Start Up Sunday series - Week 8 - Online Marketing & Social Media

Start Up Sunday – Week 8 Online Marketing & Social Media

These days, the world is far smaller than it ever was – we can converse in real time with people from all four corners of the world via the internet. We are inundated with information all at times of the day and night. Whilst this can lead, at times, to information overload or major repetition (evidence Sky News rehashing the same topic over and over again, from every conceivable angle when something even remotely interesting happens), but from a business perspective it means that there are people out there, possible clients, who want and actively seek out information – information we can provide them about us and our business in an easily accessible, inexpensive and readily available manner.

Small businesses, generally speaking, do not start out with mega marketing budgets. These usually are factored in over time, as the business begins to make enough money to cover those types of costs. Whilst that makes total sense, the question remains – how do you get your message out to your potential customers if you don’t have a budget? How can you compete with the “big boys” if you don’t have a budget to match their marketing strategies?

The question is at your very fingertips. The internet and the use of social media. Most people have heard of Facebook and Twitter and many people use it regularly to catch up with friends and colleagues. But how do you turn something used for social purposes into a vibrant, exciting business marketing and promotional tool?

Firstly, you should know that setting up a Facebook page or a Twitter account costs nothing. It is entirely free. You can set up a business page very simply and add an image of your logo or one of your products. Include details of your website, blog, contact information – add photos and say something interesting about them. Make a page you’d like to read as a possible customer… ask yourself what you’d like to see and provide that. Then you can go ahead and invite your friends and family to join.

When you’ve built up at least 25 fans, you can change your Facebook fan page to what they call a "Vanity URL". When you first create your Facebook fan page, the web link will pretty much just be a string of letters and numbers and will be long and not very attractive. To make it more like your own site link, that contains the name of your company, click on to http://facebook.com/username. At the bottom of the page, you'll see a link called "set a username for your pages". Click on it and then you'll see a drop down - click on this and you should see your "business fan page". At that point, you should put in the name of your company/fan page, ie Soaperstar. Word of warning, at this stage you have to make commitment to using that name - you can't go back and change it later so make sure you've clicked the right thing!!!

After doing all this, you'll have a nice simple Facebook Fan Page address instead of a mass of jumbled up letters and numbers after the dot com. This is handy to quote on your business cards, the end of your emails, on Twitter, your blog, the end of forum signatures etc.

Setting up a Twitter account is really easy also – use an ID name that includes your company name; mine, for example, is @Soaperstar… some names are already taken so try something that is readily identifiable as you. Always, always, always fill out your complete profile – this will help you if people want to find out more about you before they decide to follow you. Personally I won’t follow anyone who doesn’t have some information in their profile (at minimum location and a blurb about themselves, but it’s far better if they have a link to their website – an excellent way to drive people there also). Choose a picture as an image of your and/or your company. Mine is really simple but people know it’s me/Soaperstar. My advice is don’t change it too often or at all – this is because a lot of people rely on the images against account names to recognize a person… change that image too often and people won’t remember who you are.

If you're using Twitter regularly, I would personally recommend that you download Tweetdeck, click http://www.tweetdeck.com/; it's free and it manages the process far easier. You can set up columns for your friends or for specific people you want to keep a track on. If you want to use hashtags (which are used for subjects of interest to people - if lots of people use it for the same subject, it's called trending) then add your hashtags, ie #weddingplanners and/or #weddingfavours to your Tweet. Then people can search for all the #soap tweets if they want. Also it makes it a more trending topic.

Ok, so now you’re all set up. What do you do next? Well, here comes the bit where it is going to cost you … but not in money. One of the real keys to good social media interaction is that you have to spend time on it. Social media works so well because you form relationships with people – you create a page, you show your products, you give them the link to your site… but why should they visit, why should they look at your page, why should they talk to you? Another key ingredient in the successful use of social media is making networks, which basically means making friends. Whilst you may have invited your family and friends onto your Facebook page or chat to them on Twitter occasionally, you’re not really going to make your fortune from them so you need to extend beyond them. However, they can be important to help drive their friends and colleagues to your page so encourage them to invite others to join. An incentive often helps so, depending on your product or service, offer a giveaway or a discount for your Facebook or Twitter friends. People love a bargain, especially in these recessionary times and if they think they just have to send a few invites to your page or recommend you on Twitter and have a chance of getting something for free, then they’ll do it.

One of the problems people have when they first start on Twitter (and Facebook to a lesser extent) is that they have no clue how to start a conversation or get someone to chat to you. How do you make friends? You do it the same way you do anywhere else - online is no different from offline. When you don't know someone but think they might be nice or interesting, you say "Hi, how are you, having a good day?" or something, to them. It's not going to rock their world (but it might make them happy, sometimes a nice hello is worth its weight in gold) but it's going to say that you're a decent nice person... generally speaking, the reaction will be "hi, I'm fine, how are you?” And so it starts. Just like it does no matter where you are - yes, it feels a little awkward at the start but it does in real life too. You cannot get to know someone without starting off with a Hello!

