Self-employment : Sales and marketing

You will need a marketing plan to help you to identify potential customers, decide which customers to target and work out a sales forecast.

A common approach is to work out an appropriate marketing mix based on the five Ps of marketing:

• product: making it attractive to customers - design, technology or materials used; 
• place: how and where to sell - retail, wholesale, the internet, business-to-business or business-to-consumer;
• promotion: reaching your customers - advertising, PR, mailings or personal selling;
• price: e.g. sell high numbers of units with low margins or sell low numbers of units with high margins, matching the competition;
• people: training your staff and/or analysing your customers.

Know your customer

Who are your customers, in terms of age, location and income? A gut feeling that there is a niche for your product will not convince lenders and business advisers. You should be able to give an overview of the competition and potential product demand.

Useful formal statistics include:

• government data, e.g. Office for National Statistics (ONS) ;
• electoral rolls;
• consumer surveys, sector reports, e.g. Mintel  and RBA Information Services - statistics ; 
• information held by trade and professional bodies.

The Data Protection Act and commercial considerations mean that you may have to pay to access these sources. Try local or specialist libraries (sometimes within universities) for access to subscription-only websites.

Carry out your own investigations by:

• desk research;
• visiting potential stakeholders;
• visiting competitors and collating trade literature;
• observing similar businesses;
• visiting and/or surveying potential customers;
• visiting trade association websites.

Promoting your business

A LinkedIn  company page and joining a relevant industry group will enable you to keep in touch with current issues. Business cards and matching headed paper are cheap and can do a lot to establish a professional image in any context.

Some suggestions for networking:

• professional and other social networking sites;
• exhibitions, trade events and conferences: take a stand or just mingle with potential clients;
• structured opportunities provided by chambers of commerce, Business Network International , professional associations and institutes;
• Business Link  to help you locate certain types of business or business people and also has links to online marketing courses.

Some organisations offer marketing strategy mentoring, which may cover factors such as pricing, branding and media mix.

Advertising your product

Plan an advertising campaign which will target your customer base effectively and use a mix of media. A mix of media can be particularly effective, such as radio and the Yellow Pages .

Effective methods include:

• a website which is regularly updated and user-friendly. You can audit the effectiveness of your website with tools such as Google Analytics ;
• leafleting (door to door, high street);
• sending out press releases or arranging free advertorial features in the press;
• asking professional bodies to place your details on their websites.

The best advertisement is you. If you deliver good products, excellent service and original ideas, word will get about and you’ll hear from new clients.

Tendering for contracts

You may be asked to bid for work and contracts against competing suppliers. Business Link provides comprehensive guides.

M-commerce and e-commerce

With the evolution of smart mobile phones, business transactions through this medium are increasing. Amazon and eBay report higher profits from customers shopping on mobiles. If you intend to trade via the internet or via a mobile device, take professional and legal advice to ensure you meet acceptable and required standards. Issues to cover include:

• mobile device sales capability;
• computer capacity - a website that constantly crashes will lose customers;
• data protection/security for customers and yourself;
• branding, domain name and a user-friendly site that is easily accessed by search engines;
• reliable systems for online payment;
• compliance with legal requirements such as the Supply of Goods and Services Act. 

Business Link  can point you to e-marketplaces that match up manufacturers, distributors and others in the chain. The Office of Fair Trading provides excellent advice and tips on how to keep your customers happy.