Your EnterQuest Bulletin - Issue 162
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| Thought for the week: "The future you see is the future you get." Robert G. Allen |
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In this week's issue:
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.
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access over 800 factsheets, guides and small business reports, go
to www.scavenger.net. |
The forgotten corner of most business plans
Over the many years that the EnterQuest team has been involved in business start up and small business research and publishing, we've seen our fair share of business plans and prospectuses that have been written by enthusiastic entrepreneurs and budding start ups.
And we've also seen the biggest and most universal mistake that's found in the majority of business plans that get written, particularly when being written for the first time.
So what's this mistake?
It's a general lack of market research, or no analysis and explanation of your target customers, their characteristics and why they will buy from you.
Of course, there are many other mistakes common to first-time business plans, such as wildly optimistic sales forecasts, woefully understated expenditure projections, the mysterious lack of any risks involved with the venture, and so on.
But this is nothing in comparison to the lack of attention given to providing information about the market and the customers the business is aiming its products and services at.
On the occasions when evidence is given that a market for a product or service does exist, it is too often just provided in the form of general statements or statistics, which are usually quoted from research reports carried out several years ago. Statements like:
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The market in 2002 was worth £X billion a year.
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Research has shown that millions of people buy this type of product every day.
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Our customers are businesses located in Europe.
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We have developed a unique service that everybody will buy.
Producing evidence that a market exists by summarising quantitative and statistical market research is absolutely fine as a starting point. But this will only be of any real practical use if you can back it up with some qualitative analysis of your market and what makes it tick.
Now what exactly do we mean by this 'qualitative' data about your market? What sort of information and specific detail about your target customers should be in your business plan?
The customer information you need to be able to articulate in your plan should answer the following types of questions:
1) Who exactly are your customers?
2) What are their problems (that you are aiming to solve) and what is on their minds?
3) Where are they located and how can they be reached?
4) What do they currently buy from you, or what do you expect them to buy from you?
5) How do you want them to perceive your business in relation to your competitors, and how will your marketing influence this perception?
Questions 1) and 2) are the ones that generally give new start ups the most problems, in terms of them being specific enough about the detailed characteristics of their customers.
To help you understand what we mean by being specific enough about your market, here is a list of potential customer 'types', their characteristics and buying behaviour, which you should be identifying in your plan.
It should be possible to describe the customers you are targeting in a similar way to the list of categories below:
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They are highly receptive to new products and technology.
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They are aficionados of the finer things in life.
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They read widely and often.
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They like recent rock and pop music.
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They are avid TV viewers, especially soaps and sitcoms.
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They are resistant to trying new things.
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They tend to read home, food and general interest magazines.
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They tend to read newspapers such as the Sun, the Daily Star and gender-oriented publications.
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They are not interested in self-image, prestige or status.
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They spend most of their time and money on socialising.
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They read business, current affairs and self-improvement publications.
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They rarely watch TV and will take little notice of adverts.
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They are image-conscious and tend to purchase premium-quality and priced products.
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They are heavily influenced by advertising.
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They have limited disposable income and will usually buy on credit.
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They read DIY, gardening and car magazines.
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They are very loyal to their favourite brands.
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They prefer to buy for comfort and durability, rather than making luxury purchases.
Can you describe your target customers in terms as specific as those in the list above?
There is no reason why you shouldn't be able to do so. And hence there is no reason why your business plan should not describe in detail who your intended customers are, what their attitudes and buying characteristics are, and how you propose to reach them and meet their needs.
Or you can make the same mistake as everyone else and have a business plan that is aiming your product or service at no-one in particular.
Buying a business - where to start looking
There are two main options for finding out about businesses for sale: reading advertisements within specialist publications, and seeking advice from local accountants or trade bodies. Business transfer agents and estate agents with a commercial property branch are also good places to start for local prospects.
There are a number of specialist publications that feature businesses for sale throughout the UK and abroad, such as:
Additionally, the following websites offer advertisements for a large number of UK businesses:
You can also put out feelers through some of the following local networking channels:
If the sale is being co-ordinated through an agent, there should be a sales prospectus and you should also be able to obtain copies of the business' accounts for the last three years. The process can be complicated and you should seek specialist advice from a solicitor, business adviser or accountant at an early stage.
You can find out more about the practical issues involved in buying a business by reading our factsheet on the subject.
Legal rules for food businesses
Food regulations affect all businesses working in the production, processing, storage, distribution and sale of food, no matter how large or small they are.
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The Food Safety Act 1990 legislates against the selling, or possession for sale, of food that does not comply with minimum safety requirements. Describing, advertising or presenting food in a false or misleading way is also covered by the Act.
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The Food Labelling Regulations 1996 (amended 2004) stipulate what must be marked or labelled, and also the shape, appearance and packaging of food. The Regulations apply if you manufacture, market or sell food products for sale to consumers or caterers.
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The Food Hygiene (England) Regulations 2006 (and Welsh, Scottish and Northern Irish equivalents) are new food hygiene laws that were introduced in January 2006 and affect all food businesses, including caterers, farmers, manufacturers and retailers.
