Newbie attempting to launch a website, advise needed

[sto6lsj]

Hi Guys,

I came across this website when researching information on launching websites. This forum seems really useful, found a lot of information and noticed there are a lot of very knowledgeable people on here, so hoping I can tap into some.

I am in the process of launching a new web business, similar concept to a website like ‘trip advisor’. I have been seeing a business advisor who has helped me create a business plan and have an interview coming up to see if I am entitled to any funding. I am a recent graduate – so have little money, and as my industry, property/housing, has dried up at the moment, sadly I am currently unemployed.

The business advisor seems to have had little experience of launching internet businesses, so issues such as terms and conditions, privacy statements, contracts for advertisers, hosting costs etc. are very shady, and totally new to me.

I am open to any advice on what steps I should be taking; I have a clear vision on how the website itself should work but very little on the fundamentals to successfully set up such a business. The website itself would need to be developed by a web designed, far beyond my skills, although I have been able to build a simpler website recently .

Sorry this is very broad, but what resources are available to help me fill the gaps? Would I need to employ a solicitor to make the website legally watertight?

I am conscious that I am a new user and asking for a lot of help and advice – but any advice would be appreciated.

Many thanks.

 

[ORDERED WEB]

You probrably need 5 areas of advice

Technical / website
Business
Legal
Marketing and Internet marketing
Financial planning

We can help with the first issue and partially the fourth, and would be delighted to discuss things with you. However realistically, you need to be considering the tech / website issues a little further down the line (although a rough idea on pricing and a couple of tech issues would well be worth investing your time in early on)

 

[sto6lsj]

Thanks for the advice; I am currently lulling it over.
However, I realised that in my initial post I said my website has a similar concept to Trip Advisor, which is true, as I went a platform which allows users to make reviews, but nothing more i.e. sell anything.


Just wanted to clarify.



Thanks.

 

[spencer08]

Its better that you should try to consult some experts who are proficient in making successful business websites. You should also do some analysis of the websites running businesses with similar ideas like yours. I would recommend that before you launch the website, do your home work first regarding its percentage of chances to succeed.

 

[oldeagleeye]

Try playing around with Wordpress. It's free and free is what I am afraid you need OP. You can get free advice on wordpress. Even a free template what you can't get I am afraid is reasonable funding and your business advisor is living in cloud cuckoo land if he suggests that you can.

The banks for instance are not even lending to established and successful businesses that want to expand. So they are a definate no -no

I possible source for example is the Princes Trust if as I suspect you are under 25 but only if you had an original and viable project. I am afraid a web site don't hack it.

That leaves just one source apart from family or friends. The Governments New Enterprise Scheme which is aimed mainly at 20 - 25 year olds. On that score you would seem to fit in quite nicely but here is the rub.

The government say the NES is worth £2,000. Yea right.

Under the scheme half of that is just the job seekers allowance you would normally get except you don't have to sign on for 6 months. The other £1,000 is a credit rated loan and while details haven't been released yet you can bet your life repayment won't be as generous a student loans. It will probably be £10 a week from day 1 over 3 years. In short the NES is a farce.

Welcome to the real world.

Rob

 

[sto6lsj]

Its better that you should try to consult some experts who are proficient in making successful business websites. You should also do some analysis of the websites running businesses with similar ideas like yours. I would recommend that before you launch the website, do your home work first regarding its percentage of chances to succeed.

Thanks for the response. Yes I think talking with experts who launch business websites would be a good idea, I'll start looking around. I have created a business plan and done questionnaires, research etc. I think what I have is potentially a good idea and there seems to be a demand.

I possible source for example is the Princes Trust if as I suspect you are under 25 but only if you had an original and viable project. I am afraid a web site don't hack it.

Thanks for the response. Weird, I have talked with the Princes Trust and have an interview coming up with them, I explained that it was a website and they booked me an interview. See how it goes I suppose.

Welcome to the real world.

I am in the real world mate, you know nothing about me nor do I about you. I am simply asking for some informative advice regarding launching a website within the IT and Internet section of this forum not a remark like this.

