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Kate Bendix is a journalist and former TV producer who is setting up her own business, Natural Pet Choice which sells healthy, organic food for pets. She loves real food, proper cooking and organic produce for herself, so it makes sense that she should want the same for her pets. But when she tried to find a site on the Web that offered a range of natural pet products, she couldn't find one. This is why she has set up the website. She talks about her progress here. 

November 19th 2008

I'll be honest, last week I was out of business. And a lot of it was self inflicted, avoidable misery.

I'd seen an interview with Peter Jones, he of the Dragons on local TV a while ago where he said 'know your product, do your research, but most importantly; get your figures right!' My figures weren't right. Not right at all.

The stupid thing is, I knew it but I was caught up in just keeping going, which is utterly self-defeating. You're just running faster towards your own demise. Plus I had a massive dog show at Earls Court (non profit making as it turned out) so could hide away in that for a few days.

Working on your own is hard. Really hard. Motivation isn't my problem, it's having someone else to bounce off, to ask the really hard and difficult questions with, to keep the focus on who you are as a company and where you're going. If it wasn't for good friends like Helen and Simon, who manufacture the amazing probiotic dog treat Feelwells and are self made geniuses as well as kind and generous people, sharing their business acumen and suggestions I'd have sunk a long, long time ago.

Then there's my dad, who came to my rescue to take a look at it all last week. We sat down and pulled 100 invoices into a spreadsheet, breaking them down by profit and loss, delivery charges, type of product and how they had been sent; courier or post. The results were stark, almost instant, and so obvious I opted for fits of nervous laughter that made my sides hurt, over weeping.

 

I was losing money on delivering food by courier, offering free delivery on orders over a certain amount and newsletter subscription discounts. My profits were being eroded by offers I thought I had to make to find and keep customers. One of the most interesting things was I am selling far less food than I thought, which is what usually drives secondary sales. I might as well have stopped trading there and then.

Instead I scrapped all discounts and free delivery; averaged out the total cost of postage over those 100 invoices and changed the postage rate to a flat fee. I also stopped selling food except that which the manufacturers are happy to drop ship.

Then I waited for the orders to come in, or not. And they did! So far no one has registered as a new customer then left without completing an order when they've clapped eyes on the new delivery charges. Most of them have subscribed to my newsletter without me dangling a carrot. I called my best six customers to explain why I was no longer selling food and they were all lovely, understanding people who are all staying and paying. Two of them put in an order there and then.

So that's me. Looking for a job to tide me over but now making profit on every order that comes in. I've given up beating myself up about it. I know far more now than I did twelve months ago and in another twelve months I hope to be in a much better position. I heard someone on the radio a couple of days ago who said 'there's no shame in failing, the shame is not getting up and trying again.' Enough said.

 

 

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October 22nd 2008

So let me get this straight: we aren't in recession yet (officially) but we have tippi-toed our way to the edge of the abyss, had a quick shufti and run away squealing? Smashing!

We knew it was inevitable, but if the big bad bankers weren't such scaredy cats with itchy trigger fingers we might have had a smoother run up to the downturn.

As it is, two weeks ago the banks headed south and my business almost - and I REALLY mean almost - ground to a halt. It's taken two weeks for that rabbit in headlights look to fade from everyone's eyes and now finally customers are coming back.

And thank the Lord it's Christmas in two months and not January, otherwise I'd be staring ruin in the face. But with any luck we'll have regrouped our cool and be on a more even financial keel by then, and I'll have worked out a cunning and devious plan for staying afloat.

I've got a good little business on the go here, and I love the challenge of it all, but I need to eat too. I get that customers aren't spending like they were, I'm a customer myself. I've stopped buying things I don't need i.e. new knickers (who's going to notice!), cooking more and filling up the freezer.

The thing to remember though is that it's the small businesses that keep this country afloat and if you stop spending, we go bust, our suppliers go broke and we're all saying 'do you want fries with that' by Easter. Which will only serve to make things far worse than they are now.

For the record, I had a house and a business during the last recession in the late eighties early nineties and can I just state right here and now that this is nowhere near as bad. Inflation isn't crazy yet, interest rates are not making our eyes bleed at seventeen percent and unemployment is not rampant at three million. That was hard.

So yes, tighten your belts; you don't need a new car, fix the old one, put that Prada handbag back on the shelf, it won't make you any better looking than you clearly already are, but please, and I implore you to do this as much as possible, spend a little bit on small things. They won't bankrupt you, but if you stop spending altogether then it will, as sure as eggs is eggs bankrupt many more small businesses before this is all over.

 

 

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September 16th 2008

I am happy.

There is a cat on my lap who's happy too because I am in for once. I have enough money in the bank to pay the mortgages for the next two months and I'm off on really my first holiday in a year tomorrow.

So I don't care about anything much I'm just living in this moment, the one where I am happy to just BE.

When I come back I have five (count 'em) five precious weeks at home with no TV job and no dog shows to hinder me. I've got five weeks to put everything I've got into making this business work. Because it's been just ticking along for the last few weeks and I've been running myself ragged.

So I'm off to France for seven precious days to eat, sleep, laugh, catch up on all my back copies of Vanity Fair (guilty pleasures), drink and be merry.

Then back to reality, but I'm excited by it. I just wish I didn't feel so thick most of the time and inexpert at running a business, but hey, no one's perfect!

So stroke the cat, eat dinner, answer emails then seven days off. GORGEOUS.

And I promise I'll blog more and eat more veg when I get back. Honest.

x

 

 

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1 Comment(s)

Hi Kate,

I've just started reading your blog and I've found it interesting and amusing. To encourage you to keep posting I'd appreciate your advice on marketing your new business.

