Saturday, August 14, 2010

Need advice starting a business

I'm starting a business. I'm a student for 22 hours a week at the moment. I intend for the business to be very part time.
In short, I will be importing then retailing and/or installing GPS tracking/navigation devices primarily for businesses with a smaller fleet (1-10 vehicles). I anticipate that per unit I sell or install, I will invest 10 hours of time. After all outgoings, I would be making approximately NZ$10 per hour (more like $80/hour for the actual installation if I discounted all other administrative time). Which is cool by me, because I enjoy tinkering with gadgets and cars. And the business is exactly that.
I've done some market research, profit forecasts and have drawn up action and business plans. My competitors are few and far between (none actually based within 100km of me), and offer solutions at double or triple the price I intend to market my product and services for. They arguably have a better product, but the unit I'm importing will get the job done. Most of my marketing will be directly to local businesses, as they're my key market.
Please, small business owners/managers/company directors, give me some general tips or adviceice on how I can make this work.




Is it ok to bump on anonymous?

>business owners/managers/company directors
I don't think you'll find many of them on anonymous

>business owners/managers/company directors
I don't think you'll find many of them on anonymous

Alright, regular joe know-it-alls will do.

Small Biz Owner here and I just graduated with a Bachelors in Entrepreneurship...
Hardest thing you'll run into is getting going. You can crunch numbers and plan all day. But, if you don't get out there and sell you wont have a strong business. IMO you can be a complete f**k up (sounds like you're not) and still persevere enough to become successful.
Also... there are only two ways to compete in business price and differentiation. Either you sell the same thing and your cheaper or you've created "value" in your product that makes it better than your competitors.

I've legally owned a business.
sh*t is hard D: lolol
Just remember that half of the business is sales, so expect to be talking to a lot of people.
It's common to have one success after 20 negatives, or so (somebody knows the actual statistic?)
Try to save for rainy days
If you have problems following a schedule call to say "I can't follow the schedule", and apologize, if possible try to see what can be done about it.
idk, is there anything in particular you wish to discuss ?

Small Biz Owner here and I just graduated with a Bachelors in Entrepreneurship...
Hardest thing you'll run into is getting going. You can crunch numbers and plan all day. But, if you don't get out there and sell you wont have a strong business. IMO you can be a complete f**k up (sounds like you're not) and still persevere enough to become successful.
Also... there are only two ways to compete in business price and differentiation. Either you sell the same thing and your cheaper or you've created "value" in your product that makes it better than your competitors.

Thanks.
One of the adviceantages I think I have is that the technology I'm dealing with is very new. That is, hopefully (or not?) potential clients won't have either known about this or have thought it was out of their financial reach. Hopefully they'll be impressed by the feature range having not seen any competitor's products first.

I've legally owned a business.
sh*t is hard D: lolol
Just remember that half of the business is sales, so expect to be talking to a lot of people.
It's common to have one success after 20 negatives, or so (somebody knows the actual statistic?)
Try to save for rainy days
If you have problems following a schedule call to say "I can't follow the schedule", and apologize, if possible try to see what can be done about it.
idk, is there anything in particular you wish to discuss ?

What would be the best way to directly market the product?
Is sending printed marketing materials with a cover letter suitable? Or would it be better to call and try to make a face to face sales appointment?
I'm a complete noob when it comes to this stuff, the most sales experience I have is working on a checkout at a supermarket, lol.

I think you'd get better adviceice on a site like this:
http://www.youngentrepreneur.com/forum/

If you're going for that route....
It might be a good idea to bring one of your competitors products with you or atleast explain how both work. Show them why your technology is better. Also, don't be afraid to charge more (I.E. Apple Ipod vs. other Mp3 players). Really, all you are doing when you're selling is educating the customer.
It sounds simple enough. But its hard to stay motivated when people tell you No. The key is just to keep chipping away and keep making friends. A few good referrals from past customers can go a long way.


