H: Vicky Letch, host
A: Joe Harrison, National Market Traders Federation
B: Matthew Crawford, winner of Make your Mark in the Markets 2009
H: Hello and welcome to the Business Show, I’m Vicky Letch. Now in today’s uncertain economic climate, where many people face the prospect of redundancy or have to consider a major career change, good advice and proper guidance about starting a new business are more vital than ever before. Today I’m joined by Joe Harrison from the National Market Traders Federation, who are launching a fantastic new guide to making a success of market stall trading, and Matthew Crawford, winner of Make Your Mark in the Markets 2009 and a successful market stall trader in Kent. Welcome to you both, thank you very much for being here today. So here’s what’s coming up on today’s show - a guide to making a start in the markets, avoiding the pitfalls and planning for success and of course all of your questions will be answered here live. Now don’t forget we are totally live so if you have any questions or comments for our guests please use the box on our screen and then click send and we’ll do our best to tackle as many as we can over the next 15 or 20 minutes, and of course if you’re Tweeting whilst watching the show all you have to do is use the # studiotalk. We have had so many Tweets so keep Tweeting, just make sure you use the # tag and of course we’d love to hear from you. So Joe I want to kick off with you – lots of people of course just starting up businesses out there at the moment, and people may be considering starting a business as a market stall trader, but lots of people give up before they’ve started, or are put off at the early stages. Why do you think that is?
A: Well that\'s mainly because of the lack of guidance to actually see you through the first 12 months of business. Many businesses, if they’re going to fail they do fail in the first 12 months, and this is particularly the case of market traders
H: Ok and what about people out there who have a product and they just don’t know what to do with it, and perhaps they’ve never thought as someone starting up a small business that actually that’s the ideal platform to start as a market stall trader?
A: Well the idea behind starting as a market trader is to be able to engage with the customer, and that’s why it’s an advantage because as a market trader you get direct feedback from your customer as to demand on the particular product, so what you may think the public want, the public are really good at telling you what they do want
H: Yes so actually in the early stages of your business you could get that vital essential guidance as to exactly where your business should be heading
A: Exactly that, even if your business was started up as website business, it is really good advice to get out there, get a market stall, and actually get the feedback from the customer which will lead you on to actually better success
H: And as a novice and correct me if I’m wrong in saying this, I would imagine the start-up costs are relatively low, your overheads would be relatively low?
A: Yes compared with taking a shop on the high street or in a shopping centre, they’re obviously considerably lower and also not – there isn’t the commitment because you’re not having to tie yourself into a long lease and all the commitments that go along with that, so therefore yes it’s a time to test your product in a more relaxed form really
H: Yes and now this sort of business will require a certain skill set, as any business would, do you think it’s aimed at a particular age group or someone from a certain type of business background?
A: Not necessarily no I think anybody could make a market trader and many people have, and actually many people who have been made redundant in previous recessions have actually ended up a market trader and made a really good go of it, so no there’s no limitation really in market trading and perhaps that’s why markets have been around for so long, you know
H: So you just said anyone can be a market trader, but can anyone be an award-winning market trader?
A: Not necessarily no
H: That’s a rarity – Matthew it’s lovely to have you here today. What did you do before?
B: I was actually working in the city as a business development manager
H: Wow
B: For a media firm, selling advertising space and exhibition space and things like that
H: So this is a huge change for you?
B: It is, it is. I mean I still get to use the sort of core experience that I had in the sales etc when I was using my marketing skills for the business, but it is a big change, not being stuck in an office
H: Absolutely
B: And not making profits for someone else, you know
H: A good change, I imagine a big challenge for different reasons. How hard was it for you to turn your business into a success?
B: It wasn’t particularly hard for me, I don’t want to make it sound really easy but I guess it’s how much effort you put in and how much guidance and help you’re willing to ask for. I was lucky in the respect that – as I say I’m from a sales background, I knew that my partner who is the chef of our business, her food was extremely nice, and I just knew that I’d be able to push it out there and market it correctly, and the markets was the place that I chose to do it
H: Fantastic. We are going to get some more tips from you a little bit later on. For now Joe I want to come back to you and find out a little bit about this guide which I’ve had a flick through, and it’s so informative and it’s so thorough, it seems to cover absolutely everything . It’s the NMTF First Guide
A: First – yes the reason behind the title is basically we flagged it up as the NMTF First because it’s your first opportunity to be out there as a market trader
H: Yes
A: And there’s everything contained within it, that will see you through that first 12 months or so of market trading, which isn’t particularly easy. If it was easy everyone would –
H: Everyone would do it
A: Be doing it
H: Yes
A: And not only that everybody would be a success, so therefore there is a lot to follow, a lot to look at, a lot of ways of avoiding the pitfalls, and the most important factor a market trader must do is look at the business through the eyes of the customer, because at the end of the day they’re the important person
H: Yes absolutely
A: They’re the people that you’re going to actually sell the product to
H: Yes they will make or break you I suppose won’t they?
