Archives for July 2010

No Business Is Successful Right Away

Chances are, you’re going to fail a lot before you build a successful business. Everyone has heard the numbers before:

95% of all businesses fail within their first 5 years

If you know people who started their own businesses, they are probably just getting by or they have already boarded up and shut down their business. It’s just the reality of running a business.

Why Do Most Businesses Fail?
I’m sure that there has been plenty of research and analysis into why businesses failed but if you just look at it objectively, I think it makes sense.

  • Most new businesses are coming into an existing market and their competitors have a big head start on each part of the business
  • Any obvious profit opportunities have probably already been discovered and exploited by these competitors
  • Competitors in the market have real experience with what works and what does not
  • While the product is the most important part of the business, entrepreneurs need to know how to do everything in a business (accounting, marketing, sales, customer service) and there is a bit of a learning curve with these activities

You Don’t Know What You Don’t Know
One of the biggest things to remember when setting up your business is that you don’t know what you don’t know. As much as you plan, you can’t plan for things that you don’t know you need to care for.

You Need Money
One of the things that I get asked the most is how to take some of the first steps without any money. Unfortunately, I don’t think it’s very possible. With all of the mistakes that you make, you’re going to need money to help get you through the bad times until your business finds its way. Your competitors probably have more experience, more time, and more resources than you so you need some money to keep up with them.

The advantage that you have is that you’re more nimble and don’t have as much of a cost structure that they do. It is much easier for you to change direction until you find what works for you and your business. If you’re using your only resource, time, instead of money, you lose that nimbleness, your only advantage.

Some Businesses Get Lucky
Some businesses are successful when they start but this is usually because they were able to change their direction as they went. If you look back on them, they didn’t have the answer but they were able to buy enough time to figure out how to get their operation running successfully:

  • TiVo’s initial business model was based more around of the concept of being able to apply super-targeted advertising options to clients. Now, they’re more of a subscription-based option, which is much simpler than the original vision
  • Google was always a search engine from the beginning but there was never any plan on how they would capitalize on their search engine for several years. Even their Adwords program, which is their primary revenue stream, took several iterations before they got it to work successfully.

If you talk to just about any successful entrepreneur, I’m sure you’ll find that there original vision didn’t match up to what they became. There were changes that they made along the way to get to that point.

Accept that you will make a lot of mistakes (whether it’s multiple decisions in your businesses, or multiple failed ventures) until you gain the experience you need to be truly successful. And don’t be afraid to drop some of your ideas as soon as you realize that they aren’t going to work.

Keeping up with business rivals

It’s much, much harder than keeping up with the Kardashians.

No matter how gifted you are at your craft, someone somewhere is better. And it’s immensely depressing when you meet that someone.

I’ve just spent four days at one of the prettiest places on earth, thanks to a generous client. We were having what is called a moderation workshop. The author of a book, as well as a team of teachers, editors, and sometimes potential clients, sit together with the manuscript and point out the pros and cons.

It’s a very intensive process, and often, participants don’t sleep – which is ironic because you’re put up in the prettiest places, with the prettiest beds. My room, for example, was right at the beach, so I could hear the waves  and smell the fishermen. The resort also had a disco, seven pools, 25 water slides, go karting, and a gym … none of which I used.

Anyway, the people at the workshop were very, very good. They pointed out things that I’d never have thought of. They’re not quite rivals, since they don’t work freelance, but they had me reconsidering my vocation. It was like jogging with Usain Bolt.

Fortunately for me, these team members live far, far away, and we’re unlikely to fight over clients. But it did make me wonder about other freelancers within the same work pool.

In any field, you’ll have thousands of competitors. A lot of them will be better than you. But that doesn’t mean they have to earn more than you do. You just have to stand out. Find what Kelvin calls your Unique Selling Point.

When I first read that article, I got slightly depressed, because I couldn’t really think of one. But the thing is you don’t have to spot one. You just need to make one.

Case in point. My ‘rivals’ are brilliant editors. Yet the client included me in the team. Why? Well, for one thing, I’ve handled previous projects in the series, so I have some experience with it. Also, I’m a writer as well as an editor, so I can bring in some flair and creative license.

