Clean-tech entrepreneur Elon Musk is a man who never fails to surprise. But I must admit to being knocked for six when I received a DM from him. I’d dropped him a cheeky Tweet to offer to beta-test Starlink, the new satellite internet technology that SpaceX is developing. Obviously, I thought I’d have more chance of taking a flight to the moon than hearing from him. That’s why when Elon got back to me, I was more than a little gobsmacked.
Even after Elon had agreed to let me amongst the first 1% of people in Europe to beta-test Starlink, I didn’t really believe it. But when, some weeks later, the complete kit – including a £4,500 satellite – was delivered to my front door, it became clear I wasn’t dreaming. As a pioneer in electric vehicle technology, Elon has inspired me. It’s thanks to trailblazers like him that clean-tech entrepreneurs like me have been able to launch our EV businesses. Now I was about to take part in the development of his latest innovation.
What is Starlink?
For the uninitiated, Starlink is SpaceX’s satellite internet constellation, built to provide superfast global internet coverage. The business is aimed at selling high-speed internet access to anyone in the world, particularly those in rural areas where broadband connectivity is limited or non-existent. It works by deploying a network of orbital satellites that are 60 times closer to the earth than traditional satellites. In doing this, the company cuts the time it takes to send data from one point to the next. The term they use is ‘lower latency’ internet that offers high speeds and high performance. As the company grows and deploys more satellites, so the service becomes even better. So far, in two 2021 launches, SpaceX has sent 120 satellites up.
While I cannot claim that I live in a particularly rural area, Norfolk as a county is infamous for internet connectivity challenges. Too many people here don’t have reliable internet, and this issue limits potential here in the county. However, Starlink can level the playing field and deliver the kind of internet coverage that Norfolk and other rural areas globally should have access to. I’m so excited about the opportunities it’ll provide for innovators and business in the local area, as well as domestic internet users. The expected cost per month is likely to be £89.
Getting set up
The kit itself was simple to assemble. I was sent a small satellite which I set up to receive the signal and pass the bandwidth onto a router. First, I had to download the Starlink app, which gave me advice on where best to position my satellite with clear access to the sky. Once mounted on the tripod they sent me, I connected it with the cables to the router. During this beta testing period, I’m told to expect speeds varying from 50Mb/s to 150Mb/s. This speed should increase as more Starlink satellites are deployed.
If Elon Musk’s current projections are correct, we could be looking at a global rollout for the Starlink system by 2022. It’ll be a gamechanger, and it’s thrilling to be part of helping them test and develop it further. I’m hoping to make some videos in the next few weeks to show how I’m getting on with my Starlink satellite and my thoughts on the kit. It’s going to be fascinating to see how it goes.
Be inspired
I hope you’ll be encouraged by this story to reach out to the people who inspire you. I never thought that Elon Musk would read my message, let alone respond and invite me to beta test Starlink, but it happened. If an ordinary person like me can get an opportunity like this, it should inspire you to be bold and speak up when you want to be part of something big. If you are willing to ask for something or put yourself forward, you never know what might happen. Why not take a chance?
Does the idea of planning and setting measurable business objectives for your freelance or side hustle business scare you?
Planning can seem frightening, because when you’ve got a plan, you’ve got more than just a vague idea. You’ve got something real and measurable to work towards. Something that tells you whether or not your business is a success.
In my experience as a business coach and mentor, this is exactly why so many people are scared of planning!
Business Objectives vs Self Belief
They worry that they might not achieve everything they’ve set out to do. They also don’t truly believe they will achieve it!
And then what?
As a business mentor who specialises in supporting freelance, solopreneur and side hustle businesses, I can tell you that running a business by yourself can heap on the pressure you feel to get everything right.
After all, working for yourself isn’t like working for a faceless corporation, where everything gets swallowed up in the machine. When you’re the only one in charge, there’s nowhere to hide from bad business ideas!
But I’ll let you into a secret: failure is a good thing. Every top entrepreneur knows that we need failure to succeed, because it’s how we learn and become better next time.
Success is not final, failure is not fatal: it is the courage to continue that counts
Winston Churchill
Why Your Own Self-Worth Means More than You Think when Setting Business Objectives
Do you really believe you’ve got what it takes to be successful? I mean, do you REALLY believe it?
From my experience working with freelance and side hustle business owners (not to mention years of running a solopreneur business myself!) I understand the importance of mindset. Specifically the mindset around your own self-worth. This can have a major impact when it comes to setting the right objectives – or any objectives – for your business..
If you don’t believe that you’ve got something other people will want to buy (and buy it from you), then it doesn’t actually matter whether you have or not! Your lack of self-belief will prevent you from setting objectives that will lead you to the right customers.
I once worked with a cake maker who priced her products purely on what she thought people might pay for a cake. Rather than pricing the ingredients and other costs so that she knew, exactly, how much each cake would cost her to make.
When we sat down and looked at her figures, we discovered that she was making a loss on every cake she made!
In this case, she was scared to properly price her cakes. Her thought process? If people refused to buy them for what they actually cost, it meant they were ‘rejecting’ her. Our work together as mentor/mentee did involve practical business advice and guidance; but there was also a lot of mindset and self-worth work in this case too.
Business isn’t complicated; more often then not it’s simple maths.
