I have been planning to become self employed for over 2 months. Ideas come and go, some good and some just plain stupid.. It's emotionally draining if you are a planning freak like me who wants to cover all the bases before choosing the right self employment route. I know there is no way I can be certain where my actions would lead me so I'm stressing myself out needlessly.
I awake without the alarm at 6 every morning, thinking I have to do research on whether my green advice/consultancy business as a self employment idea will work, and whether I need to get extra qualifications. Then I think about which qualifications I should look for, and which market I should target. After that I think about backup plans if all this fails... you get the idea. I don't understand how other people manage to become self employed so smoothly?
Lately I've noticed I'm filled with anxiety and my mind is working on overdrive thinking about my self employment ideas. Today I went for a swim at the gym and I don't remember walking from my house to the gym! My body was on auto-pilot while my mind was still thinking about how to link my previous career and experience with my next one through the self employment route.
If I look back at what I've done over the last 2 months in terms of research alone, I understand a lot more about the internet as a business and marketing tool, met quite a few fellow entrepreneurs, sharpened my business sense (before this I never thought about investements, markets and making profits).
All the hard work and stress makes me think it's probably too late for me to give up now. It could actually be better to spend money and time pursuing a half-baked idea than continue being employed?
Monday, 29 June 2009
Saturday, 27 June 2009
Idea vs Execution
I've come to realise, after mulling for over 3 months about getting myself on the road to self employment, that the solution is not about finding that magic idea. It's about what I do with an idea and how I do business when I'm self employed.
For example, topskips.com is a skip hire company that grew from a small company to a multi million business. It's skips, not some complicated, ambitious idea like advanced robotics. So technically you can earn a good living self employed by any means. It's how you do it that counts.
So does that mean I'll succeed if I just follow any self employment route and work on it? It doesn't work that way. Human beings are individualistic. You can't be made to do something you don't like for the sake of being self employed. Most people are not the type who can get great satisfaction selling computers, making big money, then going on to promoting time share apartments. So on and so forth. We like to think we stand for something and want our choice for self employment to reflect our personality, ideas and choices.
That's were it becomes hard to reconcile owning a business that represents your ideals. Plus, some people take on a mission to change the world when they become self employed. This is despite all business advice in the world say you should 'give the customer what they want', not tell them what they should be wanting.
How it's done involves how money is invested too. I'm not good with taking risks with money so that's the challenge for me, i.e. I might know it's a good idea to pay to get something done, but because I'm so risk adverse, I'll go for the safer option, potentially spoiling the opportunity to do it properly.
Perhaps I'm more suited to being employed than being self employed, I wonder. This or I'll have to make some serious changes.
For example, topskips.com is a skip hire company that grew from a small company to a multi million business. It's skips, not some complicated, ambitious idea like advanced robotics. So technically you can earn a good living self employed by any means. It's how you do it that counts.
So does that mean I'll succeed if I just follow any self employment route and work on it? It doesn't work that way. Human beings are individualistic. You can't be made to do something you don't like for the sake of being self employed. Most people are not the type who can get great satisfaction selling computers, making big money, then going on to promoting time share apartments. So on and so forth. We like to think we stand for something and want our choice for self employment to reflect our personality, ideas and choices.
That's were it becomes hard to reconcile owning a business that represents your ideals. Plus, some people take on a mission to change the world when they become self employed. This is despite all business advice in the world say you should 'give the customer what they want', not tell them what they should be wanting.
How it's done involves how money is invested too. I'm not good with taking risks with money so that's the challenge for me, i.e. I might know it's a good idea to pay to get something done, but because I'm so risk adverse, I'll go for the safer option, potentially spoiling the opportunity to do it properly.
Perhaps I'm more suited to being employed than being self employed, I wonder. This or I'll have to make some serious changes.
Thursday, 25 June 2009
Self Employment Through Blogging? Part 2
Less than 24 hours after I posted Part 1 of 'Self Employment Through Blogging', Google's snubbed me! I was on page 2 last night, now I'm nowhere to be found when I type in "self employment ideas".
I went in search of an answer on the net and found the reason might be that I used some words I shouldn't have in my last post. If what I read is correct, some words from yesterday might have made the search engine think I'm being paid to write content, or there's some artificially generated stuff in the post. (I won't repeat the words here, because obviously it'll make things worse) Anyway, you know that's not true. I just wanted to share my experience. And, blogging about self employment ideas is completely legitimate.
Anyway (I'll stop crying now), I attended a seminar today on the 'next big things' on the net. Lots of people attended, some are already self employed (otherwise they would be at work on a Thursday morning) or some were looking for ideas. The seminar was organised by a city law firm looking to provide legal services to e-start ups and entrepreneurs.
For all those out there looking to start up their own business and become self employed, I would strongly recommend you attend seminars like this and also networking events for entrepreneurs. The variety of people you meet and things you might learn is worth your effort. (Self employed people are an interesting bunch) But don't hold expectations that you'll meet someone who'll hand you a silver platter with a great self employment idea on it!
I enjoy observing how attendees presented themselves and whether they came prepared. Most people didn't come prepared with business cards nor specific questions they wanted answers for, despite a legal adviser, a venture capitalist and other successful internet business people around. I didn't approach any of the speakers because I got distracted networking with some of the attendees. I think it's a missed opportunity.
To share what I learnt in relation to 'blogging towards self employment', the message I got from this morning was "don't expect advertising to pay for your efforts writing content". I've been told this by another business adviser earlier and now I'm absolutely convinced. There isn't enough advertising money in the world to support content on the net. Some examples were cited:
I went in search of an answer on the net and found the reason might be that I used some words I shouldn't have in my last post. If what I read is correct, some words from yesterday might have made the search engine think I'm being paid to write content, or there's some artificially generated stuff in the post. (I won't repeat the words here, because obviously it'll make things worse) Anyway, you know that's not true. I just wanted to share my experience. And, blogging about self employment ideas is completely legitimate.
