Podcast Summary
Starting a Business: The Unexpected Challenges: Persevere through unexpected challenges and learn from others' experiences to grow a successful business
Starting a business comes with challenges, and sometimes the path to success may not be what was initially expected. James Sinclair, the host of the Business Broadcast podcast, welcomed Nathan Winch to the show, who had started a printed magazine for £3.49 an issue. While James was initially intrigued by the potential profits, he soon learned that Nathan was only making around £872.50 a month from the business. Despite the low revenue, James saw value in Nathan's venture and offered to coach him on growing his business. The podcast, which aims to help business owners, features weekly episodes with team members and other business owners sharing their experiences and expertise. James also shared his own business updates, including the shift from online sales to in-store sales as people return to their normal habits post-lockdown. Overall, the discussion emphasizes the importance of perseverance and learning from others' experiences in entrepreneurship.
Determined Founder's Third Magazine Venture: Nathan Winch, a business background entrepreneur, remains committed to making Bluebricks Magazine for proxy investors successful despite past financial losses and the pandemic's challenges.
Nathan Winch, the founder of Bluebricks Magazine, is determined to make his niche magazine for proxy investors successful despite losing money on two previous magazine ventures. Bluebricks Magazine aims to provide inspiration, information, news, and market analysis for ambitious property investors. Nathan's background is in business, and he's been out of running his own business for several years, focusing on investing instead. During the pandemic, he was approached to restart his old business selling cleaning products and hand sanitizer, which is in high demand, but he chose to pursue the magazine project instead. Some may see this as a risky move, but Nathan is known for his stubbornness and ambition. He's confident that Bluebricks Magazine will be successful and provide valuable content to its audience. Despite the challenges and financial losses from his past magazine experiences, Nathan remains committed to making this venture a success.
Creating a content-driven magazine as a foundation for industry influence: Investing in a content-driven magazine can build authority and influence, even if it initially losses money. Monetize through advertising, events, and expand into other areas for additional income.
Creating a content-driven magazine can serve as a valuable platform for building authority and influence, even if it doesn't generate significant revenue in the short term. The speaker plans to monetize the magazine primarily through advertising and events, while keeping the focus on providing valuable content and bringing together industry experts. The magazine is currently losing money, but the long-term goal is to use it as a foundation for expanding into other areas and generating additional income. The speaker emphasizes that the magazine is not just an ego project, but rather an investment in the community and the industry.
Building a business without a clear plan: Having a clear business plan and solid reason for existence are crucial for starting and sustaining a successful business. Committing plans to paper, outlining goals, team size, and profit projections, and considering partnerships with established businesses can help overcome challenges and generate revenue.
Starting a business requires a clear plan and a strong reason for existence. The speaker in this conversation acknowledges that they are in the process of building a platform with the goal of making money through advertising and collaborations in the mid to long term. However, they admit that they don't have a well-defined plan in place and have not employed a marker. The interlocutor challenges this and encourages the speaker to commit their plan to paper and outline their goals, team size, and profit projections. The interlocutor also suggests that the speaker consider partnering with established businesses to generate revenue and avoid the challenges of building a magazine from scratch. The conversation highlights the importance of having a clear business plan and a solid reason for pursuing a business venture. Without these elements, it may be difficult to sustain the effort required to make the business successful.
Securing sponsors for a niche publication: To monetize a niche publication, secure sponsors or major advertisers to cover significant costs, providing them with a white-labeled magazine and content in return.
To successfully monetize a niche publication, it's essential to secure sponsors or major advertisers to cover a significant portion of the costs. This approach not only helps fill the financial gap but also allows the sponsors to feel a sense of ownership and investment in the publication. This strategy was discussed in the context of a property magazine, where the publishers plan to approach deep-pocketed businesses, such as wealth management firms and accountants, to become the main sponsors for specific issues or indefinitely. The sponsors would receive a white-labeled magazine that looks like their own, and in return, they would provide content, distribute the magazine to their network, and potentially advertise within its pages. This symbiotic relationship not only helps the publication cover its costs but also expands its reach and credibility.
Starting a new business: Investments, risks, and long-term partnerships: Starting a new business involves significant investments and calculated risks. Focus on long-term partnerships, invest in marketing, and remain optimistic despite challenges.
Starting a new business involves making significant investments and taking calculated risks. The individuals in this conversation have a marketing plan and a financial projection, but they are still in the early stages and facing challenges. They are focusing on building long-term partnerships and are committed to their vision. They are investing in advertising, social media marketing, and personnel to grow their business. They have spent around £25,000 so far and are aiming for a daily sign-up target of 5-10 people. They believe in the power of creating content and building influence in an industry. Despite the challenges, they remain optimistic and are continuing to invest in property as well.
Impending Real Estate Market Crash: Speaker's Strategy to Buy Below Market Value Properties: Speaker plans to buy 3 properties, 2 through lease options and 1 below market value for £48k, intending to convert it into a 3-bedroom property worth £75k. He uses bridging finance and plans to sell or rent them out for profit.
The speaker believes there's an impending real estate market crash due to excessive spending during the pandemic and the end of government support measures. He plans to purchase three properties, two through lease options and one through a straight purchase, which he bought below market value. The numbers discussed involve a 2-bedroom property in Stoke on Trent, which he bought for £48,000 and intends to convert into a 3-bedroom property, estimating it to value up to £75,000. He's using bridging finance for the purchase due to having already deployed a significant amount of cash on other properties. The speaker also mentioned his plans to use the magazine for advertising his own properties for sale and sourcing properties from ambitious property investors. The magazine aims to reach experienced property investors and foster business and success. The speaker believes that buying businesses is another good investment opportunity, but that's a different discussion.
