New business gone dead

By : Business Owner
Published 20th March 2015 |
Read latest comment - 20th March 2015

Dear all,

I'm new to the forum and like many other new business/sole traders it started well.

I was looking at retiring for over a year and wanted to buy a franchise that suited the hours I wanted to work and let me give time to my sons.

I retired from the Police in October 2014 and with my lump sum purcahsed the franchise. To preempt a lack of business I started advertising well before my trading start date to help generate business and it worked.

I would have been happy with a couple of oven cleans, 10 max before Christmas, I had 36. I expected January to be dead but know, almost the same amount of cleans.

I was working 4.5 days per week, seeing my sons every weekend and earning money on literally part time hours quivalent to my full time pay as a Police Officer. I was over joyed.

BANG

My last clean was on 29th January. The phone hasnt rung, Ive had a couple of enquiries via e mail but thats it.

I'm advertising in a local magazine thats guarenteed deliverd to every door but it was expensive so Ive cut the size of the ad and one of the magazines.

I've been wearing out shoe leather delivering my A5 tri fold leaflet and been burning midnight oil getting as many free listings as possible obviously including this one.

Ive sent letters to all the major super markets requesting permission to issue leaflets on theor property. all large businesses such as Walkers biscuits, Baxters, B & Q, all the large super marlets and store with a staff roo have ben given leaflets to display. The leaflet is in shop windows.

I'm close to crisis point with my money to fall back on that will last only about 1 - 2 moths at a push.

I've bitten the bullet to take on a part time job but thats zero hours contract for 3 months minimum.

I cant give up on what Ive started.

I must admit I feel a failure.

Can anyone help with suggestions or any other areas of free advertising publicity that I can do.

 


Thanks,
Oven Rescue
Comments

Well firstly, you bought a franchise and your first port of call MUST surely be to them to gain their support for this situation. Have you been getting their support from start up? It is largely one of the main reasons you are paying out for a franchise rather than starting up on your own - you get all the extra support and hopefully extra advertising support from them via other means?

The other thing. If you would have been happy with 10 cleans in December, and lets say 15 in January (that's 50% up on Dec) then if you had more than triple the work in Dec & Jan then why financially you must be as well off as if you had only hit your original targets as what you over-earned in Dec and Jan would have covered Feb & March?

You do find that people tend to stop advertising when they are busy (resting on their laurels) and then suddenly wonder why there is no work coming in! Tip - ALWAYS advertise when you are busy! You need to do the advertising work now for work coming in for May/June, so essentially you need to be at least 3 months ahead. So my guess is you were enjoying all the new trade nd were very busy those 2 months and then overlooked or decided you didn't need to advertise quite as much.

If you had tripled your sales forecast in December and January did you invest all that extra money into advertising or was it converted into a better Christmas??!!

If not already, get on facebook, post in those local selling groups, you can make a lot of money with local domestic services. I have used services of a  carpet cleaner, a car valet, a motor repairs and a dog groomer from Facebook. I see their ads regularly (but not in your face) and when i'm ready, I order. The clue is to add your posts about once or twice a week, so you are seen but not annoying folk. And if possible, add in some cleaning tips and before and after pics. This is free and only needs your time. Also stick free adverts on sites such as preloved, gumtree, vivastreet if you can.


indizine
indizine

indizine,

I havent stopped advertising thats what I cant understand. My monthly budget was £300.

because of my success I spent more and more on even bigger ads.

Thats wehere all the money i earned has gone on even more advertising because without it I wouldnt have any business.

As for support I couldnt want better.

Check out oven cleaning in Moray

Oven cleaning in Aberdeenshire

Im on the first page with google.So far Im with 13 different free business advertising sites


Thanks,
Steve Randall

Hi Steve

Starting and running a business can be very frustrating as well as rewarding. Indizine makes some great points, and social media could be a possible way to generate leads.

Hopefully your initial customers will be blown away with your service and if not repeat customers, will pass your details on as word of mouth. This is the most effective form of marketing going, costs nothing, but takes a long time to build and maintain a professional reputation. Make sure you leave spare leaflets or cards with customers so they can give them to their friends.

Maybe refer a friend discounts etc.