Anyway (I'll stop crying now), I attended a seminar today on the 'next big things' on the net. Lots of people attended, some are already self employed (otherwise they would be at work on a Thursday morning) or some were looking for ideas. The seminar was organised by a city law firm looking to provide legal services to e-start ups and entrepreneurs.
For all those out there looking to start up their own business and become self employed, I would strongly recommend you attend seminars like this and also networking events for entrepreneurs. The variety of people you meet and things you might learn is worth your effort. (Self employed people are an interesting bunch) But don't hold expectations that you'll meet someone who'll hand you a silver platter with a great self employment idea on it!
I enjoy observing how attendees presented themselves and whether they came prepared. Most people didn't come prepared with business cards nor specific questions they wanted answers for, despite a legal adviser, a venture capitalist and other successful internet business people around. I didn't approach any of the speakers because I got distracted networking with some of the attendees. I think it's a missed opportunity.
To share what I learnt in relation to 'blogging towards self employment', the message I got from this morning was "don't expect advertising to pay for your efforts writing content". I've been told this by another business adviser earlier and now I'm absolutely convinced. There isn't enough advertising money in the world to support content on the net. Some examples were cited:
- Rupert Murdoch, who said the future of newspaper revenue was in advertising and not in the cover prices, has turned around and indicated News Corp might soon charge readers of their news websites because it's current business model isn't working.
- Twitter has grabbed worldwide attention thanks to investment from venture capitalists, but it's unclear how it generates revenue or how it will in the future.
In conclusion, if you have a net-based venture that's not an e-commerce site, it's more likely to survive if your self employment idea is backed by a product or service, not just depending on advertising. Unless of course you are only interested in getting your message out there. Does that count as being self employment?
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Post-publishing note: The self employment ideas blog is back in the search results after going AWOL for half a day! Not all is lost. Thanks goodness!Tuesday, 23 June 2009
Self Employment Through Blogging?
Problogger and Copyblogger, two prominent blogging advice sites insist it's possible to make good money through blogging. Some self employment articles (not the 2 mentioned previously) even suggest that you think up a niche subject a week and create a blog for it. In one year you will be able to generate substantial AdSense revenue from 52 websites. Call me cynical, but that's just another 'too good to be true' claim. It takes effort to write good material just for one blog, I can't imagine how someone can do that for 52.
I'm relatively new to blogging but so far the experience has been very exciting. My self employment ideas blog launched on 7 June 2009. Yesterday, on 23 June 2009, I found the site just got listed at no.22 for search phrase "self employment ideas". Not bad for 16 days and not even using my own privately registered domain. (Personally I find blogspot adequate and very user friendly)
I don't know much about SEO, but I was advised that I should post often and make sure my blog posts have appropriate tittles. Content is important so I've been trying to write good articles that try to solve people's problems. In this case, provide self employment and business ideas to anyone who searching for it.
(Seasoned bloggers out there must be laughing at me for being all excited about getting onto the 3rd page of a Google search result)
I admit that I have earned only a few bucks from AdSense, but that's no surprise considering I don't yet have many visitors.
I'm not sure if I'll get to page 1 for "self employment ideas"anytime soon, but the point is, I've realised an internet-based self employment or business idea can be practical and feasible. The outlay investment is relatively low and people looking to be self employed should look to the net for opportunities. Just don't expect to earn megabucks while sitting back like some claim you can.
I'm relatively new to blogging but so far the experience has been very exciting. My self employment ideas blog launched on 7 June 2009. Yesterday, on 23 June 2009, I found the site just got listed at no.22 for search phrase "self employment ideas". Not bad for 16 days and not even using my own privately registered domain. (Personally I find blogspot adequate and very user friendly)
I don't know much about SEO, but I was advised that I should post often and make sure my blog posts have appropriate tittles. Content is important so I've been trying to write good articles that try to solve people's problems. In this case, provide self employment and business ideas to anyone who searching for it.
(Seasoned bloggers out there must be laughing at me for being all excited about getting onto the 3rd page of a Google search result)
I admit that I have earned only a few bucks from AdSense, but that's no surprise considering I don't yet have many visitors.
I'm not sure if I'll get to page 1 for "self employment ideas"anytime soon, but the point is, I've realised an internet-based self employment or business idea can be practical and feasible. The outlay investment is relatively low and people looking to be self employed should look to the net for opportunities. Just don't expect to earn megabucks while sitting back like some claim you can.
Monday, 22 June 2009
Cycling - Self employment ideas from Brighton
Some self employment opportunities and ideas that I come up with may not be something I can pursue (lack of sector knowledge is the usual reason) but if someone out there has the know-how, feel free to take it and make something of it.
I'm changing my approach for this blog because, firstly, I've decided to throw as many ideas for self employment in it as I possibly can so others may use them. It's called the Self Employment IDEAS blog after all! Some might not be feasible but the reader can decide for themselves. Maybe one of my ideas here can spark a better idea for a new business. Go ahead and use any ideas you find here. Secondly, I've noticed some advertisements on self employment opportunities on the sidebar are about 'making millions without doing any work'. If I didn't start writing positively about self employment and offer up ideas, I'd be encouraging this type of advertising.
Anyway, I was in Brighton on Sunday and my visit coincided with the London to Brighton Bike Ride organised by the British Heart Foundation. Around 27,000 people did the 54-mile trip. Apart from raising a lot of money for charity, the event also showed that cycling was a viable way of getting around, and it's fun too. The participants were from all walks of life. You don't need to be Tour de France fit to be able to do it.
This got me thinking, with public transport strikes popping everywhere, the rising costs of fuel and vehicle maintenance, growing emphasis on fitness, cycling could soon be even more popular. This is especially true in cities. Try noticing if this is happening where you live. There could be an opportunity to achieve self employment there as more and more people take up cycling and road space is being claimed from cars.
