Business idea. Need your feedback.

[Cubik]

Just posted it, and noticed it's a massive post. I do apologise in advance! Just wanted to explain every key detail.

Good evening!

I come to this forum looking for ideas, wisdom and feedback. I've had plenty of amazing feedback before. Which is why I'm here today. I have a business idea, which I'm slowly starting to roll with, I've got a few NDA's so I can't mention certain names etc however, I'd like the forums' opinion on it.

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Looking around at local businesses, either starting up or businesses which have been trading for 5 years plus, lack in similar areas. They know their business, they know how to run it, but when it comes to the latest digital era - they're not too sure about it, and because they're not sure - they do nothing about it.

One major issue near to where I live, is card payments. I cannot walk into a local takeaway and pay with my card or a contactless payment. I've made conversation with some of the staff that work there and the general reason is the contracts or how expensive they are - so they've not bothered.

Second issue, within the same sector - phone lines. If the magical workers at Openreach or Virgin Media have work in the area which creates a loss of service, or there's a general outage - that takeaway shop phone line stops working causing them to not take any phone orders and rely on Social Media or Walk-Ins.

There's two prime examples of issues that some of the local businesses I've spoken to have generally talked about. Here comes my idea.

I have several years in the digital and payments sector and experiences myself which have caused my business not to function due to one thing or another. So I'd like to make a business which "connects businesses to service providers".

I've already had some discussions with a specific Card Processing company, which offers short contracts, low fees and a low monthly payment; which is massively more affordable then the likes of WorldPay etc. My agreement with them, is that I do the initial introduction, do a demo, and if they're happy sign them up. If they are signed up successfully and onboarded, I earn a commission payment.

I don't want that to be the end though, I want to be able to offer on-site training, support and be there when the customer needs someone. The card processor has nothing against me doing this - they have their own support team that work up until closing hours, but they won't send anyone to the shop, and do in person training etc.

I want to offer a Membership fee of like £49 per year, where they become a "Premium" customer of mine. Meaning, on-site training instead of £20 per hour, they get it for £10 per hour. They also get 1-2-1 support in-person and more.

With this business model, I see it working in multiple sectors too. I'd like to partner with -

• VOIP Provider - someone who can provision phone numbers, users and handsets for our customers.
• Web Designer - someone who can setup a website for their business.
• Photographer - someone who can take professional product photos, team photos and more.

And some other sectors.

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Okay, so that's the business. I know there's business directories, and I know people can do a bit of research and find all these companies without my help - however I'm just wanting to create a business where they could deal with one person/company who could get the ball rolling and manage the delivery of a service working with other trusted service providers.

I'd really like to know people's thoughts, do you think something like this would work? I'd love to hear people's feedback.

 

[Cubik]

To any moderator/admin, I'm really sorry - and just noticed it's been posted in the wrong category. If someone wouldn't mind moving it - again really sorry!

 

[Mark T Jones]

It's a fairly simplistic model which doesn't break any new ground- which can be good, as you don't have to explain it much.

You will have to create a compelling pitch to convert those who are too inert to take card payments (there is a thread running on this - TBH I don't know any take aways that don't) and you'll have to deliver to keep payments coming in

 

[Cubik]

It's a fairly simplistic model which doesn't break any new ground- which can be good, as you don't have to explain it much.

You will have to create a compelling pitch to convert those who are too inert to take card payments (there is a thread running on this - TBH I don't know any take aways that don't) and you'll have to deliver to keep payments coming in

Hey there Mark (again!)

So just on card payments alone, here's some already negotiated pitch ideas -

• Any payments taken before 11pm will be in the business bank account by 10am the next day (even on Saturday and Sunday!)
• Signup before the end of June, and get 3 months free terminal rental.
• The initial contract length is 6 months, after that 30-day rolling.
• And the transaction fee of 1.3%

You compare that against the likes of WorldPay, Barclay Card etc, who offer 3 year contracts minimum, up to 3 days payout, and transaction fee's of nearly 2%. I think those 4 pointers is what will convince them more to go to card payments.