Example: If your average customer spend per month is £200, then to make £2,000 every month you will need to find ten customers.
As I said, a very simple calculation. However, if you don’t believe that you will be able to get ten customers, you might be tempted to aim lower or not aim at all.
Or it could be that you have a fantastic idea about running an all-inclusive retreat, yet you feel nervous about asking people to pay what it would cost.
(But what if some people were ready and willing to pay?)
How to Start Setting Realistic Business Objectives and Goals
First, a few definitions:
Objective: this is the top-level description of what you want to achieve, for example, more customers
Goal: goals break down the objective into time-specific, measurable outcomes, for example, those ‘more customers’ becomes ten more customers
Action: once you have a set of measurable goals, you need to work out how you are gong to achieve them. Then you need to create a list of actions you will take. So, what will you have to do to get those ten more customers?
Attend 5 networking meetings in the next 2 months
Host a webinar in 6 weeks time
Create a special offer and promote it over the next 8 weeks
Post regularly on Facebook for the next 4 weeks
etc. etc.
A good place to begin with objective and goal setting is by looking at your financial targets. If you know how much your business – and your life! – costs, then you will need to set objectives that mean you can afford them!
Here’s a simple example:
Your business costs you £750 a month to run and you pay yourself £1,250 a month. You currently turnover £2,000, but you want to invest in a new website and pay for some business mentoring support. So, you will need an extra £500 per month. You have 10 customers and your current, monthly customer value (i.e. the average you take monthly from each customer) is £200.
Let’s see how this turns into an objective, goals and actions:
Objective: Increase monthly turnover
Goal: Increase monthly turnover by £500 to £2,500
Now there are a few ways you can go with the Actions; you can approach them separately, or in combination. For example, you could introduce a number of actions that would bring you more customers. In this example you would need 3 more customers spending an average of £200 each to bring you the £500+ you need.
Another option (or maybe, an additional option as there’s nothing stopping you doing both!) would be to increase the value of each customer sale. You could do this by encouraging current customers to buy more, or you could increase your prices.
In this example, if you did a combination (which i would always recommend), it could look something like this:
Increase your prices by 10% – this would make the average income from each customer £220, so your 10 customers would bring you a total of £2,200 per month. Annually, the difference would be an increase in turnover from £24,000 to £26,400.
Now you only need to make another £300 to reach your £500 a month target
Create a new product or service – something your current customers have been asking for; something low-cost, maybe £15 a month. Even if only seven of your current clients buy it, you’ve made another £105 per month. If we look at the annual turnover to include this increase you would move from £24,000 to £28,200.
Now you only need to make another £195 to reach your £500 a month target
Get one new client – we always think this should be our first step, but getting new clients is seven times harder than it is to get clients who but from us already to buy from us again.
I usually recommend my clients to make this a final option.
In this scenario, one new client would bring in £220 per month (remember, you’ve put your prices up and maybe they’re not ready to go for your £15 a month add on).
Now your monthly turnover would be £2,525 and your annual turnover would move from £24,000 to £30,300
Three things have happened here.
One simple objective has been set
A measurable goal has been identified
Specific actions have been created
This example shows that small increases, low-cost items and one extra client can add £6,300 per annum to this business.
If you need to know how to do this in your business, book a Breakthrough Session today
The Importance of Understanding Your Market
Once you’ve looked at your financial targets, it’s time to take a closer view of your market.
In other words, you’ll need to make sure your business objectives and goals are the right ones to attract your ideal customers.
You can use the four Ps to help you on your way: Product, Price, People and Promotion.
All four of these Ps need to be in alignment when you set your business objectives.
For example, if you’ve got the right Product and it’s the right Price but you’re Promoting it to the wrong People, you will find it virtually impossible to achieve your goals.
A common mistake freelance and side hustle business owners make, particularly in the beginning, is blindly marketing their products or services to the people they usually mix with. Targeting people they know from regular networking events, or friends of friends.
A more successful strategy would involve finding and targeting the people who would most benefit from your product or service. This may mean casting your net wider, such as contacting new people on LinkedIn, or running a targeted marketing campaign.
Do You Know Where You Will Be Five Years from Today?
I’ll be taking a more in-depth look at micro and side hustle business objective and goal setting in my next post. Meanwhile, my Five Year Timeline will help you set out your intentions, and ensure you can come up with a clear business plan that fits in with your life.
From developing a resilient mindset, to building workplace wellbeing for now and future generations, why not spend your Knowledge Hour this week nurturing your and your employee’s mental health?
We all know the importance of taking time out of the working week to take care of our mental health – but how many of us actually do it?
Here at Norfolk Chambers we are encouraging all businesses to spend just 1 hour a week learning something new, which can help you and your employees help their mental wellbeing and support your business growth. We would like our campaign #KnowledgeHour to be implemented by businesses far and wide – and Norfolk businesses can lead in this charge.
There are many learning and development resources on the Norfolk Knowledge Hub, a digital learning hub that is free to use, free to share your content and gives you uninterrupted videos, podcasts and articles (there is no danger of pop up ads here!) so that you can easily spend 1 hour a week on your wellbeing and professional development.
