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

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

Post 2: Introduction – My Big Idea

Welcome to the second posting all about my business idea.

Obviously an entrepreneur’s ideas are the key to their success, and finding my 'Big Idea' been a real journey. Over the years I have kept a spreadsheet of all my ideas and they vary massively in terms of Industry, feasibility, and merit!


When first started back at university I consulted the spreadsheet and was originally going to launch a business which supplies safety equipment to a niche market. I could see that this niche was growing and relatively ‘un-serviced’ by current suppliers. After doing all of the initial research, deciding on a company name and even finding suppliers I realised it wasn’t for me as a result of attending the first workshop hosted by Steve from VFM business advisers.


During the workshop I saw people around the table who were truly enthused about their business ideas and wanted them to work not just for money but for belief in what they were doing. I didn’t share this enthusiasm for my vertical market, and this point was hammered home when Steve mentioned that “you need to have passion and drive for what you are doing as this is what gets you through the stressful down days” – decision made, I’m not going to sell safety gear!


It was back to the drawing board and while friends and family made suggestions about what to do, a piece of work I was doing for University inspired me and gave me the Big Idea for my first company.


Basically, I have been working with a charity called East Leeds Health For All (ELHFA) to help develop a market entry strategy for 5 Visual Teaching Aid (VTA) products they have already designed and begun to manufacture. They are pretty unique as they help to promote a healthy eating message to 5 ethnic minorities in the UK using foods traditionally eaten by them and presented in a bi-lingual format.

Picture of my Visual Teaching Aid products:


Due to the recession ELHFA no longer have the time or capital to launch the products, thus I have put together a proposal for a joint venture whereby I manufacture and distribute their products, in return offering a license fee for the intellectual property they have created.


Although I am well aware that this venture won’t make me a millionaire, I do see it as offering some exceptional business experience and an ability to work in partnerships with a charity which is facing real difficulties despite doing so much excellent work for its local communities. This idea gets me excited and it’s something I have a real passion for - I now understand what Steve was talking about and what everyone else at the workshop was feeling about their business ideas.


After brainstorming and consulting the charity on a name for the company we realised that no-one else is operating in this niche, which means we saw the opportunity to build a brand around being a central authority point for ethnic dietary advice. We wanted the name to convey this in a professional manner, and The Ethnic Diet Association was born! We are...


A joint venture social enterprise business, which manufactures and distributes Visual Teaching Aid products focussed on improving dietary education for the growing number of ethnic communities in the UK.


So I hope this gives you all a clear idea of what I’m looking to do, and I look forward to sharing the latest progress with you in my next post.

Rowan

Post 1: About Me & This Blog

Hi and welcome to my blog. Let me take this opportunity to tell you a bit about me and what this blog is all about.


Like many young people in the UK and around the world I would like to be self employed. Working for companies in many different industries has always left me feeling unfulfilled and dissatisfied and as a result I am in the process of following my dream and starting my own company.

If this sounds a bit like you or you just have an interest in business then read on because through this blog I’m going to detail my whole journey, and you might be able to learn from my mistakes!


For me, the first step in starting the company was signing up for a BA Hons degree in Business Creation & Enterprise at Leeds Metropolitan University. It’s pretty ‘hands on’ and I would recommend it to anyone who has the time and inclination to learn more about starting-up a company, and gain a degree in the process. For more information, check out this link:

http://prospectus.leedsmet.ac.uk/main/detail.htm?p=64&ban=BUSCR&attendance=2


As well as having to do the usual academic reports and essays you would expect in higher education, the course also provides ‘hot desking’ facilities in Leeds city centre which can be used as a business address and offices. These facilities are known as ‘The Business Incubator’ and are available to any budding entrepreneur or new company, if this is of interest check out this link for more details;

http://www.lmu.ac.uk/businessincubator/index1.htm


As part of this course workshops with professionals are provided to help refine people’s business ideas, topics include: Sales & Marketing, Accountancy, Legal Issues, Networking, and Neuro-Linguistic Programming (NLP).


Through this blog I will post my thoughts and comments on these workshops and about my progress in getting the business up and running. If you feel inclined to ask then I would be happy to answer any questions you post or email me.

I found the entrepreneur test below really quick and useful - why not give it a go yourself!

http://www.potentielentrepreneur.ca/client/questionnairenewsection1en.asp

I really hope you find this blog interesting and get involved by asking questions and discussing your business ideas and aspirations.

Remember to check regularly for updates, I’ll post again soon.

Rowan