General Business Forum Brought to you by Salesforce

Fresh Threads: Sales pitch, using a startup's tech, car lease, restaurants & bike shops

  1. James Martini

    James Martini UKBF Ace Staff Member

    1,011 3
    19 |

    Hi UKBFers,

    Welcome to Fresh Threads, our weekly roundup of the most popular threads, comments and advice from the forums during the last week. Here are the top five picks.

    1. How can I improve my sales pitch?

    SFH0791

    I was recently asked to provide price lists for two of our luxury wedding packages.

    I emailed them back with a breakdown of the costs and would like feedback on my sales pitch. I don’t see anything wrong, although I may have tunnel vision.

    Can anyone tell me how I can improve it?

    simon field: To me, it doesn’t read as a sales pitch, but just a list of items like a menu. Where is the sizzle?

    fisicx: That’s a business reply. Find out a bit more about them and what they want. Pick up the phone and talk to them.

    NickGrogan: You’ve given two almost identical offers at similar prices, so really only one offer. You need more variation and ideally a third, really expensive option that makes the other two seem ‘cheap’.

    MBE2017: I would always ring the client and forge a relationship. Ask how long engaged, how they met etc. The price should be the last thing you discuss.

    2. Using a startup's core technology for my own product

    Tomahawk

    I'm the main developer in a software startup with approximately 20% stake in the company and I am in the early stages of developing a core processing engine for the business.

    However, seeing as I am currently the sole developer, it seems unfair they will make a side gig renting out my engine. It almost seems like I'd get a better deal if I broke off on my own.

    Could I lower my stake in the startup, keep the engine for myself, and start my own separate company to work with the startup? That way, I own 100% of the engine company and 10% of the startup. How can I present or negotiate this idea without seeming greedy?

    billybob99: If you're looking to raise venture capital funding in the future using that setup, it ain't gonna fly. You're either in it as a team or you're not. If they’re renting out your thing, get them to pay you a salary.

    Porky: If you are a team, act as a team and focus on getting it built first. If your team can get the product in the market right, you have half a chance. At the moment you have 20% of a “potential” and that is worth zilch.

    gpietersz: It sounds to me that the problem is that you have agreed to a smaller share of the business than you now think you should have given your contribution?

    John Hemming: These sort of things are always massively fact-dependent. I don't think you can get reliable advice via a public forum because you cannot provide all the facts. Give your facts to a paid adviser who can suggest a way forward.

    3. Offered half the amount for a car lease

    Solly

    We’ve been offered just under £25,000 for our salesperson’s car, which half the amount needed to lease it.

    I’m slightly disturbed by this as the company has no debts, our accounts are up to date, and we have a corporate card which is paid off monthly.We have a reasonable cash float in the bank, positive cashflow, and lease terms are a fraction of free cash. We can pay nine months in advance for the lease.

    One director has little credit history (no credit card, never had debts or mortgage) etc. Is it the lack of credit history which is causing us problems?

    Gordon - Commercial Finance: Sounds like you potentially have what we would call a “weak credit profile” where there’s limited history for a lender to make a judgement. Have you only tried the one lender?

    Chris Ashdown: How long have you been trading? That may well be considered.

    STDFR33: Your accounts show that your creditors exceed your current assets many times over. Maybe the lender sees your company as a huge risk?

    Ian J: Finance companies and banks are taking a much harder line on underwriting at the moment, whether it's personal or business transactions.

    4. Do restaurants and bike shops need a boost?

    Karimbo

    I'm not complaining about receiving free money, but I wonder what the Government was thinking when offering to pick up £10 per person's restaurant bill or paying for bike businesses to carry out work?

    Some of the good restaurants near where I live have had everyone returning back, all the tables are full. Bike businesses are one of the businesses that are making a killing right now.

    I'm not sure who this scheme was intended to benefit, the public or the businesses?

    Mr D: Restaurants with seating for 12, rather than seating for 60 they had in February? I’ve heard of restaurants with half the diners no show. Bike shops, however, do not appear to be suffering any more than corner shops or pharmacies.

    Interestedobserver: The head of UK hospitality said only just over half of restaurants and pubs had reopened and that average takings were down 70% in the first week back and 60% second week, compared to the same weeks last year. I believe it's city restaurants that are really struggling.

    JEREMY HAWKE: Boris is comparing us with the continent and we are not like that. People run over cyclists in the UK, in Europe they respect them.

    Mark T Jones: If all the tables are full, it will almost certainly mean far fewer tables than pre-lockdown - also significant working changes to serve them legally.

    That's all for this week – have a great run into the weekend!

    #0