Here are our top 5 Knowledge Hour videos and articles to start you on your journey to implementing wellbeing in the workplace:
Recovery Programme – Developing a Resilient Mindset – Ask the Expert
A resilient skillset is now, more than ever, considered one of the most important areas in which we can develop. Many people are now referring to resilience as a ‘must-have’. In this video by learning and development providers Turning Factor, you can learn all the skills required to be able to persevere, learn from our perceived failures, maintain motivation and perspective.
Job quality matters – building workplace wellbeing and engagement into the new normal
How can you build wellbeing and engagement in your business? In this video Dr Helen Fitzhugh and Professor Kevin Daniels from the UEA, and Professor Colin Lindsay from the University of Strathclyde discuss how focusing on job quality can help businesses and workers be ready to tackle new challenges. You will come away with evidence-based insight and guidance on the importance of employee engagement and wellbeing for productivity, performance and innovation in business.
Each day we use measurements in our lives, those different types of evidence we continually gather to determine how ‘successful’, ‘happy’, ‘satisfied’ or ‘fulfilled’ we feel, and if we’ve achieved what we have attended to. In this video Joe Mills from The Tree Academy looks at these measurements to help you set metrics that reflect the life you have now and what you would like to create for your future.
Reaping the Benefits of Rest & Relaxation – Compass Discovery
We all look to achieve that work/life balance right? In this article Compass Discovery talk about their top tips on how we can all achieve this, referencing neuroscientific studies that confirm that an increase of alpha brainwaves through the process of quiet contemplation and meditation can reduce depressive symptoms and increase creative thinking.
Our ability to manage our own emotions and recognise and influence the emotions of others is fundamental in our ability to lead and manage successfully. In this video learning and development providers Turning Factor shows you how to harness the positive and manage the negative, helping you manage emotions in the workplace.
Your business is growing, your order books are full, and everything is going well. But what’s the best way to draw money out, so you can feel the benefit of your success?
When you started out, you might have provided a loan to the business before you began making sales, and your cash flow was low. Just like any other loan, it’s payable back to you, and the repayments you receive aren’t subject to personal tax.
Salary
As the boss, you can earn a salary from your business, just like any other employee. However, as you have other earning options from the company, you might want to keep the salary part of your income low, to reduce the tax you pay. For example, you can take a salary of around £9,000 without incurring national insurance or income tax – and your salary is also seen as a tax-deductible cost to your business.
Reimbursable expenses
As long as your expenses are only for work, you can claim them back from the business. HMRC also allows other options for using personal assets for business. For example, if you’re travelling in your own car on business, you can claim 45p per mile without incurring income tax. As an added bonus, there’s no personal tax to pay on this, and you get a reduction in corporation tax.
Pension
Both employers and employees can contribute towards a pension fund set up by the business. This is an allowable expense against personal tax, and your company can save 20 percent corporation tax on the amounts paid. (But if your business is growing and needs to maintain cash flow, you might not want to be paying out money you can’t access until you retire.)
Dividends
Once your company has paid 20 percent corporation tax on its profit, you can pay what’s left to shareholders as dividends. This way, you can keep salary costs low and pay your shareholders after earning actual profits. This is the most tax-efficient way for owners to earn from a business.
Each of these options has pros and cons, which you’ll need to consider before going ahead. We can help you navigate through them, to ensure your business continues to grow, and you continue to earn.
You can view this original Price Bailey article here
If you’re a Solopreneur, then the chances are you enjoy all the thrills and spills that come from going it alone in business. (The clue’s in the name… ‘solo’-preneur!) But there comes a time when you want more … time, money, clients, recognition. What do you do then? How do you scale a Solopreneur business – when your business is just you?!
Solopreneur
/ˌsəʊləʊprəˈnəː/
noun
a person who sets up and runs a business on their own
As a Business Mentor who is a Solopreneur, and someone who’s been there, done that, and wears the T-shirt to prove it, I understand how exciting it feels when you take charge of your business destiny.
But I also know how it feels when you hit a plateau.
So, let’s go back in time for a moment.
You bravely turned your back on the 9-5 and launched your business in a blaze of glory. Armed with a brilliant idea and a bucketload of passion, you weren’t sure if you’d be a success or a failure… but you were determined to give it a good go!
Now, after a LOT of hard work, late nights, and missed catch ups with friends, you’re the successful Solopreneur you always dreamed about being.
As such, everything is ticking along just fine – but that’s not good enough anymore!
It’s time to take your business to the next level.
But if you’re anything like I was at this point, you’ll have identified three issues.
One: you’re not exactly rolling in cash
Two: you don’t want to give up that precious freedom you’ve worked so hard for
Three: you never want to hire and manage staff
Here’s why scaling your Solopreneur business for growth doesn’t have to mean investing piles of money you haven’t got… or building a world-dominating empire that means recruiting vast teams of people.
So, want to know how you can grow and scale your Solopreneur business? Here are eight proven ways that keep you solo and firmly in the driver’s seat.
1. Outsource
You know those jobs you hate, but you keep on doing because it’s YOUR business?
Things like writing and scheduling endless blog and social media posts, managing your business accounts, and making sure your website is up to date.
Outsourcing to professionals who love the jobs you hate will give you time to work on a plan that focuses on growing your business, rather than dealing with distracting day-to-day tasks.
(Let’s be honest, it’s also likely those pesky jobs will be completed to a higher standard than if you’d completed them yourself!)
2. Invest in a CRM
Growing and scaling a business effectively means getting organised.
