Starting a New Small Business Any Tips?

[Tim86]

So I've just opened up a small relationship counselling business. Just based from a home office.

I do enjoy relationship counselling, it's a good challenge, and can have rewarding results.

I've done a similar business previously... 5 years ago. Back when I was only 2 years into my psych degree. I had a couple of clients per week. But didn't advertise a lot. Stopped that business when I got a full time counselling job.

Previously I charged $50 per hour, and did first session free.

Now that I've got a bachelor of psychological science under my belt, and 5 years experience as a counsellor, I'm wanting closer to $90 per hour.

Currently advertising at $65 an hour just to get some clients.

Advertising on ad words (position 5 for about $1.50 per click). Only gotten a handful of clicks (5 ish) in the past few days. And that's out of about 300 impressions...

But I've only just dropped the price from $90 an hour to $65 an hour on friday. I'm hoping the cheaper price will attract some initial clients.

Feeling a bit unsure at this stage though. I've got everything set up... but no clients yet. A bit unnerving.

At this stage if I cut my loses, I would probably be out of pocket $1000 from trying the business out. So it's not like I've had to invest a heck of a lot to give it a shot...

The room I'm using as an office, is actually a bedroom at one of my investment properties. I'm missing out on $180 per week by not renting the room.

So just to break even and get what I would have gotten through passive income, I need to get 3 clients per week.

The eventual goal is to have a successful business, which would enable me to cut down on my regular job's hours.

Just wondering how long I should expect it to take to build up a client base? Anyone else start a small business and experience the same initial slow start?

In reality I can afford to let this drag out and take my time with it, and I'm not going to be penalized a great deal financially because of it. I guess I need patience... or maybe something more?

Anyone have any advertising tips? Or tips in general for this sort of situation? Any similar stories?

Just stupid nerves at this stage, and a lot of questioning myself and my approach I guess.

 

[D.T.]

You need to get your face out there and your name known. How many people know that you even do this?

The internet marketing stuff only goes so far. Real life networking is what you should be doing. I don't know enough about your industry to say who you should talk to, but you should be in the ear of any related businesses.

 

[Kinnon Bell]

How long has it been since you 'went live'? Are you just relying purely on the ad words? If only it were that easy!

I would imagine something like this would take a little while. Like DT said - network, get your name and service out there. I can't imagine you would get many potential clients out of family and friends? If you were my friend or family member I would go to someone else as I wouldn't want you knowing all about that kind of thing. That may be just me though.

Not sure how it works exactly but is your service covered under medicare or through private health insurance? I know if I need a recommended professional such as a dentist I can go to my health insurer's website and they have recommended people in my area.

The room I'm using as an office, is actually a bedroom at one of my investment properties.

How does this work exactly? Would your clients feel 'safe'? Do you have a professional and trusted image by doing this?

How does your website stack up against your competitors - do they have anything you don't? Can you do anything they're not doing such as Skype counseling sessions or web chat sessions? Do you have a newsletter you could get people to sign up for so you stay front of mind.

Have you tried, or can you try any of the following?

Speak to Dr's and the like and see if you're able to become their preferred partner.

Join networking groups like BNI, Chamber of Commerce etc.

Maybe hold a seminar or information night on general info on how to have a successful relationship or something like that. Or something sex related as sex sells!

Get your local newspaper to do an editorial on the new counselor in the area.

Become the 'go to' person for your local media if they need commentary on their articles

Put branding on your vehicle.

Get your presence in all the local directories like True Local.

Do you have signage on the house? Is there a lot of foot or vehicle traffic past the house?

Is there a relationship forum you can join to post in?

Letterbox drop

Is there another counselor looking to get out of the business where you can be introduced to their clients?

Change your ad word search to things that every man and his dog aren't using

Try facebook etc

Shop-a-docket (though not too sure I would see someone who is advertising on the back of a docket...)

Hold webinars

Hold support groups

I think I'm starting to run out now...

Just persevere. A lot of service based businesses can be hard to get the ball rolling as the majority of people rely on recommendations from their friends or people they trust to use a service so you need a couple to get the ball rolling then hopefully your clients will do your marketing for you. May be different in your industry though as seeing a marriage counselor may be a bit of a taboo?

Hopefully the above provides some food for thought.

 

[Tim86]

How long has it been since you 'went live'? Are you just relying purely on the ad words? If only it were that easy!

I've just done ad words so far. For about 3 days. I have almost $600 credit with them because I did an ad words online tutorial which then gave you $100 credit...but google gave everyone $1000 credit accidentally. And then they just let everyone keep it even though they became aware of their mistake.

I'm thinking of maybe doing a letter box drop as well?

You've shared some good ideas. Maybe I could contact local doctors as well. But I'd imagine they've probably already got people they refer to. But no harm in asking I guess.

And yeah like you said, this sort of service isn't one you try to get business from with friends and family.