So now I hear you saying, "Ok, that's fine, just say hi, what next?” What's next is keep up the conversation, or chat to others in the same way ... talk about something interesting, something they might want to talk about. For example, imagine you're selling ski equipment - a hard sell but you could start out with a shout out to everyone saying "I've just come back from a ski holiday, it was fantastic, anyone else been on one?". You'll no doubt get an answer or two .. ask them some questions, be interested. Don't jump in with "oh wanna buy some equipment?".. drop the fact that you sell equipment into the conversation but don't make it the topic of the conversation. They'll know now that you sell equipment but it doesn't mean that you're a nameless faceless person selling equipment and nothing else - you're a human being, interacting with them, being interested, being funny (hopefully!) who happens to sell ski equipment. Keep up that conversation over time, make friends, chat when you get online and who will they go to for their ski equipment if they need any?? Their friend, who's a nice person and funny and who, handily enough, sells ski equipment. Get it? That's the beauty of social marketing and the key to it - you have to be a person, you have to be real, you have to be YOU. You are the company yes, but you're also a person with feelings and thoughts and opinions, not just a person selling ski equipment. So share yourself, whilst you're sharing your business.

That's the thing to remember about social media and marketing - it's sociable! You need to interact with people, chat, talk about things, give an opinion, be yourself. Drop in some tweets or Facebook updates about your business in the mix, link it to what people are talking about, let them know that you sell handbags or soap or ski equipment or whatever and do it in a way that it seems to meet people's needs and wants.

You will slowly but surely build up a network of friends, some of whom will become your customers, some not. They are people that see you as a person .. but a person who runs a business and when they need what you provide, the first person they’ll think of is you.

If you're a small business starting out, think about your marketing strategies, your budget available to you - see what time you can offer to social media (it does take time to build up friendships, online or offline, so dropping in and out once a month isn't going to cut it, I'm afraid). Don't be afraid to be yourself, show people that you're someone they want to get to know, be funny, be interesting. Get your brand out there via your profile, your personality and your business related tweets but don't make it just about the business - the business is you not just the brand.

Some key do’s are:

• Put time and effort into keeping both your Facebook and Twitter pages up to date and interesting
• Plan a certain amount of time a day that you’ll devote to marketing and choose the time of day wisely. Not that many people will be around at 3.00 am but more may be online at 7.00 or 8.00 pm – work out when the best time is for your particular audience 
• Be personable, be yourself, be pleasant  
• Do be honest – if you don’t supply something, can’t supply it or can’t provide a service, be honest and say so  

Some key dont's are:

• Don’t swear or rant and rave about customers or suppliers – it’s not professional or businesslike
• Don’t think a “hit and run” approach to social media will work – it won’t. You’re wasting your time if you think you need to drop in once a month and say nothing.
• Don’t underestimate the value of social media to your business – you are talking to a huge potential market out there. One of the most famous business Twitter users is Dell, which said that $9m of its 2009 sales came directly through Twitter and Facebook combined . It has been argued that smaller businesses also benefit from using Twitter, since they can compete on equal terms with larger businesses within the Twitter platform . In the UK, a survey indicated that 17% of small British businesses were using Twitter, mainly to attract new customers.

On Friday 11 June 2010, Mashable (one of the most influential blogs reporting on social media) reported on a survey they held asking users to define social media. They noted 20 key words that were used by people as their personal definition: 

• Collaboration
• Network
• Conversation
• Sharing
• Relationships
• Multi-dimensional
• Inclusive
• Information
• Community
• Personalization
• Empowering
• A Radical Shift in Communication
• Real-time
• People
• Content Distribution
• Self-expression
• Unity
• Dynamic
• Discovery
• Power of the Crowd

These words are hugely powerful and illustrate for anyone starting out in business how important involvement in social media is – to network with real people in real time, to build relationships with people, to distribute your company information in a dynamic powerful manner to reach your intended audience. I personally find these words are inspiring for a small business owner because it proves that one person can involve themselves in a community of like minded people, building and maintaining relationship with friends and customers alike.

I hope that this blog post has helped you understand the importance of social media as a key marketing tool for small business.  Now... make sure you set that Facebook and Twitter Page up today - link your new pages in the comments below and we at Creation|Collaboration will be very proud and happy to follow you!!

Start up Sunday Week 6 - Insurance & Legislation

Welcome to Week 6 of our Start Up Sunday series - today we will touch on Insurance and Legislation.

