It Keeps Getting Bigger!!!

[Tiggy]

Hi!!

My initial idea of using my own funds to start up my business on a shoestring seems to get more and more impossible. The more I look at this and focus long term the bigger picture it seems to get and it looks like I will need to go to the bank and ask to borrow some cash afterall.

Any thoughts, views and advice on the pros and cons of using borrowed money as opposed to your own dosh would be appreciated.

T :D

[MarkPearson]

What size / type of business are you planning on starting.

Can it be started with limited funds?

[Tiggy]

I want to host events and parties for people to meet and have fun. Initially it began as speed dating but I've moved away from this now. I do want to be quite upmarket and to host large social events in trendy, stylish venues.

For example, if I plan an event for say 200 people I reckon this will take 2-3 months to plan, mainly from the point of view of generating publicity and selling that amount of tickets. As I am completely new my marketing campaign is from scratch. But then I don't want a 2-3 month gap between each event so it means organising more than one at once and keeping it rolling on forward which means constant promotional costs.

I am considering also focusing on smaller parties for dinner dating, say groups of 12-16 people but there is a limit to what I can do at the start as the only person in the company is me although I am going to get together a team of regular 'casual' staff to help with the orchestration and hosting.
Eventually I do want to do weekends away both in UK and eventually Europe.

Maybe I am making the mistake of comparing myself to other companies I can see who have probably been established for years and years and I am trying to run before I can walk.

I do like the idea of starting very small and it being a one woman show until it builds up to the stage where that just isn't possible but if I keep it too small at the beginning it won't take off at all.

Does anyone know what would be a realistic marketing budget to begin with?

T :D

[10 Yetis]

I am sure Alan will be along shortly to explain more about optimum spend on marketing as part of a good business plan.

As a marketing/PR service provider everyone surely expects me to say that, in my opinion, a business can never spend enough :D , especially when it is done well and generates sales.

I am in the middle of reading Sam Walton's (or Wal-Mart fame) business biography and in it he says one of his golden rules was to never spend more than 2% of his total revenue on support functions such as marketing, sales support, accountants etc.

I have just done a quick search on marketing/media/ad spend and the only guide I can find is an american paper that says in USA SME's spend on average 23% of all expenditure on this area... kind of kicks the kahoonas out of old Sam's idea?

By the way, I really recommend the book... I know it is a blatent propaganda tool but reading it has took my level of motivation to new heights.

[SillyJokes]

Tiggy I can see cashflow is going to be a problem as you may have to pay out a lot before you get the money back.

You will have to plan your days very strictly I'd imagine but in some ways I reckon this is just the industry where who dares wins.

You will probably need to market effectively in order to get people along but once it gets going word of mouth will be your friend.

I am afraid I don't know what a reasonable marketing budget is, but heard 10% of turnover is accepted by some companies.

How much are you hoping to make from each event? Use this figure to calculate what you can afford to spend on marketing at most.

Your first few events may not make money but if you forward plan you might be able to concieve of the doing better in the future when it will be easer to do because you will know all the suppliers and processes required.

[clickprofits]

I think you will need to joint venture with your venues as much as possible in order to bring your upfront costs down. In other words for bringing them customers who will spend money on drinks and food what's the best deal they can do for you - try several venues/ restaurants and see which ones are most helpful in this regard. Maybe some will be willing to co-promote and help market your events for you as they would benefit too :wink:

Make the most of 'free' and low cost marketing too - flyers/posters in local shops and businesses used by your potential clients, PR /Press - local papers etc, maybe come up with a unique angle on the singles story, word of mouth is good as well...

Long shot - but if you could get somebody on one of those TV programs like 'Would like to Meet' to come along to one of your events and then rave about how great it was that would be the kind of free advertising/publicity which is worth a fortune. :)

[Jayne]

I think you will need to joint venture with your venues as much as possible in order to bring your upfront costs down. In other words for bringing them customers who will spend money on drinks and food what's the best deal they can do for you - try several venues/ restaurants and see which ones are most helpful in this regard. Maybe some will be willing to co-promote and help market your events for you as they would benefit too :wink:

Make the most of 'free' and low cost marketing too - flyers/posters in local shops and businesses used by your potential clients, PR /Press - local papers etc, maybe come up with a unique angle on the singles story, word of mouth is good as well...

Long shot - but if you could get somebody on one of those TV programs like 'Would like to Meet' to come along to one of your events and then rave about how great it was that would be the kind of free advertising/publicity which is worth a fortune. :)

There's a guy on here to do with TV, he was asking about people selling a business. Try contacting him about a different aproach, setting up a new one.

Jayne