Some advice please on my business startup

bigmaz

Hi guys

Dunno if this is the correct part of the forum to post this, but i am starting up a local business directory in my town. I am at the stage where i am going to be contacting local businesses to see if they would like to advertise in my directory. What are the best ways for this? I was just going to phone them, but is this the best option? Anyone got any advice on how to sell this?

Cheers
Bigmaz

AJUK_3

I don't have experience of this, but I would think phoning them would be the most effective as you can 'sell' the benefits to them. It will take more time than email or mailing but probably much more effective.

Good luck.

bylromarha

Depends what sort of businesses you're looking to attract.

When I was running my shop, these phone calls got on my nerves as I had customers to serve, so didn't listen and put the phone down ASAP.

PlutoinCapricorn

You will need to convince them that you are genuine: there have been many people offering such listings who take the money and run.

There are many existing directories too.

bigmaz

PlutoinCapricorn wrote: »

You will need to convince them that you are genuine: there have been many people offering such listings who take the money and run.

There are many existing directories too.

Hmmmm, good point, how do I tell people I will not run away with their money :P

There are no directories like this in our town

weeg

Email. If you called me, I would just tell you to email me. The only thing that would convince me you were not a charlatan is a good track record. Mind you, I get calls/ emails quite often trying to persuade me to advertise, and I'm really not interested unless you gave give me real figures on distribution and success stories.

Which is a nice way of saying I'm not sure if this is a viable business idea. Doesn't everyone just use the internet?

fuzzball172

Where do people see your directory? What are your projected circulation figures? Whay are you better than yellow pages or thompson?

These are all questions you need to have answers to. Personally I get 4-5 of these sales calls a month and after the first one I subscribed to did not generate a single lead, I decline them all now. I just don't think they work. Good luck anyway

PlutoinCapricorn

The OP does need to look at everything from the viewpoints of the business owners and potential customers.

I can't remember the exact name, but someone posted on here asking whether he should register his business with totallocaldirectories.com or similar. The response was that it wouldn't be worth it, having his own website was the best way to attract the customers.

I have looked at some local, online directories myself: there are usually many out of date entries.

pineapple

I have had some really annoying calls lately from someone trying to persuade me to take advertising space in their directory. They got my number off a notice in a shop window!
(so times must be hard). I hate being the recipient of cold calling as do many others. However, I bin flyers without reading.
Are you sure a directory is the way to go?
Where I live, you have the big players like Thompson. Otherwise people tend to search online. And there already seem to be a myriad of online 'directories'.
However, one alternative which seems to work is that we have a little free parish type mag, delivered to each house, which include ads from local businesses. It calls itself 'Community news and Local Business Directory'. I guess the advertising pays for it all. It's an interesting read and a handy reference to what's on, to keep around the house. Plus ads seem a bit more personal. In fact I recently found myself scanning the mag for a plumber. I note that rather cheekily, they get volunteers to help with the non commercial bits! But at least you get the feel that it is a community resource.
So maybe start something similar?
I could send you a copy or look for something similar. Make a few phone calls to check out general advertising rates. Then do some leg work making face to face appointments to market the idea.

Ypaymore

bigmaz wrote: »

Dunno if this is the correct part of the forum to post this, but i am starting up a local business directory in my town.

I dont know if it helps you,but their is a seperate small biz forum here : http://forums.moneysavingexpert.com/forumdisplay.html?f=27
with a sticky in it about starting a new biz.

You might find this site/forum of interest.
http://www.startupcommunity.co.uk/forum/forum.asp

paulwf

Firstly please check your legal compliance before cold calling. Many sole traders are registered with the telephone preference service and therefore may threaten to report you if you haven't checked an opt out list.

As others have pointed out there is a large number of advertising scams going around so many companies will refuse point blank to buy advertising over the phone.

Even if you prove you are genuine, again as others have pointed out there is huge competition for advertising. Added to this there are online directory companies popping up all the time to dilute the advertising market even further. As an example the new Thomson Local directory arrived this week and it was a fraction of the thickness it used to be.

To make your idea work you need a critical mass of advertisers otherwise your directory won't have any appeal and the print and distribution costs means you could lose money. Therefore it isn't the type of business where it is easy to start small and build up over time. If you really think it is viable write a business plan and contact your local Business Link, they offer a free business plan review service.