just at idea stage

susieanne

I have got an idea of a small business that i would like to set up , it would be a big step for me to take as i would be coming off benefits to set up this business . The scariest thing for me is getting no custom therefore earning no money . Dont want to say to much about the business just yet but i have done reasearch and there is no one in my area offering this service . Do you think its cheeky to phone up other similar business in a different area of the country , therefore wont be in competion with me and ask there advice ?

chalkie99

I wouldn't be very happy with that myself, to be honest, so have a thick skin if you try it.

It's hard to give much advice without some clue as to the general type of business you have in mind but, I find it hard to think of a business that does not already have too many people competing for trade and, even if you are the first in your area, once someone sees you doing it they will almost certainly try it themselves.

Also, how sure are you that no-one else is doing it in your area?

The reason I say these things is from personal experience.

I once set up doing something novel at a series of summer events and had the market to myself. However, the following year there were 20 new businesses all trying the same thing which, ultimately led to price cutting and the failure of them all.

Then, when I moved to my current area I thought there was no competition. I checked all the local shops, industrial units, etc, plus Yellow Pages, newspaper ads, everything.

As soon as I put a sign-written van on the road I found several competitors hidden away, some operating as a sideline to a completely different trade and some unofficial ones working from home.

You need to do lots of research.

IceCreamDreams

If you are potential competition for any small business, they are not going to give you any useful advice whatsoever if you offer similar services to them.

That said, depending on what your business will be, it's possible to call these companies and get information regarding how they run their business by posing as a customer! (I do this all the time)

When it comes to running a new business the basics are the same regardless of which category your business falls under. I am in the process of setting up my 4th company (though I am still learning new things about business every day) and if I could give you any advice it would be as follows:

1. Know your status - Sole Trader, Limited Company etc? and capitalise on the tax/accountancy benefits they may enable you to have.
2. Know your market SPECIFICALLY and how to reach them DIRECTLY - Make sure you have a marketing budget and you use it to target those who are much more likely to purchase your services.
3. Know your craft - Whatever service you are offering, do it better and stay ahead of others offering similar services by being product/technique savvy. Work on becoming a leader in your field.
4. Know how to do your own book keeping - Even if you employ others to do it for you, and keep track of every penny in the company.
5. Do not underestimate the power of the web - Get digital presence as soon as you can, these days you can create a simple and effective website for less than £50. Make sure you also create Social Networking pages (facebook/twitter) specifically for the business and make sure you use them.

Best of luck!

oldoakey

Hi

I think you could ask other companies in your sector but would possibly find it difficult for them to give advice to someone they have never met or heard of before who could after all just be a local competitor.

If you give a little more detail perhaps someone on here may already be in that type of business. You don't have to be too specific or could change the product so as not to give too much away.

As to your question would I get some business.
What I would do is test the market by getting out there and speaking to possible customers about if and how much, how often and what sort of price would they pay for what your offering. Then do a business plan with a profit and loss yes that boring stuff.

The point of these are to help you think and plan what you intend to do before you go and do it. Then set your self goals against your profit and loss and keep trying to beat them. I could go on but its home time. Good Luck

paulwf

Some industries are full of friendly and helpful business owners who don't mind sharing their experience. However...you usually need to find a way to get yourself known and build up their trust, they may not be receptive to a random cold call. If your business sector has a web forum or trade events or training events join in, get yourself known whether it is virtual or face to face. That will open a lot more doors for you.

paddyrg

How about volunteering to intern for them for a month of free labourin exchange for learning the ropes.

All businesses have some startup costs, this would be a way to cost you more time than cash!

suegoo

I came off jobseekers to set up my business, that was in March and it has taken till now for business to pick up.
I am the only one providing this service in my area but because no-one knows I exist it has taken time to spread the word.
The most important thing is being on the net as IceCreamDreams said, in my case most of my customers find me through google.

malony_2

Sure, call similar services away from where you want to set up your business. No big deal. I don't think they would bother giving you advice. I wouldn't. Just try. Can't hurt to ask.

texranger

susieanne wrote: »

I have got an idea of a small business that i would like to set up , it would be a big step for me to take as i would be coming off benefits to set up this business . The scariest thing for me is getting no custom therefore earning no money . Dont want to say to much about the business just yet but i have done reasearch and there is no one in my area offering this service . Do you think its cheeky to phone up other similar business in a different area of the country , therefore wont be in competion with me and ask there advice ?

talk to business link , inbiz and even the job centre as i am sure their is a scheme to where you can set up a buiness and for a period you can still claim your benefits until you see if the business will work.

cavework

Step one is to approach potential customers and get some work, then the hard work is to retain these customers and build on your reputaion.
A business does not exist until you have paying customers.
Please don't be afraid of competition, as long as you provide the best service avaliable the shortfalls of the competition will only increase your volume of sales..
By all means phone other companies in other areas but pose as a potential customer
There are a lot of big companies who do this all the time.
Good luck