A conservative approach would be to open a bike shop. Typical charge for mountain bike servicing is about £45 (~$75) around where I live. Fixing a broken chain is £5 ($8) for labour only. That's not bad for 5-10 minutes work, is it? There are also more creative ways to cater to the needs of a growing cycling population. How about the idea of a call-and-collect-a-bike repair service, with a 'courtesy bike' service? That way you don't need to start with a physical shop. And did you see the bamboo bike that was on the news the other day? How about new bike accessories you can source on B2Bs and market online?
Anyway, I don't know much about bikes although I've just bought an old bike from eBay last month to cycle to the gym. The chain's just broke today after giving me trouble for a few weeks. (I'm not blaming the seller) Therefore it's not an idea I capitalise on.
So, as usual, do tell me if the you don't think the cycling revival holds some ideas for becoming self employed?
I'm changing my approach for this blog because, firstly, I've decided to throw as many ideas for self employment in it as I possibly can so others may use them. It's called the Self Employment IDEAS blog after all! Some might not be feasible but the reader can decide for themselves. Maybe one of my ideas here can spark a better idea for a new business. Go ahead and use any ideas you find here. Secondly, I've noticed some advertisements on self employment opportunities on the sidebar are about 'making millions without doing any work'. If I didn't start writing positively about self employment and offer up ideas, I'd be encouraging this type of advertising.
Anyway, I was in Brighton on Sunday and my visit coincided with the London to Brighton Bike Ride organised by the British Heart Foundation. Around 27,000 people did the 54-mile trip. Apart from raising a lot of money for charity, the event also showed that cycling was a viable way of getting around, and it's fun too. The participants were from all walks of life. You don't need to be Tour de France fit to be able to do it.
This got me thinking, with public transport strikes popping everywhere, the rising costs of fuel and vehicle maintenance, growing emphasis on fitness, cycling could soon be even more popular. This is especially true in cities. Try noticing if this is happening where you live. There could be an opportunity to achieve self employment there as more and more people take up cycling and road space is being claimed from cars.
A conservative approach would be to open a bike shop. Typical charge for mountain bike servicing is about £45 (~$75) around where I live. Fixing a broken chain is £5 ($8) for labour only. That's not bad for 5-10 minutes work, is it? There are also more creative ways to cater to the needs of a growing cycling population. How about the idea of a call-and-collect-a-bike repair service, with a 'courtesy bike' service? That way you don't need to start with a physical shop. And did you see the bamboo bike that was on the news the other day? How about new bike accessories you can source on B2Bs and market online?
Anyway, I don't know much about bikes although I've just bought an old bike from eBay last month to cycle to the gym. The chain's just broke today after giving me trouble for a few weeks. (I'm not blaming the seller) Therefore it's not an idea I capitalise on.
So, as usual, do tell me if the you don't think the cycling revival holds some ideas for becoming self employed?
Knowing Your Target Market
Being self employed means having to look for your own clients so it is crucial to know your target market, unless you intend to sell a mass market product! I've been told repeatedly the first test of one's idea is to ask, "Who's going to pay for my product/service?" This will test the viability of my plan because the answer to the question will highlight the flaws that need fixing. For instance:
1) I don't have an answer, or have a very vague one, like "anyone passing by on the street and likes the look of my shop ". That means I don't know who I'm selling to and therefore there won't be a strategy to guide my business or build a customer base.
2) If my answer shows that my market is extremely small, so small it's impossible to balance it with the investment I've put into the business, again, it's a flaw. Targeting a niche market when there is already plenty of competition, or my business expense is so high that the numbers don't stack up means my business won't survive.
So whether you are planning to sell your products/services to couples intending to get married in a foreign country, mothers with young toddlers or general DIY enthusiasts, knowing your market is key and research on numbers is the first thing to do.
I used to think people are behave just like me towards products and services, and will only be interested in things I'm interested in and spend money in a similar way. I've since realised almost nobody's spending pattern is like mine! I'm a minority in terms of how I use my disposable income. (For instance I don't normally buy alcohol, don't own a car, don't order takeaway, haven't got my own place nor a mortgage etc.) To find and understand the market I want to target, I can't count on personal opinion and have to try getting into the mindsets of other people, in other words, understand market psychology.
For example, I have an idea to market my services to people who are already aware of their impact on the environment and want to do their bit. So who is my target market? Is the market big enough? I don't know yet because I haven't got data on environmental consumerism, but I know it changes with the times. The recession has probably weakened resolve to put environmental concerns first in most peoples minds. Will I target the London market or the entire country, and what's the cost of going nationwide?
At this point all I have are questions and no real answers, still uncertain about viability and execution. It's as if I want to know that the plan will be a sure-fire success before I invest money and time into it. Ridiculous, but I admit that's what I've noticed myself doing! I've been told by people I'm over-thinking it and should just get on with doing it and learn as I go along. I hope by my next post, I've overcome my extreme risk-adverseness. Off now to the online casino now for a game of roulette...
1) I don't have an answer, or have a very vague one, like "anyone passing by on the street and likes the look of my shop ". That means I don't know who I'm selling to and therefore there won't be a strategy to guide my business or build a customer base.
2) If my answer shows that my market is extremely small, so small it's impossible to balance it with the investment I've put into the business, again, it's a flaw. Targeting a niche market when there is already plenty of competition, or my business expense is so high that the numbers don't stack up means my business won't survive.
So whether you are planning to sell your products/services to couples intending to get married in a foreign country, mothers with young toddlers or general DIY enthusiasts, knowing your market is key and research on numbers is the first thing to do.
I used to think people are behave just like me towards products and services, and will only be interested in things I'm interested in and spend money in a similar way. I've since realised almost nobody's spending pattern is like mine! I'm a minority in terms of how I use my disposable income. (For instance I don't normally buy alcohol, don't own a car, don't order takeaway, haven't got my own place nor a mortgage etc.) To find and understand the market I want to target, I can't count on personal opinion and have to try getting into the mindsets of other people, in other words, understand market psychology.