Insurance:
Smart business people work to reduce the risks to their businesses from outside forces. One of the best ways to do this is by having in place the relevant insurances. Depending on your type of business and how you trade, you will be required by law to take out certain types of insurance. Other types of insurance are not compulsory but may be appropriate for you and your business.

Employers Liability Insurance - If you have employees, this insurance is a legal requirement. It provides cover for claims by employees who are injured or become ill as a result of their employment.

Vehicle Insurance - You need to insure your car or van for business use if you will be using it for business purposes.  Some insurance companies don't carry business car insurance so please ensure that your insurance company does. 

Public Liability Insurance - This provides cover against claims made by members of the public who have been injured or has property damaged as a result of carelessness at work by you or your employees.

Premises Insurance - Insurance will be required for the premises you work from, even if you work at home and there is already a domestic policy in place. This is because residential insurance policies usually only cover domestic use. Please contact your own insurer for clarification of your own policy.

Contents, Stock and Materials Insurance - This will be required to cover the replacement costs of contents, stock and materials even if you work from home and have a home contents policy.

Illness, Accident and Life Cover - These will pay a regular income or lump sum if you are unable to work as a result of illness or accident or if you die.

Insurance policies serve to protect you and your business against the unknown and it's vital that you anticipate any risks in your business and protect yourself against these.

Legislation:
All companies will be covered by some level of legislation - and some more than others.  Legislation deals with areas such as protection of employees, the length of time worked in a day/week, product legislation, health & safety legislation to name but a few. 

As business person, it is incumbent upon you to ensure that you and your company are fully compliant with the various pieces of legislation that apply to your area of work. 

As an example, those who wish to start a business selling bath & body products have a raft of EU legislation to adhere to.  You might think that making soap or body butters or lip balms would be an easy, fun job and that you could just make them and sell them.  However, there is EU legislation that all sellers/producers have to comply with - these will involve ensuring that you list all ingredients in the order of percentage used, that you include a batch number for each batch made, you list your name and address so that any customer can contact you directly if they have an issue with your product and you have to include a best before date. 

For this industry, the legislation also insists that you, as a producer, are certified as safe to make the products. You must be certified by a qualified cosmetic chemist and keep full files on every single thing you produce, including a copy of your safety assessment.  For each ingredient you use, you need to have these included on your safety assessment and these can, at times, only be used at certain concentrations - for example, if you use citrus based essential oils, you can use these at 1% maximum.  For more information on cosmetic legislation, click this link.

If you wish to sell your products online, then you must ensure you comply to Distance Selling Legislation.  If customers place orders with you online or on the phone, then this is termed distance selling.  You still will have a contract with customer, whether there's a written contract or not. If you offer something for sale at a particular price, and the customer agrees to that offer and pays you for, then you automatically have a contract with them. 

You must provide information to your customers prior to sale, to inform them of their rights - this information includes:

• You must identify yourself at the seller, giving a name and address where you can be contacted
• The characteristics of the goods or services you are providing
• The price to be paid, including any taxes
• The cost of delivery to each of the countries you are willing to supply
• The arrangements for payment - how you will accept payment
• The existence of the right to cancel the order
• A note about the cost of communication - for example, if you have a premium phone number, your customer must be informed of this PRIOR to them making the call
• The period of time for the offer
• The minimum duration of the contract

Your customers are also entitled to:

• Written confirmation of their orders
• Written information on how to cancel the order
• Your business address so that they can direct any complaints to you (this must be an actual address, not just your website link or email address)
• Details of any guarantees or after-sales services
• Details of how and when to end a contract

A well written set of Terms & Conditions on your website will ensure you abide by these regulations.  If you require any further information about Distance Selling Regulations, please this link.

We don't have enough time or space here to cover the full raft of legislation that will apply to each and every company, but please ensure that you, as a competent business owner, make yourself familiar with the legislation that is applicable to your specific industry as well as general legislation that covers issues such as Health & Safety and labour, to name but a few.

The key point to take away from this post is that you need to make yourself aware of what is required of you as a business owner.  A good business person will have researched all regulations related to their business and worked this into their business plan, especially if there are additional costs involved in you having to comply with these laws.

I hope this quick look at required legislation and insurance assists with your business - the two words to take away from this are "research" and "comply" ... you won't go wrong if you abide by those words!

Remember to check out our next article in the series, which will be published next Sunday.  And don't forget to join our forum at http://www.creationcollaboration.myfastforum.org/.

Collaboration Women Wednesday Blog Hop - Week 10

Welcome to Creation|Collaboration's 10th and last in this series; Women Wednesday blog roll, hosted by Beads & More by Lois, Soaperstar and Plans and Presents

Creation|Collaboration was set up by eight women, all existing friends, who run small businesses from their homes. We have started Women Wednesday blog roll to link up with other women in business, spread the word about Creation|Collaboration and basically just have fun visiting all of your interesting blogs!


