New business advice

[Newcastleclaret93]

Hello Worldwide Clarets,

I am looking a bit of advice. I have recently been made redundant and an old colleague has contacted me about starting up a business.

does anyone have any advice for a young man trying to take his first steps in business.

Any advice welcome

[Wellsy1882]

Doing what?

[KateR]

sounds like an interesting thread, first piece of advice, don't be scared of stepping in to the unknown.

[LoveCurryPies]

It’s very easy to get into a business, very hard and costly to get out. Like a marriage!

Get quality advice. Many ‘professionals’ will give you poor advice, including banks.

[clarethomer]

If you were not looking to run your own business before this, I would really ask whether this is what you want?

What would stop you from doing it yourself?

What are the benefits to do this with another party?

Personally I wouldn't go into business with friends/colleagues because it's tough starting a new business and can often be testing on your relationship.

So if you do decide to do it - make sure you do things properly with legal agreements etc and understand what each of you are bringing to the table and what your responsibilities are etc.

[Newcastleclaret93]

I have wanted to set up a business from a very young age it might be the only thing that I have felt passionate about in my working career.

My colleague approached me as we have talked about it previously but life (weddings, mortgages) always got in the way.

Thanks Homer I am just in the process of researching legal agreements and any possible government grants to help get set up.

[Oldparkwood]

My advise is that if you can set up on your own, then do it on your own. Don’t be scared of doing it by yourself. I’ve had experience of being in business with someone else and all was rosey for first 8 years. Absolute nightmare after that. Company still going but had to buy him out and life has never been better since. Good luck

[Fenwick]

Doing what is still a good question. Also, are you or the colleague putting up the money ?

[Quickenthetempo]

Spend as much as you can afford on good advertising.

If your customers don't know you exist then they can't buy your product.

[Burnley1989]

Spend as much as you can afford on good advertising.

If your customers don't know you exist then they can't buy your product.

Agree with you there, so many companies neglect a marketing budget, I’ve been heavily involved this year with being made to work from home and desperately trying to build awareness and hadn’t realised the fantastic work a good marketing department can achieve. I actually wish I’d chosen that path in life, it’s very similar to sales in some ways but is also quite different.

[Newcastleclaret93]

Doing what is still a good question. Also, are you or the colleague putting up the money ?

Hi Fenwick

It is in the construction industry working on a specialist product that is growing in demand. I have worked with this product for the last 4-5 years and have built up a good clientele

We will both be putting up the same amount of money.

[Jakubclaret]

Spend as much as you can afford on good advertising.

If your customers don't know you exist then they can't buy your product.

Or alternatively make sure you excel at what you do, a penny doesn't need to be spent people will know, people talk & spread the word, utilise them savings on the product & make the competition inferior.

[GodIsADeeJay81]

Facebook is good for free advertising.
Create a page, get your nearest and dearest to recommend it on the local spotted pages (dependant on what it is of course), leave good ratings etc.

I created a website on GoDaddy for the garage, then it's a case of picking the correct keywords etc.

Then get it onto Google, link it to maps and link the website so people can find the business in a local area etc.
Again it's free to do this sort of thing and you can get people to leave ratings on Google.

Word of mouth does go far, but people need to see something they can read and digest etc.

We get 150-200 views a month and the site was launched just prior to lockdown.
It doesn't sound like a lot, but we are a small independent local garage that's operated for 7yrs without a website or a Google connection with very few online reviews.

We are now getting weekly reviews or recommendations on social media and Google.

That will translate into work in both the long and short term and its only cost us time and the GoDaddy fees.

[Oldparkwood]

Hi Fenwick

It is in the construction industry working on a specialist product that is growing in demand. I have worked with this product for the last 4-5 years and have built up a good clientele

We will both be putting up the same amount of money.

Seriously if you can afford to do it yourself do it on your own. Go to the banks or beg and borrow. I really do wish that is what I did as it cost me a lot more in the long run by not doing. As much as you think you are friends and work colleagues now. It can soon change when one of you wants to go in a different direction
Like I said good luck and take on board as much advise as you can

[Newcastleclaret93]

Facebook is good for free advertising.
Create a page, get your nearest and dearest to recommend it on the local spotted pages (dependant on what it is of course), leave good ratings etc.

I created a website on GoDaddy for the garage, then it's a case of picking the correct keywords etc.

Then get it onto Google, link it to maps and link the website so people can find the business in a local area etc.
Again it's free to do this sort of thing and you can get people to leave ratings on Google.

Word of mouth does go far, but people need to see something they can read and digest etc.

We get 150-200 views a month and the site was launched just prior to lockdown.
It doesn't sound like a lot, but we are a small independent local garage that's operated for 7yrs without a website or a Google connection with very few online reviews.

We are now getting weekly reviews or recommendations on social media and Google.

That will translate into work in both the long and short term and its only cost us time and the GoDaddy fees.

Thank you, that’s some really useful advice. Il take it on board

[GodIsADeeJay81]

Thank you, that’s some really useful advice. Il take it on board

Screenshot_20200907_220550_com.google.android.apps.maps.jpg (655.05 KiB) Viewed 2089 times

In regards to linking it online, this is what I see when I search for a garage in Burnley for example on Google maps.

Each dot is the garage and will provide basic information on the business.
If I click on it then it provides further information, opening times, contact details and a website if it's been linked on Google business information.
It also shows reviews if people choose to leave them.

We got into a habit of asking people to leave a review if they're happy with the service and a number of people are happy to do so.
Some do it without us asking them.

I also notice our Facebook being linked more when people are searching for recommendations for a garage.

I operate the Facebook page and I put up useful information/advice and offers dependent on what's going on.

