Podcast Summary
Challenges of growing a side business with a full-time job: To significantly grow a side business, one must fully commit and focus on it, rather than relying on a stable income from a full-time job.
Having a stable full-time job can hinder the growth of a side business. Joshua, a 3D printing entrepreneur, shares his experience of facing challenges in marketing, website development, and managing custom requests, while generating only £300 a month. He aims to grow his business but is content with its current small scale due to the financial security of his job. However, James, the podcast host, emphasizes that for significant business growth, one needs to fully commit and focus on the business, rather than relying on a stable income from a full-time job. The conversation highlights the importance of taking calculated risks and having the determination to turn a side hustle into a full-time venture.
Entrepreneurship: Struggling with Low Profits: Entrepreneurship can be challenging for those making low profits, but aspirations and perspectives vary. James Sinclair's Entrepreneurs University aims to help grow businesses for higher profits.
Running a business for a few hundred pounds a month can be challenging and stressful for some entrepreneurs who aspire for larger profits. During a conversation, it was revealed that a business owner, Joshua, is currently making around £300 a month from his 3D printing business, where he handles everything from product design to manufacturing, sales, and distribution. Despite the business being fully vertically integrated, Joshua expressed his struggle to understand why someone would want to run a business for such a low profit. He emphasized the all-consuming nature of entrepreneurship and the desire for bigger rewards. However, it was later clarified that Joshua's goal was to eventually make $10,000 a year, not $10 a month. This conversation highlights the different perspectives and aspirations entrepreneurs have when it comes to business profitability. For those who aim for higher profits, James Sinclair offers his Entrepreneurs University as a resource to help grow businesses and soar them to success.
Scaling Up with 3D Printing: Starting small is good, but consider expanding your horizons and aiming for larger turnover numbers. Look for profitable niches, invest in marketing strategies like influencer marketing and networking, and consider the significant profit margins on successful 3D printed products.
While having small business aspirations is not a bad thing, it's important to consider expanding your horizons and aiming for larger turnover numbers. The speaker acknowledges the potential of 3D printing in this regard, but questions whether there's a large enough audience to tap into. He shares an example of a successful product - a Dyson Hoover accessory that increases storage capacity - and discusses strategies for marketing it, such as influencer marketing and networking. The speaker also mentions the significant profit margin on such products, making it a worthwhile investment. In summary, the key takeaway is that while it's important to start small, it's equally important to think about scaling up and reaching larger markets to increase revenue.
Investing in unique production methods for increased customer value: Investing in high-quality printers for unique, handmade products can lead to increased sales, customer loyalty, and long-term profitability despite initial high costs.
Focusing on increasing the average customer value through creative marketing strategies, such as offering incentives for social media shares, can be more profitable than relying solely on sales through marketplaces like Amazon and Etsy. The speaker shares his experience of investing in high-quality printers to produce unique, handmade products, despite the initial high cost. He emphasizes that the long-term benefits, including the potential for increased sales and customer loyalty, outweigh the initial investment. Additionally, the use of efficient and durable 3D printed printers allows for larger-scale production and reduced running costs. Although the upfront costs may seem daunting, the potential for growth and profitability make this an intriguing business opportunity.
Exploring alternatives for reducing costs in 3D printing: To succeed in 3D printing, consider creating your own filament, designing unique components, targeting niche markets, and personalized gifts for higher profit margins. Streamline the design process or outsource tasks for growth.
While a single 3D printer may not be able to produce a large quantity of items at a low cost per day, the potential for scalability and creating personalized, high-demand products exists. The key to success lies in exploring alternative methods for reducing costs, such as creating your own filament and designing impossible-to-manufacture components. Additionally, focusing on niche markets and personalized gifts can lead to higher profit margins. However, the unleveraged nature of the work is a significant challenge, and finding ways to streamline the design process or outsource certain tasks could be essential for achieving significant growth.
Personalization and ease lead to sales growth: Identifying the right market and product for personalization and ease can lead to significant sales growth.