We hope you have joined the weekly blog hops, we will be doing more of them in the future with a slight difference!

Heres how you can join in with Collaboration Women Wednesday:

• Link up your blog name and URL to your Women Wednesday blog post using the McKLinky below (you only need to add on one blog to be seen on all of the McKLinky blog roll's) Please note that it's for blogs only and not links to your websites or shops.
• Follow our Creation|Collaboration blog and the hostesses listed in the first 3 slots.
• Grab our Women Wednesday button and feature it on your blog or Women Wednesday blog post.
• Follow and comment saying you're from Women Wednesday on as many blogs as you likes listed in the McKlinky box.
• Follow back any new followers from Women Wednesday!

It's that easy and a fun way to discover new and interesting blogs and us women at Creation|Collaboration get to meet other women in business!

Last week Jacquie Swain from Soaphora was picked to be our 5th Blog Hop Feature!


Jacquie has incorperated Soaphora and A String of Beads to handcraft beautiful soaps, creams, balms and lampwork beads in her studio.

We asked Jacquie 5 questions so we could find out more about her and her business.

1. Tell us about yourself and your business.

I started my business in 2006 after a lengthy time off sick from my job, I started making jewellery, which, in turn, I started to sell. I then got more and more interested in where the beads came from (ethically) and so started to source British made lampwork beads. I loved them so much I started making them myself. I still make and sell beads and from time to time jewellery, but it's the beads that are my main passion. 

2. What do you love most about having your own business?

I love that each day is different, I love being able to lock myself into my studio and create when I want. I love the freedom of being my own boss and making the decisions!

3. What would you like to change?

What would I like to change, apart from the obvious, More sales, the only thing I would change at the moment is to perhaps streamline my range of fragrances a bit. There's always room for change though!

4. What do you love most about blogging?

I love the sharing of information, seeing others creativity. Lovely photographs and always learning something new!

5. What is your most favourite thing you have made?

My favourite thing that I've made, hmm thats tricky. Over the years I have made somewhere in the region of 4000 silver core beads and many many sets and its hard to have favourites as I always see the technical flaws, I'm also a relatively new soap maker and my favourites are based on fragrance and how they feel to me when I use them ( I'm biased I know so am bound to say I love them all!) However I would say that that whatever you make your first should always be your favourite as its a constant reminder of how far you've come and what you've achieved. I still feel excited when I see the first soap I made and although it's not the best and it has no smell I'm still amazed that its soap!

Thank you Jacquie for being part of the blog hop and feature.

Make sure you check out her blog

You can buy her products from her Website

Check out Creation|Collaboration's New Forum! Join us Now!

To all our C|C users, as you know we have had a few technical problems with the site and a lot of you haven't always been able to post when you want. That's not good for anyone. So from 13th July, the Creation|Collaboration website will move to a much more simple 'forum' only site.

This does mean we won't have some of the nice extras we had on this site, but it does give us a reliable forum where we can chat about being self employed and share all our business challenges and succeses.

We'd love it if you all joined us, unfortuantely you will need to sign up again but we hope you think it's worth it. You don't have to wait until the 13th July, the new forum is active now if you would like to join us sooner.

Sign up for free at our Creation|Collaboration Forum.

We value all of our members greatly and a heartfelt Thank You from us all at C|C for all your posting, feedback and support so far.

We hope you will also follow our blog at http://www.creationcollaborationblog.blogspot.com/ and our Facebook page http://www.facebook.com/creationcollaboration.

Please leave us a message to let us know how you are all getting on in your respective areas and we're looking forward to talking to you on our new forum!

C|C Team xx

Creation|Collaboration Blog - New Ideas & Feature Friday

We at Creation|Collaboration are working on new ideas for our blog but we would love to hear from you, our readers, and see what you would like to see featured? Is there anything in particular you'd like to know more about, do you have any ideas on a series of posts we could do, do you have any questions about running your own business that we could help with? Drop us an email at creationcollaboration@yahoo.com with the words "Blog Ideas" in the subject line.

We're also looking for women run companies to include in our Friday Feature slot each Friday - these have proved really popular and it's great to see how other businesses are fairing in this economy.  If you'd like your company to be featured, please email us at creationcollaboration@yahoo.com with the words "Feature Friday" in the subject line and we'll foward you on the relevant information. 

All you'd need to do is complete a questionnaire we'll send you and include between 5 - 7 images that show your business off to it's best, including your logo.  We have no limit on words so why not take this opportunity to get you and your business some fab (and free!) promotion! All requests are taken on a first come, first served basis and you will be notified of the date that your feature will be published. 

Remember, Creation|Collaboration is all about women run businesses networking and helping each other out so don't forget to keep in touch with us - we're here to help you out!