What would be the best way to directly market the product?
Is sending printed marketing materials with a cover letter suitable? Or would it be better to call and try to make a face to face sales appointment?
I'm a complete noob when it comes to this stuff, the most sales experience I have is working on a checkout at a supermarket, lol.

in my experience, I can use face-to-face better since I can answer any questions they may have, which is really hard on printed material.
for ex:
You: "I'm selling doodads!"
Customer: "I don't care about doodads."
this means "What do I need doodads for?"
You: "Doodads are good for health, make you pretty and incrases the cash flow of your nervious system!"
Customer "Meh, too expensive!"
This means, "Why should I spend on doodads?"
You: "Well, but one doodad will possibly help you acquire more currencly you have ever dreamed about!"
etc.


What would be the best way to directly market the product?
Is sending printed marketing materials with a cover letter suitable? Or would it be better to call and try to make a face to face sales appointment?
I'm a complete noob when it comes to this stuff, the most sales experience I have is working on a checkout at a supermarket, lol.

It is OK to send printed material, as long as you follow through with face-to-face.
In many cases the customers will not even read it, sometimes they will read it just 5 minutes before your interview.
I haven't had luck with business cards.
Email seems to work a bit better when you initiate the conversation.
Also, remember that every client is different, and there is no formula. You'll just have to fail a lot to figure what works for you.
I'd suggest selling candies or some such as practice before going face-to-face with a "big" customer.
It helped me a lot.

hey op, where do you plan to import/retail these GPS devices? link?
I'm trying to find a good middleman business, something to sell. any of you business anons have any idea?

Small Biz Owner here and I just graduated with a Bachelors in Entrepreneurship...
Hardest thing you'll run into is getting going. You can crunch numbers and plan all day. But, if you don't get out there and sell you wont have a strong business. IMO you can be a complete f**k up (sounds like you're not) and still persevere enough to become successful.
Also... there are only two ways to compete in business price and differentiation. Either you sell the same thing and your cheaper or you've created "value" in your product that makes it better than your competitors.

If you're going for that route....
It might be a good idea to bring one of your competitors products with you or atleast explain how both work. Show them why your technology is better. Also, don't be afraid to charge more (I.E. Apple Ipod vs. other Mp3 players). Really, all you are doing when you're selling is educating the customer.
It sounds simple enough. But its hard to stay motivated when people tell you No. The key is just to keep chipping away and keep making friends. A few good referrals from past customers can go a long way.
Here


What would be the best way to directly market the product?
Is sending printed marketing materials with a cover letter suitable? Or would it be better to call and try to make a face to face sales appointment?
I'm a complete noob when it comes to this stuff, the most sales experience I have is working on a checkout at a supermarket, lol.

You just need to get off your ass and do everything. If you think flyers work, make flyers. If you think letters work, do that. Whatever it takes.


What would be the best way to directly market the product?
Is sending printed marketing materials with a cover letter suitable? Or would it be better to call and try to make a face to face sales appointment?
I'm a complete noob when it comes to this stuff, the most sales experience I have is working on a checkout at a supermarket, lol.

Checkout is TOTALLY different!
Forget everything you know about that, it won't help you.
Just make sure you appreciate the clients as people, first and foremost.
Then you just need to help them do what they do.
And ask what YOU consider a fair compensation for YOUR work.
In my experience, asking for the right amount of money has been one of my worst problems :< I go for "too cheap", and my quality appears to be above-average.


Thanks for that polar. How exactly should I go about marketing to X small business?
Address a letter to the manager?
Follow that up with a phone call?
Phone first?
hey op, where do you plan to import/retail these GPS devices? link?
I'm trying to find a good middleman business, something to sell. any of you business anons have any idea?

I would divulge my supplier to a potential competitor why? No.

Thanks for that polar. How exactly should I go about marketing to X small business?
Address a letter to the manager?
Follow that up with a phone call?
Phone first?

I would divulge my supplier to a potential competitor why? No.

For small business, you'll have to do a presentation, like those in Avon and so, where you'll have the guy who makes the buying decision, and the guy who will be in charge of working with the GPS doodad, and if possible a representative of the users of the doodad.
If you're lucky, they all will be the same guy, probably the owner, too. which is also cool.
If you make the owner laugh / like you, you're closer to victory.
But, in general, I would go with a nice letter with a catalog of my product with a non-commital quote like "Basic plan: 50 coins" or whatever, in which you'll have a chance to accomodate whatever the client needs.
Idk. Much of it is just logic, but much of it is just experience.
Just be prepared to fail a lot, and get up again, and you'll be fine.
I think your business idea is a good one, too.

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