives that all important first impression. Phil raised some good considerations:
• You can’t use an existing name – this is checked through Companies House website, www.companieshouse.gov.uk/
• Offensive words and/or names implying a connection with the government cannot be used e.g. a mint making company cannot be called ‘The Royal Mint’.
• Acronyms – Remember to check the acronym of your company, you do not want to make the mistake of spelling ‘ASS’ or similar when shortened. The Ethnic Diet Association becomes TEDA, which is ‘snappy’ and memorable.
Group discussion suggested that you should check if the online domain name you have chosen is available to allow a website to be created at any point. There are many sites use can search this, such as www.123reg.co.uk.
Basic legal issues
• Will you need confidentiality agreements with 3rd parties?
• Be aware of competitors’ trademarks and patents and do not infringe these
• Ensure your company letterhead provides full company name (if a Limited company, registration number and origin country is also included)
• VAT details if applicable
It is also highly recommended to include these details on emails. For more information I would recommend: http://www.lawsociety.org.uk/choosingandusing/helpyourbusiness/foryourbusiness.law
Terms of Business
Clearly defining your role and relevant conditions is essential to determine:
• How much and when you get paid
• What your company and customer obligations are
• What happens in the case of a dispute
Whilst preparing terms of business, make every effort to limit your liability, ultimately giving you control of the contract.
For TEDA, the Terms of business has to include the obligation of the manufacturers to deliver the products to us on time, and for the folders, maintain our exclusive use of the bespoke design. Printers must respect copyright law and maintain the integrity of intellectual property.
Customers need to adhere to invoicing conditions to make the payments, 3rd party distributors must meet contractual agreement for retail price, promotion and other terms.
Partnerships – maintaining control
Partnerships offer unique challenges relating to decision making control, such as:
- Who will run the business?
- Who has financial control?
- Equity split, provision for the transfer of shares
- Who has the casting vote?
- How are all parties interests protected?
As TEDA is a joint venture with ELHFA, all of these details need to be considered. In my circumstance, ELHFA will be a ‘silent partner’, given their lack of resources and financial position. This means we have agreed that I have the casting vote, with a 51% share of the company, full day to day decision making authority within the remit discussed by the Board.
Intellectual Property Issues
According to Oddie (1999), the ‘digital age’ is increasing the breach of intellectual property laws, and is therefore an important consideration for the intellectual property that TEDA owns. Issues covered in the workshop were:
• Trademarks
• Copyright
• Patents
• Passing off
Although copyright is created whenever you produce an original piece of work, this does not protect the idea itself and is difficult to enforce. For a small business like mine, it is not feasible to pursue claims through the courts for financial reasons. This is obviously a major concern as the VTA products could easily be photocopied or replicated, especially if a digital version was launched in the future.
Phil suggested attempting to get a patent for the idea behind our VTAs, done through www.patent.gov.uk, but warned it is unlikely and costly though would be the best idea for the business.
What Can Go Wrong?
Phil stressed the importance of being prepared for disputes, and making sure you have the proper protection in place. This should avoid disputes going to court, and petty arguments turning into full scale litigation which could destroy your company and bank account!
More legal considerations
• Premises – I will be using ELFHA’s existing offices and the business incubator’s facilities
• Employees – Obviously completing necessary tax, NI and health & safety procedures is the main consideration. However, in the initial stages I shall be operating as the only employee of The Ethnic Diet Association. When I need employees I shall follow the steps on http:
//www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858805&topicId=1073858787&r.lc=en&r.s=m.
• Branding – As I have discussed, I want to build TEDA as a point of authority for ethnic diet advice, and Gonzalez & Gil (2008) states the importance of protecting via trademarks and copyrights.
Conclusion
This workshop was an eye opener into the legal aspects of business, but explained them in an easy to follow way, although you should always seek specialist advice. From the workshop information I have made a checklist which you could copy and use for your own business to ensure you meet meet key legal objectives.
Recommended links:
• Disputes - www.acas.org.uk (Advisory Conciliation & Arbitration Services)
• Health & Safety – www.hse.gov.uk (Health & Safety Executive)
• Office of Fair Trading – www.oft.gov.uk
• Trademarks – www.itma.org.uk (Institute of Trademark Attorneys)
• Copyright – www.ipo.gov.uk
One of the areas that puts people off starting a business is a lack of understanding about the legal aspects involved, and implications of being self employed. I was pleased that my course offered help in this area, through a workshop with Philip Parkinson of McCombie & Co, and it seems it’s not as daunting as I thought.
During the workshop the basics of business law were discussed, and there were plenty of opportunities to ask questions specific to our circumstances. Philip covered key areas for new businesses, with my experience and views shown below, however don’t just take my word for it, always seek professional advice!