Check out our Facebook page at http://www.facebook.com/creationcollaboration

Creation|Collaboration Start Up Sunday Week 3 - Writing a Business Plan

Writing a business plan is possibly the single most important thing you will when planning your business.  It will help you develop your business, dealing with the need for financial projections and budgeting, writing about the aims and objectives of your business along with your business goals and will help to collate not only the evidence that you may need to help support a request for financial assistance from your bank or any investors but to help focus and concentrate your own mind on what you want to achieve and why.

A business plan is a document that summarieis various points about your business, such as:

• Where has your business come from, what was the concept behind starting out 
• Where it is at this present time
• Where it will be going in the future and how you intend to get it there
• What financial package you need to achieve your aims
• Why it's different from other businesses which will help you define how likely it is to be successful
• What are the strengths, weaknesses, opportunites and risks that will face your business as it grows

You don't need to write thesis with a million pages - a simple business plan can be a couple of A4 typed sheets of paper but can run to a couple of hundred pages; this really depends on the business, what it wishes to achieve and how it plans to get there.  For small businesses starting out, keep it simple.  If you get to the stage where you are seeking financial aid from the bank or wishing to apply for enterprise grants, you may need to update your current plan and delve deeper to provide additional details.  However, remember that these are busy people so keep it clear and simple.

The key parts of a business plan are:
Text - the details about your business; this will be the bulk of your final document
Evidence - to support any claims you make in your plan.
Financial information - projections and budgets to show that you afford to get where you want your business to go.  This will usually include a projected profit & loss account, balance sheet and cash flow statement

Do not underestimate the need for in depth planning - the old phrase "fail to plan, plan to fail" sounds horribly trite but it's very true.  Be very truthful about your business, be clear about what you want to do, where you want to go and how you're going to get there.  A good business plan will help you in the planning process because to provides a structure for you to investigate each aspect of the business.  It will help you:

• To focus your mind and thoughts on the business and provide a structure to include all the information that you might miss out
• To help clarify your thinking - writing out your plan will help you clearly define what it is you really want
• To help you put foward any answers to any arguements that might be questioned by the bank or other funders - it will assist you in anticapting queries and answering them before they've even been asked
• To help you focus on any risks (and any ensuing loss) in your plans - and, conversely, it helps focus on the opportunities and strengths of your business

How to Structure your Plan:

Your business plan should have a structure that allows for easy reading and understanding by the reader.  It should include:

1  An Executive Summary - this is a 2 or 3 page summary of the business, your product(s), any opportunities and the company's financial requirements. This is the first part of the report that will be read by any potential investors but the last to be written.  It helps summarise all the information and details contained within the body of the report.  This is the most important part of your document as it can be the only part read by investors - it's usually this part that helps them decide to read further.  It's important to note that most business plans are rejected before the Executive Summary has been fully read so spend time ensuring that you get this right. 

2  The Staff - for small businesses, this could amount to one person only but do detail your experience and skills

3  Your Products & Services - what they are and how they are unique from your competitors

4  Your Competitors - who are they and how they could affect your business

5  Your Marketing Strategy - how will you let prospective customers know about your product(s)/services?

6  Your Research & Development Strategy - for the development of new products/services

7  Your Operations Process - purchasing, manufacturing, distribution, customer service, infrastruture

8  Your Financial Details - requirements, project profit & loss information, balance sheet, projected cash flow statements

9  Appendices - any documents or other details that may be of required as evidence of any claims made in your document

Reviewing a Business Plan:

Your business plan helps you focus your thoughts about your business, what it is, where it's going, what you want it to achieve, how it will actually achieve what you want and how, and how much all this is going to cost.  Because it is such an important document and can take time to write, it is important that you review it fully before your sign off on it.

Ask yourself, does your plan tell the reader:

• Who you are
• What your product/service is and what will your customers pay for it
• Who your customers are
• What your unique selling point is
• What will be the price your customers
• How many products/services can you supply and how many customers will be willing to pay for it?
• What are your delivery and other overhead costs?
• What investment is required for further development of the company?
• And possibly most importantly, is this a viable business?

Remember that your business plan isn't a static document - as we've seen in the last few years, economies change and businesses, in order to be flexible and stay in business, must be able to move with the changes.  Therefore, your business plan must a live document - as your business changes, so must your plan in order to remain current and up-to-date.  Growth is a live process, your business plan must be also. 

Don't forget to check out our next Start Up Sunday feature - Website or No Website?

Start Up Sunday Week 2 - Company Structures: What's the difference & what option is best for you?

Welcome to the second instalment of our Start Up Sunday series. Before we start, I would like to stress that the information we provide is designed to be a guide to help support you and your business, it is not to be taken as professional or legal advice.  We are drawing on our collective knowledge of the UK system. If you live outside of the UK, please consult a local business advisor.