For example, I have an idea to market my services to people who are already aware of their impact on the environment and want to do their bit. So who is my target market? Is the market big enough? I don't know yet because I haven't got data on environmental consumerism, but I know it changes with the times. The recession has probably weakened resolve to put environmental concerns first in most peoples minds. Will I target the London market or the entire country, and what's the cost of going nationwide?
At this point all I have are questions and no real answers, still uncertain about viability and execution. It's as if I want to know that the plan will be a sure-fire success before I invest money and time into it. Ridiculous, but I admit that's what I've noticed myself doing! I've been told by people I'm over-thinking it and should just get on with doing it and learn as I go along. I hope by my next post, I've overcome my extreme risk-adverseness. Off now to the online casino now for a game of roulette...
Friday, 19 June 2009
Self-employment Aptitude Test
I found this aptitude test (the site calls it an attitude test, which I think is incorrect) while doing research for writing material.
I scored 4 out of 10, which means I'm not made for self-employment!
It's not a bad test but the manner in which the questions are asked leads you to answer one way when you think the other. I think it's still worth taking it just to get you thinking about what you are doing, giving up and risking when trying to become your own boss.
To illustrate how the test is slightly flawed in the way questions are structured,
Q1: I thrive on the input and interaction of others? Yes or No?
I said yes because I thought this means I like working with different people and hearing their opinions, using comments to improve my plans. But 'yes' is not the right answer because according to the testers, it's "Not good. Self-employment means you will need to rely on yourself and not others" I think what the question was really asking is, can you work on your own, without input from others? "Thrive" means "to flourish" - sure I flourish when I interact with others.
It's possible I might be able to handle working alone on a satellite station for a few months, provided there's high speed internet. But that's not the question.
Anyway, I don't intend to criticize the shortcomings of the test/quiz. The points to be made by the questions posed are pertinent.
For instance, I decided to go down this road knowing that I will have to work much harder than I am now as an employee. I accept this as it's for something I believe in and I get to decide my courses of action.
I've decided that if I do start my own business, I will work 70 hours a week, for at least the first 2 years and probably won't have any income for the first year. I'd probably work more if I didn't have my partner to think about.
Anyway, please take the test and share your comments. http://www.businessbureau-uk.co.uk/new_business/attitude_test.htm
I scored 4 out of 10, which means I'm not made for self-employment!
It's not a bad test but the manner in which the questions are asked leads you to answer one way when you think the other. I think it's still worth taking it just to get you thinking about what you are doing, giving up and risking when trying to become your own boss.
To illustrate how the test is slightly flawed in the way questions are structured,
Q1: I thrive on the input and interaction of others? Yes or No?
I said yes because I thought this means I like working with different people and hearing their opinions, using comments to improve my plans. But 'yes' is not the right answer because according to the testers, it's "Not good. Self-employment means you will need to rely on yourself and not others" I think what the question was really asking is, can you work on your own, without input from others? "Thrive" means "to flourish" - sure I flourish when I interact with others.
It's possible I might be able to handle working alone on a satellite station for a few months, provided there's high speed internet. But that's not the question.
Anyway, I don't intend to criticize the shortcomings of the test/quiz. The points to be made by the questions posed are pertinent.
For instance, I decided to go down this road knowing that I will have to work much harder than I am now as an employee. I accept this as it's for something I believe in and I get to decide my courses of action.
I've decided that if I do start my own business, I will work 70 hours a week, for at least the first 2 years and probably won't have any income for the first year. I'd probably work more if I didn't have my partner to think about.
Anyway, please take the test and share your comments. http://www.businessbureau-uk.co.uk/new_business/attitude_test.htm
Wednesday, 17 June 2009
Self Employment Ideas blog layout revamped!
If you are a returning visitor, you might think this is the wrong self employment blog. No, it isn't, it's the same one!
I've decided to redesign the layout to make it fresh yet universal to appeal to a wider audience- male, female, old, young... anyone basically. The previous one had a feminine feel to it, and it was rather romantic as well. It's a conscious and strategic decision to redo the colour scheme and tittle.
I hope you find it more appealing and get inspiration for a self employment or business idea here!
I've decided to redesign the layout to make it fresh yet universal to appeal to a wider audience- male, female, old, young... anyone basically. The previous one had a feminine feel to it, and it was rather romantic as well. It's a conscious and strategic decision to redo the colour scheme and tittle.
I hope you find it more appealing and get inspiration for a self employment or business idea here!
Tuesday, 16 June 2009
Beware Entrepreneur Scams
In my very early experience as an entrepreneur, I've noticed a huge industry built around entrepreneurs to make money from us. These include, franchise companies, web designers, marketing consultants, mail forwarding companies..., the list goes on.
These companies view entrepreneurs as a class of people who are willing to take huge risks with money and time. This ties in with all the start-up self-help books advocating "the only thing to fear is the fear of failure" or "no guts, no glory".
Many of the services offered are genuine, but some sound too good to be true. I'm writing this because I think anyone setting up their business should be very sceptical when being sold something. I try to remember that shrewdness is important for anyone involved in business.
I'm not going into the loud, obvious scams (ones that include sending a cheque and self-addressed envelope to someone who promises you a secret method of earning money at home). The less obvious scams are no less cunning. The online ones are by far the most competent in their pitch for your business.
To call them scams is unfair- these companies carry out unethical selling, often by self-professed marketing 'gurus'. Typically they offer you a free e-guide on how to make lots of money through internet marketing, like they have. There is no real proof of their success nor wealth. Come to think about it, truly rich people don't tell people how much they make every month or year. They show their wealth but don't tell you their profit on every single venture for the obvious reasons. But these 'gurus' tell you about the money they make, right up to the nearest cent.