A: That’s right, exactly that
H: Well that wraps up part one. Do stay where you are because we are going to face those pitfalls in part two, and then hopefully of course leave you with some well-needed advice to get you on the right track. See you in a mo
Break
H: So just a reminder that we are live today, if you have any questions pop them in the box on the screen, click submit and then if you are Tweeting we’ve been inundated, keep your Tweets coming through to us, just do remember if you want to Tweet to use the # tag, so it’s #studio talk. If you have just joined us though we’re talking about how to set up your own market stall and make it a stepping stone to business success. So Joe for people watching now that are thinking “this is something that I really want to do, actually I think this is the ideal platform for my product” – what sort of stumbling blocks do you think they’re going to face in the initial days?
A: Well the first thing they must do is actually think about what they want to sell, and where they’re going to sell it and why the customer would want to buy that product from them
H: Ok
A: And then further on from that, once they’ve established maybe in their local area which is generally the case with market traders, look at the market, look at the niche that’s needed there, that’s the type of product you’re willing to go along with, prepared to do this type of research, I’m sure Matthew did when he started his business, and then go there and then look at – and follow this NMTF First Guide and sustain yourself through, because there’s an awful lot of pitfalls in as much as products – not over-selling the product not over buying the wrong types of products, displaying the goods well, signage is a massive factor because signage is the impact that the first thing the customer sees when they’re buying the product. Ultimately the first thing that will attract them to your stall amongst a market of 200 stalls
H: Absolutely. So it is going back to basics – the who, the what, the why, the when and doing some really good research
A: Yes and all the time, as I said before, is looking at the prospects of it through the eyes of the customer
H: Yes
A: How the customer would see your stall
H: Yes. And I think that’s actually some really sound advice. I think sometimes if you’re very passionate about your product it’s quite hard to look at it objectively because you have so many emotions tied up in it
A: That’s right and that’s what must be done, must be done. What you may feel is the right thing, the public is – will tell you quite differently that it isn’t the right thing
H: Matthew if I said to you take yourself back to the early days, I know you were saying actually you feel quite blessed in that things did fall together, but do you think there are any problems that you did face perhaps lessons that you learnt in those first initial months that you could share with people?
B: Definitely I mean you’ve got to think about the weather
H: Yes
B: That’s one of the things that I didn’t – I admit I didn’t think about at all
H: I don’t think I would actually, I don’t think I’d ever consider that but that’s quite an obviously one when you say it
B: And obviously just working outside a majority of your time. Can be a lot of heavy lifting involved, but one of the things, the key things is you try and re-invent the wheel a lot of the time, I researched for 6 weeks before I even attempted to start the market stall. I was still in my city job at the time, I was coming home at 7 o’clock in the evening, and from 7.30-4am I was just researching on what I needed to do for 6 weeks
H: Yes
B: But what I did is I was trying to find absolutely everything as cheap as possible on the internet, and then I found out that I could have got the majority of the stuff that I was trying to find from one cash and carry
H: Yes
B: So as I say you can be guilty of trying to reinvent the wheel and if I’d have had something like NMTF first when I started, it would have been a lot easier
H: It would have made a big change for you
B: A big difference, yes definitely
H: Well there’s great advice. Do stay where you are because when we come back for part 3 we’re going to be taking your questions and obviously if you have any concerns, perhaps if you are starting up your own business, use this time now, use these brains whilst we have them here. I’ll see you in a mo
Break
H: Hello, we’re back with a chance to take as many of your questions to Joe and Matthew as we possibly can, and also we’ve had quite a few Tweets so thank you very much for those. Again if you want to Tweet it’s # studiotalk. Let’s kick-off then, this is from Charlotte Clark, thank you Charlotte, and Charlotte says “what kind of insurance should a market trader get to protect themselves and if possible who’s the best insurer to go with for a handmade craft stall? Jewellery etc”
A: There’s a simple answer to that, the simple answer is to join as a member of the National Market Traders Federation. In our membership we include product liability, public liability and in case you would need it in future, employer’s liability which is the 3 key main liability insurances that you would need as a market trader to start trading, and in many markets they would ask that you had these before you even set up any stall
H: Ok, brilliant, I hope that helps Charlotte. This one is from a reader of Newbusiness.co.uk so thank you very much and they have asked “who would be the first port of call to find out cost and locations of relevant markets near to me?”