One thing that surprised me is the number of peaks and troughs in a business calendar. As a new business you have little idea what to expect, so get as much info and data from the franchise owners.

eg for us, Xmas and school summer holidays are bad periods, for others they are busy periods. So we have learnt to diversify as well as prepare for lean months. Maybe you are simply experiencing a lean period in your calendar. 

Once you are aware of it, you can prepare for it. Husband precious revenue and plan everything to an inch of it's life. You will have a bad or couple of bad months, that's just business, but you need cash flow to keep you going. Again data from the franchise should help you plan until you have enough experience and your own data.

You maybe top of page 1 of Google for oven cleaning in Moray, but if your phone isn't melting in your hand, that tells me that that either that keyword isn't the best for your sector, or there isn't enough demand, or too much competition.

Assume you did your due diligence and established you have a big enough market for your services, rather than relying on franchise sales pitch (whose product is to sell the franchise).

In which case find out what people are typing into Google to find your services. Keep wearing out the shoe leather, leaflets are great, I may not need you now, but in 6 months I know there is a flyer round here somewhere, or another will pop through the letterbox and remind me about my dirty oven.

How are you with the local landlord community? Rental market is notorious for dirty ovens, students has to be even better, (assuming they know how to work it!). Forge partnerships with landlords or estate agents/letting agents. Become known locally as the go to guy for oven cleaning.

Nothing harder in this world than starting up a business. A franchise is supposed to give you a shortcut to success but is still a lot of hard work.

It won't happen over night. Reputations and building a name takes time. It's an awful lot easier and less stressful being PAYE and working for someone else!


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

I feel your pain.

Great advice from the other people on this forum.

Identify where your initial business came from - is it possible that initially, friends and family also helped spread the word for you to their friends and colleagues, and this is where the boost came from?

Marketing is a funny thing (Not as in haha when you need, but don't get results). One phrase that sticks with me throughout all of my businesses is: "If you do what you've done, you'll get what you've got".

I'm a firm believer that you should never give up - and that in mind - you have the ability to turn this around.

Check your marketing material, and stick it everywhere. I'd suggest estate and letting agents, especially around areas where Uni's are. You're likely to have a slight influx when students move out.

Try and partner your business with domestic cleaning businesses, home help etc.

Incentivise them to generate you business by paying commission (Say 10%). 

If you're doing nothing, go door to door in affluent places. Knock the door, and say:

"Hi, sorry to bother you, I was wondering if I could just give you this leaflet on XYZ"

You will get a better response from this than just popping the leaflet through the door.

Think about B2B if you can - perhaps you can also target restaurants. Don't forget the Environmental Health people can cause havoc if grills and ovens are dirty - you could be the solution to all their problems.

Geography may be playing a part - go further afield if required. Spread your wings a little.

 

Best of Luck! It's tough out there - but it's worthwhile!


The First Choice for First Aid
From Cardiff to Calcutta...

Hi ,Can't really add much more than everyone else ,but just keep at it ,but yes facebook is a good place to start ,have you got your own page ,if not get 1 started asap ,also yes get onto those free site that let you advertise ,it is a great way to get your name out there but as others have said don't post 6 or 7 adverts in a row (these stupid electronic cigarettes are a great example)I would say estate agents would be a good place to partner with they always need to clean ovens 

All I can say is hope things pick up for you soon and you get some good leads for yourself   


Thanks,
Andy-C | Pewter World

Interesting....not one picture of an oven on your home page...I would expect to see at least a comparison of a dirty one and then the after pic after you had cleaned it. I am shocked actually, that a picture of the service is nowhere to be seen upon landing on the most important page of your website.

There is one pic on the about us page (strange place to put a before and after pic anyway) which to me looks like it has had the dirt photoshopped onto the left side of the image.

Get some real pics on there of the before and after of real customers ovens. Or do you have no control over the website with it being provided by the franchise? Which is another thing, its too franchisy looking. it loses the local feel to it.

Pages dedicated to the franchise and the big banner at the bottom - why should the franchise get any part of your website apart from perhaps a link in the footer?

Have you researched which keywords are actually the best to use? Do you get any say in optimising your website for different keywords?


indizine
indizine

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