And no not under medicare or anything. If you do your masters you can offer medicare rebates, but that's only for mental health issues. So relationship counselling doesn't count. Some registered psychologists will rip off the health system though by saying someone has depression because of relationship issues and then proceed to offer relationship counselling under the guise of mental health treatment. I personally think that's pretty wrong. Medicare should be for health reasons, your partner being a jerk to you isn't a health condition...


As far as the office being in a bedroom at an IP. It's not as bad as it sounds.

The front of the IP has a deck, the office has it's own entrance through french doors off to the side. Office has it's own toilet, etc... so no need to go into the rest of the house or anything, it's all kept seperate.

"How does your website stack up against your competitors - do they have anything you don't?" - Some of the websites have informative articles on them as well. I could write up some articles myself. Apparently that helps with getting your website recognised by google as well, because people end up linking to your articles.

Lots of good ideas shared so far thanks

 

[Mr. Fabulous]

Hi Tim, this was what I posted a few months back to a similar thread. Hopefully it helps you.

- Network like your life depends on it. You can never have too many connections.
- Always look for opportunities to connect people within your network.
- Figure out how to differentiate yourself.
- Sell yourself and your business to absolutely everyone you come across.
- A. B. C. Always Be Closing.
- Embrace the fact that you are now a salesman and excel in the role.
- Specialise in a certain area or target a certain market.
- Get on property investment forums (like Somersoft) and start participating in discussions.
- Try lots of different strategies to gain business. Most of these will fail. Focus on the ones that work and milk them for all they are worth.
- Embrace failure like it's your best friend.

A few points I'd like to add:

- don't be afraid to fall on your face. Failure is a learning tool. The number of people who have succeeded in business who have never failed = zero.
- ask for help from anyone and everyone (who runs or has run a business) that is willing to talk to you. Don't be ashamed! You will be amazed at how many people will be more than happy to give you a leg up.
- fail quickly. If you try something and it isn't working, discard it and focus on something else.
- be open to new ideas and opportunities. Don't blindside yourself by focussing on one way to earn income.
- lots of people will want to give you advice, learn how to separate the good from the worthless
- keep an abundance mentality. I have handballed potential clients to competitors who were better able to provide the necessary service to potential clients.
- give your services away for free if it means building a revenue stream in the long term.

The PI point isn't really pertinent to you (I'm guessing? Maybe it is! Your experience in PI and as a reno guy may be something you can use as a way to build a moat).

I recommend listening to the two following podcasts:

- The James Altucher Show
- StartUp (google Startup gimlet media)

They will provide you with ridiculous amounts of great information to help you build your business. I wish you all the best! Hit me up via PM so we can get in contact and I will do what I can to help you build your business and network.

 

[The Y-man]

I'm thinking of maybe doing a letter box drop as well?

Particularly if you hear a domestic going on??

The Y-man

 

[Perp]

I think $65 an hour is too little; it suggests you don't have confidence that you can offer excellent relationship counselling, which is easily worth the $90 per hour that you're seeking.

On commodities, such as milk, price-cutting can be an effective strategy, because people know that "milk is milk", and just want it at the cheapest price.

When buying expertise, not all providers are the same, and price signals the provider's confidence that they're offering a valuable service.

Yes, there's possibly an exception, which is people who really need relationship counselling and can maybe afford $65 an hour at a stretch, but can't afford $90 an hour. Do you really want to be drawing in a clientele who can't afford to pay you what you're worth?

 

[Tim86]

I think $65 an hour is too little; it suggests you don't have confidence that you can offer excellent relationship counselling, which is easily worth the $90 per hour that you're seeking.

On commodities, such as milk, price-cutting can be an effective strategy, because people know that "milk is milk", and just want it at the cheapest price.

When buying expertise, not all providers are the same, and price signals the provider's confidence that they're offering a valuable service.

Yes, there's possibly an exception, which is people who really need relationship counselling and can maybe afford $65 an hour at a stretch, but can't afford $90 an hour. Do you really want to be drawing in a clientele who can't afford to pay you what you're worth?

Would $90 an hour with a free first session be a better idea?

Or maybe advertise $65 an hour as a promotional price with regular price $90 per hour...

As Mr fabulous said, give away your service for free if it means getting more clients in the long term.

Thanks for the support btw Mr fabulous.

 

[Perp]

Would $90 an hour with a free first session be a better idea?

Or maybe advertise $65 an hour as a promotional price with regular price $90 per hour...

I don't think providers of quality professional services should offer discounts to attract business.

If you have to, a free first session is a better idea, because people can see you risk-free, without worrying whether you're good or not, and then if they're convinced you're good, they should be happy to pay you $90 per hour thereafter.

 

[sanj]

Would $90 an hour with a free first session be a better idea?

Or maybe advertise $65 an hour as a promotional price with regular price $90 per hour...

As Mr fabulous said, give away your service for free if it means getting more clients in the long term.

Thanks for the support btw Mr fabulous.

