Start up Dilemma.. Now What?
Discussion
Who is Eric?! haha my ex was studying accountancy breaking up with her could then potentially cost me alot of money! hahaha so for now lets say whilst I am testing the waters just keep a log of money taken/ expenses etc then in a few months time register the company and sort tax etc? That is what I am reading from that, correct me if I am wrong 
Best thing I ever learned was When they buy it, shut up. Thank you, sign here, go.
As far as putting out long posts is concerned (as part of the business), get the client to write it. Even the small messages/updates come to think of it.
As a potential punter of this sort of service I'm quite happy writing copy, it's just the mechanics of getting my messages out there that I would want help with.
As far as putting out long posts is concerned (as part of the business), get the client to write it. Even the small messages/updates come to think of it.
As a potential punter of this sort of service I'm quite happy writing copy, it's just the mechanics of getting my messages out there that I would want help with.
sammc123 said:
so for now lets say whilst I am testing the waters just keep a log of money taken/ expenses etc then in a few months time register the company and sort tax etc? That is what I am reading from that, correct me if I am wrong
sammc123 said:
As I am digging deeper and deeper into this its becoming alot more complicated than I originally expected! Slowly learning the world of business!
Your business will be very simple fee-based work. It goes like this:1) Find the work
2) Quote (say) £50 for it
3) Do the work
4) Send them a bill for £50 - this is called an invoice
5) They send you £50
6) You keep a record of its arrival
There is an option (2a) 'Get paid in advance', but they may say no. Hence you have a possible credit problem if they decide not to pay your invoice.
You must keep a record of all money in and out that is connected to the business - and to keep this separate from your private money you should open a dedicated bank account. In very simple terms, all the money that comes in is called 'turnover', and any costs involved in achieving that are deducted to give 'gross profit' (how much is left before tax).
Tax will comprise income tax and national insurance. I'm not an accountant but suspect all your profit will all be taxable at 20% because the bus job is using up all your personal allowance. Keep your numbers in order and pay your tax on time because you want Mr HMRC to be your friend.
You may have a business but you do not (yet) have a Company. A Company is a separate legal entity set up if you incorporate (set up a Limited Company). If you choose 'sole trader' then all you have to do is tell HMRC you are starting.
I think your problem will be getting enough £50s to make it worthwhile, especially when you consider how many hours it will take you to find, earn and get paid for each £50, and that you will be operating in a fickle environment where everybody expects things for free.
Okay Richard well a few ways I can see that conflicting would be how would the Client justify giving me £100 per week to just push post for them on SM sites? They wont do that. Secondly if the client was to write them and for this example I will use Twitter as the SM Platform, whats to say they are going to word it correctly? Without wording correctly the post will only realistically hit there initial following. If worded correctly the potential of viewers will go up drastically by people searching for the products or services provided by the client. Ill give you an example lets use the bridal shop again. Lets say the client wants to run a competition to gather more of a following and create some brand awareness.
Client writes : Win a tiara at "Name of bridal store"
I would write : For you chance at winning a "name of brand and item" at "Bridal store" simply follow and repost/retweet to enter. #wedding #bridal etc etc
Do you see how it is totally different yet produces the same message? The idea of sending out these post's is to gain awareness about your business/ brand and potentially increase sales. If someone is marketing there SM to gain quick sales it will never happen it just wont. SM is used to bring awareness with the added potential of sales not sales alone.
Client writes : Win a tiara at "Name of bridal store"
I would write : For you chance at winning a "name of brand and item" at "Bridal store" simply follow and repost/retweet to enter. #wedding #bridal etc etc
Do you see how it is totally different yet produces the same message? The idea of sending out these post's is to gain awareness about your business/ brand and potentially increase sales. If someone is marketing there SM to gain quick sales it will never happen it just wont. SM is used to bring awareness with the added potential of sales not sales alone.
Edited by sammc123 on Friday 7th February 12:07
Also the homework that has to be put into creating these post's will be difficult following trends in different industries etc. I have decided over the next week and weekend I have left I am going to target just 2 industries starting out, they are B&B's and Bridal Stores, I believe these 2 will have the best option to start out and the most "simple" in terms of homework/industry information etc
In terms of gaining enough clients to make it worthwhile will definitely be alot of hardwork. I was just thinking and had the thought of how much easier this could be if I had a office the size of my last sales job with about 35 people on the phones and a SM team haha! One can only dream!!
Speak to an accountant, minimise your initial spending on stuff that is solely for the business but get a good business card webpage etc, anything you do initially buy, buy with the thoughts do I want this can I use this? so basically have a plan incase it fails do you really need a whole seperate pc and mac etc.
That is my plan right now I am just building my site, then will be sorting business cards out. I will need to get a monthly subscription to buffer/hootsuite but for that I will go for a small business account with up to 10 account for now where I am starting that is £7.99 p/month. I am trying everything possible to reduce spending on unnecessary things right now. Computer wise isn't really an issue I will use my Laptop for most things but in the event of it dying on me or needed an extra screen to work I also have a desktop PC available for use here.
Are you overcomplicating things? Yes, there are options to diversify into fee based media management, [and other things like web and other media design] depending on client needs [and available budget], but your original proposal sounds like (and do correct me if I'm way off) for £60 a month, I'll send you a weekly brief of news, offers etc for you to pick from and bung out [also weekly] on these new fangled social media things that you've helpfully set up for me.
I (as a punter) would give it 3 months, pay up front even [discount this heavily for your first few clients, you need them for recommendations - £99], and if I see increased traffic I might want a bit more of a bespoke service. £20/25 an hour? Sounds reasonable if the results can be sustained.
