Business Plan Advice

[AWildDog]

I've taken the plundge and made an appointment with a business advice place (it's free). I'm not 100% sure I'll be turning this into an actual business yet because being unemployed, I certainly can't afford to not make enough money to live on - if they were to take away my JSA. (Anyone know anything about that? Advisor I saw today was rubbish! Tho I will be enquiring again!).

Anyway, although they are there to help me with all this - I want to go with it clear in my mind (and on paper) what I want to do and how I want to do it (with being open to criticism of course), so I thought I'd try to draw up either a business plan or a sort of mini/draft one - but I've no idea where to start and the internet is a jungle when it comes to these things. Help?

[seamus]

the job centre (or what ever they have called it now) do have a scheme to help people into self employment, so you can start trading and still get help from them and continue to get benefits.
Most people who work in the job centre dont actually know what they can offer, so you might need to tell them that this scheme exists.

business plan, here is a link to some info in what your business plan should include
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073869162

[Baa]

JSA staff are taught what can and can't be done within JSA and the line managers are there to help even though it frequently changes. However there are a myriad of benefits you may be entitled to outside the scope of JSA which they (JSA) won't know about unless they've worked in other departments.

You can try http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/BeginnersGuideToBenefits/index.htm

The CAB can be helpful and will sometimes talk you through it over the phone to save you having to make an appointment. Strangely so will HMRC if you get a good advisor, they are worth a call. This will help you to cover some areas of benefits while self employed. No one should penalise you for finding this out as I know some people worry that any discussion of self employment means they will be taken off their benefit immediately.

The business advice people would be able to help you with formulating a business plan, if they are any good they will give you advice on plans straight off. Anything from the bank (they usually give a free business plan pack if you ask) will be geared up to finances but still has some useful questions to explore.

[AWildDog]

Thanks guys, I appreciate it.

[scotserve]

Please dont take this the wrong way
But how on earth are you making any money at the prices you are selling ?
I took a look at your ebay site and as a guesstimate figured you would need to be selling in excess of 50k items a year to be making a decent living
Please consider your pricing has to cover your time - your time is valuable - never sell yourself short, I have often told people not to compete in the bargain basement as for one you cannot witn and secondly it is very difficult once you have established your customer base to increase pricing. Some of your products look way way too cheap - this in turn will have a negative affect on sales.

Like i say I am not trying to tell you how to run your business but price is only one element of the entire transaction. I have noted this from a lot of hobbyists that turn to a business, the lack of a business plan and cash flow forecasts mean that they are guessing at pricing and shortchanging yourself in the process

[AWildDog]

No offence taken, right now I'm looking to build up the customer base - not to mention - some of those that are cheap (£1.50), really aren't my best anyway. There will be some more stuff coming soon as these were the first things I put on to sell basically.

Look cheap however - gotta help me out with that one, do you mean the items look cheap and tacky or they seem that way because of the pricing?

[seamus]

the price is too cheap, not the quality

[AWildDog]

ah okay, thanks for that advice. I'll keep that in mind when they go up for sale again online.

Being new to it, I certainly didn't want to over charge people - especially when just finding my way on prices and selling.

Thanks so much!

[scotserve]

ah okay, thanks for that advice. I'll keep that in mind when they go up for sale again online.

Being new to it, I certainly didn't want to over charge people - especially when just finding my way on prices and selling.

Thanks so much!

Yep I meant the price is too low
The thing about setting your prices low to attract buyers is that it is a very difficult rut to get out off, the people that you attract with dirt cheap prices for the most part wont entertain paying higher prices when you move upmarket, another point is they will look and say " jeeze what a rip off - paid £1.50 for that last month now its £25" It is a bit of a balancing act when first starting out - but the old saying of "start as you mean to go on" is a good one.

[AWildDog]

Got it, thanks scot!

[FionaJMD]

A first starting point would be to take one of your bracelets and break it down to exactly the cost of your materials - every bead, every finding, piece of thread or wire etc.  I think you may be surprised and then you need to add in something for your time.

I agree with Scotserve, it is really difficult to put prices up, but if you price reasonably then you have the option to give a deal to clinch a sale - bracelets are £6 each but you can have 2 for £10.  People will always ask and if you have factored no margin in at all then what do you do - take a loss to get a sale?

[AWildDog]

All very true. I'll do the maths for every one of them soon. Thank you!

[AWildDog]

Hey guys,

Just popping back - had a busy week, could you take another look at these prices and tell me if they seem better to you. If not, please give further advise.

http://www.folksy.com/shops/AWildDog

(Yes I've moved to folksy as it's cheaper!)

[FionaJMD]

I think it would help if you enhanced your descriptions.  People tend not to like to ask questions - if they like something and have all the information then they will buy - I may be wrong.

for example I just happened to click on the red and yellow bracelet - what are the beads made of - glass, plastic, toffee LOL, is this an elastic bracelet or does it have a clasp, is it designed for an adult or child ie. what sort of size is it.

Based on the price I could make assumptions, but they may be wrong.

hark at me, as if I do it right LOL.

[AWildDog]

Haha, no worries - working on the descriptions don't worry, I wasn't feeling very inspired at the time! So they will be edited very soon.

Please do give feedback on the prices, I was told they weren't high enough before!