The key to any successful business comes down to customer experience. James Sinclair is the founder and owner of Partyman, a super successful family entertainment business with 350 staff and interests in entertainment, childcare and education. Here are a few of the rules he sets himself when assessing any new business opportunity.
As a business owner and entrepreneur, I know how hard it is to start and grow your own business. To help new entrepreneurs taking their first step on the road, I’ve been filming a daily vlog of my life which catalogues what it takes to run Partyman, my family entertainment business. I share my vlog on YouTube and on social media channels as a way of helping business owners navigate their way through the tricky world of business life, sharing my tips for success along the way.
My new book, The Experience Business looks at the importance of the customer experience and how you can grow a successful business by focusing on customer service over price. Let’s take a look at a few of the rules I use to assess every new business opportunity that comes my way:
Can I scale my business?
If you think your business could turn over more than £2 million if finance wasn’t an issue then your business is scaleable. If you can’t then it’s not.
You may be happy running a business that fits around your family and lifestyle and gives you a good income. This is fine but make sure you don’t end up spending so much time working in the business that you don’t actually get precious family time together.
Is it capital intensive?
If a capital intensive business is your dream then you’ll need to know how to raise finance to grow it, be it through sponsors, venture capitalists, crowd funding or traditional routes such as bank loans. Where possible, it’s better to own and borrow until you are ready to take equity investment.
Is there the chance for profitable sales?
If you can get both high and low price tag sales you can serve the people who love you while you carry on earning a residual income with a lower priced product. Take Apple for example who have low priced residual sales and subscriptions to keep a regular cash flow but their iPads and phones are high price profitable sales.
Is there a chance for residual income?
If you can crack this, so many things will click into place. You’ll be less stressed, do less marketing, make less effort to find new customers and will be highly attractive if you want to sell in the future. Build a business with a residual income and you’ll discover the stress buster of business.
Is there a margin for the business?
If your product or service does not have a profit margin then it will be difficult for you to make money and scale up. Price led businesses need a huge turnover to make a clear profit so they are pushing for every sale. Always allow for a profit margin and never price for sales if you want to grow an experience business.
If you can answer yes to the majority of these questions you will find it easier to build and run a sustainable and successful business.
James Sinclair will be a keynote speaker at the Family Attraction Expo 2017. He is the owner and CEO of the Partyman Group and the founder of Entrepreneur’s Network. The Partyman Group generates sales of over £10 million a year with a team of 350 working across a dozen locations in London and the South East including 70 acre Marsh Farm in Essex and Teddy Tastic who are exhibiting at the Expo this year. James’s new book “The Experience Business” is now available to buy on Amazon priced at £11.99. His daily vlog can be found on YouTube by searching for James Sinclair, Backstage Business.
COMPANY NAME: Partyman/The Entrepreneur’s Network
PHONE: 0121 272 1212