Podcast Summary
Running a kids entertainment business as a sole trader: While profitable, being a sole trader in kids entertainment means trading time for money and not building an asset. Consider long-term goals and asset value.
Being a sole trader in a commercially profitable enterprise, such as kids entertainment, can be challenging but rewarding. Jelly Jade, a kids entertainer from Essex, shared her experiences with James Sinclair on the Business Broadcast podcast. While the job can provide a good income, it often means swapping time for money and not building an asset that someone would want to buy. The staycation economy in the UK is thriving, and business owners in this sector are encouraged to share their experiences and insights on the podcast. In essence, it's important to consider the long-term goals and the value of building an asset when choosing a business path.
Building a business for income continuity: Focus on marketing, building relationships, and creating content to grow your business for income continuity and potential legacy.
Entrepreneurship involves taking control of your business's destiny by building a commercially profitable enterprise that can operate independently of your presence. This ensures income continuity during personal days off, illnesses, retirement, or even after death. James Sinclair, a coach at Entrepreneurs University, emphasizes the importance of this approach, especially for those whose income depends on their manual labor. Jade Foster Gerrit, a kids entertainer, shares her challenges as a sole trader, keeping up with bookings during the pandemic, and picking her business back up in the current climate. Despite making a profit before COVID-19, she currently faces difficulties. To overcome these challenges, Jade focuses on marketing, building relationships, and creating content for her audience. By growing her business, she hopes to eventually pass it on to someone else as a legacy.
Passing down entrepreneurial skills to the next generation: Encourage young people to learn business skills through reading, selling items online, and building relationships. Revisit and implement lessons learned from books. Importance of having a strong team to support growth.
Entrepreneurship and the skills learned from running a business can be passed down to the next generation, either through the income earned or the entrepreneurial traits themselves. The speaker shares his experience of trying to instill these values in his own children, who have shown varying levels of interest. He suggests practical ways for young people to learn business skills, such as reading books, selling items online, and building relationships. The speaker also emphasizes the importance of revisiting and implementing the lessons learned from these books. He himself is a voracious reader and encourages young people to read and re-read business books to fully absorb their lessons. The speaker also mentions the three stages of business and the importance of having a strong team to support growth.
Transitioning from self-employed to building a sustainable business: Creating a clear vision and growing a team to run a profitable business that can be passed on as a legacy.
Building a profitable business involves more than just being busy or making money. It requires running the business under management, so that income continues even when you're not working. This means having a team in place to run it day-to-day, allowing you to go on holiday without the business coming to a standstill. The ultimate goal is to grow the business into a legacy that can be passed on to future generations, rather than just swapping time for money and competing on a low barrier to entry market. The speaker shares his personal journey from a profitable job to starting a business, recognizing the need to transition from being self-employed to building a sustainable business. He emphasizes the importance of creating a clear vision for the future and growing the business into a profitable and beloved national brand.
Thinking big and setting ambitious goals: Having a clear vision and setting ambitious goals are crucial for success in business. Aim for significant revenue and growth to justify the risks and stresses of entrepreneurship.
To be successful in business, it's essential to have a clear vision of your goals and the destination you want to reach. The speaker emphasizes that thinking big and setting ambitious targets can help reduce competition and increase the chances of success. He also suggests that having a well-defined vision for your personal life, such as your children's future, can help clarify your business goals. The speaker encourages business owners to aim for significant revenue and growth to justify the risks and stresses of entrepreneurship. In summary, having a clear vision and setting ambitious goals are crucial for success in business.
Fear of the unknown can be overcome with understanding: Understanding the steps and resources needed to achieve a goal can help overcome fear and lead to greater success.
Fear is often a result of a lack of understanding. James shares his personal experiences of feeling scared about taking on new challenges, whether it be having children or growing a business. He emphasizes that it's important to aim high and not let fear hold us back. James also highlights the importance of treating our businesses like we do our children, investing in them and striving for success. He shares his own journey of transitioning from a profitable job to building a profitable business, and encourages us to consider what we truly want from our endeavors and how we can take them to the next level. Whether it's a business or a personal goal, understanding the steps and resources needed to achieve it can help overcome the fear and lead to greater success.
Building an investment asset through business ownership: Investing in a business that runs without your day-to-day involvement can provide a steady income and substantial profit with tax benefits.
Building an investment asset through business ownership is crucial for financial success. Unlike a business that relies heavily on a key man individual, an investment asset should ideally run without the founder's day-to-day involvement. This not only ensures a steady income but also enables the business to be sold for a substantial profit, with significant tax benefits. While property investment can be a valuable asset, owning a house you live in is a different matter. It's an investment that grows in value over time, and the gains made on it are tax-free. To expand your investment portfolio, consider learning about property investment through books and seminars, and start small by buying a house to live in. This will provide a solid foundation for future investment endeavors.
Building a sustainable business with passion and good fundamentals: Focus on passion, good business fundamentals, and long-term vision for a successful business. Consider customer value, transactional value, and lifetime value to ensure profitability and sustainability.
Building a successful business, especially as a solo entertainer or personal brand, requires a combination of passion, good business fundamentals, and long-term vision. Creating content consistently through platforms like YouTube and Facebook can help build a personal brand, but it takes time and investment. As we age, it's essential to consider the longevity of our businesses and the importance of repeatable customers and good margins. Entrepreneurs should think like investors, focusing on average customer value, transactional value, and lifetime value. For instance, a day nursery business may have a higher lifetime value due to frequent transactions and long-term relationships with customers. Passion is crucial, but so is commercial awareness and a solid business strategy. Ultimately, it's essential to find a business that aligns with our passions while providing a sustainable and profitable business model.
Viewing customers as long-term investments: By converting infrequent customers to membership programs, their value can increase significantly. Industry averages and growth potential also impact customer value.
Understanding the true value of a customer to your business can significantly impact your business strategy. A customer who makes small transactions infrequently may seem insignificant, but by converting them to a membership program, their value can increase dramatically. For instance, a customer worth £25 on average could become £105 worth of annual revenue. However, the average customer value and frequency of transactions can vary greatly depending on the industry. For instance, a business with a low average transactional value, like £250, may only see a customer once a year. On the other hand, companies like Amazon, with high transactional value and strong brand loyalty, can have an average customer value in the thousands and see customers frequently. Furthermore, a strong management team and a promising future growth potential are also crucial factors to consider when investing in a business. The discussion highlights the importance of shifting your perspective to view customers as long-term investments and considering various factors to maximize their value to your business.
Think and act bigger for greater business success: Expand your mindset and roles to marketing and property investing for increased opportunities and reduced competition. Consider Entrepreneurs University for guidance.
Thinking and acting bigger can lead to greater success in business. During a podcast discussion, the speaker emphasized the importance of becoming a marketer and a property investor, rather than just a "doer," to expand business opportunities and reduce competition. He encouraged listeners to consider his Entrepreneurs University for guidance on growing their businesses and expanding their mindset. The speaker also encouraged listeners to promote their businesses to his audience and provided a platform for a business owner, Jade Foster from Watford, to do so. Overall, the conversation emphasized the importance of thinking beyond current limitations and taking steps to expand business horizons.
