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

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

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

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