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How to go from redundancy to a profitable small business in a hurry

It is important that people who are starting their own small business tap into their own networks and then look to broader organisations, says Colin Kennedy. He shows you how to get started
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Getting customers and making sales can be the biggest challenge for people moving from redundancy in to their own small business, but a quick, simple solution is to tap into existing relationships.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

 

Anecdotal evidence from people making membership inquiries to BNI - <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New Zealand’s largest referral networking organisation - is that they feel ‘cut off’ after redundancy.

 

There is also the panic that if they do take the step of starting their own business that they won’t find enough customers or that it may be too time consuming, and time and money is in short supply when you’re in that situation.

 

The reality is that we are never completely alone. We all have large personal networks which we can tap into quickly; including former colleagues, clients (if no restraint of trade agreements exist), close family, extended family, friends, parents associated with our children’s sports teams.

 

The time immediately following redundancy is a huge opportunity. People have heard your bad news and they’re eager to help.

 

Added to the mix is that Kiwis are natural networkers. Enough research has been done to establish that almost 90 percent of New Zealanders rely on word of mouth from other consumers when making their purchasing decisions.

 

The good news is that word of mouth is the quickest way to close a sale and also the cheapest. It is important that people who are starting their own small business tap into their own networks and then look to broader organisations like the local chamber, local enterprise development organisations and BNI.

 

Here are four steps for getting a referral business network up and running quickly:

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About the author

Colin Kennedy's picture

Colin Kennedy is a director of Iron Road Ltd, a marketing strategy and content marketing agency which specialises in helping clients engage their target markets, differentiate their brands and raise awareness.

A former journalist, sales manager, public relations consultant, copywriter and CEO (in the agricultural technology industry), Colin is also a professional speaker and an Auckland director for word of mouth referral organisation, Business Network International (BNI) New Zealand.

"Most buyers nowadays will research their buying decisions. They are also less trusting, cynical and turning off conventional advertising.

"The companies that provide buyers with the objective, truthful and information rich content they are seeking will earn trust and build a reputation for their expertise -- making them far more successful at converting new leads and retaining existing business.

"We help clients market with information. It's called content marketing."