Investing in a CRM (Customer Relationship Management) system will help you manage your customer data in a way those paper lists and Excel spreadsheets just aren’t capable of.
With a CRM you will be able to store messes of data such as, user behaviour, how long a customer has been with your business, purchase records, and notes on sales interactions, which you can use to optimize your sales and marketing processes and improve customer service across your organization.
customer behaviour
how long a customer has been with you
how often a customer contacts you, engages with you or buys from you
purchase records
notes on sales and interactions
With all this information you will be able to make informed decisions which means you which you will be able to optimise, automate and streamline your sales and marketing processes. This will help to improve your customer service and increase your sales.
Both essential if you are looking to grow and scale your Solopreneur business.
There are lots of CRM options available. Two of my favourites are the freebie from Hubspot’s and the really cost-effective one from Capsule.
Make sure you do some research into the best CRM for your business.
3. Productise Your Business
Don’t worry if you don’t know what ‘productise’ means!
It’s a word I made up to describe how you can make tangible ‘products’ to sell when your business usually involves exchanging time for money.
The problem many service-based Solopreneurs face is how to grow and scale their business when – essentially – they sell time for money.
If you’re a Coach, a Consultant, a Personal Trainer, a Therapist, a Copywriter, an Accountant etc it may seem that the only way you can scale up is to work more hours, charge more per hour / per project or to bring in a partner or staff.
Any one of those things will change the nature of the business you have built and love.
But there is the option to ‘productise’.
An example of the introduction of physical products could be that of one of my clients, She is a massage therapist; a hands-on, treatment-based business. Because she can only physically work with around six people every day, her turnover is limited. Limited by the number of hours per day and the number of days in the week she works.
However, if she ‘productises’; selling sleep masks, scented candles, or pillow sprays at the consultation or via her website, she can increase her income.
[BTW: I think she should increase her prices too]
But what about if you don’t have the kind of business that would work easily alongside additional products like these?
You could:
Create a course
Write a book
Have a subscription-based Group on Facebook
Work with a group of people rather then one-to-one (one hour x 10 people is more cost-effective than 10 people x 1 hour each!)
If you want ideas about how you could Productise your business, let’s talk
4. Automate Tasks
The less you have to do of the daily grind, the more time you will have to spend with the customers who pay you – and more customers means business growth and scale.
This is why automation is a godsend for any business. It takes repetitive tasks off your hands, seamlessly running them in the background for you!
Do some research into the tasks that could benefit from automation in your business. For example, you could set up an automated email series for people who sign up to your mailing list, invest in an accounting software package, automate your customer appointment bookings or pre-schedule social media posts for certain days of the week.
Every five minutes you don’t have to spend on these tasks is five minutes you can spend with someone who pays you.
5. Maximise Your Email List
If you haven’t built an email list yet, why not?
Here’s a guide to getting going with building your list
The return on investment for email marketing is estimated at £42 for every £1 you spend – and since some platforms (like Mailerlite) are free to start with, you may not even have to spend that!
Entice people to sign up to your list by creating an enticing lead magnet (check out the ones I have included on my Business Toolkit page), then use your subscriber data to send targeted messages with information and offers they’ll appreciate.
6. Build Your Personal Brand
Far more than just your logo, your personal brand encapsulates everything people see, hear, think, and feel about you and your business.
Your personal brand is built around your values – so make sure you understand what these are, and how best to explain them to your customers.
If you struggle to define your values, you could start by thinking of five words that best describe your approach to business (fun, confident, reliable, etc.!)
7. Spend, Spend, Spend
OK, I might have got a little carried away.
But there’s no escaping the fact that a successful business costs – as well as makes – money.
The secret is to spend wisely, on the tools, tech, and expertise you’ll need to facilitate successful business growth.
This includes outsourcing and automation, plus marketing, memberships, and training to keep your skills fresh (and your business competitive.)
8. Review and Reflect (With a Helpful Mentor!)
It’s no secret that planning is an essential ingredient for success (I call it the link between passion and profit!)
But there’s no use coming up with a brilliant business plan… that you never look at again.
You’ll only know if things are going according to plan – and how you can adjust your goals for future growth, if you review and reflect on your results.
As a highly experience Business Mentor who specialises in working with one-person businesses, I will help you get to grips with what really matters, so you can roll up your sleeves and get stuck into those plans for the growth and scale your Solopreneur business deserves.
A chance meeting at a networking event, conference or, yes, even in a lift, could turn out to be with the investor, partner or customer who propels your business into the big time. We look at why – and how – you should develop a winning elevator pitch.
The ‘elevator pitch’ is a one- to two-minute summary of who you are, what you do and why you do it. It’s a vitally important business tool, crucial to taking on new clients and partnership ventures. We spoke to three experts for their advice on how to make that time matter.
What makes a good elevator pitch?
“The first thing you come to realise is how often you simply can’t understand what somebody does,” says Sheraz Malik, director of the Yorkshire Enterprise Network. Malik has been the recipient of a diverse range of pitches across a wide variety of sectors, and suggests that younger entrepreneurs in particular need to hone their offering.
“They almost seem to feel there’s a necessity to create an illusion around what they do,” he says. “It’s like they believe that ambiguity, in some way, creates more interest. An elevator pitch is an explanation of your value proposition as a business. It’s important to have a clear definition in order to be able to network and promote your offering with clarity.”
