This week I want to talk about connections and impact. As many of you are in the process of setting up your business, or have new businesses, you will know that The Millin Charity promotes plans. Business Plans in particular are essential tools to help you understand all aspects of your business.
Business Plans help to break down all the functions and elements that make up your business into ‘bite sized’ chunks. However, they are all connected.
How you set your pricing policy depends on your understanding of your customers and your market place. It also depends on your marketing strategy and how you position your business in that market place. You also need to know all your costs, both the direct costs (materials, time) and the indirect ones (rent, utility bills, insurance), and you need to make money for yourself. And you need to understand how these change across the year, and when you might want to offer incentives and deals to persuade people to buy from you or to clear old stock. So your pricing policy may also change with the seasons.
So if your customers want a cheap solution to their problem, but you want to charge a higher amount, then your marketing strategy needs to emphasise other benefits of buying from you. If this is because your product or service is of a high quality, your marketing and branding need to say this, or that you can be faster, or there are other benefits like supporting the community, whatever it is that will persuade customers to spend that little bit more with you.
When starting a new business, having the confidence to say “This is my price because it’s worth it”, comes from writing a good business plan, and as you develop your business, the plan needs to be revised and refined. In this way you can better understand the impact of different situations and which part of your business you need to adapt to take best advantage of a changing world.
Personal connections are also crucial when developing and running your business. This is why building good networks is important. And these networks can be virtual through social media or real. Actively participating in networks can sometimes feel like a waste of your time, but remember, every time you make a personal connection with someone, they may have the answer to your question, and sometimes answers to questions you hadn’t thought to ask. And networks also include the most important people to your business – potential customers.
So, keep networking, talking, connecting – it’s good for you and good for your business!
If you would like support with developing your business ideas further, please get in touch and we can arrange a one-to-one business advice appointment.Back next time with some more tips for great businesses! Janet x
Today I’m going to ask you to think about risk. We face risk in everything we do. In our personal lives, at work as well as when running a business.
Having a risk strategy can help you move your business forward in a way that feels comfortable to you. We all have different attitudes to risk. Some people leap first and then consider the consequences, others like to weigh up the situation carefully before proceeding, and you will be the same when running your business.
WHAT IS RISK?
So, what is risk? Risk is an uncertain event where the outcome, if different from what is predicted, affects your business.
Your business will face many risks. What if costs go up by more than predicted, or the number of customers and the amount they spend is less? Or you suffer a burglary, or your premises flood? Or a customer complains on social media? So many things can go wrong that if you sit and think about them all, they will overwhelm you and you’d never start a business. This is where risk management and having a risk strategy is important.
In deciding how to manage risk, you will need to asses the risk and its importance to your business. You will need to understand who is responsible for that risk and who will be affected by it.
You can then respond in one of four ways:
Avoid. Eliminate exposure to the risk altogether. This often means a major change in your business planning. For example, if you thought you would make soft toys, but then came across the regulations on the safety testing requirements, you might decide that the risk of making toys is too great and make dresses instead.
Reduce. Gather more information so you understand the risk better. So, to make soft toys, find our what you need to do to get the CE mark and be able to make and sell toys safely and legally
Transfer. Pass the impact of the risk onto someone else. Take out an insurance policy. If your soft toy falls apart and you have product liability insurance, as long as you followed your standard method for making the toy, the insurance will cover any claim made against you.
Manage. Put plans in place, so that you have alternatives if the risk occurs. For example, using your soft toys as home decoration instead of toys. Or, in the current situation, being able to work from home when I can’t work at The Millin Charity’s office!
Having thought about your business risks, assessed them and how you deal with them, you can then think about the positive steps you’ll take to give your business, and yourself, every chance of success.
If you would like support with risk assessing your business and products, please get in touch and we can arrange a one-to-one business advice appointment or put you in touch with one of our volunteer experts.
Back next time with some more tips for great businesses! Janet x
WORKING ON YOUR BUSINESS
A NOTE FROM OUR BUSINESS ADVISOR:
As the saying goes – ‘Knowledge is Power’. And this is true for you too in running your own businesses.
INVESTING IN YOUR CUSTOMER
Last time, I talked about understanding your customers.
Most business (80%) comes from repeat business, so getting to know your customers gives you a competitive advantage and a sound business base. Paying attention to your customer, providing a flexible and personalised service which addresses their needs, being responsive is a strength that all small businesses can use to their advantage. That personalised attention is very much appreciated and remembered in today’s fast paced high tech world.
INVEST IN YOURSELF
Education is an ongoing process, including now in these strange times. Take part in any learning opportunities you can, even if you think you know the subject well, there’s always something new you can learn. Stay curious and inquisitive. Top entrepreneurs buy and read business and marketing publications, and join business associations to learn from others, discuss ideas and define goals. That is the top benefit in being part of the Millin Charity’s A Chance to Trade programme. You have access to a range of free workshops, advice and guidance and networking opportunities.
CONTINUING YOUR LEARNING
There is a wide range of learning available in the present time through the internet, and it can be overwhelming when you are just starting out. So, think about what would benefit you the most. Do you want to learn a new skill or technique which you can sell on as part of your business? Or maybe you think that the most important thing is to gain an understanding of book keeping, or business planning so that you can run your business effectively? Maybe put together a personal learning plan, so that you can see what’s important to you, and then search the internet for courses.
FREE TRAINING COURSES
There are many training providers running free courses online including the WEA and the Open University. Click the below links to find out more.
Click here to find out more about the WEA
Click here to find out more about the Open University
SPECIALIST ENTERPRISE WORKSHOPS WITH THE MILLIN CHARITY
We at the Millin Charity are really keen to help you increase your knowledge. Don’t forget to check out our range of business workshops that will be delivered via the Zoom video app to ensure you can still benefit from our programmes. Click here to find out more. Please let us know any subject areas you think would help you, and we will see if we can put together more workshops to benefit all of you.
So, don’t forget, knowledge is Power! Here’s to your learning and business success!
Back next time with some more tips for great businesses! Janet x