RESOURCE CENTRE

Your EnterQuest Bulletin - 12 October 2004

In this week's issue:

• six priorities for every new business
• the benefits of niche marketing
  
• how to prepare a health and safety policy
• a new anti-phishing site
• business rates made easy

Weekly stir

Six priorities for every new business

This week we're going to focus your attention on six genuine priorities that any new business in any sector simply can't ignore.

1. Finding customers

Is this a no-brainer? Well, you'd be surprised by how many people think the first thing you need when you start a business is to find a product to sell.

Complete bobble. The first thing you need is customers, and more likely than not you're going to have to get off your backside and go out there and find them. And no, don't even think about saying it, because they definitely won't find you by themselves.

Is finding customers and proactively tracking down prospects your current number one priority?

2. Selling to customers

And it doesn't stop there. Just because you've found some prospects to write to, or have got some hovering outside your door, or ringing you up for more information, this doesn't mean you'll automatically gain their custom.

You've got to sell to them. You must be able to tempt and persuade them to buy from you and hopefully come back and buy again. Can you do this? Or can you get someone to help?

It would be tragic if you'd worked hard to track down plenty of genuine prospects, but didn't have what it takes to close the deals, win the orders, or get your cash register ringing.

3. Working to a plan

That old chestnut again. Having a plan to work to is plainly going to be better than having no plan at all, but what about getting it down on paper? Start off by writing a one-page bullet point outline of what you want to achieve and how you intend to do it. Once you've got this clear you can then work on the detail, but don't let it run to more than four pages.

On the first page describe your market, who your customers are and what you are offering them. On the second page describe how you will reach these customers and sell to them. On the third page outline your targets and projections, and on the final page list the resources you'll need, your costs, and most importantly any downside risks. If you haven't got a plan written down, try this simple formula and it will help focus your ideas.

4. Adapting your plan

Once you've got your plan settled, think again. As soon as you get your new venture or new marketing campaign up and running you'll learn more about your customers' needs, the relevance of your products, your prices, your sales methods and messages and so on. You will rarely get things anywhere near 100% right from the start. Your plan will need to change as you discover what works and what doesn't. So it's a case of test, learn, and adapt over and over again.

5. Watching your cash position

For heaven's sake, never take your eye off your cash and cashflow. This is a fatal error that hits too many small businesses. Your sales and orders may be coming in but is the cash coming in quicker than it's going out? If you don't spot that your cash is running out soon enough, there's usually no way back.

6. Finding more customers

So there you go. You've found some customers, cracked how to sell to them, got a plan that's working well for you, and your cash position is increasingly positive. Well done. But now it's time to get out and find even more prospects and customers to sell to. Complacency has no part in any small business, otherwise your competitors will not just be breathing down your neck, they'll be racing right past you.

Of course there's a whole lot more to running a new business than what we've highlighted here, but you won't be going far wrong if you can honestly say that you're working hard on these six key priorities.

Marketing tip

The benefits of niche marketing

One of the most under-used marketing weapons for small businesses is niche marketing. Put simply, this is marketing to specific customer groups that fit the demographic and psychographic profile of your target market.

For example, imagine you're a public relations consultant. Instead of marketing your services to anybody and everybody, why not focus on a specific industry that relies heavily on PR - like the not-for-profit sector.

Although niche marketing narrows your market significantly, it can open up doors you never knew existed.

• Your product or service becomes more desirable. You start to create a set of tailored products that work very well specifically for your niche. People want to buy stuff that's made just for them...that solves their unique problems. Would you rather buy a mass-produced suit or would you rather buy a suit made-to-fit just for you?
  
  
• Your name and brand will spread rapidly. People in groups talk. Lawyers talk to other lawyers. Hairdressers talk to other hairdressers. If you're good and you provide products or services for a specific niche, your name will travel fast.
  
  
• It becomes easier and less expensive to prospect. Most good niches have a list of people who are either members of a group in your niche (for example, a trade association) or who have bought things associated with that niche. Instead of spending your money on 'spraying and praying' marketing to anyone and everyone, you can now spend your money on getting your message to just the right people in your niche who want to hear it.
  
  
• You face less competition in a niche. Because you've narrowed your focus to a smaller subset of people, there'll be fewer competitors for your attention. In fact, if you hurry and become the dominant player in your niche, it will deter competitors from entering in and competing with you directly.

Next week we'll talk about the four key types of niche and how you can reach them through specific marketing strategies.

The UK Small Business Marketing Bible contains hundreds more tips and tactics for boosting your sales using proven marketing strategies that work no matter what product or service you sell.

Legal tip

How to prepare a health and safety policy

Which of the following businesses is legally required to have a written health and safety policy?

• all businesses, including sole operators
  
• employers with twenty-five or more employees
  
• anybody doing business classified as hazardous by the Health and Safety Executive
  
• employers with five or more employees
  

The answer is that all employers with five or more employees must have a written health and safety policy. Lately, the Health and Safety Executive (HSE) has been cracking down on small businesses who haven't got proper health and safety policies in place. They've stepped up inspections and have issued a blizzard of information on complying with the basic laws that govern health and safety in the workplace - the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999.

Some businesses will find it easier to draw up a policy than others. An accountant working from home, for example, will simply need to conduct a risk assessment and take into consideration the health and safety guidelines on working with computers (such as minimising screen glare and making sure wrist support is provided). A builder, on the other hand, might still work from home but will also visit construction sites and other working environments where potentially dangerous equipment is used. Because of this, the builder would need to take into account a lengthier set of risks when drawing up the health and safety policy.