Having spent too long working in a data centre I'm now in the process of launching two new ideas (www.theEventThing.com, www.OpenYourDiary.com) with the hope that they (or one of another three I've got in the pipeline) will enable me to work from home.

With the Event Thing (which is our test bed for new code) I'm trying to reach anyone and everyone who is holding an event and looking to publicise it.

Open Your Diary on the other hand is an online appointment booking service / diary management tool to allow small businesses to take bookings online. As we are trying to offer this service at a very low cost to the businesses, we need to keep the cost of acquiring customers very low. Do you have any help, advice or suggested reading?

rgds/alex
Comment by : Cantankerous   October 15th, 2008
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August 17th 2008

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Here's a word of advice. Do not EVER go to bed taking the trade press of your chosen profession with you. It will only make you dream of a dark and foreboding presence lurking on the edge of your consciousness who's just waiting to drag you and your business under. Actually just imagine (assuming you're old enough) the small black creatures who arrived from hell to take Patrick Swayze's mate down to eternal damnation for murdering the lovely Patrick. That's what last night was for me. Why? Well it seems that in it's wisdom the people who make up the Veterinary Medicines Regulations are looking to remove some 'natural' medicines from the shelves, particularly flea medicines unless they're backed up by supporting dossier that demonstrates safety and efficacy. And I'm all for banishing the quack stuff and regulating the industry in order for customers to be able to make an informed and SAFE choice. But what about that choice. What if my customers and many thousands of other pet owners out there would like an alternative an SAFE choice to putting pesticides on their animals? What if they would like to treat their best friends with a 'natural' product that actually works? Well stuff them it seems. But I needn't worry, I'll be fine. Because there is now deregulation of a fair few prescription only medicines which I only need to do a (short and hard) course to be able to sell. Training I am also in favour of, especially when peddling hardcore pesticides I wouldn't put on my cats if you paid me. It's alright though, the same article tells me what fantastic revenue opportunities this gives me by being able to sell a repeat product to repeat customers and what a generous margin it will afford my business. Which is lovely when you consider I only make 8.5% on tins of food. Worming and Flea treatments. Ongoing problems that need ongoing treatment that means repeat customers. And don't get me started on worming! I hate this. The fact that customers are just seen as profit and not people (which is probably what will have me out of business by this time next year). That pet owners are viewed as idiots who must be spoken to v-e-r-y s-l-o-w-l-y lest we lose them on some vital point. But mostly that I am not free to sell the products that I know work because the person who makes them probably won't have the tens of thousands of pounds it takes to prove efficacy and if they could everyone would be at it so eroding the whole point. That's taking my business, giving me sleepless nights and making me question this whole thing. What happened to my choice and that of my customer. And their pet's safety? I will never sell pharmaceutical flea treatments. Not ever, no matter how good it is or how much profit there is in it. Because I don't like them, that's MY choice, customers come to me because they don't like them either that's THEIR choice, and where would my point of difference be then eh?

 

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August 14th 2008

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I wake up some days and wonder just who do I think I am? Peddling healthy dog food with no prior pet food expertise, why should someone trust what I say? And if their cat's got a case of the nervous twitches why would anyone seek advice from me on anxiety remedies? Then I realise that actually I've been knowledgeable on food and remedies for years and years, only on humans, not our four legged friends. And actually, they're not much different when it comes to the basics. Plus I read, talk to manufacturers, vets and pet owners constantly. Feed them proper food without poor ingredients or cheap fillers, add omega oils for a healthy heart and joints (if we had fur we'd be glossy too!), and give remedies and supplements as required. The point is, it's not rocket science and the pet food industry is where the human food industry was 15-20 years ago: shrouded in spin and seemingly unaccountable. Can you read a conventional pet food label and understand what's inside the packet? You are not alone. But that's all starting to change with a shift towards better pet nutrition. All we need now is a little transparency. What's lovely for me is that the movement of pet owners wanting to know what's really in the packet is a growing one and I am only to happy to advise pet owners and learn from them too. Because the more informed pet owners there are out there the better. For pets AND my growing natural pet business.

 

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June 30th 2008

I'm here extolling the virtues of Business Link once more. Last weekend I went on the last of a series of three half-day courses run for people thinking of or having just started a new business.

This one was on marketing and how to keep your customers. It was good to know that I'm doing it half-right at least, although the rest is half-arsed I admit.

It was all SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) where you compare you company to the competition and ask the four questions above. Weaknesses, eerr....an unhealthy obsession with Mars bars? No love, not that kind of weakness but what are your company's weaknesses and how do they compare with the competition's? Which in turn make them your strengths. Or something like that.

Anyhow, I ended up with yet another to-do list and some great tips I never would've thought of for retaining customers and more confidence thanks to yet another good teacher.

So, if you're thinking of starting your own business do it, call Businesslink. Most of the people there weren't even at the staring gate and you might want to think about doing the first course, which concentrates on the practicalities you need to address before you open your doors to Joe Public. Then leave the rest for a little later as they'll be more relevant after six months or so. But do it all the same.

As for business, it's going from strength to strength even in this current climate. Customers are spending a bit less but a few things I've implemented on the site make sure that they keep coming back. One of which is free delivery, which, as we know, there is definitely no such thing. So it's me paying and we'll see how it goes for the next three months then assess the situation.

Because the best thing these courses have told me is that you don't discount, apologise or give stuff away in order to keep a customer. If you can't afford to sell it and deliver it at the price at which you can turn a profit then you have to change it. Or you WILL go out of business faster than a rat up a drainpipe. And that's not a pretty sight.

 

 

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