Take a look at this link of 10 top questions to ask your prospective solicitor: http://www.businesslink.gov.uk/bdotg/action/detail?r.lc=en&type=RESOURCES&itemId=1073791786&r.s=sl
So, first things first...
Company Legal Status
There are a number of legal structures available to companies, options include:
- Sole Trader
- Conventional Partnership/ Limited Liability Partnership
- Joint Venture
- Limited company
A decision needs to be made for the legal structure for the following reasons:
• Taxation
• Regulatory requirements
• Annual costs
• Accounting requirements/Publication of accounts
Once you have made this decision, as a sole trader/partnership you have to inform HMRC (Tax and NI) within 3 months and the VAT office. As a limited company you have to inform Companies House (for registration, usually £20), HMRC and VAT office.
From speaking to Phil, it was clear that The Ethnic Diet Association should operate under Limited company status, as this will protect both ELHFA (the joint venture partner) and me from having personal assets stripped if bad debt is accrued.
The formalised Limited status should also help to gain valuable credibility with the large corporate and government organisations we are targeting as customers.
The downside of a Limited company is that we have to adhere to stricter accounting controls, make our accounts public and therefore pay for an accountant (c£500/yr).
Trading Name
Obviously this is a key decision as a company’s name gives that all important first impression. Phil raised some good considerations:
• You can’t use an existing name – this is checked through Companies House website, www.companieshouse.gov.uk/
• Offensive words and/or names implying a connection with the government cannot be used e.g. a mint making company cannot be called ‘The Royal Mint’.
• Acronyms – Remember to check the acronym of your company, you do not want to make the mistake of spelling ‘ASS’ or similar when shortened. The Ethnic Diet Association becomes TEDA, which is ‘snappy’ and memorable.
Group discussion suggested that you should check if the online domain name you have chosen is available to allow a website to be created at any point. There are many sites use can search this, such as www.123reg.co.uk.
Basic legal issues
• Will you need confidentiality agreements with 3rd parties?
• Be aware of competitors’ trademarks and patents and do not infringe these
• Ensure your company letterhead provides full company name (if a Limited company, registration number and origin country is also included)
• VAT details if applicable
It is also highly recommended to include these details on emails. For more information I would recommend: http://www.lawsociety.org.uk/choosingandusing/helpyourbusiness/foryourbusiness.law
Terms of Business
Clearly defining your role and relevant conditions is essential to determine:
• How much and when you get paid
• What your company and customer obligations are
• What happens in the case of a dispute
Whilst preparing terms of business, make every effort to limit your liability, ultimately giving you control of the contract.
For TEDA, the Terms of business has to include the obligation of the manufacturers to deliver the products to us on time, and for the folders, maintain our exclusive use of the bespoke design. Printers must respect copyright law and maintain the integrity of intellectual property.
Customers need to adhere to invoicing conditions to make the payments, 3rd party distributors must meet contractual agreement for retail price, promotion and other terms.
Partnerships – maintaining control
Partnerships offer unique challenges relating to decision making control, such as:
- Who will run the business?
- Who has financial control?
- Equity split, provision for the transfer of shares
- Who has the casting vote?
- How are all parties interests protected?
As TEDA is a joint venture with ELHFA, all of these details need to be considered. In my circumstance, ELHFA will be a ‘silent partner’, given their lack of resources and financial position. This means we have agreed that I have the casting vote, with a 51% share of the company, full day to day decision making authority within the remit discussed by the Board.
Intellectual Property Issues
According to Oddie (1999), the ‘digital age’ is increasing the breach of intellectual property laws, and is therefore an important consideration for the intellectual property that TEDA owns. Issues covered in the workshop were:
• Trademarks
• Copyright
• Patents
• Passing off
Although copyright is created whenever you produce an original piece of work, this does not protect the idea itself and is difficult to enforce. For a small business like mine, it is not feasible to pursue claims through the courts for financial reasons. This is obviously a major concern as the VTA products could easily be photocopied or replicated, especially if a digital version was launched in the future.
Phil suggested attempting to get a patent for the idea behind our VTAs, done through www.patent.gov.uk, but warned it is unlikely and costly though would be the best idea for the business.
What Can Go Wrong?
Phil stressed the importance of being prepared for disputes, and making sure you have the proper protection in place. This should avoid disputes going to court, and petty arguments turning into full scale litigation which could destroy your company and bank account!
