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Your EnterQuest Bulletin - 16 August 2005
| Thought for the week:
: "If your project doesn't work,
look for the part that you didn't think was important."
Arthur Bloch |
In this week's issue:
Small business answers
If
you have any questions about your business idea or target market,
or need help tracking down a grant, subsidy or business support
in your local area, then send an e-mail with your query to the EnterQuest
information team and we'll do our best to help.
Send
your question to
enterquest@cobwebinfo.com.
To
access over 800 factsheets, guides and small business reports, go
to www.scavenger.net.
Weekly stir 
Why
free giveaways result in more sales
We'll start off with a little story that may
help illustrate the particular point we are trying to get across
this week.
One
day a doctor walked into his local butcher shop in a small town
and asked for a pound of the best steak mince. When he asked how
much it would cost the butcher replied, "There's no charge
as I view this as a gesture to help support the health of my local
community."
The
next morning, when the butcher went to work, he found a big hardback
book entitled '1001 family health tips' and a thank-you letter from
the doctor on his doorstep.
The
following day, a policewoman came into the butcher shop and asked
for six choice-cut lamb chops. When she asked for the price the
butcher replied, "There's no charge as I view this as my contribution
to helping protect law and order in our town."
The
next morning, when he went to work, the butcher found a box of Belgian
white chocolates on his doorstep along with a thank-you letter from
the policewoman.
Later
the next day, a civil servant from the Department of Trade and Industry
(DTI) went into the butcher shop and asked for a leg of pork. When
he asked for the price the butcher replied, "No charge today
as I view this as my contribution towards supporting and encouraging
local trade in our area."
When
the butcher came to work the next morning he found 25 DTI civil
servants on his doorstep.
So
what's our point this week?
The
point is that offering free giveaways to prospects and customers
is a powerful business building strategy which, when used sensibly,
can generate loads of long-term goodwill towards your business,
and eventually can lead to a flood of new and repeat customers at
your store.
Free
giveaways work so well for two reasons.
First
of all, they give new prospects a chance to test your product or
service on a risk-free basis. Hopefully they will recognise its
value and continue to buy from you. Or even better, they'll become
so hooked or besotted with your product or service that they won't
be able to do without it. That's assuming you've at least got a
half decent product or service to sell, of course.
But
secondly, the fact that you gave away a free gift to your prospect
often results in them feeling that they owe you a big favour in
return for your generosity. This can compel them to return the favour
by continuing to buy from you and use your service. And they may
also end up raving about you and your generosity to their friends
and family, resulting in an even bigger flood of new prospects.
The
key to sensibly offering free giveaways is to know your total customer
value. This is the amount of profit you will generate from each
customer over the total length of your business relationship with
them. And don't forget that this doesn't just include the business
you get directly from them, but also the value of referrals you
might get.
Have
a think and see if you can come up with some ideas for trying this
strategy in your small business. If you've got something fairly
low-cost but of high perceived value to your prospects, this could
easily work for you.
But
watch out for those DTI people who don't quite understand how small
business works the same as the rest of us do.
Marketing
tip
Finding
and interpreting statistical information
Statistical information is useful for finding out about trends in
your market, where your target customers live, how old they are,
and how much they earn - all key information when you're developing
a marketing plan.
The
Office for National Statistics (ONS) is the main official source
of statistics in the UK. Most of the information is available to
download from the ONS website www.statistics.gov.uk
free of charge. Highlights include:
- Census
data.
The last Census was taken in 2001, and the ONS provides a range
of tables and reports condensing its findings and looking at issues
such as population demographics, ethnicity and religion, household
income levels and so on.
- Guide
to Official Statistics (last published in 2000). This comprehensive
directory of UK statistics is a great starting point for your
research. It covers social trends, sectors and the economy, listing
all official and some non-official statistical sources for the
UK.
- Social
Trends reports. This is a general report about life in Britain,
published every year. It covers topics such as health, education,
leisure activities and household expenditure.
- The
ONS also produces short guides, snapshot summaries and regular
press releases detailing everything from latest population estimates
to information on UK trade and inflation. For example, see www.neighbourhood.statistics.gov.uk
for snapshots of local statistics on income, population and socio-economic
trends searchable by postcode.
- Online
information publisher UpMyStreet
can also provide statistical analysis of an area defined by its
postcode, outlining the property market, consumer classification
types, spending habits and public transport provision.
- Other
sources of statistical reports might include your local
authority, Chamber
of Commerce or trade
association.
Read
more about information resources that can help you research your
target market in Chapter 13 of the UK
Small Business Marketing Bible, where you can also find hundreds
of ideas, tips and techniques for increasing sales, no matter what
sector you're in.
Legal
tip
The
law on selling second-hand goods explained
Websites
like eBay and
Craigslist
are increasingly popular ways for businesses to sell on their second-hand
goods to the general public and other businesses.
But
what legal protection do customers have when they buy second-hand
goods, and what promises do you have to fulfil when selling them?
- Note
that there's a difference between selling second-hand goods at
auction and selling them at a fixed price - you can find out more
about auction rules at the Office
of Fair Trading website.
- Even
where goods are sold second-hand, the 1979 Sale of Goods Act says
they must be of satisfactory quality and sold at a fair price.
