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Your EnterQuest Bulletin - 19 October 2004
| Thought
for the week: "Entrepreneurs are simply those who understand
that there is little difference between obstacle and opportunity
and are able to turn both to their advantage." Victor Kiam |
In
this week's issue:
- five
common errors made by new business owners
- finding
a market niche
- hiring
temporary staff, the legal way
- an
e-mail spam scam, more grief for Microsoft, plus a free PDF on
e-mail security
Weekly
stir
Five
common errors made by new business owners
This
week we're going to take a look at some common, and quite often
fatal, mistakes that are made by new business start ups, and sometimes
by their supposedly more experienced counterparts. To be quite honest,
we can all be guilty of some of these mistakes at one time or another
but that's not an excuse to let it happen to you.
1.
Spending too much time on your business plan
Yes,
we're back with this one again. In last week's bulletin we advised
you to condense your ideas into a four-page plan covering your market
opportunity, how you will reach that market, your forecasts and
objectives, and the resources you will need. You should have a plan
for sure, and be working to it, but don't fall into the trap of
spending weeks or even months procrastinating over unnecessary details
to go into a 30, 40 or even 50-page plan. Get it clear in four pages
and then get on with it. Your plan and the finer details will emerge
and evolve as you begin trading and learn from your successes and
mistakes.
2.
Overspending
A classic
business killer. The overenthusiastic entrepreneur burning up all
the bread before sales revenues even get a chance to get going.
Don't let this happen to you. You should be spending only when you
need to, and only on what you really do need.
3.
Being too slow
Market
and business opportunities don't bang on your door very often, in
fact in most cases you've got to go and hunt them down yourself.
But too many new business owners operate at such a pedestrian pace
that new opportunities have gone or have been snapped up by the
competition before they even get a sniff. So when a good business
opportunity comes along, grab it with both hands and exploit it
before everyone else competing in your market catches up.
4.
Not aiming at the target
The
well-worn phrase "he who aims at nothing is sure to hit it" is something
which sadly applies to too many new business owners. "Spraying and
praying" is not a viable marketing strategy for any business.
Those
entrepreneurs who get themselves off to a flying start have generally
got everything aimed head-on at the most immediate and profitable
cash-generating business opportunity they can see. Your four-page
business plan should be telling you exactly where your immediate
cash-generating opportunity exists, and you should be aiming your
business precisely at it.
5.
Talking to too many "experts"
Regular
readers will be aware that this is our favourite subject. The "experts"
we are on about will usually have you spending weeks on your business
plan, or telling you a load of crap about what they can "supply"
you with, rather than what they can help you with. There's only
one expert that matters in your business. And that is you. You alone
have to call the shots, aim your resources at where you believe
there is a market, and stand or fall by your decisions. Get advice
whenever you can, and work out who's talking crap and who isn't.
Then it's down to you to make the choices based on the research
that you have personally done and, of course, what your gut tells
you.
Marketing
tip
Finding a market niche
Last
week we explained how narrowing your market focus to a specific
niche can help make your products or services more desirable, and
your business name spread more rapidly. This week we're going to
explore some of the different types of niche you can exploit.
Basically
there are four general types of niches: occupations, demographics,
geographics and psychographics (or 'subcultures').
1.
Occupations - this niche is one that is made up of people that are
employed in the same occupation (for example, firemen, carpet cleaners,
homemakers). The assumption is that people in the same job worry
about the same things and tackle the same problems. This makes them
good candidates for products and services that are created to solve
those specific, occupation-related problems. For example, a carpet
layer probably deals with lower back problems, while a homemaker
often tackles problems related to children.
2.
Demographics - this niche consists of people who share one or more
of the same characteristics, such as weight, height, ethnic origin,
income, gender and so on. It stands to reason that overweight people
deal with the same problems associated with obesity.
3.
Geographics - this niche includes people who live in the same (1)
neighbourhood, (2) housing estate, (3) district, (4) voting constituency,
(5) county, (6) city, (7) metropolitan area, (8) region, (9) country.
These people often share the same problems associated with living
in that area. For instance, people who live in Northern England
might deal with snowy weather in winter, while people in the south
east sometimes face summer water shortages.
4.
Psychographics or subcultures is the study of how people think and
what they like. People with similar psychographic profiles often
share the same passions, hobbies and even dislikes. This is probably
the biggest and most lucrative of all the niches because people
spend a large majority of their discretionary income on items that
they are passionate about.
Examples
of psychographic niches or subcultures include people who:
Love
Ozzy Osbourne
Hate
website pop-ups
Love
Harley Davidsons
Hate
foreign cars
Love
toy poodles
Hate
companies cutting down trees
The
list is endless, and the thing to remember is that each of the
people in these love-hate categories will spend money either to
get what they love or to avoid what they hate.
For more marketing techniques and ideas, check out the UK Small Business Marketing
Bible, which 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
Hiring
temporary staff, the legal way
Small
businesses often find it useful to hire a temp occasionally, as
a cheaper alternative to taking someone on permanently when they
only need an extra pair of hands to help them manage the Christmas
rush. But the new regulations which were brought in this year
(the Conduct of Employment Agencies and Employment Businesses
Regulations 2003) are complex, so we thought we'd suggest a few
websites which explain them in plain English.
