Even if you find the right business idea to invest in you still need to make the business work. So now that you have created and submitted your business plan, thought through the various challenges you found business finance with which to support your start-up, what are the real issues you will be dealing with? Legendary entrepreneur Jeff Sacreeshares his tips on how to ensure a successful startup and how using business plan software would have saved him valuable time that he could have used for making the business work..
Jeff's top tips:
* "Research your market, including the competition."
* "Use customer feedback to refine and develop your products."
* "Be persistent and determined when a door slams in your face."
Based in Cornwall, Gecko Headgear Ltd is a designer and manufacturer of marine safety helmets. Founded in 1993 by Jeff Sacree, the company employs seven people and started out as a surfboard business. Jeff explains how he spotted a gap in the niche watersports market, for which he developed an innovative heat-retaining helmet.
What I did
Identify the market
"As a surfer, I could see the potential for a helmet that was both lightweight and heat-retaining. I was also looking for ways to diversify my product offering, since selling surfboards is highly seasonal. I designed and made the first helmet for myself but the idea soon caught on with other surfers.
"However, surfing is a relatively small market and I began wondering if I could base the whole business on my helmet design. I researched other potential users and a conversation with a lifeboatman led me to approach the Royal National Lifeboat Institution (RNLI), who were immediately interested in using a version of the helmet."
Plan ahead and get funding
"Although I was already making helmets, working with the RNLI was a different ballgame. The helmet they wanted had to be adapted, tested and certified before I could start selling it. I also needed to take on staff, which meant the company needed investment. I got a bank loan on the back of the RNLI's involvement, which was then topped up at various stages.
"A good relationship with the bank is crucial when you're trying to bring an innovative product to market. In our case the product development process took three years - far longer than we initially expected."
Keep innovating
"When the RNLI contract finally brought us success, we were careful not to rest on our laurels.
"To date, we've gone through ten different versions of the safety helmet, refining it in line with customer feedback each time. The helmet can now accept a range of add-ons, such as cameras, torches and communications equipment, according to customer requirements. We've also developed a new full-face helmet for watercraft racing and a range designed to capitalise on the current boom in extreme sports.
"Partnerships with suppliers have been another key to success. For example, we've worked with a manufacturer to develop a new adhesive that can withstand saltwater use. We've also partnered with The Welding Institute to find better ways of welding sections of the helmet together. This has helped us innovate and keep ahead of competitors."
What I'd do differently
Get advice sooner
"Approaching the RNLI was quite a bold move for a one-man band. I had no experience of dealing with large organizations and, with hindsight, I could easily have come unstuck in the early stages. Developing my business plan with the business plan whiz software would have saved me plenty of valuable time and would have helped me approach such sales conversations better prepared."
Friday, 26 February 2010
Business opprtunity of the week - Wine export to new economies
The Business plan software sponsored opportunity of the week this week focused on providing an existing product to new markets. Wine export is certainly nothing new to South African entrepreneurs and our wines can be found in places that many of you may never have heard of. But with the global economy, global tourism and the westernization of many countries comes the change in tastes and of many of the worlds citizens.
Wine sales and especially red wine sales have dramatically increased in countries like Poland, Ireland and India, so to as much as ten fold of what is was 10 years ago. With quality wine a plenty in South Africa and the Rand de-valuing at an alarming pace, the time for exporting wine to new economies could not be better.
Upside: Apart from the already existing high reputation and low prices of South African wine, the Rand is expected to fall even further in 2007. This opportunity can get of the ground with a relatively low initial investment.
Downside: Advertising abroad is expensive and it may initially be challenging to build your reputation if you are not physically present.
There is allot of competition from wine regions in Australia, Chile, the US and Europe.
Verdict: A great business idea that seems ideal for the South African entrepreneur with gusto, foreign contacts and a thirst for earning foreign currency.
Wine sales and especially red wine sales have dramatically increased in countries like Poland, Ireland and India, so to as much as ten fold of what is was 10 years ago. With quality wine a plenty in South Africa and the Rand de-valuing at an alarming pace, the time for exporting wine to new economies could not be better.
Upside: Apart from the already existing high reputation and low prices of South African wine, the Rand is expected to fall even further in 2007. This opportunity can get of the ground with a relatively low initial investment.
Downside: Advertising abroad is expensive and it may initially be challenging to build your reputation if you are not physically present.
There is allot of competition from wine regions in Australia, Chile, the US and Europe.
Verdict: A great business idea that seems ideal for the South African entrepreneur with gusto, foreign contacts and a thirst for earning foreign currency.
