Dee Blick is an award winning Chartered Marketer and author of Powerful Marketing on a Shoestring Budget for Small Businesses.
The Rise of the Twilight Entrepreneur – Why the Day Job is giving way to the Evening Shift
“I am a credit controller during the day but at night I make cupcakes and sell them through my website.” This was the answer I received recently at a networking event when striking up a conversation with a visitor.
A growing number of us nowadays are pursuing long-held ambitions to start and grow a business while still pinning down our day job. It’s a low risk strategy to discover whether we are suited to running a business or not. And because money is still coming in, the risk of living on bread and water in those early months of trading is severely reduced.
When Staples, the office products company, wanted to find out why more people were visiting their stores after 5 PM, they approached Enterprise Nation, the U.K.’s largest website for home-based businesses. Thousands of ‘5 – 9ers’ (the neat little term coined by Emma Jones, founder of Enterprise Nation, to cover those people working the evening shift), were interviewed. 50% said that their business was growing and over 60% said that their goal was to become full-time within the next 12 months.
The research also revealed that the reasons for starting a business were not simply centred on fulfilling a lifelong ambition. Emma Jones says: “For some people we found that it was about increasing their income to cope with a partner’s redundancy whilst others felt uncertain about their future career prospects and wanted to make sure they were better placed if they lost their job. There’s also the added attraction that building a business at night and weekends from a spare room is low risk and low cost.”
Now, if you are thinking of starting a business in your spare time don’t fall into the trap of undercharging for your products or services simply because you are not reliant upon the income.
When you do give up the day job, you could be faced with a price tariff that is unsustainable.
Janette Whitney, an award-winning business consultant and business growth specialist with over 30 years experience says: “Your price sends out strong messages to your customers and affects the way they view the quality of your product or service. Many small businesses make the mistake of undervaluing their product, and starting out at too low a price simply to ‘get a foot in the door’.
‘Conversely, if your customers value your product at below the price you need to charge to make a profit, you have some serious thinking to do. Your price must contain 3 elements; the cost to produce, the cost of time to deliver to your customer and your all-important profit margin.”
Make sure that you operate your marketing on a shoestring by taking advantage of some of the excellent free tools available to get your business up and running. Create a professional and optimised web presence through BT Tradespace, make sure that you blog about your business exploits through Blogger or WordPress, and of course if you have products to sell, consider joining the growing ranks of 5-9 entrepreneurs using eBay. Also, there is always the option of bartering with other ‘5-9ers’.
There are no excuses for not getting to grips with your marketing.
You’ll still need a marketing plan, no matter how basic, and you’ll need a decent logo, business name and identity. Explaining to potential customers that you have neither a business card nor a website will only make your business appear lightweight and trivial. You may be working part-time but you will be expected to give a 100% delivery.
Are you a ‘5 -9er’? If so I would be interested in knowing what you do, and why!
http://blog.whitneyassocs.co.uk
http://www.enterprisenation.com
Working 5 to 9: How to Start a Successful Business in Your Spare Time, by Emma Jones
Spare Room Start Up: How to Start a Business from Home, by Emma Jones
This post has been commented 4 times
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June 25th, 2010 at 10:36 amcarol adams-kirkham says:
I agree Dee, I am visiting more and more clients, particularly women, who are starting up a business to add to the family income. Some are turning their hobbies into a small business. Often they initially undervalue their services or products and I always recommend doing some real market research to be aware of the market rates for the service or product they are offering. Getting the price right is essential, both for market perception and long term business success.
Time management is often an issue and preparing a business plan with a projected financial plan and full sales and marketing plan should help to elimate some of the pitfalls and give a clear strategy to follow.
If the product is good, then charge the market rate for it, if it’s not, then the business is likely to fail.
There is a lot of professional help out there for start ups, some of it free and I would advise taking advantage of it before starting up. It will be a good investment and using a professional will help save a lot of time, mistakes and money.
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June 25th, 2010 at 3:44 pmNicky Kriel says:
Very sound advice, as usual Dee!
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June 27th, 2010 at 7:34 amJulie Maxted says:
We are certainly getting many enquiries from people who want to keep the ‘day job’ for the time being, but start off their own business part-time until they get more established. Certainly, it’s entirely possible to do this.
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June 29th, 2010 at 1:16 pmMajella Wilkins says:
Loved this week’s article Dee about “5-9ers”. From my own experience & the women with whom I work we are “mumpreneurs” or working mums by day whilst children at school but then full time Mum/cook/taxi driver/et al “5-9ers” when we try to be there for our children.