Turning around undervalued businesses vs starting a magazine: Investing in undervalued businesses can yield high returns, but starting a magazine is less leveraged and more costly. Expertise and asset stripping add value, but magazines require a full-time editor and may not break even for years.
Buying undervalued businesses and turning them around can be a profitable venture, especially in the current economic climate. The speaker is personally involved in a joint venture with an investment company in London, focusing on a chemical patent in the medical hygiene space. They're looking for a business to acquire as a vehicle for this new patent. Buying businesses allows for asset stripping, making improvements, and adding value, particularly if one has expertise in their sector. However, starting a magazine, as the speaker is doing, can be less leveraged and more costly. The magazine requires a full-time editor, and the costs aren't yet being accounted for. The speaker acknowledges that the magazine might not break even for a few years. Despite the challenges, they remain committed to the project. The speaker also mentions that they could have spent their budget on promoting their YouTube channel instead, but they prefer building a credible community through their content, which will have a longer-term impact. They believe that evergreen content, such as podcasts and YouTube videos, has more leverage power than a printed magazine. If the speaker had invested their £20,000 into promoting their YouTube channel, they might have seen a better return on investment.
Exploring New Media Platforms and Collaborations: The speaker plans to expand his media presence to YouTube and collaborate with other magazines to reach a larger audience, believing his unique style and content could add value. He also considers tax benefits and relationship building for growth.
The speaker is considering expanding his media presence beyond a printed magazine to platforms like YouTube and is open to collaborating with existing magazines to reach a larger audience. He believes that his unique style and content could add value to the market, particularly in sectors where he sees room for improvement. He also mentioned the potential tax benefits of advertising in magazines and the importance of building relationships with other industry players for business growth. Despite the challenges and potential financial losses, the speaker is determined to continue pursuing these ventures due to the opportunities they present.
Exploring Strategies for Business Growth: Exploring acquisition of other magazines, improving them, retaining editor, focusing ad efforts on podcast and YouTube channel can expand reach, improve brand loyalty, and leverage multiple revenue streams.
Having a clear strategy, whether it's called a battle plan or a war plan, is crucial for business growth. The speaker acknowledges that they've been focusing on their existing business but suggests exploring the acquisition of other magazines to expand their reach and free up time. This strategy would involve buying magazines cheaply, improving them, and retaining the editor. Additionally, the speaker suggests focusing advertising efforts on building a podcast and YouTube channel to attract new subscribers. These strategies could help grow the business by expanding the customer base, improving brand loyalty, and leveraging multiple revenue streams.
The importance of good advice and avoiding complacency in business: Stay focused, accountable, and mindful of resources when growing a business to avoid complacency and risky decisions.
Growing a business requires consistent effort and sound decision-making, even with available resources. James Inclair emphasizes the importance of being reminded and refreshed with good advice, as running a business is similar to being on a diet – we all know what we should do, but sometimes need a reminder. He warns against becoming complacent with success and using resources frivolously, as it can lead to dangerous decisions. For instance, starting a magazine during a pandemic might not be the most sensible choice. While Inclair acknowledges the potential success of the magazine, he also foresees the time commitment and potential burnout that comes with it. Therefore, it's crucial to have a solid plan and be accountable for your actions, especially when dealing with other people's money.
Investing in business ventures with a long-term perspective: Entrepreneurship involves taking calculated risks, investing in projects with potential for long-term growth, having a team for accountability, considering scale and cash flow, and bringing value to a sector.
Being a business owner or entrepreneur involves making investments, even when it seems illogical or unprofitable in the short term. This can mean investing time, energy, and resources into projects that may not yield immediate returns, but have the potential for long-term growth and success. The speaker in this conversation shares his experience of investing in various business ventures, and the importance of having a team to hold him accountable for his decisions. He also acknowledges the importance of scale and cash flow in making more calculated investments. However, he emphasizes that the ultimate goal is to bring value to a sector and make a positive impact, even if it doesn't come with a hefty profit margin right away. The conversation also touches on the importance of setting reasonable prices for products or services, and the value of maintaining a loyal customer base. Overall, the key takeaway is that entrepreneurship involves taking calculated risks and making investments with a long-term perspective.
Multiple membership tiers for increased revenue: Offering multiple membership levels caters to various customer segments and their budgets, leading to a higher average customer value and recurring transactions.
To build a successful business, particularly in the content creation space, having multiple tiers or levels of membership can significantly increase revenue and provide greater value to customers. The speaker suggests starting with two levels: a basic and an extreme or premium level. This approach caters to different customer segments and their willingness to pay. For instance, some customers may prefer a cheaper option, while others may be willing to pay more for additional resources and benefits. By offering a higher-priced tier, a business can attract a smaller but dedicated customer base, which can contribute substantially to overall revenue. Additionally, providing exclusive content, tools, and resources in the premium tier can help build a loyal community and enhance customer engagement. Ultimately, this strategy leads to a business with a higher average customer value and recurring transactions.
Focus on increasing customer value and eliminating low-priced offers: Invest in converting fewer customers to high-priced memberships, build a community through content marketing, and seek coaching and mentoring to grow your business.
The speaker emphasized the importance of increasing the average customer value and getting rid of low-priced offers that cheapen the image of a business. He suggested focusing on converting a smaller number of customers to higher-priced memberships and building a community through content marketing on platforms like Facebook, podcasts, and YouTube. The speaker also encouraged business owners to seek coaching and mentoring to help them grow their businesses and take the next step. Overall, the discussion highlighted the value of working out solutions to business challenges through counseling sessions and implementing strategies to increase customer value and loyalty.