Malik suggests that a pitch delivered to a chance encounter should be more akin to an extended job title. “It’s not your mission, or even your story; it’s what you actually do and your USP. It’s so easy to send out a convoluted message when the opportunity of a prospect presents itself. You can find yourself responding to that impulse to pour out a mass of information with the hope of demonstrating absolutely all of your abilities. The general environment surrounding an elevator pitch demands a more subtle approach. You need to give the recipient a chance to absorb and process what you’re telling them.”
Body talk
Connie Galle, an executive recruiter and trainer who has worked with SMEs, corporates and academic institutions in Europe, the US and Latin America, agrees. “Psychologically, there’s a maximum of three pieces of information that people will take away from a chance conversation,” she explains. “In order to make sure the person you’re speaking to takes away the information you want them to retain, you need to spend a lot of time reflecting on what you want those messages to be.”
And, says Galle, body language is equally important in ensuring the messages and the person who delivered them are retained in a positive light.
“There are two levels of communication when you’re speaking to someone: a verbal level and a non-verbal level,” she says. “Corporal language is so important, because it insinuates whether you’re likeable and self-confident; you need a solid stance and open body language.”
Adapt your approach
There can be a very fine line between confidence and arrogance, and likeability is subjective. When addressing a stranger in what could be an informal setting, it’s important to ensure you don’t alienate them by acting in a way that they may find inappropriate.
The key to this, says Mario Schäfer, a portfolio manager for Sanofi in Germany, is adapting your style to observe the idiosyncrasies of your enquirer’s culture.
Schäfer mentors start-ups and teaches new venture creation in his role as associate professor at ESADE Business School. He is also MD of the European arm of Canadian global tech start-up Prevtec and has delivered and received many spontaneous pitches around the world.
“It’s important to have a clear definition in order to be able to network and promote your offering with clarity”
“It’s really important to know who you have in front of you and adapt what you say and how you say it in accordance with their cultural background,” he says. “In the US, the culture is much more business direct: they don’t care that much about the emotional element. In Latin culture and southern Europe, they place a lot more importance on the emotional aspect of what you say and do.”
The nature of an elevator pitch means that you are unlikely to know too much, if anything, about who you’re speaking to, so it’s essential to listen carefully to what they say before you attempt to explain your business offering.
Says Schäfer: “One of the basic rules of business is always let others talk first so you can adapt your approach according to who you’re speaking to.”
Sheraz Malik agrees. “While the proposition needs to be well defined, you do need to gauge what ancillary information you present, and your approach will naturally be affected by who you are speaking to. A question I always ask myself is: ‘If I were in the other person’s shoes, what would I want to know about my business?’ It’s always easy to head off on a personal mission when delivering a message – but you must always have objectives. Every single conversation or pitch can have value if you let it.”
How to pitch a business idea: top tips
1. Be clear and concise
Your pitch should include a defined overview of your value proposition and USP. Focus on the three main messages you want your enquirer to take away from the conversation and don’t be tempted to give as much information as possible in the hope that they’ll remember it – they won’t.
2. Ask first, talk later
Ask as many questions as are appropriate or you have time for to discover who you’re speaking to. Do some homework on the business styles of other cultures so you can react accordingly, and have three or four questions in mind to ask that will help you to draw out key information.
3. Be prepared
Be ready for questions they might have and have answers prepared. You’re unlikely to have any written material with you, so make sure you’re prepared mentally and have memorised essential facts and figures.
4. Refine over time
You know your business inside out, but they don’t. Listen very carefully to what people are asking you and use the feedback to develop your pitch.
We have a thriving and diverse community of thousands of entrepreneurs from multiple sectors, backgrounds and skill sets helping you to connect with the right people at the right time. No matter whether you’re looking to upskill, get feedback, engage with new people or simply observe, there’s something for everyone.
‘Want to learn more? Register for NatWest Business Builder to view all of their business development tools. Click HERE‘
In this module we’re going to look at your value proposition which is central to developing a successful business model and understanding the benefits that you deliver to your customers.
In this module you’ll explore:
What problem or need are you addressing?
How big is the problem or need you are trying to solve?
What is value proposition?
What benefits do you deliver to your customers?
Start by downloading and saving the workbook and use it throughout the module to write notes, reflect on the key points and take time to answer the questions for your own business.
Falling in love with the problem?
Developing a successful business is no easy feat, but understanding the problem or need that you are solving will allow you to focus on the right things and the right customers. Watch the first video to understand more about why it’s important to ‘fall in love with the problem, not the solution’ and hear from some entrepreneurs about their experiences.
What is a value proposition?
In chapter two, we’re going explore more about what a value proposition actually is and get you to think about what pain relievers or gain creators you’re delivering to the customer through your product or service.
Why is understanding your value proposition important?
In the last chapter of this module, we’re going to look at why understanding your value proposition is so important and how it can help to inform many decisions within your business. It’s also an opportunity for you to reflect on what you’ve learned during this module, write a value proposition statement for your business, and think about any key actions that you will apply to your business.
