Q I am quite a successful salesman, but am sick of being an employee. With the majority of the money I make going to my bosses, its time that I earned myself a bigger piece of the pie and ran my own business. I think I can turn my experience and contacts into a successful enterprise of my own. Seeing that it is the start of the new year, now seems as good a time as any. Do you think I am making the right move?
A My advice to anyone who wants to start their own business is stop talking and get on and do it. It is possible for any individual with enough enthusiasm, belief, commitment and, of course, the right idea to make their fortune. There is no reason why you cannot enjoy success in an area of business you know well - some of the best entrepreneurial ideas come from adapting and improving what other firms are already doing. One word of warning, if you are planning to stay in the same sector as your current employer, make sure you are very careful if you approach their customers for business. Your contract may state you are not allowed to contact them for a certain period after you leave their employment, or in fact do any business with them at all.
Q My business is being affected by noise. A private contractor is renovating offices next door to ours and its driving me and my staff crazy. I have spoken to the owner, who is mildly sympathetic, but is insistent the work is done during business hours so he can move into his new office and apparently there is two months' worth of work to do. What would you do?
A There are Government guidelines on noise pollution and I am sure that if the noise is excessive and having a detrimental effect on your business there are certain steps you can take. Firstly, I would contact the Environmental Health department. However, as the work is only taking a couple of months, negotiation with the owner is probably the quickest option. Give it another go and appeal to his better nature - in the end, you have to be neighbours.
Q I have built my business up to be quite a success in the region developing and selling computer software, but as I have been so busy growing the business, I have failed to develop a brand identity. I want to give my charismatic personality to my product. Your name has become well known from linking it directly to most of your business activities - is this the way to go?
A You have shown great insight by recognising the importance and power of branding. A brand identifies the seller or the producer of a product. A brand can be a name, a term, a trademark, a logo, a symbol, a design, or a combination of all.
I have been successful by putting my name to my businesses because it signifies quality and my members and customers can expect the highest standard of product or service when they walk through the door of a Bannatyne enterprise.
The objective of a brand is to identify your products in a way that differentiates them from your competitors. Branding is especially important with products that are considered a commodity, such as toothpaste or, in your case, computer programmes. Successful brands are easily identifiable.
This is measured by their level of brand awareness, and is most notable when a single symbol or logo is highly recognisable on it own. Above all, branding is about communicating benefits, regardless of how intangible or seemingly disconnected they may be with the product and its function.
As I said, brands set the product and the producer of that product apart from the competition.
This differentiation may have very little to do with the product itself. It has a great deal to do with the perception around that product, which in your case could be based on your personality. Your marketing plan should capture your branding strategy and support the overall marketing strategy. Here is one approach you may want to consider. Do an inventory of your personal characteristics.
What makes your personality charismatic? Ask your friends and associates for feedback. You may find an attribute that would be a great basis for branding.
Q I am 28 years old and have been working in the family business for the past ten years. My dad has always told me that, some day, the business would be mine. Last year my brother, who has a degree in business, came back to the area after his divorce and started working with us in the family firm. I never made it to university. Now my dad says the two of us can share the business. I feel really mad that my brother can just walk in, start making the same salary as me, and become my equal partner as an owner in my dad's eyes. I feel like I should leave the business, but do not know where I would go or what I would do. Can you help?
A I understand your feelings. Your plan for the future changed radically when your brother returned. Before you make any decisions about whether to leave or stay, I would suggest that you consider several questions that are related to planning - both for the business and for you personally. Since you did not give me any specifics about the size or profitability of your business, some of my questions back to you are pretty general. First, aside from your resentment about salary and ownership, how well do you and your brother work together and do you have complementary skills? Now your brother is an equal partner alongside you and your dad, can the business support three families as easily as it has supported two in the past ten years?
Remember your brother should also have a commitment to justify his position in the firm and add to its growth using his experience. Before you make any decisions about your future, I would suggest that you share these questions with your brother and your dad. I think an open conversation about them would help you choose your next step. I would caution you that if your family is not used to discussing these matters, it is highly advisable to have an outside facilitator, such as a management consultant or even your accountant. Otherwise, the conversations may do more damage than good.
The important thing to recognise is that everyone in this situation needs to do some careful planning. The business needs a succession and continuity plan. You need a career plan.
Your parents needs a long-term retirement plan. But before you can do those plans, you need to sort through what each of you needs individually, as a family and as a business.
Published: 18/01/2005
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