I talk a lot about outsourcing as a way to grow small business turnover and small business capability, but we should also talk about value co-production!

Outsourcing means several businesses working together, to service more customers than they could service by themselves. If you think only small business does this, think again. Almost all big car manufacturers, furniture manufacturers, and other big business do it always.

Value Co-production means that you, and your outsourcing partners, offer discounts to customers so they build their own product. You effectively sell a kit of whatever it is you manufacture. This is often done in the furniture industry, look at IKEA, Homebase, etc. When they talk about “flat-packs” they are talking value co-production, with benefits to the customer:

        1. Lower Price – in return for their own work input;
        2. Transport – the items often fit into in your own car;
        3. NOW factor – customers can take the good now, no waiting for delivery.

Some of the benefits for your small business are:

        1. Lower Cost – due to shortened manufacture cycle;
        2. Higher Manufacturing Output - due to shortened manufacture cycle;
        3. Higher Turnover – products become more competitive in price;
        4. Lower Transport Cost – due to smaller items being shipped.

This all will help to drive down overheads and help cutting costs. Is value co-production for you?

If you are a manufacturing business, it is certainly worth thinking about! ST.

You may speak more languages and have market segment knowledge about a certain product or service. That is a great basis for a small business startup, two scenarios spring to mind:

Virtual Export Assistant: You may know, or can find a business which has a great product, but they don’t export yet. You could offer your services for a particular country and become their Virtual Export Assistant for that country. You use your language and local knowledge skills and open up a new market for this small business.

Virtual Import Assistant: You could source – using your language and local knowledge skills – products in other countries for retailers in your country of residence. Or you could help the foreign business to import into your country.

But remember you are working with small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, you need to keep the price low for them. To do that you can offer your services to ten or twenty businesses, each paying you a retainer of about $200 – 400/£100 – 200, this makes it affordable for them and low risk, while presenting them with sales opportunities. If they pay you a small commission on top, you are generating a nice little income for yourself.

For this kind of service it would be advisable to get a low cost telecom service for your calls abroad, sometimes you can get fixed monthly subscription pricing for unlimited calls – have a look around.

Other than that your setup cost should be low, if you have computer, ADSL, and telephone. Monthly cost including telephone could be as low as $90/£45.

You can work from home, have your work-life balance and do it on a shoe-string – these are the business ideas I like. ST.

NOTE: If you have any problems with setting something like this up, give our 24/7 live support a “click“, they can help you.

This is easily answered, you have to answer one question: Do I know how to do bookkeeping, Yes or NO?

If YES – you can go and get an off-line (Intuit, Sage) or online accounting system and get started. WinWeb’s OnlineOffice includes a free forever – no strings attached – full accounting system, including free 24/7 live support.

If NO – you need to find a system that allows you to record all your transactions, without having to do the “Double-Entries”, you can leave that to an bookkeeper or an accountant, in other words outsource the tricky bit. The good thing here is that you will save most of the money you would have to pay someone else to do your accounts, because you do the labour intensive stuff yourself. WinWeb also covers this version of bookkeeping.

A good side effect here is that you will have to look at your expenses and cost again, and may be able to make a judgement if that was good or bad money spent – you know what I mean – the hindsight thing.

One thing is for sure getting involved in your bookkeeping/accounting, however little, will have a very positive effect on your business, no matter which kind of small business or start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, you run – I’m all for DIY.

Remember, if you have any specific questions on our bookkeeping/accounting software you can always use our 24/7 support. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below – I’d be most grateful.

Shirley Jaffrey wrote me an email today, telling me her story how she started her business on a kitchen table and is now supplying the stars.

But she started her email like this:

A story on the BBC website yesterday “When did normal people fall so in love
with Tattoos” see link http://news.bbc.co.uk/1/hi/magazine/7034500.stm

There is no mention of her product in this BBC article, but she has associated herself with this article, more importantly the BBC. She got me to read her story based on this BBC link, since I’m not really into tattoos.

Here is some of what she emailed me:

“… I was a nurse of 13 years experience in all areas of nursing and a practicing aroma therapist, so using my extensive knowledge in health care and natural essential oils and emollients I created my blend, Tattoo Aftercare®, (Scots are also famous for blending skills!)

I was not working, my youngest child was a year old, my daughters were 11 and 13 and my husband was unemployed due to ill health. We had no spare money and were living on social security benefits, yet I saw the gap in the market and had a vision of seeing my product in tattoo studios around the world.