The guide turns out to have a few good tips, but is mostly leading towards and promoting the product they want to sell. And it's always a hard-sell. They bombard you with emails, telling you there are limited units/spaces so you have to act and buy now. I struggle to understand the mindset of a person who would be tempted to try the product, be it a seminar, software, contacts list or inclusion in directories just because of the 'too good to be true' promises.
Apart from seeing through the obvious scams, it's important to also invest in business ideas that are personally sustainable. I've been offered a vacant shop lot for free to use as a second hand store by my landlord. The location is not great but I won't need to pay rent, is near where I live, and I know where to get stock to sell on. There is a small profit to be made. But I haven't taken it up because I don't see myself doing it for more than a few months. I will end up investing loads of time on it instead of concentrating on a real plan.
I've been advised that common mistake entrepreneurs make is to enter into markets that are easiest start-up in, not the ones that have the most potential. So, the morale is, there are no shortcuts.
These companies view entrepreneurs as a class of people who are willing to take huge risks with money and time. This ties in with all the start-up self-help books advocating "the only thing to fear is the fear of failure" or "no guts, no glory".
Many of the services offered are genuine, but some sound too good to be true. I'm writing this because I think anyone setting up their business should be very sceptical when being sold something. I try to remember that shrewdness is important for anyone involved in business.
I'm not going into the loud, obvious scams (ones that include sending a cheque and self-addressed envelope to someone who promises you a secret method of earning money at home). The less obvious scams are no less cunning. The online ones are by far the most competent in their pitch for your business.
To call them scams is unfair- these companies carry out unethical selling, often by self-professed marketing 'gurus'. Typically they offer you a free e-guide on how to make lots of money through internet marketing, like they have. There is no real proof of their success nor wealth. Come to think about it, truly rich people don't tell people how much they make every month or year. They show their wealth but don't tell you their profit on every single venture for the obvious reasons. But these 'gurus' tell you about the money they make, right up to the nearest cent.
The guide turns out to have a few good tips, but is mostly leading towards and promoting the product they want to sell. And it's always a hard-sell. They bombard you with emails, telling you there are limited units/spaces so you have to act and buy now. I struggle to understand the mindset of a person who would be tempted to try the product, be it a seminar, software, contacts list or inclusion in directories just because of the 'too good to be true' promises.
Apart from seeing through the obvious scams, it's important to also invest in business ideas that are personally sustainable. I've been offered a vacant shop lot for free to use as a second hand store by my landlord. The location is not great but I won't need to pay rent, is near where I live, and I know where to get stock to sell on. There is a small profit to be made. But I haven't taken it up because I don't see myself doing it for more than a few months. I will end up investing loads of time on it instead of concentrating on a real plan.
I've been advised that common mistake entrepreneurs make is to enter into markets that are easiest start-up in, not the ones that have the most potential. So, the morale is, there are no shortcuts.
Thursday, 11 June 2009
Writing and communicating - not just everyday business letters
I've received comments that I just produce ideas on self employment and haven't DONE anything.
I have. I've applied to become a freelance writer at Suite 101. http://www.suite101.com/
Today I received an email from them saying my request to join them as a contributing writer has been REJECTED after I sent them my draft business plan. I know... I should treat these things more seriously.
It was a generic letter to all rejected applicants. It reads,
"Your application to be a Contributing Writer to Suite101.com has been declined for ONE of the following reasons:
Not everyone is a born writer. Writing sounds easy but it takes practice to be good. Sure, I write lots of work emails and reports, but writing good material others want to read is harder. To gain insight on how to improve my writing/blogging, I referred to online tips. Copyblogger http://www.copyblogger.com/ernest-hemingway-top-5-tips-for-writing-well/ suggests writing in short sentences, like Hemingway advocates. I'll start. Now.
I have. I've applied to become a freelance writer at Suite 101. http://www.suite101.com/
Today I received an email from them saying my request to join them as a contributing writer has been REJECTED after I sent them my draft business plan. I know... I should treat these things more seriously.
It was a generic letter to all rejected applicants. It reads,
"Your application to be a Contributing Writer to Suite101.com has been declined for ONE of the following reasons:
- Your areas of expertise and samples did not reflect the search interests of our Web audience;
- Your educational and employment experience did not suggest authoritative expertise re the subject areas you wish to cover;
- The tone of your samples was better suited to a site either more or less formal than our own;
- Your writing sample may have had serious errors in language use, structure, grammar, spelling, or punctuation;
- Your writing suggested a first-person, experiential, or opinion-based approach to material rather than an objective journalistic style that quoted verifiable sources."
Not everyone is a born writer. Writing sounds easy but it takes practice to be good. Sure, I write lots of work emails and reports, but writing good material others want to read is harder. To gain insight on how to improve my writing/blogging, I referred to online tips. Copyblogger http://www.copyblogger.com/ernest-hemingway-top-5-tips-for-writing-well/ suggests writing in short sentences, like Hemingway advocates. I'll start. Now.
Understanding types of internet advertising - An idiot's guide
I registered with Adsense thinking it's a good idea without understanding much about internet advertising. How do popular websites like Google, Facebook, MSN, etc make so much money from internet advertising? If you are a newbie like me to internet marketing, and are thinking of setting up a web business, here are the 3 main ways to generate advertising revenue:
CPC - Cost per Click. The advertiser pays you every time a visitor on your site clicks on their advertisement. Google Adsense works this way.
CPM - Cost per Thousand Impressions ('M' is the Roman numeral for 'thousand'). The advertiser pays an agreed amount for the number of times their advertisement is displayed/viewed through your website. This is regardless of whether they get any business from your visitors. Popular websites earn megabucks on this basis; like owning a big billboard in a busy location and advertisers pay handsomely to have their advertisements on it.
CPA - Cost per Action. The advertiser pays you a specified amount every time a visitor to your site takes an 'action', e.g. sales transaction, in response to their advertisement. Affiliate and referral programs are examples of CPA. For instance, when your visitor buys something from an advertiser by clicking a link on your site.