But unlike in the case of new goods, the buyer has to take into
account the fact that second-hand goods are unlikely to be perfect.
The seller simply has to use a clear description to indicate any
damage or wear and tear.
- The
Sale and Supply of Goods to Consumers Regulations 2002 say that
goods should be as described and in working condition (unless
stated otherwise). These Regulations are part of European law,
and there's a useful European
Consumer Centre which explains them in more detail.
- At
the moment, the General Product Safety Regulations 1994, which
state that new goods sold to consumers must meet certain safety
standards, don't apply to second-hand goods. This will change
on 1 October, however, when the General Product Safety Regulations
2005 come into force. The DTI
has more on what the changes will mean for businesses.
The
UK Red Tape
BUSTER has more information about the law on retail trading,
as well as hundreds of factsheets, scenarios and frequently asked
questions relating to every small business legal situation.
IT
tip
Google
AdWords - affordable promotion for micro businesses
Google
AdWords are the small ads down the right-hand column of a page of
Google search results. They allow businesses with small promotional
budgets to advertise cheaply online without risking a lot of money.
It works like this: on the Google site, you create a small advertisement,
using text that's very tightly focused on what you do and what you
offer. Then you decide which keywords are being used to find businesses
similar to yours on Google, and experiment with the differing costs
according to what you can afford (popular keywords cost more than
less well-used ones).
AdWords
in action
Let's
take an example. A mail order business selling Italian ham and cheese
designs an ad with the name of the shop, and a description saying
'Italian gourmet food by mail order'.
Next they select keywords. The keyword 'Parmesan' gets a click-through
every three days, says Google, and a charge of 21p would ensure
a high ranking against competitors using the same keyword.
But the keyword 'Parma Ham' gets almost three click-throughs a day.
Google suggests paying more for 'Parma Ham' to ensure a high ranking,
since more competitors will be using the same keyword.
In this way, Google AdWords works a bit like an advertiser's auction.
One of the really useful things about it is that you can limit your
budget: you can decide to spend a little less for your keywords,
you can set a daily or weekly limit on how many click-throughs you
pay for, and you can ask Google not to show your advertisement outside
the UK. What's more, you can regularly adjust your keywords according
to which lead to the most 'conversions' - ie people arriving on
your site and actually buying something.
The above is only a summary of the opportunities AdWords offers
and how it can be used. If you're interested in finding out more,
there's a good analysis of the options AdWords offers on the Google
site, and the Google
AdWords guide looks into the financial side of things.
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:
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 what the word 'captious' means?
a)
patient or calm
b) very careful or fussy
c) keen to find fault or raise objections
d) irritable or grumpy
Answer
at the end of the Bulletin.
Website review
The
Department for Transport (DfT - www.dft.gov.uk)
This
site is a source of information about the law on transport and road
use in the UK, as well as detailing the Government's transport policy.
But how practical and user-friendly is the site?
- Navigation
- the homepage is well presented, with a sensible contents list
and instructions for different types of users. Current news keeps
things looking fresh, and there are a few practical links to other
useful transport-related resources, such as the Transport
Direct site.
 
A
wealth of accessibility options make this site really stand out,
and it's easy to navigate, fresh and topical, to boot.
Our
rating - 16/20
Did
you know?
Gender
bias in web design
A
study
by the University of Glamorgan has revealed that men and women
react very differently to different styles of web design in terms
of language, visuals and navigation. The research found that men
prefer straight lines, few colours, formal typography and language,
and that both sexes are drawn to sites designed by a person of the
same gender. Statistician Rod Gunn, who took part in the research,
said the findings were exciting in terms of how businesses design
their sites to appeal to their key target audience. "Businesses
definitely need to sit up and take notice," he said.
Flurry
of patches from Microsoft
Microsoft's
monthly security update for August includes six patches to tackle
serious flaws in its Windows operating system and Internet Explorer
browser. Three of the vulnerabilities are deemed 'critical', and
could potentially allow an attacker to take complete control of
an affected system. Patching specialists PatchLink
said that every business using Windows must apply the patches as
soon as possible.
Worth
a visit
Another
Government website on IT security
The Government is teaming up with large IT firms to provide a new
web-based service, Get
Safe Online, which is designed to improve awareness of IT security
issues for small businesses and consumers. Although a similar service
called ITSafe was launched in February, the new scheme will involve
a number of business sponsors, including Microsoft and Dell.
Tips to help businesses curb water wastage
A
range
of handy tips have been published by Envirowise to help UK businesses
cut water wastage in light of current water shortages. The tips
include investigating opportunities for reusing processed water,
understanding water minimisation and fitting water minimising controls,
such as push taps, low flush toilets and spray nozzles on hoses.
Research shows UK businesses use three times more water than is
necessary every year.
Worth
a read
Providing
an in-depth, step-by-step guide to successful e-marketing, this
book is crammed with practical examples and strategies that can
be applied in any business. Published in May, the content is bang
up-to-date, and each chapter includes a series of useful web links
to supplement the information provided. Check out:
|
Just one word answer
The answer is c).
Captious
refers to someone with a tendency to complain, find fault
or raise objections about any given situation.
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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.
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