Working as an Anti-Submarine Warfare specialist in the Navy is a long way from running an internet business but that is exactly what Rod Cohan is doing. Rod and his wife Chantelle, who had worked as a nanny, heard from many people how frustrating it was to find a good reliable cleaner. After seeing the success of websites that helped people find services like baby sitters and nannies, they decided to set up an online private domestic cleaner directory for households called Hello Cleaner.
The website www.hellocleaner.com.au allows households to find a cleaner with minimum fuss. Cleaners pay a small fee to advertise their services and potential customers pay a small fee to advertise the type of cleaning work they want done and the amount they are prepared to pay. Confidentiality is important and only registered members are provided details if there is a potential match.
I interviewed them about what the first couple of years has been like and what they learnt along the way.
Getting Started – It Always Takes Longer than Planned
In 2008 they started the process of building their website. They received many quotes in the $20,000 to $30,000 range but eventually found a local designer who would build a website for around $5,000. Lesson number one says Rod, you must do your research and keep talking to people, don’t just accept the first quote that comes your way.
It took about 12 months to get the website up and running mainly due to Rod having to spend so much time at sea. On the 16th September 2009 Hello Cleaner was launched. They made a few thousand dollars to start with but became frustrated when their dreams of quickly expanding the business around Australia and then overseas didn’t happen.
They had a “loose sort of business plan” says Rod and no financial model that clearly outlined the sort of revenue they needed to run and grow the business. After some initial success with their marketing, things started to slow down and although they were spending a lot of money on advertising, the results just weren’t there.
Getting Some Help
Neither Rod nor Chantelle have any formal business education and they realised this was really holding them back. They didn’t know who to talk to or where to go for information so they started to look around for some help. They couldn’t afford the services of a business coach which can be up to $2500 per month so after some research they purchased the Your Business Success program that comes with support of an experienced business coach, Owen Joyce.
Getting Some Focus
Since they started improving their business knowledge and skills, Rod and Chantelle have made some major changes to the business which they would never have done without help. One of the first things Joyce had them do was develop a Financial Model for their business using a template set up in Excel. Rod and Chantelle could then easily work out what sales they needed to break even and then make a profit.
From their Financial Model, they updated their original business plan and made more concrete strategies and action plans. The strategy they decided to pursue first was to just focus on getting the model to work in Sydney first, then NSW, before expanding to Australia and taking on the rest of the world. This decision has taken a lot of pressure of them both and given them more focus.
Rod says that he also now has a better understanding of the capital they need to take the business to the next level and how to present their business to potential investors in the not too distant future.
Getting Your Marketing Right
The focus for the Hello Cleaner team over the next few months is getting their marketing right. “Before you know it $12,000 has gone out the door and you are wondering what happened” says Rod. They have tried a lot of marketing initiatives but didn’t measure the success rates of each activity closely enough and they realise they need to be more targeted. Rod says it is daunting looking at all the options like Google Adwords, SEO, Facebook, Twitter, local newspaper advertising, Yellow Pages, public relations etc. They now have a more focused approach and understand what they need to do to get their marketing right.
Business Tips for Budding Entrepreneurs
It has been a tough couple of years but on the way they have learnt a lot. Rod’s words or advice for other budding internet entrepreneurs are:
- Research, research, research. Find out who is doing what on line and work out a business that is either totally new or “edgy” – you need to be offering something different.
- Focus on your advertising from the beginning, measure the results of everything you do and be prepared to change or dump what isn’t working.
- Have an understanding of the capital required to give your new business a good chance of success.
- Be prepared to ask for help from experienced business advisers.
How the Your Business Success Program Helped Us.
I asked Rod and Chantelle about what they got out of the YBS Program to date. They said they have completed the watching the four discs and workbook in Volume One – Marketing and Winning New customers.
Rod said that “the beauty of all the material is that we can work at a rate that suits our time constraints and business progress which is great!”
Rod emailed me a list of the min things that he has found useful so far:
Disc 1: Building Your Brand
Have a Unique point of Difference
- Getting the message across that our business is unique in the market and the importance of getting that message out there.
- Plan, Do, Check action.
Protecting your Brand
- How we use our Trademark
- Ensure we use the same font, colour and logo every time.
Funding Asset Growth
- The importance of looking for investors or a bank instead of funding the business with our own money.
- Draw a wage and implement it in your business plan, this will be important in the future.
Disc 2: Promoting Your Business
Word of Mouth
- Get the message out there.
- Don’t take no for an answer!
Advertising Options
- Implement a long term advertising plan. (Yearly)
- Keep track of all account enquiries.
- Is the enquiry new or referred?
- How did the potential customer find us?
Newspaper Advertising
- Keep using the same ad layout, logo, colour, font etc…
- Ensure the headline creates impact.
- Clear images and messages attract customers.
- Aim the advertisement at one person not a collective group of people.
Tracking Results
- The use of Yellow advertising to track results of advertising campaigns
- Provide effective design of advertisement.
Disc 3 – Power Networking
Press Releases
- The benefits of press releases.
- Be open to suggestions.
- Don’t be afraid to change.
- Meet above and beyond people’s expectations.
Live Marketing
- The use of conventions to showcase your business.
A Business Quickie
- Know your buyer.
- Follow up enquires.
- Understand customer needs and expectations.
- Use vital feedback to increase or change your product.
Updating the Plan
- Update the business plan yearly.
Disc 4
Marketing Plan
- Have an objective.
Strengths and Weaknesses
- SWOT process incorporated into your business plan.
Your feedback.
What are the two or three key things you think people need to get right when starting a business?
Written by Andrew Vincent, Business Coach, Your Business Success