It might also help that I’m assertive, cheeky, and have purple hair. I admired the put-together look of a fellow editor – she’s so beautiful and stylish. She’s a total MILF, and you can’t tell she has teenage children. Although she’s a lot of fun, she’s quiet and reserved, and it takes some coaxing to bring her bubbly side out. Conversely, it’s easy to get some pep out of me, and when you’re working 12 hours straight for days in a row, it helps to have pep[si] in the room.

There’s someone else I look up. She’s efficient, professional, and very grown up. We recently got pitched for different parts of the same project. She won quality control, because she’s got that no-nonsense thing going. I got creative … mostly because I have purple hair. The client saw each of our selling points and used them to build a cohesive team.

As a business person, be sure to floss your USP. It could be speaking politely, finding out the kids’ names, getting some nail art, wearing a power suit, walking in rollerblades, or riding a bicycle to work. Find the one thing that makes you different from other people in your filed.

Me, I like nice people. I’ve often bought a basic product from a nice salesman instead of a perfect one from some guy with ATT.  So build that thing that makes you seem different. It could be what wins that tender.

Crystal Ading’ is a professional author, editor, rock lover and mother. Her work is available through www.threeceebee.com.

DukaPress

The Like Chapaa team has been hard at work trying to change the shape of the e-commerce landscape in Kenya. We have a dream to to make it possible for even the least tech-savvy people in Kenya to do e-commerce quickly and easily. Has our labor got any fruits?

DukaPress. Coming soon. Sooner than you think.

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Websites Are Overated

When setting up a website, it will be more profitable for you on the whole if you prioritize getting good content down before you go into the nitty-gritty of what the site should look like. Most people spend too much time worrying about how the site looks and fail to give the same attention to the content of the website.

Advertisement experts recognize the value of quality content. It is best to get your message out to people in a clear way so that they can understand. In the ad world, ads are constructed around a central concept. This concept must be translatabled into language your customers can understand before you even begin to elaborate on it. Unfortunately, many people spend too much time on fancy designs and features when they move into online marketing tactics. This is reflected when customers visit websites seeking more information about a good or service of interest and find the sites useless.

Since this is such a basic principle of advertising, it is difficult to know why companies have not integrated the formula of great content/good design onto their websites immediately after creating them. The best designed website in the world will fall flat if its content is nonexistent or poorly written. Especially when pitted against an ad with simply “good” copywriting.

So, why invest more time and effort into your content before you have constructed your entire website? People are sophisticated. By throwing up a smokescreen of flashy design and empty content you are ultimately discrediting yourself and your product, as your customers will be able to see through the show to the lack of content within. When people are making decisions about items important to their lives, they like to feel as though websites have informed rather than entertained them.

Also, writing is a solid foundation for anything online. Your main mode of interaction with your website-browsing customer is the content he or she is reading online. Think about it: would you rather buy from a website with beautiful graphics that offers no real information? Or would you rather buy from a website with rather plain design but clear and thorough information about its wares? In this situation, it almost seems as though the ill-designed website practices modesty while the well-designed website compensates for something (Kizuri cha jiuza, kibaya chajitembeza). Whether this is true or not, a customer’s perception that he or she is on firm footing when making a decision is paramount.

If you are not comfortable writing your own content, it can be easily accomplished anyway. Writers are there for hiring, whether you want to add one permanently to your staff or hire freelancers from project to project. It is usually best to hire a writer to work with your art people, or to use the same freelancers on a consistent basis. You must find a writer who understands the voice you want to have in your copy and who is able to put ideas in a way that explains them exactly how you would like. This is not always quick or easy to find. It is worth the expense and search, however, to have someone who is aware of your organization’s current and future goals and who is familiar with your staff.

Content is King.

Fundi wa maneno

I picked this line off some song by Jua Cali … I think … it sounds like something he would say. And it’s a fairly good description of what I do. However, being a fundi is rarely a compliment.

‘Fundi’ is a generic Kenyan term for anything from a tailor to a plumber. They usually work off the street, in little stalls, sheet-metal shacks, or low rent premises. They generally have a specialist trade, but they will fix anything. That’s why the furniture fundi owns a sewing machine, just like the tailor fundi and the shoemaker fundi. Similarly, the electronics fundi will claim to fix anything from your short circuited TV to your overflowing sewer system.

