Podcast Summary
Business Challenges: Starting a business out of necessity can add to the challenges, resilience and perseverance are crucial during financial stress, and unexpected success is possible
Starting and growing a business is a challenging journey filled with uncertainty and hardships. Many businesses fail within the first few years, and even successful ones can face financial struggles. The speaker shared his personal experience of losing his job during the coronavirus pandemic and starting a podcasting business from scratch. He emphasized that setting up a business out of necessity, rather than desire, can make the process even more difficult. The speaker also discussed the importance of resilience and perseverance in the face of financial stress and the potential for unexpected success. Despite the challenges, he encourages business owners to keep pushing forward and not give up on their dreams.
Entrepreneurial Challenges: Profit and cash flow differ, taxes and red tape favor larger corporations, and overcoming stages and obstacles are common in entrepreneurship
Running a business, especially a large one, comes with unique challenges and financial complexities that can be isolating for entrepreneurs. Profit and cash flow are not the same, and the red tape and taxes put in place to protect corporates make it harder for smaller businesses to grow and compete. The entrepreneurial journey involves overcoming various stages and obstacles, and the system seems to favor larger corporations, making it difficult for medium-sized businesses to advance. The speaker suggests that taxing profit instead of turnover could help level the playing field and foster growth for these businesses.
Business Challenges: Entrepreneurs face numerous financial challenges, including increased taxation, business rates, and high fees from third-party sales platforms, which can delay progress and hinder economic growth.
Starting and growing a business comes with numerous challenges, particularly in the initial stages when resources and experience are limited. The speaker shared an experience of a mobile hairdresser who faced significant financial challenges after opening a shop, including increased taxes, business rates, and other expenses. This forced him to close the shop and return to his mobile business. The speaker also criticized the bureaucratic process involved in planning and business growth, which can significantly delay progress and hinder economic growth. Another example was given of a business owner, Josh, who runs Frank's Fasteners, and is struggling to make ends meet due to high fees from third-party sales platforms. Despite these challenges, the speaker emphasized the importance of entrepreneurs contributing to the economy and encouraged them to persevere.
Inventory management: Having a wide range of products can attract customers but managing inventory for less popular items can strain small businesses' finances. Focusing on strengths, finding a niche, and effectively targeting ideal customers can help small businesses succeed.
Having a wide range of products can attract customers, even if they only buy a few items. However, for small businesses with limited stocks and resources, holding inventory for less popular items can be a financial strain. The speaker shared his personal experience of running a screw business, where he struggled to make ends meet despite working long hours and expanding his product range on eBay. He expressed frustration that customers are drawn to businesses with a larger selection, even if they only need a few items. The speaker also highlighted the importance of attracting large business customers to increase sales and profitability. He announced his Business Masterclass event in London to help business owners grow their enterprises and offered a money-back guarantee. The key message is that small businesses need to focus on their strengths, find their niche, and effectively target their ideal customers to succeed.
EBay business growth without advertising: A wide product range and competitive pricing, combined with excellent customer service, can help an eBay business grow without the need for advertising
The speaker, who runs a business selling nuts and bolts on eBay, has built up a successful business over the past three years with no advertising spend. He started with a significant investment in stock and focused on providing a wide range of sizes and lengths. His customers include both individuals and automotive shops. He holds all the stock himself and uses an Excel spreadsheet to determine his minimum selling price. He's seen a recent increase in sales due to eBay's increased fees, but it's unclear whether these customers will return for repeat business. The speaker's goal is to make the business work without having to seek employment elsewhere. He's been able to generate between 20 to 50 orders a day, with some returning customers accounting for a significant portion of his sales. Despite the challenges, the speaker remains committed to making the business successful.
Customer retention: Personalized offers and effective communication can save profits and increase sales. Offer discounts and freebies to both new and returning customers, and consider registering a business to reclaim VAT for a cash flow boost.
Engaging returning customers through personalized offers and effective communication can lead to significant savings and increased sales for your business. The speaker shared his experience of giving away a large percentage of profits to eBay and how he turned the situation around by implementing a strategy to encourage customers to buy directly from him. He suggested creating a leaflet or brochure to offer discounts and freebies to both new and returning customers, explaining the benefits of buying directly from the business. He also mentioned the potential financial advantage of registering a business and reclaiming VAT, which could provide a substantial cash flow boost for further investment in the business. Overall, the key message is to focus on customer acquisition and retention, and to explore all available opportunities to optimize your business operations and grow your revenue.
E-commerce success factors: To succeed in e-commerce, focus on excellent customer service, competitive pricing, targeted marketing, offering related products, free returns, next-day delivery, positive reviews, personalized touchpoints, building a direct customer base, and moving beyond eBay sales.
Building a successful e-commerce business involves more than just selling products on platforms like eBay. To thrive, businesses need to focus on providing excellent customer service, offering competitive pricing, and encouraging repeat business through targeted marketing efforts. This includes creating a one-stop shop for related products, offering free returns and next-day delivery, and maintaining a strong online presence with positive reviews. Additionally, businesses should aim to build relationships with customers and provide personalized touchpoints, such as branded packaging and follow-up emails, to encourage repeat purchases. Finally, it's essential to move beyond relying on eBay for sales and work on building a direct customer base. This can be achieved through targeted marketing efforts, offering credit accounts to good customers, and providing excellent customer service. By focusing on these areas, businesses can move beyond just surviving and begin to thrive in the e-commerce space.
Marketing mindset, customer acquisition: Having a small customer base doesn't provide enough data to determine business success. Focus on customer acquisition through learning marketing and reaching out to potential customers daily.
Starting and growing a business requires a marketing mindset and a willingness to learn. Josh's experience with email marketing and selling leaflets shows that having a small customer base doesn't provide enough data to determine success. However, it's important to understand that everyone's definition of success is different. Some people may prefer the stability of a job, while others see entrepreneurship as the way to go. Regardless, becoming a marketer and focusing on customer acquisition is crucial in the first few years of business. It may be necessary to learn marketing through books, courses, or working with experienced marketers. Additionally, understanding that some competitors may sell products at a loss to gain market share is important. Lastly, utilizing platforms like Facebook groups to reach potential customers and making offers daily can help make a business stand out. In essence, being proactive in acquiring customers is essential for business growth.
Fasteners sourcing, Marketing efforts: For traders seeking discounted fixtures and fastenings, consider Frank's Fasteners. Continuous marketing efforts are essential, even for established businesses, and there's always someone facing greater challenges.
For traders looking to purchase fixtures and fastenings directly from a reliable and discounted source, they should check out Frank's Fasteners at franksfasteners.co.uk. Josh shared his personal experience of discovering the podcast and the value he's gained from the information shared. He also extended an offer to send James his book, "Getting Customers," in exchange for Josh reading it and applying the lessons a year later. The conversation touched on the importance of continuous marketing efforts, even for established businesses, and the reminder that there are always others facing greater challenges. Ben Shorabi was introduced as a new team member, responsible for wordsmithing and graphic work. The podcast aims to help business owners grow their businesses, so listeners are encouraged to rate, review, and subscribe to spread the message.