 

[oldeagleeye]

That was not a dig OP. I was referring to the real world we all live in of raising finance against a background of lies and propaganda coming from the Government. Chill out.

 

[sto6lsj]

That was not a dig OP. I was referring to the real world we all live in of raising finance against a background of lies and propaganda coming from the Government. Chill out.

Okay, seemed like you were having a dig that I was a student and now in the real world etc., my apologies. I am definitely see your point regarding raising finance, even a website adds up, can't even imagine how much it would cost/difficulties financing a shop or similar.

 

[oldeagleeye]

Okay, seemed like you were having a dig that I was a student and now in the real world etc., my apologies. I am definitely see your point regarding raising finance, even a website adds up, can't even imagine how much it would cost/difficulties financing a shop or similar.

This is where many so called entrepreneurs really do live in fantasy land. As you suggested the cost of financing a shop is daunting compared to that of a web site and we were discussing the costs the other day.

It was generally accepted that you would pay about £500,000 a year in rent and rates for even a small retail unit in a suburban shopping mall. With staff etc you would be lucky to get change of of £750K. Remember these are expenses not turnover. A bit high end perhaps ???

Lets try a nice little shop in a secondary position. Rent and Rates about £10K a year. Then you have to stock it. You be hard put to get away with less than £25K in just basic expenses. Then there is the cost of pulling in the punters. A half page in the local rag-sheet each week with cost you £500 quid a week. Another £25K a year. We are now around £50,000. At least £10 - £15K up front.

How much does the typical wannabe on-line retailer expect to spend to make their fortune. Many baulk at £1,000 for a half-way decent shopping cart site. They think the cost of setting up a high street bank merchant account @ £150 quid horrendous & go for a free paypal - and here is the real cloud 9 they live on. They expect customers to just come knocking on their door with just a £3 quid a week hosting package. Hold on a min. Lets work that out.

You can write the £1,000 off. You would have to pay that in legal fees for the lease on a shop. Were talking the typical wannabe paying out £3, quid a week hosting and then expecting being able to compete in the real world. Lets get real.

It seems that you are OP by comparing the cost of an on-line store with a high street outlet. Spend just £10,000 a year on a web site and you can compete with almost any on-line stores in the West End of Kensignton. That is not just 10% but just 1% the costs of bricks & mortar.

Keep that in mind and you won't go far wrong - if you can find a niche market that is because while the Internet offers the small business opportunities the sheer number taken them up every month that goes by satuates the market.

Good luck. Rob

PS. I don't bite unless I am really hungry. If you want me to have a look over your BP then PM me. One tip anyway. Few are read - not by bank managers - investors or trustees. All most look at is the 2 -3 pages Executive Summary. Make sure you get all relevant facts across in that.

 

[ORDERED WEB]

How much does the typical wannabe on-line retailer expect to spend to make their fortune. Many baulk at £1,000 for a half-way decent shopping cart site. They think the cost of setting up a high street bank merchant account @ £150 quid horrendous & go for a free paypal - and here is the real cloud 9 they live on. They expect customers to just come knocking on their door with just a £3 quid a week hosting package. Hold on a min. Lets work that out.

You can write the £1,000 off. You would have to pay that in legal fees for the lease on a shop. Were talking the typical wannabe paying out £3, quid a week hosting and then expecting being able to compete in the real world. Lets get real.

It seems that you are OP by comparing the cost of an on-line store with a high street outlet. Spend just £10,000 a year on a web site and you can compete with almost any on-line stores in the West End of Kensignton. That is not just 10% but just 1% the costs of bricks & mortar.

This is a very true point I keep making. And it needs to be made and pointed out> You just made it more eloquently

 

[bdw]

I am in the real world mate, you know nothing about me nor do I about you. I am simply asking for some informative advice regarding launching a website within the IT and Internet section of this forum not a remark like this.

I think you are getting some informative advice. Those of us who are in here a lot know that this situation is common in here. People come along with good ideas (not often) and bad ideas (very often).