Personally I have to disagree with perp. My I it is thought is that $90 seemed steep for someone just starting out and working out of a room in a share house. What sort if range of prices do other people charge?

I do think that 3 days is far too early to be making dramatic changes like dropping your price by 30% though.

There has been some good advice given,especially by Mr fab so take a breather because ultimately I suspect businesses of this nature can often be a bit of a slow burn as you aren't going to see the benefits of word of mouth business for a while.

 

[DaveM]

If you are starting a new biz without any clients (aka not able to take a core group with you from your ex employer) then if you havent got a years worth of living expenses in the bank, then you are going to find it tough.

It generally takes 1 year to break even, 2 to replace your old income entirely, and 3 to be profitable. Its in the first 2 years that businesses fail, usually due to lack of cashflow.

 

[Mr. Fabulous]

I don't think providers of quality professional services should offer discounts to attract business.

If you have to, a free first session is a better idea, because people can see you risk-free, without worrying whether you're good or not, and then if they're convinced you're good, they should be happy to pay you $90 per hour thereafter.

Hi Tim, I would be inclined to *not* refer to a 'free first session'. If you try this out, I would be more inclined to refer to it as a 'complimentary initial consultation' or something along those lines. To me, the word 'free' isn't conducive to a perception of being a good counsellor.

 

[Perp]

Hi Tim, I would be inclined to *not* refer to a 'free first session'. If you try this out, I would be more inclined to refer to it as a 'complimentary initial consultation' or something along those lines. To me, the word 'free' isn't conducive to a perception of being a good counsellor.

I agree with that.

 

[sanj]

I agree with that.

Likewise...

 

[WattleIdo]

My I it is thought is that $90 seemed steep for someone just starting out and working out of a room in a share house. What sort if range of prices do other people charge?

I do think that 3 days is far too early to be making dramatic changes like dropping your price by 30% though.

Agree with sanj here. A lot of people can't afford the exy counselling or use cost as an excuse not to go - and you can put your prices up later. Plus, you're just starting out.

I thought Kesse's idea of the doctor etc was a good one. I'd go to all the community centres, town halls, cafes, medical centres, child care centres, supermarkets etc and ask to put notices up. Also, get into discussion with the professionals and receptionists whenever you can to introduce yourself.

Get yourself out there walking, talking. At least you'll get some exercise in while you're waiting for it to kick off. I'm sure you'll be great.

 

[Xenia IM]

My only advice for business is - GET VISIBLE.
Get known
Be controversial, take a stance on something and get noticed.

you cannot rely on websites, you need personal branding - YOU.

Don't be politically correct or too polite, you will blend in and fade out.
Get out there and speak - what is your point of difference?

With relationship counseling, I would go against all the personality profiling tests that other therapists are doing, you know the ones that say, he is this profile and needs to behave this way and she is this profile.... boring boring.
Go with the number one reason that relationships end - expectations, codependency or whatever it is. You need to be different.

write a book
get a youtube channel.
create a database - use social media initially but get them on a subscription basis asap as social media change rules too often. You can't ever allow your business to be at the effect of social media - that's suicide!

letterbox drops work with repeated use over a specific marketing area. They need to be in colour, they need to be high quality and they need to stand out, they need to have ONE SINGLE FOCUS. They need to be combined with information on another day. They cost $$$$$
Do not use black and white home printed brochures, the worst thing a business can do is look cheap.
all above is from my own experience in running businesses, hope that helps.

 

[jim1964]

It generally takes 1 year to break even, 2 to replace your old income entirely, and 3 to be profitable. Its in the first 2 years that businesses fail, usually due to lack of cashflow.

My thoughts to a Tee!!!!! In the businesses i have started from scratch year 3 is the year you start to make the money.

 

[Shahin_Afarin]

Service industries are highly reliant on word of mouth and personal referrals. Aligning yourself with doctors is hard but would be successful.

I trust my doctor and I was use his recommendations for any specialist referrals.

I wouldn't reduce my fee. I have a client who is a gynaecologist. Lovely old fella who has been incredibly successful. He wanted to slow down and travel so he thought he would significantly increase his prices to reduce the number of patients. Subsequently he is now busier than ever.

 

[sanj]

Service industries are highly reliant on word of mouth and personal referrals. Aligning yourself with doctors is hard but would be successful.

I trust my doctor and I was use his recommendations for any specialist referrals.

I wouldn't reduce my fee. I have a client who is a gynaecologist. Lovely old fella who has been incredibly successful. He wanted to slow down and travel so he thought he would significantly increase his prices to reduce the number of patients. Subsequently he is now busier than ever.

Hahaha I bet he wishes he did it years ago!

 

[Shahin_Afarin]

Hahaha I bet he wishes he did it years ago!

He is one of the those rare (and good) type of people that is not driven purely for money. He is built himself a very good reputation and now he is stumped on how to stop the flow of business. Not a bad problem to have.