More legal considerations
• Premises – I will be using ELFHA’s existing offices and the business incubator’s facilities
• Employees – Obviously completing necessary tax, NI and health & safety procedures is the main consideration. However, in the initial stages I shall be operating as the only employee of The Ethnic Diet Association. When I need employees I shall follow the steps on http:
//www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858805&topicId=1073858787&r.lc=en&r.s=m.
• Branding – As I have discussed, I want to build TEDA as a point of authority for ethnic diet advice, and Gonzalez & Gil (2008) states the importance of protecting via trademarks and copyrights.
Conclusion
This workshop was an eye opener into the legal aspects of business, but explained them in an easy to follow way, although you should always seek specialist advice. From the workshop information I have made a checklist which you could copy and use for your own business to ensure you meet meet key legal objectives.
Recommended links:
• Disputes - www.acas.org.uk (Advisory Conciliation & Arbitration Services)
• Health & Safety – www.hse.gov.uk (Health & Safety Executive)
• Office of Fair Trading – www.oft.gov.uk
• Trademarks – www.itma.org.uk (Institute of Trademark Attorneys)
• Copyright – www.ipo.gov.uk
Monday, 30 March 2009
Post 4: My Company Proposition
The second exercise was to further define our business ideas and our company's ‘Proposition’.
As a start-up you need to clearly define your ‘offering’ (product), know your target audience and create Unique Selling Points (USPs). The main issues to review here are:
• What are you selling
• Who are you selling it to
• How are you positioning products
• What are your USPs
While defining the proposition for The Ethnic Diet Association results were as follows:
Steve explained that for many products breaking the proposition down into sub-propositions can make them easier to sell, so in the above example you notice different features of the VTAs have been highlighted as appealing to different areas of the target audience. Steve also suggested that understanding your company's proposition in relation to the competition is important in order to be create product differentiation, this is achieved by:
- Knowing who does the same thing
- Being aware of directly competing products
- Understanding what features competitors sell on, and therefore what we can
learn from them
- Analysing the market to spot potential niche opportunities
This understanding of your company's proposition and what you do better than competitors defines a company’s 'Core Competencies', Prahalad & Hamel (1990). If you are able to capitalise on these then 'Competitive Advantage', Porter (1980) can be achieved which in turn means a robust strategy for survival can be designed and implemented.
From defining The Ethnic Diet Associations proposition it has been identified that the product is unique from competitors given the bespoke folder/display stand design, bi-lingual format and use of traditional foods eaten by the ethnic target audiences. This exercise also shows that the target audience are in fact the organisations/individuals who educate ethnic populations as opposed to the actual end users.
It was explained that understanding your company's proposition is essential before embarking on the professional selling process, details of this can be found in my next post.
Speak soon, Rowan
As a start-up you need to clearly define your ‘offering’ (product), know your target audience and create Unique Selling Points (USPs). The main issues to review here are:
• What are you selling
• Who are you selling it to
• How are you positioning products
• What are your USPs
While defining the proposition for The Ethnic Diet Association results were as follows:
Steve explained that for many products breaking the proposition down into sub-propositions can make them easier to sell, so in the above example you notice different features of the VTAs have been highlighted as appealing to different areas of the target audience. Steve also suggested that understanding your company's proposition in relation to the competition is important in order to be create product differentiation, this is achieved by:
- Knowing who does the same thing
- Being aware of directly competing products
- Understanding what features competitors sell on, and therefore what we can
learn from them
- Analysing the market to spot potential niche opportunities
This understanding of your company's proposition and what you do better than competitors defines a company’s 'Core Competencies', Prahalad & Hamel (1990). If you are able to capitalise on these then 'Competitive Advantage', Porter (1980) can be achieved which in turn means a robust strategy for survival can be designed and implemented.
From defining The Ethnic Diet Associations proposition it has been identified that the product is unique from competitors given the bespoke folder/display stand design, bi-lingual format and use of traditional foods eaten by the ethnic target audiences. This exercise also shows that the target audience are in fact the organisations/individuals who educate ethnic populations as opposed to the actual end users.
It was explained that understanding your company's proposition is essential before embarking on the professional selling process, details of this can be found in my next post.
Speak soon, Rowan
Wednesday, 25 March 2009
Post 3: Defining My Company - Elevator Pitch
Hi there and welcome to my posting on the key information taken from the first workshop provided by Leeds Metropolitan University and presented by Steve from VFM business advisers. Today were going to look at defining my/your business and creating an 'Elevator Pitch'.
Approximately 15 delegates took part, and arrived to a fine spread provided by Nicola and Katie at the incubator (many thanks guys!). The group’s first exercise was to present a 15 second ‘Elevator Pitch’ used when networking and as a method of being able to maintain focus and direction by presenting our business ideas as concisely as possible.