They do not like to hear people telling them the truth about how hard it is succeed in this business. There are now hundreds of thousands (possibly millions) of travel and review websites on the Internet. They are ten a penny and only a very select few of them are any good. Those that are have massive resources and they have been doing it for sometime.

If you come in as a newbie and try to compete with them you will almost certainly fail unless it is a review site for a very small niche in which case you won't be able to monetise it (or unless you have a very unique point and you have to be honest with yourself on this).

I build my own websites and I could create one like you are proposing for nothing more than my time but my time is too valuable to waste. Honestly, if I were you I would look at some other business.

 

[sto6lsj]

I think you are getting some informative advice. Those of us who are in here a lot know that this situation is common in here. People come along with good ideas (not often) and bad ideas (very often).

They do not like to hear people telling them the truth about how hard it is succeed in this business. There are now hundreds of thousands (possibly millions) of travel and review websites on the Internet. They are ten a penny and only a very select few of them are any good. Those that are have massive resources and they have been doing it for sometime.

If you come in as a newbie and try to compete with them you will almost certainly fail unless it is a review site for a very small niche in which case you won't be able to monetise it (or unless you have a very unique point and you have to be honest with yourself on this).

I build my own websites and I could create one like you are proposing for nothing more than my time but my time is too valuable to waste. Honestly, if I were you I would look at some other business.

Thanks for the advice. I agree with everything that is being said and gaining valuable knowledge from it. Regarding the comment you quoted, I got the wrong end of the stick and apologised.
I also agree that there are a lot of review websites out there and putting time into one which would hit the same audience as the websites out there, especially with huge resources would be almost pointless.
I have done research on the particular topic I wish to address, with the audience I wish to target and there seems to be a demand. To ensure I’m not putting my head in the sand, and getting caught up in the whole idea, when conducting questionnaires I have told a few people, rather than tip toe around, about the website and asked if it is something they would use and I have a positive response.

 

[oldeagleeye]

If I asked friends if they thought my idea was great they would say of course it is especially if they don't know the industry. If I asked holidaymakers if they would like to know which hotel had cockroaches the size of Anne Widecombe in the bathroom they would say of course. That is not market research.

What is proper market research is looking at the industry and from a business point of view. Almost all those review sites and there are a huge number have huge resources behind them but even so the return on investment is low. ^There are many a PLC for example happy to work on 3% for 5 years. What does that mean in real terms. It means in investing £3 million quid waiting 5 years and then getting £90K back. That is not even minimum wage. A bit high end.

Well how about Simon Calder. A man that has trevelled the globe time and time again. Knows everything about every holiday destination in the world and a nice chap he is too as well as being powerful. A phone call to the FO about Tunisia - no problem. Problems with B.A no problem a phone call to the MD on his private line.

In short Simon is a man at the top of his profession yet after over 35 years in the business he has to work 12 hrs a day 7 days a week in the holiday and travel industry just to make a decent living. He has a radio show on LBC. Writes for national newspapers like the Independant and the rewards after 35 odd years of being in the industry. He lives in a modest house and drives a modest car.

I am afraid that your own life skills leave a lot to be desired OP if you want to exploit the travel/holiday industry in any way. Then again like Simon you could start at the bottom. I think he took on a job as a cleaner at Heathrow so as to be able to afford to write cheap no nonsense travel guides. I wouldn't advise investing any time and money in a travel review site however if I were you. Simon hasn't.

Rob

 

[sto6lsj]

Thanks for the post, very interesting to read, and sounds like quite a story, I will look him up.

I realise that in my initial post I compared my website to a website like 'trip advisor'. Sorry for the confusion, but the website I would potentially like to create isn't a travel/holiday website. I used it as an example, as it is a platform which allows users to make reviews, exactly what I would like to do. I understand that there are many review websites etc. out there, but I am hoping to tap into an area and audience where there are no similar websites, but an apparent demand.
I'm currently waiting on advice regarding the legal aspects, something I have been lulling over for a while, as I would like to try to make the website legally watertight, and not get sued for defamation or similar.