- Your
business is entitled to a written agreement about what you're
paying for when you hire a temp - including fees, terms of notice
and dismissal. You can read a good article on building a productive relationship with
an agency, written by the Recruitment and Employment Confederation
(REC), and for a typical agreement contract you can refer to
the REC's terms of supply template.
- If
you're hiring a contractor - say a freelancer who has set up
his or her own business - both sides may agree to opt out of
the above regulations as long as they give notice in writing
before the contract begins (although this option doesn't apply
to those working with children or vulnerable adults). There's
more on what the opt-out means at http://www.contractoruk.com/news/001591.html.
- For
a detailed roundup of the law, the DTI has produced a PDF file
of guidance which you can download here, and you might find the REC's code of conduct useful as a guide. For other employment
legislation, the Chartered Institute of Personnel and Development also
offers a comprehensive explanation of recent changes to employment
law.
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
An
e-mail spam scam, more grief for Microsoft, plus a free ten-step
PDF on e-mail security
Internet
security firm MessageLabs is warning e-mail users not to click
on the opt-out or unsubscribe links that you find at the end of
spam messages. If you do, you might be spirited to a website infected
with malicious code and Trojans. Once this sort of malware has
installed itself on your computer, it can enable spammers to take
control of the machine, uploading more programs or even using
the computer to send out more spam. You can find Out-law's summary
of the e-mail spam scam by clicking here.
Meanwhile,
the new "Funner" worm is targeting Microsoft's MSN Messenger instant
messaging program, spreading by sending copies of itself to contacts
in users' address books. It's currently classed as low risk by
Internet security firm Secunia.
And
just to round things off, several serious flaws have been discovered
in Microsoft's Internet Explorer and Word, affecting users of
Microsoft Office 2000, Office XP, Word 2000 and Word 2002. Secunia
offers a summary of these,
plus links to removal patches or you can check out Microsoft's advice and fixes.
If
all this has got you panicked, you might want to download this
free factsheet
on e-mail security for small businesses, which we think provides
ten excellent and practical steps for making sure your systems
are as secure as Fort Knox.
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 'to procrastinate' means?
a.
to brag or overstate
b. to delay or take too long over
c. to rush
d. to muddle or confuse
Answer at the end of Bulletin.
Did
you know?
New
website explains health and safety research
The
Health and Safety Executive has launched a new website and online
newsletter focusing on the research it does into health and safety
issues affecting all industry sectors. The Science and Research
Outlook website features news and publications on a diverse range
of topics, from health and safety for homeworkers, to legal issues
for businesses providing piercing and tattooing services.
To
check out the new site, and subscribe to the newsletter, go to:
http://www.hsesro.com
Dodgy
dealings on eBay
The
latest swindle doing the rounds is carried out by rogue eBay users,
who attempt to get payment for goods that don't exist. Scammers
impersonate registered eBay sellers, offering the second highest
bidder at an auction the chance to buy the goods. While this is
normal practice on eBay in cases where the highest bidder doesn't
pay up, this time the person making the offer isn't the same person
that sold the original goods.
The
eBay scam is profiled in more detail at:
http://www.theregister.co.uk/2004/10/05/ebay_scam_ruse
Worth
a visit
Test your motivation for starting a business
This
short quiz will test what it is that motivates you to start a
business, and will give you a results summary which tells you
how far you are motivated by achievement (the desire to outdo
your own goals and constantly reach new heights), affiliation
(working with others to reach success, and making a difference
in your local community) and finally, by power (the desire to
command respect and be rolling in cash).
You
can find a link to the quiz halfway down this interesting article
on the motivating forces behind the urge to start up a business.
http://www.startupjournal.com/howto/soundadvice/20020430-mancuso.html
Practical
data protection advice for small businesses
The
Information Commissioner, who oversees the UK's data protection
regulations, has published a new guide especially for small businesses
on how to comply with data protection law. The factsheets provide
advice on meeting the eight principles of the Data Protection
Act 1998, which governs the way you compile, store and use records
about your customers, staff and suppliers.
To
access the new advice, go to:
http://www.informationcommissioner.gov.uk/eventual.aspx?id=6785&expmovie=1
The
secret seven of web advertising
This
fascinating article explores the top seven latest trends in online
ad design. It looks at what appeals to customers browsing for
new products and services online, and examines some of the latest
technology that can help you convince them to part with their
cash. Despite its US focus, the snippets of detail it gives on
how colour, shape and imagery is used in subtle advertising campaigns
can provide inspiration for any business.
Check
out:
http://www.sitepoint.com/article/top-trends-online-ad-design
Worth
a read
Research tips and tricks galore are on offer in
this book, which provides a practical introduction for anyone
who uses the web for researching. From how and where to look for
information, to time-saving strategies and junk-busting, the book
can help you find anything and everything online. Check out:
Just
one word answer
The answer is b.
To
procrastinate means to delay or take too long over something.
Eagle-eyed readers will have spotted that we warned you
not to procrastinate over your business plan in this week's
opening stir.
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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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