So, if, 10 million people go on to Facebook every hour...
CPC - Cost per Click. The advertiser pays you every time a visitor on your site clicks on their advertisement. Google Adsense works this way.
CPM - Cost per Thousand Impressions ('M' is the Roman numeral for 'thousand'). The advertiser pays an agreed amount for the number of times their advertisement is displayed/viewed through your website. This is regardless of whether they get any business from your visitors. Popular websites earn megabucks on this basis; like owning a big billboard in a busy location and advertisers pay handsomely to have their advertisements on it.
CPA - Cost per Action. The advertiser pays you a specified amount every time a visitor to your site takes an 'action', e.g. sales transaction, in response to their advertisement. Affiliate and referral programs are examples of CPA. For instance, when your visitor buys something from an advertiser by clicking a link on your site.
So, if, 10 million people go on to Facebook every hour...
Tuesday, 9 June 2009
Business Analysis: The Michael Scott Paper Company
There are some precious start-up lessons to be learnt from the short time that the Michael Scott Paper Company (MSPC) was in business. Initially, I intended to write about their winning formulas but after some thought, I don't think that it's a replicable process (in real life or even TV) and a lot was left to luck and timing. I will allocate brownie points instead.
Brownie point No.1 - They were hungry for it. Well, maybe just Michael and Pam, not Ryan...
Also, why stop at supplying paper? It wouldn't hurt to also supply office stationery me thinks? The delivery vans make the rounds to these clients anyway, so why not lump in other supplies? Okay, I'm not saying they should set up a Walmart. For a start, how about offering free envelopes with each paper order and then asking if they would order some for next time?
I'm guessing DF's and MSPC's clients don't go to Staples and other big office suppliers because they like the personalised customer service. But in tough times like these, wouldn't it be easy to loose clients to big suppliers if these clients already get the bulk of their stationery and supplies from others? It would be easy for clients to turn away and just include paper in their usual order with their usual stationery supplier.
Maybe the paper industry doesn't work like that and specialism works to one's advantage in this case. It' s a TV show after all. By the way, how did they split up the $60k they got from the buyout?
Brownie point No.1 - They were hungry for it. Well, maybe just Michael and Pam, not Ryan...
Brownie point No.2 - Michael's actually a talented salesman. I remember when Pam got a sales call, Michael said to always mention the word 'guarantee'. There's some kind of sales psychology to do with subliminal messages applied there. I agree that if someone said they'd guarantee something to me, I'm more confident that I made the right decision, for a short while at least. He's also a fantastic negotiator when it came to selling the business. Of course, insider knowledge didn't hurt.
And, the big cookie!
They had an inside man, Jim, at Dunder Mifflin (DF), were they intend to get/steal clients from.
Also, why stop at supplying paper? It wouldn't hurt to also supply office stationery me thinks? The delivery vans make the rounds to these clients anyway, so why not lump in other supplies? Okay, I'm not saying they should set up a Walmart. For a start, how about offering free envelopes with each paper order and then asking if they would order some for next time?
I'm guessing DF's and MSPC's clients don't go to Staples and other big office suppliers because they like the personalised customer service. But in tough times like these, wouldn't it be easy to loose clients to big suppliers if these clients already get the bulk of their stationery and supplies from others? It would be easy for clients to turn away and just include paper in their usual order with their usual stationery supplier.
Maybe the paper industry doesn't work like that and specialism works to one's advantage in this case. It' s a TV show after all. By the way, how did they split up the $60k they got from the buyout?
Why you should work for yourself #3
…more reasons on why you should work for yourself (or I should for myself), in addition to the 2 main ones mentioned in earlier posts. Again, I’m taking what I’ve read and heard from experts and presenting them with my own experiences.
3. No dull moments:
You don’t get bored like when someone gives you a task you hate doing, but have to do because it’s a (grey) part of your job description. Or, you don’t believe in a particular mission that your employer is on, but you do it because you are supposed to be a team player. You act professional but your heart is not in it. You go out and buy yourself new shoes/phone/holidays to cheer yourself up.
What you put into your own business in self-employment is all yours. You set the mission, define the goal, and then go all out to reach it.
4. You’ll regret it if you don't try:
My dad was employed full-time for his working life (he’s retired now) but always said he’s love to have his own business. But he never did. He worked for the government right up to his retirement. It’s one of the things he regrets because he was too risk-adverse, unwilling to give up his secure job. He could also have done something after retirement, but I suspect the longer you delay taking that step, the harder it is. I learnt about a great charity recently which helps people over 50 start up their own businesses. They are called Prime. Contact them. http://www.primeinitiative.co.uk/ And you can be any age to appreciate the resources they have online.
5. Travelling without moving:
The best way of truly knowing your capabilities is to take up this challenge. I have no experience as yet but am taking the first steps now. So far it’s been very enlightening. I’ll share with you that I
a) Need to work on my marketing skills. I failed miserably at a volunteer job interview for a marketing position with a charity a month ago. They don’t want me even when I’m not asking to be paid!
b) Have to hone my writing skills if I want to present ideas and review subjects convincingly. I’m so used to designing with software and communicating in a graphic medium, I’ve neglected to nurture my writing skills.
c) My profession/industry is not a good market to be in according to experts. I’ll explain this in a further post.
d) have learnt so much about the influence of the net and what a business mindset is.
e) I DO have business skills. I am very keen using them.
There are other reasons of course, but these are what I find most valid to me. I might add more if I get aggravated at work today.
3. No dull moments:
You don’t get bored like when someone gives you a task you hate doing, but have to do because it’s a (grey) part of your job description. Or, you don’t believe in a particular mission that your employer is on, but you do it because you are supposed to be a team player. You act professional but your heart is not in it. You go out and buy yourself new shoes/phone/holidays to cheer yourself up.