With a borrowed £400 and home PC a lot of determination and hard work and testing the blend on willing testers we began putting samples out to studios in the UK . From that we got our first few customers. We worked from home for the first two years blending hundreds and hundreds of jars of aftercare every day. We would then label and package them, with the help of my daughters, and sell them to tattoo studios. In the early days we lived off soup, (I now make great soup), so we could post out samples, turning back all money made into the company. Two years on we moved into premises but were still hand blending using a small stainless steel pot and kettle for pouring. Finally after hand blending over 70,000 jars we were able to have the product made at a manufacturer in Laurencekirk , Scotland , where it is still made toady.

We moved home from Balmedie in Scotland to Chester , England in 2003 so we could visit more customers and attend more tattoo conventions to raise awareness about my product.

Now seven years on we supply tattoo studios all over the UK and Europe, and use a number of distributors selling into Canada , Sweden , Czech Rep, and Indonesia and are in the process of securing a deal with an American distributor. To date over 400,000 people have used my product as an aftercare for their tattoo, many of them stars. www.tattooaftercare.co.uk

My company has had several magazine reviews and newspaper articles written about my success and personal achievement as a woman in business. In 2005 I was surprised to find myself as one of three finalists in the North West of England Business Awards 2005, Women in Business Category. My product recipe also won the BUAV first ever Gold Bunny Award in 2006 for not being tested on animals. My blend is made using the finest natural ingredients; It is 100% Natural contains no chemicals and is paraben preservative free and is the only aftercare in the world approved under the Humane Cosmetics Standard. ”

THIS is what I’m talking about when I talk about bootstrapping, work-life balance and all that. I love this story and I’m proud to be used for advertising, in this quint-essential bootstrapping marketing drive. Her last paragraph reads like this:

As we move our company forward and set up business links with companies across the world I believe my story can be seen as an inspiration to others who have the get up and go to begin in business and shows that hard work and determination can cross boundaries and countries.

I could not agree more, I hope Shirley is well on her way to business and private life success. A lot can be learned here and if you have similar stories, why not tell us about them? ST.

PS. Before I retire for the day with a nice glass of my favorite malt, I wonder what she means about the Scots and blending skills? Any idea anyone?

A few days ago I was once again reminded by Joshua Levy and his piece “One Blogger Asks: Is the Grass Really Greener on the Web Worker’s Lawn?” on his blog Web Worker Daily that I wanted to write a piece about what I believe to be the social impact of home working.

Joshua is asking some interesting questions about working from home:

So is all of this freedom actually liberating us? Does web work actually represent an evolution in the working conditions of the masses? Or are we fooling ourselves, blind to the reality that we can’t have it two ways — you can’t have the freedom AND have someone else, er, pay the bills.

If I ask myself these and other questions I’m invariably drawn to find answers in my personal work life and how it has changed in the last decade.

In 1999 I was still office based, traveled from one of our offices around the world to the next and was rarely home. In fact most of the time those years I came home Friday very late or Saturday and then often left Sunday night again. So I saw little of my family and especially my son who is now grown-up and ready to go to university.

Then in 1999 I sold my ISP-business and went back to run WinWeb. This time around I worked from home, right from the start I did not want to be in an office and lead the same life as before. So for the past eight years I have been there when my son came home from school, I even picked him up often enough. I was here when he came home with the latest music CD, I had to listen to – not always easy, I admit – or the latest sport-shoes form addidas had finally arrived at the shops.

Similarly I spend much more time with my wife, going for lunch, doing some “essential” gardening – I hated gardening, but love it now. I could give you many more examples, but you get the picture.

While there are many challenges for home workers, I believe we are seeing the beginning of an “reversal” trend. I would like to list here some challenges I believe our society is facing currently:

• Child care – in our work dominated society we often outsource most of our child-care, in kindergarten, boarding schools, and other institutions, here our children will not receive the same level of care and love they deserve and need;
• Care for the Elderly – our lifestyles often separate us from our loved ones and in times of need we are often not able to care for our relatives or friends, because we live in different cities or even countries for example;
• Environment – many of us spend hours every day alone in cars or on trains – not alone, but still isolated – and contribute to the carbon emissions that change our climate.