Today we will talk about your company structure. Each company entity has its own advantages and disadvantages. You need to consider these carefully as, unfortunately, there is no "one size fits all"l solution. You will probably find this to be one of the first hurdles in your quest to have a thriving and profitable business.

Firstly we have Sole Trader; you may more commonly hear this referred to as self employment.  This is a business owned by one person. Legally, the person and the business are one and the same. All financial risks are taken by that person and all that person's assets are included in that risk. You are obliged to keep careful and accurate business records detailing your income and expenses. If you work from home, you have to divide your utility bills accurately to account for what is business usage. Working from home may also have implications for your home insurance policy.

When you first set up as self employed, you have to register with HMRC.  We will cover this in more depth in Week 5. As a sole trader, you are totally and personally responsible for any debt or legal compensation your business becomes liable for so please check you are adequately and totally insured as you could, quite literally, lose everything you have worked for.

To recap, Sole trader:

Pros:

• Your business is your own
• You can make all business decisions (presuming they are within the law) yourself and without interference
• Admin costs are relatively low and you have to keep records for HMRC only

Con:

• You are solely responsible for the companies finances, if it all goes wrong personal bankruptcy can occur

The next business type we will look at is the Partnership.

A partnership is a business run by two or more people together. There should be a written agreement detailing this arrangement. Profits are usually shared between partners according to the agreement. Although profits may be shared unequally, liabilities which may arise are shared jointly. This is something that everyone involved should be very clear about. Even if you only own 1% of the business, you will still be responsible for 100% of the liability. You have the same record keeping obligations and liabilities as a sole trader.

Pros:

• More money can be initially raised on start up
• Records need kept for HMRC and you can share the workload. 

Cons:

• The same as a sole trader, personal assets are at risk if the business fails, bankruptcy is a possibility.

This moves us on to a Limited Liability Partnership. A LLP give the benefits of a partnership while limiting your liability, protecting your personal assets. You have to register it with companies house using a process similar to registering a limited company. The LLP will be a separate legal entity and, while the LLP itself will be liable for the full extent of its assets, the liability of the members will be limited. Under certain circumstances, however, claims for economic loss could be made against individual members who have been negligent. The business itself is controlled by the 'designated members' and the Members. Designated members have responsibilities similar to that of company directors. You can find out more by visiting the companies house website here.

Pros:

• An LLP is a alternative corporate business vehicle (being introduced April 6th 2001) that gives the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership. 

Cons:

• LLP have much more complex requirements for record keeping and returns. Yearly account must be filed with companies house as well as members and designated members completing their own personal returns.

Finally we come to Limited Companies. Unlike a Sole Trader or a Partnership, the Limited company is legally a separate entity in its own right. The directors and shareholders have limited liability. When a limited company is created it will have an Authorised Shareholding which specifies the limit of a shareholders liability. This means your personal assets are safe. A limited company needs to be registered with Companies House, you must also hold an AGM with all the shareholders within 18 months of formation and no longer than every 15 months after that. These meetings must receive, and approve, Annual Reports from directors and auditors. These reports must include summaries of the accounts, names of the directors, details about the shareholders, and other information. At these meetings, the shareholders must also elect directors and auditors. You must submit annual company returns to Companies House for inclusion in the Annual Reports. These are available for public inspection.

A limited company will always have staff as the Director of the company is considered to be an employee and a limited company must have at least one director and a company secretary. This means you would have to operate a PAYE scheme. We will briefly touch on this in Week 5. A limited company will have to pay corporation tax on all profits.

Pros:

• A limited company can protect a director, who act within the law, from legal actions brought against them. 

Cons:

• There is significantly more paperwork involved in running a limited company than any other option. You cannot keep your business affairs private and there is a small charge yearly for submitting your annual accounts to companies house.

In conclusion, from a record keeping, tax and NI perspective, you are usually better off being a sole trader or partnership - however, very few partnerships outlast a business. Indeed, many very good friends who have a long standing and stable friendship often turnout to be shockingly bad business partners.

We hope you've have enjoyed Week 2 of our Start Up Sunday series - please make sure to check back with us on Sunday 20 June for Week 3.

Creation|Collaboration features CarmenJean!

We're really delighted to be bringing you our seventh Feature Friday - today we're featuring Carmen Maidment who runs CarmenJean.

Hi Carmen, introduce us to yourself and your company!

Greeting all C|C readers! My name is Carmen Maidment, and I run the CarmenJean Group. I know – it sounds terribly grand, but really it’s a collection of three trading names, all doing something a little different. CarmenJean, Soap By The Slice, and Teeny Tiny Soap Co.

The main focus of all of them is all bath & body products. CarmenJean’s focus is on wholesale orders, Soap By The Slice focuses on retail sales and Teeny Tiny Soap Co focuses on favours and small soaps & products. Each one has their own personality and image, and is treated as stand alone units.