What you put into your own business in self-employment is all yours. You set the mission, define the goal, and then go all out to reach it.
4. You’ll regret it if you don't try:
My dad was employed full-time for his working life (he’s retired now) but always said he’s love to have his own business. But he never did. He worked for the government right up to his retirement. It’s one of the things he regrets because he was too risk-adverse, unwilling to give up his secure job. He could also have done something after retirement, but I suspect the longer you delay taking that step, the harder it is. I learnt about a great charity recently which helps people over 50 start up their own businesses. They are called Prime. Contact them. http://www.primeinitiative.co.uk/ And you can be any age to appreciate the resources they have online.
5. Travelling without moving:
The best way of truly knowing your capabilities is to take up this challenge. I have no experience as yet but am taking the first steps now. So far it’s been very enlightening. I’ll share with you that I
a) Need to work on my marketing skills. I failed miserably at a volunteer job interview for a marketing position with a charity a month ago. They don’t want me even when I’m not asking to be paid!
b) Have to hone my writing skills if I want to present ideas and review subjects convincingly. I’m so used to designing with software and communicating in a graphic medium, I’ve neglected to nurture my writing skills.
c) My profession/industry is not a good market to be in according to experts. I’ll explain this in a further post.
d) have learnt so much about the influence of the net and what a business mindset is.
e) I DO have business skills. I am very keen using them.
There are other reasons of course, but these are what I find most valid to me. I might add more if I get aggravated at work today.
Monday, 8 June 2009
Entrepreneur Inspiration - The Michael Scott Paper Company
For those of you who don't follow the subliminal (US) Office - you should, especially if you are toying with the idea of setting up your own company. Season 5 is television genius. Certainly and not limited to its witty depiction of the harsh realities facing a start-up. http://www.nbc.com/The_Office/Anyway, it is a coincidence that this season, Michael decides to set up his own company after a series of unfortunate events, including run-ins with his immediate superior and VP, micro-managing Charles. He does a Jerry McGuire and gets Pam, the receptionist to leave with him. They get another ex-employee and set up The Michael Scott Paper Company. Michael tries to work from home, but his condo management sends him a warning about operating an office there. He then tries to get his grandmother's investment club to invest in his business, without success. With little money, they rent a windowless store room for their office and buy an old van to do deliveries themselves. To win clients, Michael supplies his paper below cost.
And this is when Michael has at least 15 years in the paper industry!
Michael tries to recruit Oscar the accountant. Oscar lays in on him about not having a business plan, a funding request nor financials. He tells Michael that most businesses don't make a profit for two years and then it's very slim so the CEO doesn't pay himself for up to five years. He asks Michael if he can survive without pay for five years.
Although just a storyline in a TV series, Michael Scott Papaer Company has a website http://www.michaelscottpapercompany.com/.
Why you should work for yourself #2
More reasons and inspiration on why you should consider self-employment, again, from the experts but I've added my own experience.
2. The satisfaction:
People who work for themselves never revert to working for someone unless forced to. All my self-employed friends say so. Ask anyone who is their own boss and 99 out of 100 will say they'd never. (That 1 person probably was incredibly unlucky) For all the worry, isolation and hard work they went through and still go through, it's still preferable to working for someone else. This should be enough reason to convince anyone it's worthwhile.
Of course they took a risk leaving paid employment but the rewards are independence, job satisfaction and sometimes better remuneration. No guts, no glory. It's worthwhile when considering a start-up to talk to as many people who own their business about what they feel, and of course how they did it.
Also, what about the freedom and flexibility of working hours and conditions? Punch cards and clocking-in makes me feel like a robot. Large companies evaluate employees' productivity by quantity; because they can't deploy enough resources to monitor quality, therefore use the 9-5 as a method of guaranteeing that at least some quantity of work is seen to be done.
Best of all, you don't have to suck up to your boss, or if you don't do that anyway, watch others do it and get ahead, immerse in blame culture, maintain the status quo,... the list goes on based on all the gripes I've heard.
Everybody’s experience is different of course - there are real barriers that prevent people from taking that step, or make it hard. Some friends say they'd love to strike out on their own, but just don't have any money, or have huge financial commitments like mortgages, etc. I understand how a relatively secure job trumps chasing one’s dreams when there are such pressures around. However, if I want it enough, I'm certain there’s a way.
2. The satisfaction:
People who work for themselves never revert to working for someone unless forced to. All my self-employed friends say so. Ask anyone who is their own boss and 99 out of 100 will say they'd never. (That 1 person probably was incredibly unlucky) For all the worry, isolation and hard work they went through and still go through, it's still preferable to working for someone else. This should be enough reason to convince anyone it's worthwhile.
Of course they took a risk leaving paid employment but the rewards are independence, job satisfaction and sometimes better remuneration. No guts, no glory. It's worthwhile when considering a start-up to talk to as many people who own their business about what they feel, and of course how they did it.
Also, what about the freedom and flexibility of working hours and conditions? Punch cards and clocking-in makes me feel like a robot. Large companies evaluate employees' productivity by quantity; because they can't deploy enough resources to monitor quality, therefore use the 9-5 as a method of guaranteeing that at least some quantity of work is seen to be done.
Best of all, you don't have to suck up to your boss, or if you don't do that anyway, watch others do it and get ahead, immerse in blame culture, maintain the status quo,... the list goes on based on all the gripes I've heard.
Everybody’s experience is different of course - there are real barriers that prevent people from taking that step, or make it hard. Some friends say they'd love to strike out on their own, but just don't have any money, or have huge financial commitments like mortgages, etc. I understand how a relatively secure job trumps chasing one’s dreams when there are such pressures around. However, if I want it enough, I'm certain there’s a way.
Sunday, 7 June 2009
Why you should work for yourself #1
While trying convince myself why I should take this 'leap of faith'. I've compiled a list of reasons 'Why I should work for myself'. You may have heard some of these before, but I'm adding my personal experience to support the advice already out there.
