30 November 2009 by Sophie
In case you didn't happen to be drifting through the Kensington
Olympia last Thursday and Friday, Smarta was there for the Business Startup
Show. Bad luck if you didn't, we were handing out free
Smarties. Cue lots of chocolate-hungry small business hopefuls
coming to talk to us. We loved it.
Do you know what question we were asked most? "How much does
Smarta cost?" Having been bombarded with a whole exhibition-full of
high-price pitches all day, people just couldn't believe that we
weren't trying to sell them something.
Now, we're not about to get into a long self-promoting blog post
about how wonderful it is that Smarta is free (you know that
already). But the question reveals the mindset of all the startups
visiting that fair. They expected to be hit with a fee for
everything.
Which is fair enough, because nigh-on every stand there was trying
to sell to them. We came across one poor woman who, having bought
every type of business insurance under the sun already, was
suddenly very panicked because someone offering 'free' advice had
told her she needed yet another form of protection. She was led to
believe it was a legal requirement. We had to tell her it wasn't -
he was just trying to make a sell from the consultation.
It's a very sad fact that there are a lot of companies out there
who prey on start-ups' vulnerabilities - the fact that you won't
yet know precisely how much everything should cost or what you
really need.
It's not just at startup shows. Beware the 'social media experts'
charging £350 a seminar, the developers whispering in your ear that
you definitely need that extra functionality that, oh-by-the-way,
will cost you another £1,000, the investor-matching service that
demands several hundred pounds before you've sealed any kind of
deal. All are all-too-common.
To break the cycle, you have to stop expecting things to
cost you hundreds, and start expecting things to be free or
cheap. If you don't start your business with that mindset,
your costs are going to escalate quicker than you'll ever be able
to afford.
You also need to learn to negotiate, hard. Read
out guide on negotiation in business for help there.
Crucially, you have to learn to spot a rip-off
when you see one. It's not easy. We'll be writing series of
smartbites to help you, as we've seen just how prolific the problem
is, so keep your eyes out for those.
You also need to get very much into the habit of asking
your peers for
recommendations and advice. Swallow any pride you may
have, and ask those people you know who've been there and done it
what you should be doing next. Ask the Smarta
community for advice. Read our case studies. (Okay, this blog does contain a
fraction of self-promotion, but it's necessary!)
Don't make any buying decision without giving yourself
time to think about it first, and time to discuss it with
your peers. Finding a business mentor will help you
hugely.
Don't let anyone rush you into a purchase,
however a good a deal they make it sound.
You'd be amazed at how much you can wangle for
free, either be asking nicely, trading your skills with
someone else's or offering the person in question plenty of
paid-for business once you've got things off the ground.
You just have to keep your wits about you and consult your peers
regularly.