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Starting A Part-Time Business – DIY Business Blue Print.

Planning is important for success if you want to give yourself the best chance of being successful

Let’s deal with the elephant in the room first. Many people are inhibited from starting a part-time business because they believe the idea has to be original. Sure, if you are patenting a product or trying to develop a unique business model you’d hope that to be the case.

For a part time business a little perspective is needed.  You might be relying on a new business for all your income or perhaps you are working and testing the water.  This will probably be a service orientated business. Location, pricing, a personality, and services provided will make your business unique to you.

It’s important to put your thoughts down on paper. A plan of some form is essential.  This will help focus your efforts and assist with borrowing any money; even if you’re only going to ask family or friends for a loan.  It’s a test of sorts.

Give Your Part-Time Business Ideas A Workout

For a part time business it’s useful to think in terms of 30% capacity. Don’t do your sums based on full time numbers.  Think in terms of existing skills, interests or pulling ideas from previous work experience.  Avoid a conflict of interest with any current work commitments – it will only get messy.

You may not have honed one idea.  There might be a few floating around. Give any and all ideas a thorough workout. Some of the questions you can test your ideas against include:

  • Is this something you enjoy?
  • Is this something you can do to a good standard?
  • Is this a business that doesn’t require dedicated premises?
  • Why do you think there’s a market for the business? How will you find customers?
  • What costs are involved in starting? Do you have to buy special equipment?
  • Can you find soft customers to get you going? Friends? Friends of friends?
  • How long will it take to get your money back?
  • How much can you earn at 30% capacity?
  • What will make your business different / stand out from others in your location?
  • Can you get some unbiased feedback on your idea?

Using questions like these you can screen ideas out.  Key points to remember include a requirement to be home based. Any idea that really needs premises is a whole different kettle of fish; likewise needing to employ other people.  A skill you have today and require no further training for is ideal.

Researching Your Idea

It sounds a bit boring, but some research is essential even for a part-time business.  You want to make money, right?  Don’t snooker things before you start.  Common mistakes include not doing any research and being crippled by analysis.   A pragmatic approach is needed.

Some understanding of the sector you’re working in is essential.  This will include any relevant legislation and trends.  What do your potential competitors charge?  How do they find customers?  What are customers’ common issues?  Which part of the local market would you focus on?  Do your target customers find your marketing message attractive?

Being able to speak to real people directly is a local business’s big advantage. You can also test the competition. Use a window cleaner or  a dog walker – whatever is applicable to your idea. The more detail you have about your target consumer’s unmet needs  the better.

Give people a reason to buy from you.  It can be a mistake to always lead on price i.e. being the cheapest.   One common practice is using a temporary introductory offer. As long as you make it clear it’s a time limited this type of promotion is common and worthwhile when business gets a tad slow.

One option when starting is to use a form of polling to complete your research.  This is a useful complement to doing your own hands on research.  Online you can set up your own survey for the price of a dinner for two.  Limit the number of questions and responses required to manage costs and your time.  Make sure your questions are concise and unambiguous.

For any research, don’t dismiss feedback out of hand, just because you don’t agree with it! All research is a learning curve.

Review And Reiterate Or Bin

By now, you should either have a workable idea backed up by some research or a no-go that belongs in the bin.  If you are taking your idea forward you should now be clear on customers, finances, and a point of differentiation.

Finding Customers – Marketing

You don’t need a marketing plan.  But you do need to know how you will find customers.

These days marketing a small (tiny) business can be done for pennies.   A window cleaner, for example, might put cards through doors in selected streets. Also consider complementary promotion.   A dog groomer might leave business cards in local veterinary surgeries. A photographer might leave cards with a wedding boutique.

Don’t get distracted by thinking you must have a website although it can be useful to put a website name on a business card.  Think initially of  a free web presence using WordPress.  This can be helpful for a business if trust is important i.e. tutoring. Another angle is to use vehicle signage.

But your approach depends on  your idea. A Facebook page can work well especially if your friends are going to be among your first customers. Avoid non-specific / targeted marketing such as ads in local newspapers. Think in terms of a budget of less than £200.

Funding Your Business

Forget the bank.  Set up a part time business you can afford or borrow from family for friends.

Crowdfunding while it sounds attractive suits a business that’s built up a following on social media to make the most of it.  You may not have the time or inclination initially while you are finding your feet.   However if you go that route further down the line, it can be an excellent way to prove a business concept.

Putting Everything Together In A Two Page Plan

The bigger and more complex a business the bigger the business plan. You only need a couple of pages for self-discipline unless you need to borrow money.

Add an objective, then sections on the business, your market/ customers and marketing and money – basically tying together how you will meet your objective.  As long as the business is just a vehicle for you to earn an income, focus on writing a document that’s useful for you. A form of aide memoire.

Starting – Making The Most Of Your First Customers

Pull in favours to get your first customers and then make the most of them in marketing terms.  This applies to jewellery makers, cat sitters and instructors.  Any solo business.

Make sure you get glowing testimonials and use them even if only on the back of your business cards. Add the best to an email signature. Develop a testimonials section if you started a WordPress blog.

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