There is a range of penalties for contravening these food laws, which can include prison sentences of up to two years. For more information about how to comply, check out our practical factsheets on legal issues for food businesses and food hygiene regulations, and see www.food.gov.uk for further advice.
What's Microsoft up to now?
Software giant Microsoft seems to be releasing new versions of its products and services every week - if it's not news about the next version of Windows (which is dubbed Vista, for anyone who's keeping track), it's improvements to MSN Search or action to fix holes in the Office suite of programs.
However, there are a number of online resources where you can keep up to date with developments.
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Microsoft Watch is a news and information portal featuring articles, opinion and comment on a wealth of Microsoft product developments, from thoughts on a possible collaboration with eBay (MicroBay) to reviews of its latest beta (test) products.
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The Microsoft education site provides a number of free tutorials, how-to articles and case studies about using various programs - while much of the information is based at school-level users, the practical, bite-sized approach is useful for IT beginners of any age.
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Finally, Annoyances.org bills itself as "the most complete collection of information assembled for and by actual users of Microsoft Windows". The site's really easy to use, and also features news and discussion forums.
It's also worth noting this week that Microsoft has issued a warning to users of its Word application that the program should only be run in 'safe mode' while it investigates a security hole. Microsoft has promised to release a patch for the problem by 13 June - the date its next security update is scheduled.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
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 'salubrious' means?
a) healthy or appealing
b) lewd or unpleasant
c) insightful or wise
d) impulsive or cavalier
Answer at the end of the Bulletin.
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The South West of England Regional Development Agency (SWRDA) website
(www.swrda.co.uk)
Continuing our theme of reviewing Regional Development Agency (RDA) websites, this week we're looking at the organisation responsible for overseeing economic development and business support in the south west of England. So how user-friendly and accessible is its website? |
Navigation
and presentation - a well-designed homepage offers plenty of information and detail without becoming confused or disorientating. Users from sub-districts can instantly pinpoint the parts of the site that are relevant to them, and things are kept looking fresh and topical by the inclusion of latest news.
 
Accessibility - the site is available in text-only format, but this is the only nod given to accessibility options.
Content
and usefulness - the site specialises more in signposting and redirecting users to related websites than in actually providing descriptive content itself. The business sectors area covers only eight sectors, but the funding section of the site does feature some useful case studies as well as the standard application notes.
Relevance - the news section of the site has been thoughtfully designed, and features its own search engine as well as an archive and a rolling list of current stories. There are plenty of stories published regularly on the site, and users can even register for newsletters specific to their local area.
A well-designed site let down by the fact that accessibility options and content are limited. However, there are some nuggets of useful data here, and the news section is particularly fresh and useful.
Our rating - 13/20
Male entrepreneurs think size matters
British men who own small firms are anxious to make their enterprises look bigger than they actually are, according to a new report. The research, carried out for Panasonic Business Systems' 'Be Your Own Boss' campaign, found that the majority of men were worried their business was seen as too small. Women entrepreneurs, however, were unconcerned about what outsiders thought about the size of their firm. The report reckons Britain is a nation of 'accidental entrepreneurs', with more than half of firms started without a business plan.
Advertising online gets you the best job applicants
If you're looking to employ graduates, you may be better spending your money on online advertising, rather than using traditional print media. Internet recruitment is four times more effective than other methods when looking for quality candidates, according to academic employment website jobs.ac.uk. The survey was based on 50,000 job applications received from both print and online adverts. The results are good news for business owners on a budget - online recruitment costs a fraction of the price of placing an advert in the paper.
Businesses urged to drop 0870
Businesses are being urged to stop using the 0870, 0845 and 0808 phone services, which allow them to be contacted at the same number in various geographical locations, but mean customers have to pay extra to get in touch. An online campaign called 'Say No To 0870' lists alternative numbers that can be used in the same way without costing the caller extra. Firms that use 0870 usually receive a percentage of the cost of the call. Telecoms watchdog Ofcom is currently consulting on the issue.
Trendspotting with Google
Google's latest offering in its bid for world domination is the Google Trends service, which aims to help you find trends related to Google usage around the globe. You can search for trends related to particular sectors or niches, as well as identifying topical and newsworthy keywords and search terms from all over the world.
Updated list of malware baddies
We've covered the activities of StopBadware.org, the initiative that was set up to combat malicious software or 'malware' such as adware and spyware, before in EnterQuest as a useful resource for keeping up to date with the latest computer nasties. Now the organisation has updated its Badware Watch List with several new software programs. The list highlights programs that embed malware without the user's knowledge or consent.
Business Start Up 2006, Birmingham, 2-3 June
This exhibition is aimed at new business owners and people thinking about starting their own enterprise. It showcases a range of services and information to help firms get off the ground, and features dozens of free seminars on key business issues. The EnterQuest Team will be exhibiting on stand 232, so come along and visit us if you're planning to attend the event.
This highly practical book explains how to build a successful e-commerce store in step-by-step detail, covering issues such as usability, design, programming, marketing, customer service, order processing, warehousing and shipping. Check out:
Just one word answer
The answer is a).
Salubrious means healthy, clean or otherwise appealing.
When choosing business premises, it is worth ensuring that they are located in a salubrious area. |
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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. |