So for example, let's say you only want a terminal for 6 months, you're getting 3 months of the rental for free (just pay the transaction fees), and then you've only got 3 months to pay rental wise. It's defiantly a game changer!

My dinner this evening, unfortunately came from a Chinese shop (really should be eating more healthier) but they don't take card payments, and the nearest ATM is 9 minutes away by car. Ideal business to introduce a card terminal to.

 

[NickGrogan]

Where do you live?

I've never seen or heard of a takeaway that doesn't accept card payments.

2 minutes on google gives a couple of companies offering what you are or better, so the deal isn't particularly exceptional, certainly not a game changer

If the business doesn't take cards, it may be for another reason, have you asked them?

 

[Cubik]

Where do you live?

I live near Plymouth.

2 minutes on google gives a couple of companies offering what you are or better, so the deal isn't particularly exceptional, certainly not a game changer

I'm not trying to make a game changer. However, you do some Google Searches, what next? Give them a call, and get a quote, once you've done that they send you a quote via email, you need to accept it, then they'll send you the contract, you sign it, then they'll send you the direct debit mandate, you then fill it out and return it.

Then you wait for them to get in touch if you've been accepted/declined. If accepted, the terminal gets posted out, and then if you need help with it, YouTube it or give them a call.

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Would someone coming out to you, giving you a quote there and then, if you're happy they could do all the paperwork there and then, they could gather your ID, proof of address and banking, and send it all off for you. Later that day give you a call and let you know you've been accepted, and then find when a time is suitable to pop back round with the terminal, set it up for them, and show them how to use it.

Would that not be a better customer experience then speaking to someone over the phone who cannot see the issues you're having in front of you?

If the business doesn't take cards, it may be for another reason, have you asked them?

I have mentioned this in the first post, yes I have spoken to some of the businesses who don't currently take card payments, and it generally falls within either - Too Expensive or Contract Length. Who knows where their business is going to be in 3 years time? Especially if you're a startup cake baker.

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Side Note: I ramble a little bit in this reply, my whole ethos has always been about giving the customer the best experience they could have. If the customer isn't happy - I'm not happy.

 

[Excel-Expert]

I have a feeling it is a rapidly shrinking opportunity.

Credit card payments are very, very easy to come by and you can get them off the shelf in a growing number of shops. Big Issue vendors use them all time, so connectivity is not an issue. They are so simple to come by and use, that I would question why a takeaway hasn't got one. I suspect any claims of they are too difficult to sort out is covering something else up (they are too tight to pay fees, they want to be all cash etc etc)

The second reason is services like Uber Eats and Just Eats take care of payments, and the number of takeaways that can get away without using their services is dwindling fast. It is rapidly becoming a case of using them or going out of business.

 

[Ozzy]

I just typed my reply and @Excel-Expert reply came in as I was typing which is a very valid point. It very well is a shrinking market as new people into business are more tech savvy, self-service and more choices for card payments coming available.
You will need to, as you have said, need to look to offer a portfolio of solutions.

I know someone personally who does what you are talking about, so the positive answer for you is that this can be done and you can make a living doing it. If you was to attend a few FSB breakfast networking events in your area you will without doubt meet one or two people doing this, the person I know who does this runs a local networking group as it gets him in front of small businesses he can position his help to.

So yes, it can work. It's a lot of leg work but there are people out there who want someone to just put the solution in front of them. The issue you will find is that it's a slow burn, it will take a while before your "revenue share" income builds up enough to pay a mortgage. This is very likely to be a lifestyle business which you need to be in for the long haul.

 

[fisicx]

Maybe Plymouth is in a little bubble of it's own but round where I live everyone uses card machines. The only exception was the chippy who only took cash and is now being done for tax fraud. All the other takeaways are online.