A: The most ideal thing to do is have a look at our website on there is a listing that lists 1400 markets, the information on there will be the information and contacts to be made and indeed the days the markets are open and the cost of the stalls at the market.
H: This one is from Becky, thank you Becky – “how do you select the right products to help you stand out in a crowded market?” What do you think from your own personal experience of that one?
B: I think for myself my actual stall is very niche, in Kent there’s no real Caribbean food suppliers at all. For me it was all about being bright and colourful really
H: yes
B: On my stall, I have flags up, I have all sorts of signage up, we have music playing, all the types of things- and obviously the smell attracts people as well
H: So an overload of the senses then?
B: Definitely
H: You’ve got it all going on, very exciting. This one is from Bonny, thank you Bonny and Bonny says “I’ve been thinking about starting my own wheat-free cake company for the last year and have been considering market trading. After I get my health and safety certificate from the council and have my kitchen ok’d what is the next step for getting market space local to me and are there any test trading initiatives? I live in Lambeth. Thanks, Bonny.” It’s alright Bonny
A: Well yes there are some test trading initiatives and they’ll be some rolled out throughout the year, 2011 which we are elaborating on. We did the competitions, one of which Matthew won which is Make Your Mark in the Markets we’ve done two successful years of that, with a group of people called the Enterprise UK, and so therefore we’re partnering with them in 2011 to expand on what we’ve done so far and really try to aim to not only achieve one or two successful market traders but a considerable number of market traders in the future. So there is some test trading out there, the fact is that if you contact us we’ll be able to put you forward in the right direction
H: Fantastic and I will give you the website address at the end as well so stay tuned for that. Final question then, doesn’t time fly! This is from Jim and Jim says “how easy is it to get the income tax / legal issue sorted out as a market trader?” Who wants to take that one?
A: It’s very simple indeed, basically if you’re planning to go self-employed as a market trader, simply let your local tax office know that that’s exactly what you’re going to do and then get on with it. It is important probably to take some financial advice, we can put you in touch with a local accountant or whatever which can take you through, and in the new guide, the NMTF First there is some guidance along simple bookkeeping which is generally can be, so don’t be put off by the fact I’ve got my books to do and there’s all this sort of regulation, don’t be put off by that factor, it’s reasonably simple, believe you me. A lot of these –
H: I can see someone agreeing
B: Oh I agree, I have a number of friends that say one of the most daunting things is the bookkeeping and things like that, I went to a local book store, found a book that pretty much tells you how to do it in the first few pages, and you just refer to that and do it yourself, I do it all on my own – it’s really not that hard at all
H: Yes
B: Really not that hard
H: Great. So before we go, would you say for people watching it’s the first year – get through the first year and things really start pulling together. Is that the most difficult part of the journey do you think?
B: I think it becomes a little bit less stressful, not take your foot off the gas so to speak because you’re so used to the routine of what you do
H: Yes
B: You find that you’ve now got more time to expand or to branch out in other areas and see what you want to do from there
H: Don’t get too comfortable initially
B: No definitely not, I mean you do have to keep your eye on the ball as such. I think the NMTF now do a guide called the NMTF 400 as well which is for traders that are already in business and that’s something that I will definitely be using myself. Yes I mean the first year is the hardest year but after that it does become a little bit easier
H: It’s a bit like a marriage really isn’t it?
B: Yes I guess so!
H: Right we’re going to have to leave it there I’m afraid because we’ve run out of time, but this has been really informative and most importantly I think, I hope it’s woken up your eyes if you are starting a new small business starter and perhaps haven’t thought about this as a platform, so thank you to you both, thank you very much
A: You’re more than welcome
H: For more information and of course if you want to get your hands on a copy of the First Guide go along to the website which is NMTF, that’s NMTF.co.uk, I’ll see you next time. Bye bye