When it's hot I put up Aircon adverts, if it's chucking it down the next day it's wiper blades or the necessity of making sure your tires are road legal with examples of legal and illegal tires.

Usually I try a minimum of one FB post a week so it keeps reminding people we are there and you can also set up a post in advance on a business page so it appears at a date and time of your choice which is handy if you think of something randomly and you've just posted something else.
Even if it's just a post showing off your website, it doesn't matter.

If it's a product you're selling, get varying photos of it in use so your target market can easily see what it does instead of trying to imagine it.
I know what a crank angled spanner is and how it works , but I still prefer an image of it being used when someone is trying to sell me one.

[Fenwick]

Hi Fenwick

It is in the construction industry working on a specialist product that is growing in demand. I have worked with this product for the last 4-5 years and have built up a good clientele

We will both be putting up the same amount of money.

I was just worried a ' friend ' was offering to spend your money !

[BenWickes]

Facebook is good for free advertising.
Create a page, get your nearest and dearest to recommend it on the local spotted pages (dependant on what it is of course), leave good ratings etc.

I created a website on GoDaddy for the garage, then it's a case of picking the correct keywords etc.

Then get it onto Google, link it to maps and link the website so people can find the business in a local area etc.
Again it's free to do this sort of thing and you can get people to leave ratings on Google.

Word of mouth does go far, but people need to see something they can read and digest etc.

We get 150-200 views a month and the site was launched just prior to lockdown.
It doesn't sound like a lot, but we are a small independent local garage that's operated for 7yrs without a website or a Google connection with very few online reviews.

We are now getting weekly reviews or recommendations on social media and Google.

That will translate into work in both the long and short term and its only cost us time and the GoDaddy fees.

Good advice above. When I formed my own business Yellow Pages was king as far as advertising went. We only advertised for the first year and let word of mouth do the rest. We ended up doing jobs across the UK through word of mouth. These days the internet adds to that bow and a lot of it is free. I did build my own website a few years later but it is time consuming building it and updating it and may be worth the Go Daddy route for what it costs.
Also mentioned above. Make sure you go into fine detail on the legal aspects. In the most possible detail. I found out a couple of years into my business that there were minor legal issues with a couple of aspects of the business. Sorted it out but not worth the hassle or stress if you can cover all bases from the beginning.

[COBBLE]

Assuming you don't form a limited company draft a written partnership agreement. You can probably find some examples on line.

[claretonthecoast1882]

Do it, life is too short to work for someone else.

Whatever business you start, do the job well and treat every customer equally. Get financial advice and seek out a good accountant, if unsure who to go to speak to any other contacts you may have locally in business for recommendations rather than people you don't know on the internet.

As said above advertise well enough to be found but if your work is good word of mouth is better than any advertising you will pay for.

[CharlieinNewMexico]

Mine would be understand your own strengths and weaknesses and also those of your prospective business partner.

Example: I could happily spend weeks crunching numbers and writing action plans...but actually enacting the action plans is something that isn’t my strongpoint. Better to get someone else to carry it through.

Same with your partner. Sounds like you are in manufacturing. If your strengths are both in manufacturing, who drives sales? Who monitors cost? Who liases with the bank and the accountant? If not you, can you trust that person?

Have a preset list of responsibilities and if there are some that neither of you are good at, consider the outlay on a professional, which may be more expensive but, with foresight, may be more beneficial than one of you trying to do it and thrashing around like a fish out of water.

[BenWickes]

Mine would be understand your own strengths and weaknesses and also those of your prospective business partner.

Example: I could happily spend weeks crunching numbers and writing action plans...but actually enacting the action plans is something that isn’t my strongpoint. Better to get someone else to carry it through.

Same with your partner. Sounds like you are in manufacturing. If your strengths are both in manufacturing, who drives sales? Who monitors cost? Who liases with the bank and the accountant? If not you, can you trust that person?

Have a preset list of responsibilities and if there are some that neither of you are good at, consider the outlay on a professional, which may be more expensive but, with foresight, may be more beneficial than one of you trying to do it and thrashing around like a fish out of water.

You make a very good point. I was the financial side of things. I was the one who did the hiring, firing, making difficult decisions. Along with the technical issues and repairs. I was not the face of the company as I was far too straight talking and abrupt. I was not the salesperson.
You need an effective partnership where you utilise your strengths and as you say. Trust is paramount. As we expanded my partner started letting the heart rule the head. That's where you need a strong, level headed approach and make hard decisions based on business sense. No room for sentimentality and friendship's will be tested. There needs to be a clear plan as to what each person is good at and responsible for.

[pureclaret]

And dont forget having correct insurances in place, liability insurances etc. Also partnership insurance is often not taken but can very important if one of you is seriously ill or worse.

[Jimmymaccer]

Put together a clear business plan, including financial projections, roles & responsibilities, getting to market, sourcing products, opportunities/threats. Regularly review against that plan, don’t just rely on your partner saying things are on plan, look at the evidence, financials and bank account. Seen it all too often where eventually one party discovers the other isn’t contributing as anticipated.

[jackmiggins]

I note that you would be working with a specialist construction system. Just be wary that fire regulations are likely to be upgraded anytime soon. I’d also add that Public/Professional insurance is essential.
Good luck in your new venture though - if you have specialist knowledge and a good clientele it’s certainly worth taking this step.

[Foreverly Claret]

get yourself a good accountant and be VERY wary of the banks...I say that from personal experience . Having been the best thing since sliced bread for 8 years that counted for nought in 2008/2009 and they ( Bank of Scotland ) screwed us into the ground...or tried to .We survived...all I am saying is don't expect any favours unless it's in their interests .They didn't survive and they took a lot of good businesses down with them.