There were various pitches going round the table from Customer Relationship Management (CRM) through to Recruitment Companies and even a mystery shopping consultancy specialising in restaurants and bars. Many found explaining their idea concisely was difficult, which was a telling sign of how developed different ideas were at this stage. It was noticeable that of the circa 15 companies present all but one were in business to business, and service industries.
In terms of my pitch I found it difficult to decide which of my many varied ideas I should present to the audience, I was still really unsure, and hoped that this session would give me some answers. Eventually I opted to use an idea for a firm supplying safety equipment to a niche market which I named ‘Glass Mountain’. My pitch went like this:
“At Glass Mountain we provide vertical access and safety equipment to the commercial sector. Unlike many competitors all products are produced in the UK and gold plate UK PPE traceability legislation through electronic tagging. Please take my card and drop me a line for more details on our product range or prices.”
Although I thought it explained what the company does quite well, feedback from the group suggested that the actual product of the business remained unclear. In a ‘lightbulb moment’ I realised that Glass Mountain wasn’t for me, it just didn’t get me excited like a new business should do.
Since the first workshop I have found direction in distributing a Visual Teaching Aid (VTA) which promotes healthy eating for ethnic communities – The Ethnic Diet Association. My revised Elevator Pitch is:
"The Ethnic Diet Association is a joint venture, social enterprise business which manufactures and distributes VTA products focussed on improving dietary education for the growing number of ethnic communities in the UK. We have unique bi-lingual products catering specifically for 5 ethnic groups which offer basic dietary advice evolving the information from the Food Standard Agencies’ Eatwell plate. Please take my card and drop me a line for more details on our product range or prices".
I would recommend writing an Elevator Pitch to anyone looking to open a business as this exercise ultimately helped me to realise I had the wrong idea, and then helped me to refine my new idea into something anyone can understand. Why not try writing one for yourself using the same format e.g. company name, context of offering, things that make you unique, and closing the pitch to gain action, good luck!
I'll post again soon, Rowan
Recommended Links:
• Public speaking – www.speechtips.com
• Elevator Pitches – www.businessknowhow.com
AND
http://business.timesonline.co.uk/tol/business/entrepreneur/article556584.ece
Approximately 15 delegates took part, and arrived to a fine spread provided by Nicola and Katie at the incubator (many thanks guys!). The group’s first exercise was to present a 15 second ‘Elevator Pitch’ used when networking and as a method of being able to maintain focus and direction by presenting our business ideas as concisely as possible.
There were various pitches going round the table from Customer Relationship Management (CRM) through to Recruitment Companies and even a mystery shopping consultancy specialising in restaurants and bars. Many found explaining their idea concisely was difficult, which was a telling sign of how developed different ideas were at this stage. It was noticeable that of the circa 15 companies present all but one were in business to business, and service industries.
In terms of my pitch I found it difficult to decide which of my many varied ideas I should present to the audience, I was still really unsure, and hoped that this session would give me some answers. Eventually I opted to use an idea for a firm supplying safety equipment to a niche market which I named ‘Glass Mountain’. My pitch went like this:
“At Glass Mountain we provide vertical access and safety equipment to the commercial sector. Unlike many competitors all products are produced in the UK and gold plate UK PPE traceability legislation through electronic tagging. Please take my card and drop me a line for more details on our product range or prices.”
Although I thought it explained what the company does quite well, feedback from the group suggested that the actual product of the business remained unclear. In a ‘lightbulb moment’ I realised that Glass Mountain wasn’t for me, it just didn’t get me excited like a new business should do.
Since the first workshop I have found direction in distributing a Visual Teaching Aid (VTA) which promotes healthy eating for ethnic communities – The Ethnic Diet Association. My revised Elevator Pitch is:
"The Ethnic Diet Association is a joint venture, social enterprise business which manufactures and distributes VTA products focussed on improving dietary education for the growing number of ethnic communities in the UK. We have unique bi-lingual products catering specifically for 5 ethnic groups which offer basic dietary advice evolving the information from the Food Standard Agencies’ Eatwell plate. Please take my card and drop me a line for more details on our product range or prices".
I would recommend writing an Elevator Pitch to anyone looking to open a business as this exercise ultimately helped me to realise I had the wrong idea, and then helped me to refine my new idea into something anyone can understand. Why not try writing one for yourself using the same format e.g. company name, context of offering, things that make you unique, and closing the pitch to gain action, good luck!
I'll post again soon, Rowan
Recommended Links:
• Public speaking – www.speechtips.com
• Elevator Pitches – www.businessknowhow.com
AND
http://business.timesonline.co.uk/tol/business/entrepreneur/article556584.ece
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