Further Reading
The basics of cash-flow forecasting
The six characteristics of successful entrepreneurs
Management strategies: perfecting your 60-second pitch
Five ways to build customer loyalty
We have a thriving and diverse community of thousands of entrepreneurs from multiple sectors, backgrounds and skill sets helping you to connect with the right people at the right time. No matter whether you’re looking to upskill, get feedback, engage with new people or simply observe, there’s something for everyone.
‘Want to learn more? Register for NatWest Business Builder to view all of their business development tools. Click HERE‘
Angel investors often say that they’re investing in a person as much as their idea. But what does this mean, and can subtle changes make entrepreneurs more attractive?
You don’t have to watch too many episodes of Dragons’ Den before you see Deborah Meaden smile at a shaky hopeful and say, “I like you.” The subtext often seems to be that she sees more in the pitcher than their business proposal – thus offering a glimmer of hope to would-be entrepreneurs everywhere. Could it be that a person is worth investing in even when their idea lacks lustre?
The answer, sadly, is probably not. While angel investors tend to agree that it’s belief in the person who is pitching that will ultimately win them over, a bad idea will struggle to find backers no matter how dazzling the entrepreneur.
In fact, great entrepreneurs and hopeless ideas seldom feature in the same sentence. Michael Queen, president of the Surrey 100 Club, one of the South East’s leading angel investment networks, explains why: “If someone is a really skilled business person or entrepreneur they can usually see the different components that are required to make a business work and be investable. You don’t tend to get that combination too often.”
It’s also worth pointing out that when people are described as ‘investable’ it’s not their dapper wardrobe or state-of-the-art presentation software that’s winning over the angels. “How people dress and all the rest of it, I couldn’t give a monkey’s,” says Fiona Cruickshank, co-founder of Gabriel Investors. “What I’m looking for is pretty boring: people with good ideas who just want to get on with it.”
Unusual levels of resilience
Michael Queen has had “literally thousands” of hopefuls standing before him looking for investment over the past 35 years. What he’s after is a credible person (or better still, a team of people) with a strong idea and lots of tenacity. “Running a small business is incredibly stressful and demanding and it requires people to commit to a ridiculous extent,” he says. “So angels are looking for someone with almost unusual levels of resilience – as well as a realistic idea of what’s going to be involved.”
The kind of entrepreneur you definitely don’t want to be is one who fails to grasp the big picture. Queen says that those in the “very new inventor-type category” are among the worst offenders. “They have one amazing engineering idea and are obsessed with the sheer brilliance of it,” he says, “but they can’t understand that people who are investing want to know who they are going to sell it to, how it compares to the competition and why people are going to buy it.”
While polished salespeople often fare better, Queen cautions that an angel will recognise when he/she is being sold to and will know how to go beyond the patter. Nevertheless, he admits that it’s always easy to sit and listen to someone who has good interpersonal skills – something that a novice entrepreneur can work on.
“Angels are looking for someone with unusual levels of resilience and a realistic idea of what’s going to be involved”
Michael Queen, president, Surrey 100 Club
A word that angels often use to describe someone who is investable is ‘authentic’ – and what may be surprising is that this usually means it’s OK to own up to your shortcomings. Cruickshank, for one, is turned off by people saying: “I can do everything”, when she strongly suspects that they can’t. “If they are 110%, full on, ‘This is brilliant, I’m brilliant’, that’s not going to cut it,” she says. “That’s not real life.”
Rashid Ajami, who raised £4.1m of development capital for his student community platform Campus Society, agrees: “Securing investment is definitely not about proving you’re too good to be true,” he says. “If you had the complete package right now you likely wouldn’t need any investment. Paint a real picture of where you are and where you want to go and talk about what’s possible with the right investment in place.”
Long and challenging road
Sean Mallon was already a successful businessman when he hit the road in search of £1m in funding for a new venture named Bizdaq – an online marketplace for buying and selling businesses – in 2013. Instead of angels falling at his feet, the path was a long and challenging one. “It took over 12 months,” he says. “Getting investment isn’t pretty and it definitely toughened me. You go in thinking everyone’s going to be nice and cuddly but it can be brutal.”
Most criticisms of Mallon’s idea came with a silver lining. The angels’ comments drove him to make changes to his pitch that would ultimately make him investable. “By the end, the articulation of my plan was more refined and I became much clearer in how I was going to achieve my goal,” he says.
In fact, he adds, the original backer who ultimately invested in Bizdaq often tells Mallon that he was more sold on him as an entrepreneur than he was his business idea – proof, if more were needed, that it is faith in the individual that usually seals the deal. Says Mallon: “He tells me he believed enough in my vision that I would do it.”
Top tips
Four ways to get angels onside:
Share your passion: “Yes, you need a great product, interesting idea and a practical business model,” says Rashid Ajami, “but the passion to deliver something you believe in is paramount.”
Don’t be afraid to think big: “One thing I see often is that businesses don’t raise enough money,” says Michael Queen. “It gets used up quite quickly and they spend the rest of their life raising subsequent rounds of capital.” He says there will certainly still be investors in the room when you’re asking for £500,000 as opposed to £150,000.
Practise your pitch: “And really understand your key data, too,” says Fiona Cruickshank. “When people don’t know the numbers it feels like you haven’t got the whole package.”
Know your limitations: “It’s OK to say that you know most of the answers but that you want someone on board who can help you find some of the solutions,” says Sean Mallon. “For most angel investors, the idea of being able to add value beyond cash is quite exciting.”