It's still cheaper than an ad on the back of your bus and has the potential to get you out of the thing.
I (as a punter) would give it 3 months, pay up front even [discount this heavily for your first few clients, you need them for recommendations - £99], and if I see increased traffic I might want a bit more of a bespoke service. £20/25 an hour? Sounds reasonable if the results can be sustained.
It's still cheaper than an ad on the back of your bus and has the potential to get you out of the thing.
Yes this is pretty much correct except after working through numbers and help from other posters on this forum I have revised the cost's of the service and I am currently at the drawing board for different packages to cover different business needs and business budgets. Lets say you want on average 6 posts a day over 5 days that is 30 posts alone and if using other platforms also it quickly adds up, lets say 60 posts a week over 2 platforms for £2 a day? After the discussion on here about the cost its seems quite evident I would basically be working crazy hours for little to no pay. This weekend will be a long one working through everything but to put it simply, the idea is to take control of SM for clients who either are too busy to actively use SM or dont know where to start and want to actually have there business marketed through the platforms.
Two things jump out at me-
I'd always try for even a basic contract, 3 months, 6, 12. That'll tell you if they are happy with the spend or are taking a one month punt for £60. And it obviously gives some security for you. Personally I'd avoid them like the plague, it's their own money whereas in bigger businesses it's someone else's. One is a lot easier to spend than the other.
The other thing on the bridal shop- always speak to the partner by phone. If you let the owner speak to the partner they won't pitch the benefits the same as you, they'll only see the cost and you'll get "sorry, my partner isn't up for it" (sometimes a convenient/polite/s
tebag excuse), by which time it's too late to turn around. Qualify all decision makers before spending any time on proposals etc.
Edit: make that three
Small businesses like to think they get all their business through word of mouth- ask them if you don't believe me. SM is essentially electronic word of mouth so I'd be using that as my angle.
leemanning said:
For instance that bridal shop, what happens when somebody posts on there saying 'Hey I'm getting married soon, do you have XX dress in stock?' Are you expected to reply to that? As they will be thinking 'I pay him £60 p/m to manage my social media' so will that fall under your remit?
Small businesses will see £60 a month as a lot, and expect the moon on a stick in return. It depends on what they're used to spending on marketing. If the most they normally spend is £25 every six months in the local free directory a £60/m fee is a lot- they'll want quantifiable results. I'd always try for even a basic contract, 3 months, 6, 12. That'll tell you if they are happy with the spend or are taking a one month punt for £60. And it obviously gives some security for you. Personally I'd avoid them like the plague, it's their own money whereas in bigger businesses it's someone else's. One is a lot easier to spend than the other.
The other thing on the bridal shop- always speak to the partner by phone. If you let the owner speak to the partner they won't pitch the benefits the same as you, they'll only see the cost and you'll get "sorry, my partner isn't up for it" (sometimes a convenient/polite/s
tebag excuse), by which time it's too late to turn around. Qualify all decision makers before spending any time on proposals etc.Edit: make that three
sammc123 said:
Sales Call I go through how important SM is currently for advertising,
FFS don't mention advertising on the phone to small businesses. Sure fire way to lose people's interest. Unless you're telling them that advertising is crap/expensive and why SM is so much better.Small businesses like to think they get all their business through word of mouth- ask them if you don't believe me. SM is essentially electronic word of mouth so I'd be using that as my angle.
Edited by technodup on Friday 7th February 20:22
technodup said:
Small businesses will see £60 a month as a lot, and expect the moon on a stick in return. It depends on what they're used to spending on marketing. If the most they normally spend is £25 every six months in the local free directory a £60/m fee is a lot- they'll want quantifiable results.
Mmm. One thing that the canny business owner will be looking at is ROI.OP, it's a great idea and something I can see taking off, drive the bus, do this in the evenings and weekends and see how it goes, I think you've got a superb concept and time will tell if its a viable business.
Something tells me you won't be driving that bus your entire career!
Good luck and keep us posted.
Also echo Lees comments ref the menu structure, much cleaner way of doing it, clients expectations are set correctly and as importantly you're paid for the extra work.
Something tells me you won't be driving that bus your entire career!
Good luck and keep us posted.
Also echo Lees comments ref the menu structure, much cleaner way of doing it, clients expectations are set correctly and as importantly you're paid for the extra work.
Having worked with internet based companies for a number of years I can say most people you come across will have no idea about the internet, and social media in particular, except that they need to use it.
Running a business, especially a small one means they will have little time to get into it either!
I think a monthly package is a great idea. As has been mentioned it will provide your clients with a measure of what they are getting, and allows you to scale your business so you can cope with the workload to a level you control.
I work in quite a niche industry, all our business is online. Most of our competitors outsource their Google PPC, but just do bits and pieces on social media. We do have a few in house marketing people and I can say we have reaped the results of a consistent approach.
Offering what you are will be perfect for many businesses, and I am sure you will make a great success of it.
Running a business, especially a small one means they will have little time to get into it either!
I think a monthly package is a great idea. As has been mentioned it will provide your clients with a measure of what they are getting, and allows you to scale your business so you can cope with the workload to a level you control.
I work in quite a niche industry, all our business is online. Most of our competitors outsource their Google PPC, but just do bits and pieces on social media. We do have a few in house marketing people and I can say we have reaped the results of a consistent approach.
Offering what you are will be perfect for many businesses, and I am sure you will make a great success of it.
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