Being a yuppie fundi – like me – means I will willingly handle anything from transcriptions to instruction labels on a VCR. This can be good thing, because I’m versatile. But it can also go terribly wrong. Allow me to demonstrate.

My daughter is at an age where her shoes [and bags, and socks, and white stockings] need repair every day. So two days after I bought her Bata Prefects, I was at a fundi asking him to reinforce the stitchery.

He was drunk, did a shoddy job, and overcharged me. So even though I was unusually polite, and I chat with him every day, I’ve never taken him anything else to fix.

A few weeks back, the shoes were spoilt again so I went to a second shoe fundi. This one has a sewing machine. He made me wait a while as he conversed in vernacular. I understand the language quite well, but I didn’t join in.

Slight digression: when dealing with fundis, it helps to speak their language. They will claim you as one of their own and give you a better deal. Ignore this at your peril. Sadly, I am sometimes arrogant among ‘my own’. Mostly because I’ve seen the negative side of ethnicity, so I prefer to ignore it. I didn’t identify myself as ‘theirs’.

Despite the long wait, he did a good job, so I gladly went again.

On the second visit, I took a school bag to have the zipper fixed. Again, I ignored the language factor, and again I was kept waiting. This time, he charged me for a job he didn’t do – he struggled to fix the zip for ten minutes, concluded that it was impossible, suggested I buy a new zip, then didn’t refund my money. Hmph.

So yesterday I went armed with the new zip, the shoes, a jacket, and two more damaged bags. I budgeted 200. He quoted 250. I offered to sit and wait, he stubbornly declined. We compromised – I could sit and wait for half the work, then I’d come get the rest later. Fair enough.

Lesson two in Fundi Mangement is to sit there until your work is done. Firstly because everybody else does, so the moment you leave, the fundi will serve another sit-in client. Secondly because it’s extremely annoying, and will therefore get the job done faster. Nobody likes you watching while they work. Except maybe footballers. And porn stars.

I came back promptly at 3, and in true fundi fashion, the fundi told me that he was ‘almost done’ and that I should sit for just a few minutes. Luckily for him, I was in major PMS, so I lowered my head and grumbled on the inside, but I didn’t say anything out loud. Yet.

After maybe ten minutes, I asked him what was going on. He said his sewing machine was broken, so he had given my jacket to the fundi next door to mend. Fair enough. At least the shoes were done.

I waited ten more minutes before telling him to give me my jacket and I’d get it done elsewhere. He spoke through the wall – in the secret language that I fully comprehend – and asked his fellow fundi to hurry up. Then he went next door to see what was going on. I followed him.

The work hadn’t even started.

I calmly asked the man to give me back my jacket. He started to protest, but was instructed – in the hidden language – to comply, so he did. I then asked for the shoes, only to see my fundi pick them up and begin to stitch frantically.

Nkt.

He tried to calm me down, but I stood over him until he was done, yelling a few choice words in a voice far calmer than I thought I was capable of. The man was afraid, I could see that. I wonder how he’d react to my standard temper tantrum.

Actually, I wonder why I didn’t throw my standard temper tantrum. I must be getting old.

In the end, I took my barely finished shoes and my barely started jacket to a second fundi – who, again, spoke the secret language – and sat while she stitched it. She was all smiles at first, but hiked the agreed price halfway through because ‘the fabric was messing her machine’. I was too tired to argue.

A simple two-minute collection run ended up in an hour that was so frustrating, I ended up needing a drink.

When you run your own business, do not be mistaken for a fundi – ever. Be versatile, have affordable premises, provide many services, learn many trades.

But when it comes to delivering on time, having endless excuses and doing shoddy work, do not be the quick-fix guy.

We often go to fundis because we have no choice. I used three neighbourhood people and got equally disappointed. But I’ll keep going back to them because living with an almost-tween, I will constantly need stuff fixed on the cheap. That means I either buy new items all the time, or I go to the fundi since ‘I have no otherwise’.

But to thrive in your business, don’t be your customer’s otherwise – be their preference.

Crystal Ading’ is a professional author, editor, rock lover and mother. Her work is available through www.threeceebee.com.