There are many more examples. This whole process began with the “Industrial Revolution” some 150 years ago. Some of us may even remember a time when three or even four generations of a family lived in one house. People worked in their villages, child-care or care for family “just” happened – was that a bad or good thing? Looking at single parent families and the impact on our children, I would argue it was a good thing, and so would the many parents working from home exactly for that reason – to provide a healthy family environment for their loved ones.

I believe that the whole trend of home working may in the future allow us to have a much more natural work/life balance and will reverse some of the damaging effects of the post industrial revolution changes in our society. People will live closer to family, local communities will be revived – I believe that is happening as we speak, and our children will benefit from “more family”, and all this will have a profound impact on all our lives and the environment.

I would encourage Joshua and everyone else working from home to relearn the social skills of building local friendships, or live near family and give you the social life you need.

After all, this technology we at WinWeb and others supply makes it possible to work from anywhere, gives you a tremendous amount of freedom to live the life you want, where you want.

Let’s hope in hundred years from now people will see this era not only as the “Information Age”, but also the age when we learned to live a better work/life balance, in tune with our emotional and social needs as individuals, families and society as a whole. What do you think?

Have a great weekend with your family and friends.

It seems finally people are waking up to the fact that small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business wants to stay small. Small Biz Labs reports:

According to this month’s Discover Small Business Watch (a survey of small business owners with 5 or fewer employees) “69 percent of small business owners said that they prefer to have their business remain small.”

I’m still somewhat surprised it took most people that long to finally understand that it is perfectly OK to want to stay small. Question is why nobody ( apart from WinWeb) is really catering for these types of small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants.

What really gets me going is when these types of small businesses get told ” It’s just like having a home job!” – dream on.

Running a business from home can be one of the most liberating and fulfilling things you have ever done in your life.

I get regular questions about what we really mean by WinWeb’s Small Business Infrastructure?

On-demand Small Business Infrastructure™ centers around the idea that business start-ups and growing small businesses need help with numerous administrative tasks that are not core to the business success – such as bookkeeping, it services, internet services, call handling and other such services.

These services – if performed by the business owner – cause a great deal of time wasting – while the fixed cost of a business is still accumulating. This is in our minds a fatally floored business model and can easily be remedied with our infrastructure approach.

We should not expect business start-ups and small business in general to be accountants, bookkeepers, lawyers, marketing & PR gurus and so on. We should provide small business with an infrastructure in which it can concentrate on core business tasks, while at the same time enabling the business owner to stay informed of all relevant business facts like cash flow, sales, HR issues, tax position and more. This will enable him / her to make informed decisions, maybe with the help of an external advisor.

Based on these facts, we have devised a six point on-demand Small Business Infrastructure™ concept, which consist of:

1. WinWeb On-Demand Software Solutions – Anywhere At Anytime.

AccountsOffice and OnlineOffice are our two software offerings, which are based on the SaaS – Software as a Services model, to allow for the following key business benefits:

• tight inclusion of business advisors from the start,
• cultivating outsourcing techniques at the outset, i.e. virtual assistants,
• no IT knowledge needed and hassle free operation,
• real-time multi-user access from anywhere, increasing mobility.

2. WinWeb 24/7 Live Support – We Are Here For You Always.

Providing customer care and support only during business hours is not acceptable to our clients. Experience has shown us that most admin work gets done by small business before nine in the morning or after five in the evening. This practice is essential if the business is to survive it’s early years.

This is why we have provided our much acclaimed customer support for 24 hours a day, seven days a week from the outset. Saving our clients wasted time and money – while setting new standards in customer support. No manuals need to be read – all problems can be solved in real-time online.

3. WinWeb Live – Networking Community for Small Business Only.

To foster collaboration and outsourcing we have expanded our WinWeb Live™ offering to allow for small business community networking – thus enabling the business owner to make decisions about his / her current needs, with the following benefits:

• timeshare virtual assistants for professional results,
• offer contracts of work to contractors on a case-by-case basis,
• promote the business to a large audience or even locally,
• find new work and contracts online

4. Business Advice

Our On-Demand Small Business Infrastructure™ enables business advisors, accountants, bookkeepers and other advisors to have a “Up Close and Personal” relationship with the small business owner, providing key elements for the success of a small business:

• timely and up-to-date advice from anywhere at anytime,
• more efficient advisor function due to SaaS technology, less travel,
• easily expandable advisor network.