My parents live in a very rural village and they use cards to pay for everything (shop, pub, hairdresser etc). Even the mobile fishmonger has a sumup machine.

As others have suggested it could work but it's probably only ever going to be a local thing as you will need to be on location to set everything up and train staff.

 

[WaveJumper]

Must be just a Plymouth bubble as already suggested I don't see this as an issue just make sure your not looking for a problem / issue that does not really exist

 

[Mark T Jones]

To recap

You are basically creating a sales job for yourself - if you are prepared to put in the legwork and have moderately good sales skills you can probably earn a living - perhaps a good living.

Once you have a customer base, you can add products and services.

It's a living but not a scaleable business

Having re-read your opening post, you must never sell yourself out at £10 per hour - that's effectively minimum wage, and gaining the reputation for being cheap is a hard hole to dig yourself out of.

 

[Deleted member 335660]

Hi Cubik,

It is nice that you want to help people but I’m not convinced you would get the take up.

We are in retail with a small shop and have no problems with card machine from our bank and constantly bombarded with people wanting to build or help with our website. As for VOIP we have set up WhatsApp phone number.

You mentioned the cash only takeaway, have you tried your pitch on them, and did they take up your offer?

 

[Ryan Paul]

The few takeaways, pubs and convenience stores that don't accept card payments is by choice. Nout to do with the aforementioned reasons.
They do not need a solution.
They want the cash in the till.

 

[The Byre]

Right now, your business idea is just that - an idea! I strongly suggest that you leave it at that and let the idea rest. In short, it is a solution looking for a problem - and not finding one!

People give all sorts of misleading excuses for not doing something. Mostly, they don't do something that they need to do and do urgently because of lethargy. They can't be bothered! And they go on not being bothered until they go out of business! Let them!

The number of times that I have told retail business owners that they need to have an online shop must run into a few hundred by now. They just do not do it. Too difficult-expensive-complicated-distracting-price war reasons-not really our thing- (delete as applicable).

I watch them struggle until sales dwindle to nothing and then they quietly go out of business.

 

[Paul Kelly ICHYB]

I am sorry, I didn't read the full post - I believe if you cannot explain the idea concept in a few sentences, you may not fully understand it yourself!

What I did get from the first paragraphs is it an education/knowledge thing - there are solutions available but people do not know or understand about them.

 

[Paul Carmen]

I agree with what's been said, what's it offering that doesn't already exist payments wise, I struggle to see the differentiation?

Plus, everyone where I lives offers card payments, those that don't aren't interested. We looked at digital solutions for pubs and small business (restaurants/takeaways) when the pandemic started, that included web presence, electronic simple QR code/smart phone booking/tracking. We did a big research and outreach piece and businesses did their own thing (nothing often, many closed) and wouldn't pay anything for it (one of the big breweries had an app that they gave away for free in the end).

VOIP is easy too, but not really what most local businesses think about, they can run via Just Eat/Uber Eats and numerous other channels if the phone goes down. They don't want a second phone line, they might use a VOIP app on a mobile, but mainly they'll stick with their reliable land lines.

How and why would you partner with a web designer and a photographer? If its to take pictures and build sites for customers, no one is going to be interested in that work for a cut of £49 a year...

Unless you've got a way of churning out these services very cheaply, a really clear customer message, plus a good initial marketing budget, its probably a complete non starter.

 

[Adpod]

There's alot of people putting you down for this idea and I don't want to be the same however my issue is that the commission from sales is a one time only payment. Your membership option at £49 a year is good in principle.

And to make £40K a year your gonna need around 800 businesses signed up and your gonna be on running around helping 800 businesses for only £40K a year. That's my 1st red flag...

BUT you know what, this business won't cost much to try - a website, some business cards/flyers, a mobile phone and a cheap suit - go out and try it you might make a living or you might learn a thing or 2 for the next venture.

Also businesses who don't take card in my area its because they are avoiding the tax man.

good luck