Details of what you need to put in a health and safety policy are available from the free downloads section of the HSE website. And you can read practical new case studies that the HSE claims prove how effective health and safety management can improve your business performance, boost productivity, lower insurance costs, reduce absence and drive up staff morale. To see the case studies, go to:
http://www.hse.gov.uk/businessbenefits/index.htm

The Red Tape BUSTER also includes practical information on meeting your health and safety obligations, as well as hundreds of factsheets, FAQs and scenarios.

IT tip

Back to backing up

Think about how much information you store on your computer. How much is it worth? All the contact names you've built up, your customer database, the invoices you've logged, the letters you've sent, the designs and documents you've worked on? Impossible to put a value on them, so let's just say that combined they're priceless.

With the number of viruses and worms there are these days, backing up your work is essential. But the risk also comes from other things - from 'acts of god' like fire and flood, to theft, power surges and dust in your drive motor.

Here are four of the ways you can back up your work.

1. Get some anti-virus software which contains a feature for copying everything on your computer - documents and programs alike - and storing it on a CD, or a separate area of your hard drive. This will give you a snapshot of what's on your computer, which you can use to restore everything step-by-step if disaster strikes.
   Check out PC World's reviews of the best anti-virus and backup software here.
   
   
2. If you've got Windows XP Professional, load up your Windows CD and click "Perform Additional Tasks". Browse until you find the file called Ntbackup.msi, and then add this to your installed applications. This provides an extra backup for your work, and you can find step-by-step guidance from Microsoft here.
   
   
3. Burn the important stuff onto a CD or zip drive. This can be a good belt-and-braces way to protect your really crucial documents, like your business plan.
   
   
4. Report the matter to your local High-Tech Crime Unit if you suspect your system has crashed or you've lost files as a result of criminal activity, such as hacking or sabotage. They may be able to help you out with resources if necessary.
   

IT security corner

Messaging worms, software flaws and a new anti-phishing site

Security researchers at the SANS Institute's Internet Storm Centre have discovered a new worm that spreads using Instant Messaging (IM). It exploits the flaw in the way some Microsoft programs handle JPEG files, which we told you about a couple of weeks ago. According the techies at SANS, business owners are in for another five years of virus misery. The sort of serious software flaws that have been bugging Microsoft all year have doubled to more than 2,000 since 2003, and SANS has published a list of the top 20 current vulnerabilities in Windows and UNIX systems.

Check out the list at:
http://www.sans.org/top20

Meanwhile, Computer Weekly has produced a short history of hacking in view of the recent escalation in phishing scams. And you can access a new site to help you avoid becoming phishing bait at http://www.banksafeonline.org.uk - this has been launched by the Association for Payment Clearing Services (APACS) and the National High-Tech Crime Unit.

New business idea

Each week we provide you with summaries of some popular or emerging business ideas in the UK.

Here is this week's idea:

• Presentation/Public Speaking Coach

Just one word

Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.

Do you know which of the following words has two, entirely contradictory, meanings?

a. translucent
b. transcendent
c. transparent
d. transient

Answer at the end of Bulletin.

Did you know?

Employers' liability might be scrapped for sole traders

Acting on the recommendations of a recent review, the Government has promised to seriously consider the prospect of scrapping the obligation for sole traders, who don't employ any staff, to buy employers' liability insurance policies. The rising cost of premiums means that around 300,000 business owners run by sole operators are struggling to meet their insurance costs.

If you're confused about what insurance you need, the Association of British Insurers (ABI) provides helpful guidance on what policies are mandatory and which ones you might like to consider.

An end to religious discrimination for suppliers?

If your business is involved in the provision of goods, services, facilities or premises, you need to be aware of a proposed change to the law which would prevent discrimination on the grounds of religion. For example, a shopkeeper, café owner or bed and breakfast proprietor would be forbidden from refusing to serve or admit someone on the grounds of religion. The proposed regulations will bring suppliers into line with employers, who have been banned from discriminating on religious grounds when employing and recruiting staff since December 2003.

Get an overview of this from the Home Office at:
http://www.homeoffice.gov.uk/n_story.asp?item_id=1084

Minding your manners abroad

HSBC has produced a booklet especially for small businesses owners hoping to do business abroad, whether this involves importing, exporting, or finding new customers and suppliers. It includes sections on India, China, France and Japan, and is full of fascinating and practical information.

You can download HSBC's 'A Guide to Business Culture Around the World' here. Executive Planet also offers free culture guides for more than 40 countries.

Worth a visit

Business rates made easy

The Government has launched a new website designed to help small businesses in England understand how their business rates are calculated. Getting to grips with the system now will make it easier to understand the changes after rates are recalculated next April. The site includes information on how working from home affects your rate, what relief is available for small businesses, and how to estimate your rates bill.

Rate the site for yourself at:
http://www.mybusinessrates.gov.uk/index.html

Connect with new customers

This site offers information for small businesses looking to start a new direct marketing campaign. It's got free downloads on how to use consumer lifestyle data to reach new customers, as well as offering consumer and business prospect lists for sale (prices start at 25p per record).

Check out:
http://www.customerconnect.com

Spotting new web traffic

Espotting is a different type of search engine. Businesses can sign up to receive targeted traffic directly to them, and you pay a fee only when they click through to your site. First, you choose keywords relevant to your business; next you choose a "bid amount" (how much you want to pay per person who clicks through to your site). You then write a description of your site and upload your logo, and after that your listing is included in searches conducted on Espotting itself, as well as on affiliate sites such as Times Online, Shopping.Net and DooYou.

Get more details about how Espotting works at:
http://www.espotting.com/advertisers/list_yoursite.asp

Worth a read

This practical handbook aims to coach entrepreneurs, and talented individuals with good ideas, in how to make their dreams reality. Written by a renowned advertising guru, the book is packed full of tips, quotes, pictures and facts which provide advice and inspiration for solving problems, motivating yourself and recovering from a mistake.

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Good luck

The EnterQuest Team

This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.