Business success depends on your ability to reach out and hold on to new customers. Here, four experienced entrepreneurs discuss how their approach to attracting new clients has evolved.
No matter how well run your company is or how impressive your products or services are, your business will only be successful if it can manage to attract and retain customers.
For new enterprises in particular, identifying a target market and developing a strategy to reach people in that market are two of the most important elements to consider.
Social media and digital marketing have made it far cheaper and more straightforward to promote what your business has to offer while also focusing on specific demographics, for example. But an online-only approach isn’t necessarily the right choice for every company.
We spoke to a number of entrepreneurs to find out how they go about attracting new customers and making their businesses stand out from the crowd.
The value of the personal approach
Entrepreneurs shouldn’t overlook the importance of the human touch, says Claire Gamble, managing director of Unhooked Communications, a Manchester PR agency.
“In a digital world, the power of face-to-face interactions can be really effective when it comes to winning new business – especially if you run a service-based business,” she says. “And I don’t just mean attend some networking groups and hope to meet someone who you’ll work with in the future – think bigger than that.”
Gamble’s approach involves Unhooked organising its own events – from panel discussions and workshops to purely social functions – aimed at people who work in the marketing and creative industries. “Since January we’ve organised several events on topics such as influencer marketing, women in business and GDPR for marketers, which have attracted hundreds of attendees who are relevant to our business somehow.
“These events serve so many purposes – they get us in front of prospective clients, introduce us to other marketers who we can collaborate with, generate great content we can use in our marketing and PR, and help us improve our knowledge of current hot topics. We’re only halfway through the year and we’ve already secured three new clients and several projects as a result of the events that we’ve organised.”
Gamble says the events are promoted to attract specific target audiences or relevant businesses. “The beauty of these events is that you get to meet people who aren’t in your network yet, which is really valuable – especially if you’re a new business or looking to expand into new sectors or regions.”
Know your customer
For James Woodall, co-founder and chief technology officer of Intoware – a business that develops software for wearable devices – there’s “no magic bullet solution” when it comes to finding new customers.
But ensuring sales staff understand the businesses and sectors they’re selling to is crucial. “We make sure our salespeople are experts in the industries we’re targeting,” Woodall says. “Of course, this means they understand particular nuances and speak the right language. But more importantly, it means they absolutely know where the inefficiencies and real headaches are, which a generalist wouldn’t.”
“In a digital world, the power of face-to-face interactions can be really effective when it comes to winning new business”
He adds: “Being able to target the specific pain points has worked well for us. Automotive businesses have different issues to manufacturers, who use different processes to those in aerospace. Being able to tailor our approach so we understand them and, more importantly, they understand us, has been key.”
The way Intoware pitches to potential customers has also evolved over time, Woodall adds. “It’s not about our product solving all a business’s problems – customers simply don’t buy that – but it’s about identifying one big problem and giving them a solution to address it.”
Stand out from the crowd
Nathan Cable is co-founder of Party Hard Travel, a package holiday business aimed at “a niche audience” of people aged roughly between 18 and 23.
“That has a huge impact on our marketing,” he says. “You can’t just put an ad on the radio as our audience are more likely to be listening to music on Spotify. And we wouldn’t spend on a huge outdoor advertising campaign as the majority of people walking past it wouldn’t be in the right age range. So when it comes to attracting new customers, we’ve had to think more creatively.”
For the 2018 summer season, Party Hard decided to organise a tour of UK nightclubs to give clubbers “a true sense of what being on holiday with Party Hard Travel in a resort would be like”, Cable says. “Travel is a very competitive industry: young people have really high expectations of their holidays and, like the rest of the population, are really busy.
“You can’t expect that customers are going to just come and find you, even if you have the best product offering in the world. To be successful means finding new and unique ways of connecting with potential customers that align strongly with your brand values.”
Use publicity wisely
Danny Curran, founder of heir-hunting firm Finders International, says that businesses that do interesting work should leverage the fact to generate publicity, as well as fully exploit any publicity that arises.
“It’s no longer enough to expect potential clients to be reading publicity or press releases when they’re published,” Curran says. “We are lucky to enjoy a healthy degree of local public relations stories in areas where individuals concerned with families we help trace are located. But these stories need to be put to good use.”
He says that the company’s sales reps, for example, populate their social media profiles with articles on the business in order to gain trust. “You should also ask new or potential clients if they have seen recent relevant articles about the company; this helps provides trust, credibility and familiarity.
“On a recent taxi journey I took, the cabbie told me he’d heard me on a radio interview and referred me to a solicitor with a case which we were eventually given instruction on. Publicity helps, but promoting it once it’s live is just as important.”
So, you’re probably wondering why we’re giving away free stuff and why we’re asking people to join a waiting list to get access to an online accelerator.
Our journey began a few years back as the only tech accelerator in the East of England. In that time we’ve been selective over the companies we’ve wanted to help, and the survival rate of those we’ve helped is fantastic at roughly 80%.
We focused on quality over quantity in that time, and we’ve made our mistakes. We’ve either tried to help companies that didn’t actually want or need investment, we’ve tried to help companies and we’ve discovered that the founder isn’t fully focused on the platform they’ve approached us to help with, and above all, there’s been an honest feedback loop between us and our startups.