1. It's Less Risky
Less risky? Surely working for the government is as safe as it can get? True. But not all of us work for the government, or want to. In fact, my company is in difficulty because we thought we were safe working on government contracts.
When I work for a company, I've no idea about the financial situation the company is in. Just ask any ex-employees of Lehman Brothers.
A friend of mine worked in a small company, doing very well. It appeared they got new commissions consistently. In April, her boss told everyone he was closing the London office and moving operations up north. It was a pure business decision and everyone had no choice.
If you worked for yourself, you'd know the relationships with your clients, funders, debtors, creditors, suppliers, etc. Most importantly, you know the exact state of your finances. Being an employee is like putting your fate in other people's hands. If it works out, then there would be security, promotions, benefits etc... And if not?
I work for an architect's office in London. Most architectural practices don't offer pay packages comparable to other professional jobs, and there are no medical nor dental benefits, no private pension contribution, gym memberships, childcare nor other stuff we only hear about. I tell myself, at least I'm not missing out on all this if I decide to try becoming self employed?
tbc with reason #2...
1. It's Less Risky
Less risky? Surely working for the government is as safe as it can get? True. But not all of us work for the government, or want to. In fact, my company is in difficulty because we thought we were safe working on government contracts.
When I work for a company, I've no idea about the financial situation the company is in. Just ask any ex-employees of Lehman Brothers.
A friend of mine worked in a small company, doing very well. It appeared they got new commissions consistently. In April, her boss told everyone he was closing the London office and moving operations up north. It was a pure business decision and everyone had no choice.
If you worked for yourself, you'd know the relationships with your clients, funders, debtors, creditors, suppliers, etc. Most importantly, you know the exact state of your finances. Being an employee is like putting your fate in other people's hands. If it works out, then there would be security, promotions, benefits etc... And if not?
I work for an architect's office in London. Most architectural practices don't offer pay packages comparable to other professional jobs, and there are no medical nor dental benefits, no private pension contribution, gym memberships, childcare nor other stuff we only hear about. I tell myself, at least I'm not missing out on all this if I decide to try becoming self employed?
tbc with reason #2...
Self-employed? Me?
When the going gets tough, I'd like to think it's an opportunity to do something you've never dared to, because the stakes are lower. I'm from a very risk adverse background. But when I was told the company I worked for was loosing money due to the current recession, I thought I'd better start thinking about a more independent career path.
In March, the news broke at an office meeting. Since then, 20% of staff have been made redundant. I'm lucky to have survived.
Then I read the book,'Good Girls Don't Get the Corner Office' and started to speak up for myself. It was both good and bad. Good in that I didn't beat myself up anymore for keeping quiet when I REALLY should have said something. Bad that I realised my company could not offer the career growth I wanted and started to see me as somewhat of a challenge to manage.
Anyway, I'm determined that if the economy and the industry I'm in (architecture) is to fall like a malnourished tree in a forest, I will not go down gripping desperately to its dried branches!
I've toyed with the idea of being my own boss recently, and this feels like the right time. My comfortable-enough life was not the best environment to spring me into action. My biggest resistance is not the prospect of failure, but the fear of the unknown. I've wanted to be an architect since young and for the past 20-something years, it's been a single, safe course I've been taking.
I told my landlord that I was about to loose my job (with the intention of softening him up for when I eventually ask for a rent-reduction!) and being the nicest landlord I've ever had, he said that I should not worry and that I was a smart girl an I'd find something soon. He added that if there were no jobs out there, I could set up on my own (like he did when he first came to London 30 odd years ago with nothing and started his barber shop). He thought that anyone who spoke good English and is hardworking could never really fail.
My job prospects are suffering due to the economy but I've got some savings for seed capital. The worst that could happen would be that I fail at this, and go back to being employed. At least I can say I've tried and then really appreciate the security of full-time employment! I start telling myself it's the journey that counts. "Forget travelling to widen my horizons, the journey is right here!"
My first instinct is to be self-employed by working as a free-lance architect. This means doing the same job, but working for different clients on a contract-by-contract basis. An alternative would be to retrain and use the new skill to work in a self-employed capacity. Or, I could set up my own business!
In March, the news broke at an office meeting. Since then, 20% of staff have been made redundant. I'm lucky to have survived.
Not so long ago, I used to be a hardworking worker ant. I'd do everything to my best ability when told/asked and most employers viewed me as nothing but a CAD monkey .
Then I read the book,
Anyway, I'm determined that if the economy and the industry I'm in (architecture) is to fall like a malnourished tree in a forest, I will not go down gripping desperately to its dried branches!
I've toyed with the idea of being my own boss recently, and this feels like the right time. My comfortable-enough life was not the best environment to spring me into action. My biggest resistance is not the prospect of failure, but the fear of the unknown. I've wanted to be an architect since young and for the past 20-something years, it's been a single, safe course I've been taking.
I told my landlord that I was about to loose my job (with the intention of softening him up for when I eventually ask for a rent-reduction!) and being the nicest landlord I've ever had, he said that I should not worry and that I was a smart girl an I'd find something soon. He added that if there were no jobs out there, I could set up on my own (like he did when he first came to London 30 odd years ago with nothing and started his barber shop). He thought that anyone who spoke good English and is hardworking could never really fail.
My job prospects are suffering due to the economy but I've got some savings for seed capital. The worst that could happen would be that I fail at this, and go back to being employed. At least I can say I've tried and then really appreciate the security of full-time employment! I start telling myself it's the journey that counts. "Forget travelling to widen my horizons, the journey is right here!"
My first instinct is to be self-employed by working as a free-lance architect. This means doing the same job, but working for different clients on a contract-by-contract basis. An alternative would be to retrain and use the new skill to work in a self-employed capacity. Or, I could set up my own business!
This is all new for me... I'm overwhelmed.
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