The group is run mainly by myself, with support from my wonderful, understanding and ever patient husband. And I am kept mad by my two very energetic children. Well, the madness helps the creativity to flow!

I make glycerine soaps, body butters and a whole host of products to help wake you up in the morning, and relax you after a stressful day. I’ve started to make some of my own packaging too – a truly therapeutic activity!

Where did the idea of running this as a business come from?

As a work at home mum, I have always been driven to run a business from my home. When I started to make soaps, it was with the intent to sell them on. I never dreamed that I’d become this obsessed with it all!

What do you love most about your business?

The colours, the fragrances, the ingredients, the end product, and the joy my customers experience when they use my products.

I also love the creation aspect – making something that is appealing to the eye. I love the cute packaging, the handing over a parcel to a customer, knowing that they, or a loved one is going to enjoy using those products.

There are so many things I love about it, that it’s really difficult to pick just one. So, I suppose the answer to the question ‘What do you love most about your business?’ is …. My business, and everything about it.

What would you like to change?

Hmm. That’s a tough one. I’d like to have more time. But since that’s not going to happen, I suppose I’d like to be able to work smarter. By that, I mean that I would like to be more efficient, more resourceful, more organised and more efficient. (Yes, I did mention ‘efficient’ twice!) It’s not easy for me. My husband called me a ‘Space Invader’ nine years ago, and it still holds true today! I seem to occupy far more space than necessary.

What is your aim for the next year?

Expansion! I have so many ideas that need to be actioned. It really is just a case of getting them done. I am working on more wholesale orders, and more craft fairs, and those two are my main points of focus for this year.

Where do you ultimately see yourself?

Successful and happy. Success makes me happy, but, success is not easily defined. To me, success is a healthy turnover in my business, and a happy home life. The balance is not an easy one, but certainly not impossible. I don’t want my products in supermarkets – I would be far more happy for them to be in boutiques, gift shops and galleries.

What are your Top 5 tips for new Business Women ?

Tip 1: SKILLS!! I can’t stress enough, how important it is to have the skills you need as a strong foundation to build on. Whether those skills are in papercrafts, or bookkeeping – you need to have them as a strong, rock solid foundation. And if you don’t have those skills, get them! Internet, courses, college, and friends are all places where you can find those skills. If you’re physically unable to get a skill (anything to do with numbers confuzzles me!), get someone who does have that skill. My husband wouldn’t dream of letting me loose on the accounts, and I cringe at the thought of him designing a business card.

Tip 2: Source good ingredients. It doesn’t matter whether your ingredients include shea butter, sterling wire or ceramic clay, make sure that your ingredients match the standard of your end item. There is no way you can use inferior ingredients, and hope to sell the end item for a premium price. If it means you have to buy less quantity according to your budget, then do so – there is no substitute for good quality ingredients.

Tip 3: Branding. Whatever you sell, make sure that your name is on it in some shape or form. If it’s a service, make sure that everyone, and I mean everyone, knows who you are and has a good image of you.

Labels on products should reflect your style and should proudly display your company name. There should be no doubt where the product has come from.

It’s not easy, and many well known brands still don’t get it right. But wait! Before you throw your hands up in despair and give up, remember, it’s far easier for small business owners to change and adapt than it is for large companies. Think of a small speedboat making a turn, as opposed to a supertanker making a turn.

Tip 4: Roll with the times. Make sure that you are adaptable and flexible. If someone makes a negative comment about your product or service, do not take it personally. Turn it around, and see how you can use that information to tweak your business and make it better.

Tip 5: Be true to yourself. Don’t let someone else (even a loved one) tell you which way your business should go. Sure, get ideas from others, bounce new ideas off someone else, but go with what you feel is right for you.

Don’t allow your image style to be shabby chique, if you’re more of a grunge type of person. And if gothic is your thing, don’t let someone else tell you that you have to be more traditional. It may mean delaying the launch of your business, but it will be well worth it. If your business is to be sustainable, it must be something that reflects a part of you. And if you change, allow your company to change too. You will put a great deal of time and energy into this, and if it’s not something that you enjoy, it may not be long lasting.

A few last words - How do we contact you Carmen?

There are several different ways.

Facebook: CarmenJean Bath – Body - Beauty http://www.facebook.com/carmenjean.b.b.b

Twitter: http://twitter.com/CJ_Soap, http://twitter.com/soapbytheslice and http://twitter.com/TeenyTinySoapCo

Website: http://www.carmenjean.co.uk/

E-Mail: info@carmenjean.co.uk

I am working on my website, and will be listing the fairs that I will be attending in the year. Hopefully I’ll be able to get it finished fairly soon … hopefully.

