Business kingdoms on social media
When Sue Chadwick started her toy retail business, Animal Kingdom, she knew it would be heavily reliant on social media.
Working from home, with a 3-year-old full-time in her care, she needed an effective way to create personal connections with her customers.
Now, all of her marketing is done by Facebook, which directs customers to her website to complete the sale.
She uses social media to interact with followers – some of whom send her photos when their packages of purchases arrive, and discuss how their kids play with their toys.
‘‘It would be a lot more challenging without Facebook,’’ she said. ‘‘Most of our buyers are parents and our generation all uses Facebook.’’
It was relatively inexpensive to advertise, she said. Animal Kingdom would pay to boost posts that were attracting interest.
Chadwick is one of a growing A massive distortion in our tax system was created. One where property and savings schemes went separate ways and tax neutrality was deemed irrelevant.
Like sands through the hourglass, Tahunanui has eroded dramatically along with my deposit account. Thirty years on, it’s 3.5 per number of businesses that do most of their trade on Facebook. Unlike bricks-and-mortar retailers who use social media as an additional advertising strategy, these businesses are based on finding their customers on Facebook, Pinterest or Instagram.
Social media offers a quick, easy and relatively cheap way to market a product or service to the masses. And if you’re online anyway, it might seem a small jump to start making money there, too.
Business coach Natalie Tolhopf said it was an increasingly popular option for stay-at-home parents who wanted to start a business on the side. ‘‘It’s the only way they can be seen because of the logistics of being at home. They’re relying on online.’’
The Facebook algorithm allows new businesses to target a particular market in a way that they would never have been able to do so easily before.
If you’re dreaming of making millions becoming a Facebookpromoted entrepreneur, there are a few things to keep in mind.
Tolhopf says social media-based businesses are usually productbased.
That might be someone selling stuff they’ve made themselves or setting up an online store to sell other people’s products. Some offer a service such as printing T-shirts where the customer chooses the design.
‘‘Instead of bricks and mortar, where the start-up costs are huge, instead they go online.’’
There’s no shortage of online programmes offering to show you how to design a training course that you can then sell to other people.
Tolhopf said the big problem with this was that many people who tried to set up online coursebased businesses weren’t wellknown enough. ‘‘If no one knows you, it’s like starting something in the middle of the desert and saying ‘why is no-one coming’?’’
It’s possible to set up an online store without owning any product.
You can do this with apps such as Oberlo on the Shopify platform.
Users then select what they want from your site, and the manufacturer or distributor sends it direct. There are lots of benefits to this – there’s no upfront cost, it’s easy and all you have to do is market the products to your target audience.
But there are drawbacks too. You have no control over when the product is sent, the quality and it can be hard to handle returns. You also have to have a significant marketing budget, or a standout strategy, to differentiate yourself from the competition, many of whom may be using the same suppliers.
Some businesses get an extra push from setting up a group in which loyal customers can chat. New Zealand fashion retailer Shine On is a masterclass in this – with a VIP group of more than 30,000 members, reviewers posting regular videos and photos of their purchases and shoppers recommending items to each other.
Tolhopf said it was an effective strategy. ‘‘Groups help build a community, which in turn builds rapport and trust. Plus, it’s a great platform to show how to use your product or a taste of the service. But mostly it’s a great opportunity to show the personality behind the product or service.’’
Just having a Facebook page for a business was not enough, she said.
A website would give it credibility if the owner wanted to reach beyond their immediate circles. ‘‘If your product is really good and you put it in front of the right market you could just sell it from photos on your Facebook page but it would usually be friends and family first and then referral marketing.’’
The difference between succeeding and not was often the confidence of the business owner. People could have the same product and one business would do much better than another, she said. ‘‘One person will sell it better. It doesn’t mean they’re pushy but they’re confident about their brand and their message. They don’t care what others think.’’
It was not enough to decide that you were going to set up a business and market yourself online. You need a solid business foundation and an idea of your plan.
Even if a particular product proved very popular, unless there were other business structures in place it would not be sustainable. Ideally businesspeople should have a team of others with expertise they could call on.
Tolhopf advised against trying to set up a small business to address a shortage of money. It would add too much pressure and stress to something that could be tough, anyway.
‘‘That’s a terrible place to put yourself in. Get a part-time job to support your income – it could take two years before you see a decent return come back.’’
‘‘If no one knows you, it’s like starting something in the middle of the desert and saying ‘why is noone coming’?’’
Business coach Natalie Tolhopf