Personalization and ease can lead to significant sales growth in certain markets. The speaker shares an example of a treasure box business, where adding a personalized name to the box significantly increases its value to the customer. However, the current business model isn't profitable enough due to high labor costs and low sales volume. To scale up, the speaker suggests focusing on markets with a hungry audience for easily personalized products, such as gifting. By investing in advertising to reach this audience, the business could potentially see a tenfold return on investment. The speaker emphasizes that finding such a product and market requires research and innovation. The takeaway is that adding personalization and ease to a product can lead to substantial sales growth, but it's crucial to identify the right market and product to make it profitable.
Scaling a business with repeat customers and market demand: Success comes from scaling a business with repeat customers and clear market demand, but entrepreneurs must overcome fear of loss and take calculated risks to explore new opportunities.
Having a scalable business idea with repeat customers and a clear market demand can lead to significant success. However, overcoming fear of loss and taking calculated risks is essential. My friend's experience with designing and selling custom sprockets for a mountain bike race is a great example of this, but he recognizes the importance of expanding beyond comfort zones and exploring new opportunities. Successful entrepreneurs like him don't necessarily take on every new idea without linking it to their existing business or proven market demand. While it's important to recognize the risks involved, the potential rewards can be substantial. For instance, my friend's diverse business ventures include a block of flats, an indoor play center, an ice cream company, and a bakery, all of which he plans to sell to his existing customer base. Ultimately, it's about finding the right balance between calculated risks and proven opportunities.
Finding the right business model and tweaking it for profitability: Buying and reselling stock, derisking, and finding a 'little tweak' can turn a business into a profitable one. Enjoy the process but remember, it's not a charity, ultimately aim for profit.
Finding the right business model and making tweaks to improve profitability is crucial for success. The speaker shares his experience of buying stock and reselling it to customers during Christmas, derisking as much as possible, and the importance of finding that "little tweak" to turn a business into a profitable one. He uses the example of opening an indoor play center and adding a day nursery to turn it into a profitable business. The speaker also mentions that his current business model, with a printer generating £15-£20 a day, needs to be tweaked to reach higher profits. He emphasizes the importance of enjoying the business and the creative process, but also acknowledges that it's not a charity and the ultimate goal is to make a profit. Despite the potential for more profitable ventures, he continues to pursue his current interests because he enjoys them. The speaker's advice is to always look for ways to improve the business model and increase profits.
Managing People and Finances for Entrepreneurial Success: Surround yourself with positives, eliminate toxic people, manage debt wisely, aim for a comfortable loan-to-value ratio.
Managing the people in your life, especially during the entrepreneurial journey, is essential for success. You'll encounter changes in your friend circle as you grow and meet new individuals. It's crucial to surround yourself with positive influences and eliminate toxic people. Remember, you're the average of the five people you spend the most time with. As for leveraging assets, such as property, there's no definitive answer for how much is too much. In the early stages, you might stretch yourself financially to build scale. However, as you age and your business grows, becoming more conservative with debt is advisable. Aim for a comfortable loan-to-value ratio, but remember that everyone's situation is unique. In conclusion, managing the people in your life and finances wisely are crucial components of entrepreneurial success.
Learning from Business Consultants through Podcasts: Engaging in podcast interviews with experienced consultants can provide valuable insights and help refine business ideas and strategies. It's a quick, cost-effective way to learn and improve.
Engaging in meaningful conversations with experienced business consultants, like James Inclair, can significantly help business owners refine their ideas and strategies. By appearing on podcasts like James' and undergoing a friendly yet challenging interrogation, entrepreneurs can gain valuable insights and identify potential areas for improvement. This process can lead to better decision-making and ultimately, business growth. If you're hesitant to participate, remember that it's just a 30-minute investment of your time, and the potential benefits far outweigh the cost. To support this valuable resource and help more business owners access it, be sure to rate, review, and subscribe to the podcast.