Thank you so much for reading all about me, and my business.

Thank you so much Carmen for talking us today, your products sound utterly fabulous and we love the idea that you've split your company into different sections to match the different markets you sell to. 

Next week, we'll be featuring Brenda Panter from Splash - make sure to check back next Friday!!!

Feature Friday - Myroo Skincare & Milly and Flossy

  

We're really delighted to be bringing you our sixth Feature Friday - today we're featuring Rachael Dunseath who runs both myroo skincare and Milly & Flossy. 

Hi Rachael, introduce us to yourself and your company! 

Hello! I’m Rachael Dunseath and I am the owner of myroo skincare and Milly & Flossy.

Both brands are dedicated to hand-creating natural skincare that is desirable but ethical. Milly & Flossy is my baby range.

I use only the best natural ingredients and my products contain no sodium laureth/lauryl sulphate, no parabens, phthalates or silicones, no petrochemicals, no palm oil and no artificial fragrances or colours. I only use synthetic ingredients where they are unavoidable, for example to preserve.

My shea butter is organic and fairly traded. All my packaging is recyclable. I don’t test my products on animals and nor are any of the raw ingredients tested on them either.  The whole range is suitable for pregnant women and the baby range is suitable from birth.

The entire range is handmade by me in small batches in my tiny workshop.

Where did the idea of running this as a business come from?

I have always wanted to run a business that made the most of my creative side and my business and marketing background. Myroo came about when double redundancies in our house set me looking for homemade gift ideas. A few experiments later and some fantastic feedback from my testers and an idea was born. Things have moved so fast, the products are more sophisticated but the basic idea remains the same.

What do you love most about your business?

I love my cupboard full of ingredients. I feel privileged to be working with such lovely raw materials; beautiful butters, luxurious oils and fragrant essential oils. It is a joy.

I also love it when a customer takes the time to give me feedback. It’s wonderful to hear that people enjoy what you are making and that it works. Several people have actually taken time to email me to let me know how much they love my products, which is amazing.

Finally, it gives me an enormous sense of pride whenever I set up my stall at a craft fair. To think it’s less than a year since the original idea, my little business has had quite a journey.

What would you like to change?

Ugh, bookkeeping is the bane of my life. I’d love to be earning enough to pay a bookkeeper to do what they’re good at, so I can concentrate what I’m good at. Soon, fingers crossed.

What is your aim for the next year?

I have ambitious growth plans for the business. I plan to launch several new products in the next twelve months, starting with my new Milly & Flossy baby butter which will be available very soon. My website is undergoing a major transformation so there will be lots of activity focused online too. I’m also working hard on PR and would love to see my brands featured in some national publications.

Where do you ultimately see yourself?

My ultimate aim is to be stocked in a high-end high street store, my dream would be to be on the shelves of Space NK. I want to achieve that whilst remaining true to the ethical values of my business and keeping the products handmade.

What are your Top 5 tips for new Business Women?

Tip 1: Do not forget to include your time in the pricing of you business, be it a service or a product. If you cannot make a profit when your time is factored in, then your business will not grow. It’s harsh but true.

Tip 2: Network. It can be isolating being self employed, especially if you work from home. Meeting up with like minded business people can help develop your business and keep you motivated.

Tip 3: Make the most of social media. It is hard making a name for yourself in your chosen field and it’s unlikely you’ll have a massive marketing budget. Twitter, Facebook, Linkedin and other social media formats all offer a chance for you to get your name out there and you don’t need to part with any cash; remember though, your time does have a value - if you’re doing nothing but social media, your business won’t grow.

Tip 4: Prioritise. It can be tempting to focus on the things you like doing and the things you are good at, especially if your business is based around a skill or craft, but you need to focus on the things that are going to grow your business. The reality is that a small amount of your time will actually be spent doing the creative side and a lot of time will be spent doing the business and marketing elements.

Tip 5: Enjoy it! Being self employed is wonderful, it’s rewarding, fulfilling and challenging. It has ups and downs but that sense of pride in knowing it’s all yours is unbeatable. You’ve done it, you created your own business, you are an entrepreneur!

A few last words - How do we contact you?

You can buy online at http://www.myroo.co.uk/ and http://www.millyandflossy.co.uk/. 

Find out more on http://www.facebook.com//myrooskincare and http://www.facebook.com/millyandflossy or follow us on Twitter at http://twitter.com/myrooskincare and http://twitter.com/millyflossy.

If you live in Harrogate, you can also buy our products at The Stalls, a lovely boutique stocking all handmade products, 3 Bower Street, Harrogate, HG1 5BQ

Thank you so much Rachael for talking us today, your products sound utterly fabulous and we love your use of natural ingredients in all your products.
 
Next week, we'll be featuring a special guest company - check back on next Friday for details!!!