We’ve always struggled though with the desire to reach more people in more recent times as we’ve become better at what we do. We’ve found that we don’t need people around us from 9-5 to get stuff done (founders need to focus on getting startup stuff done like meeting the people who’ll build the product, buy the product and invest in the product for example).
The CV19 pandemic meant we HAD to work differently because we were equity dependent, sponsors dried up (along with their money) and the accelerator wasn’t reaching enough people to help them on their journey. As much as that meant we had necessity to change how we worked, it also meant an opportunity to fulfil other aspects of our vision.
We wanted to democratise tech startup acceleration and we noticed the following on our journey:-
1. People who weren’t white, middle-aged men struggled to either join an accelerator or get invested
2. There were plenty of deck aggregation sites out there who’d feed your deck to waiting investors, but investors found quality lacking in favour of quantity
3. There was a lack of trust from front to back in the startup to investor journey and we wanted to change that through early definition of the ambition or ability to scale of a startup to help filter
4. The rise of ‘spin-off’ businesses meant that there was an underserved market of people who wanted to accelerate outside of 9-5 hours
5. We’ve talked to plenty of founders who’d prefer to pay cash for services rather than equity
6. We wanted to join a cap table from our own choice (and money reserves once built) as we think that would lend credibility as a lead investor
7. We wanted to focus on tech platform businesses (SaaS/PaaS) as that’s what we’re best at, particularly B2B
8. Nobody wants to help companies with an idea and no money, so we wanted to provide a journey to help them that started with free stuff and graduated to our acceleration programme that’s designed to help people once they have a proof of concept and then get them to work through their strategy and investment proposition. Once that’s ready, they’ll get that deck in front of investors who want to see the type of thing they’re looking to scale.
9. We wanted to give something back, so we designed a way to get investors involved early in deck feedback and give something to charity as a result.
10. We wanted to offer expert advice from people who’ve been there and done it as part of the journey, and build a community so we can create our own online ecosystem of partners, founders and investors to share stories and tips.
Hence Magic Sauce was born in lockdown, and it’s worked so far (kinda virtual).
The next step on the journey is our own investment round to build and scale a platform that can allow people to accelerate their startup, discover its’ potential (or not) and get some key strategies nailed that will help them get to the next point in their journey. We want the platform up and running in the New Year, so get moving on that proof of concept and we’ll see you on the waiting list.
I became a Business Mentor because I know exactly how amazing it feels to start out on your own, armed with a big idea, a strong work ethic, and a head full of dreams. And, after 20+ years experience of running my own businesses, I also know how hard it can be to turn those dreams into a profitable business without advice, guidance and support.
As an Accredited Practitioner Mentor with the Association of Business Mentors, and an Accredited Master Mentor with the International Authority for Professional Coaching and Mentoring I have the qualifications to be able to help businesses at any stage of their development. But, more importantly, as someone who has had three businesses in the past 20 years I have the hands-on, business knowledge, experience and empathy necessary to understand and support business owners. They get their business mentoring from someone who has been there, done that and bought the T-shirt.
So, my role is simple. It’s to help business owners turn the passion they have for their products and services into a profitable business. The way I do that can be described as ‘a brain to pick, an ear to listen – and a push in the right direction’. Through discussion, direction and sometimes training I help busy business owners innovate, prioritise, and implement the changes that will make a difference.
As a Business Mentor I help business owners harness the Business in their business so it becomes less of a chore and more the rewarding experience it should be – both emotionally and financially.
We’re 24 Degrees.
24 Degrees is the brainchild of Kathy Ennis, Founder of Norfolk-based, business mentoring and training company, LittlePiggy and Emma Goode, Founder of the award-winning, Brentwood-based, digital marketing agency, 24 fingers.
Kathy has over 20 years of business experience and is an expert in helping businesses start-up, scale-up and turn their passion for their idea into a profitable business. As a successful Business Mentor and Trainer with 30+ years experience, Kathy has a no-nonsense, you can do it attitude. She specialises in enabling business owners to put the business into their business. Kathy knows that success and failure go hand-in-hand and that planning, processes and systems are the missing link between passion and profit.
With her team of expert content creators at 24 fingers, Emma works with companies who are all fingers and thumbs with their online marketing. She enables them to grow their business and brand through highly effective digital marketing. Whether that’s getting more leads from social, increasing brand awareness or engaging with customers, Emma’s 24 fingers help to add extra digits to a company’s bottom line.
I have over 15 years’ experience in both international business development and business management within the Unified Communications industry. I set up Mio Conferencing Solutions, providing SaaS (Software as a Service) services to corporates, with global clients across a wide range of industries; spanning 120 cities in 40 countries. I have worked with some of the industry leaders in Norfolk and dealt with global clients. I also hold BSc in Development Economics from SOAS, University of London and an MBA from University of East Anglia.
Mio Conferencing Solutions was given the Norfolk Future50 award for innovation and ambition in 2019, as well as being an active member of Norfolk Chamber of Commerce. This allows me to invest in local relationships and making the most of my connections in the region.
Whilst growing my company, I have also led an active life raising three young boys. Juggling the art of parenthood while running a successful business has certainly required me to be disciplined and highly motivated. I believe this to be a skill that has been helped by my background as a rugby player in my university days as well as being a keen cyclist to this day.