5. Solution Partners

Third parties provide external services to complement our services, such as parcel service, office supply services, printing services. These and other services are provided on a bulk buy arrangements by leading businesses in their respective sectors – to provide the most reliable and up-to date service possible – with the effect of enhancing the professional appearance of our clients.

6. ClimateByte™ Technology – For A Cleaner Future.

Our clients are among the biggest demographics concerned with climate change and carbon footprint neutrality. It is a fact that employing remote working and collaboration techniques drastically reduces the damaging business side affects on our environment. We enable our clients to be more eco-friendly and aware, by providing them with our green technology – an ongoing development commitment of WinWeb.

WinWeb welcomes any suggestion that will further enhance our On-Demand Small Business Infrastructure™ concept – especially the development of even more eco-friendly business processes – to serve our small business and business start-up client-base.

It is Saturday, weekend – here in the UK a long weekend as we have public or bank holiday on Monday – for me always a time to reflect on the week gone by and of the weeks ahead. For many small business owners it’s time to work and catch up with admin or other work, but ask yourself this, “Is this what I wanted from my small business?” Or did you want to be with your family, have some time off – have a life?

This morning I was reminded of a gentleman I met almost thirty years ago while working in the US, he was from Florida and extremely wealthy. He had made all his money in nylon-stockings after the second world war. I was still looking for my first break to make my mark and money, so I asked him how he made it to become so wealthy. His answer was:

Remember always, if you work all day, then you have no time to make any money, you are too busy.

As you can well imagine, here I was, about 20 years old and this guy came out with a statement like this, I thought he was completely mad and insane. Unfortunately I was stupid enough not to ask him what he means – otherwise I would have learned one of the most important business success lessons of my business live very early on.

He was absolutely right of course, you may very well already know that. He was talking about having time to have a vision and dream, think about your small business and not about your products, standing back and getting out of the proverbial forrest, so the trees are not in the way.

So why not use this weekend, stop working and do some dreaming about what could be – nurture your vision for your small business and see where it takes you. Vision is one of the most important ingredient for small business success.

Take the time to make money – stop being so busy. But now you have to excuse me ……. Have a great weekend!

Yesterday I wrote “What the hell, let’s do it” and today there is a story about people in the United Kingdom not believing in themselves enough to start a business.

Whether it is their natural tendency to stick to the time tested and traditional route research indicates that while the British have great business ideas they don’t have enough faith or belief to make turn them into reality. This is an alarming trend as the growth of our economy is dependent on the innovation and versatility of its entrepreneurs.

In a research study by business advisers Inventva it was reported that while 13 million people in U.K. have a business idea not even three million actually do anything about it.

The Director of Inventva, David Thomas says that potential entrepreneurs need to ask themselves five basic question before they decide if they should do something about their business idea and these include:

* Does the business idea fill a gap in the market or is there a need for it?

* Is it worthwhile to try to make the business work?

* Would you enjoy working on the start-up?

* Is it viable from a business point of view?

* Do you have the resources to make it possible?

Budding entrepreneurs need to make the most of the technology that is available to them and should look for a business infrastructure and IT solutions for accounting, cash-flow, etc. They should also consider outsourcing certain business processes that would leave them free to focus on core business activities.

As I wrote before if your fail, who cares(?) – the most important thing is you gave it a go – so, come on, what the hell, let’s do it. If you don’t try you will always wonder what could have been. Starting a small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Personal businesses can be fun and is not that difficult, some times doing it part-time can be the answer.

Hat-tip to startups.co.uk.

While most of us want to achieve professional success a majority of working people are now unwilling to do so at the cost of their family and health. Employees are preferring to turn to businesses that offer them flexible working conditions that allow them an opportunity to find a balance between work and home.

This is a strong equalizer when it comes to compete for the employees with big business. An interesting research study by Mitel indicates that small businesses are more open to adopting flexible working conditions not only for the employees but also for the business owners. Small businesses are willing to utilize the internet and IP telephony to allow remote working.

” ….. 72% of small businesses were willing to allow their workers to work from home as compared to the 44% of bigger businesses and corporations. …”

Small businesses are making use of online business infrastructure and using it effectively to focus only on core activities. Having an online office is an excellent way for employees and employers to keep in touch with the office and also with clients and customers. Since the internet can be accessed at any time it really doesnít matter where one is and can log on and make crucial business decisions.

Working styles are changing globally and on-demand small business infrastructure is paving the way, not to forget it is more eco-friendly too.