Employee to Employer, the Risks and Rewards
Crossing the Gap from Workforce to Boss can be a Challenging Move
Mar 29, 2009
Although Layla Robinson opened her business MovieTime™ with a well-researched business plan, there were still unexpected hiccups. Ten months on, she reflects on some of the pitfalls she could have avoided, and some of the strategies she employed that have contributed to the growth of her business.
The Seasonal Nature of the DVD Rental Business Presented Problems
The decision to employ a full-time staff member proved optimistic. “I didn’t fully appreciate just how seasonal the business is,” Ms Robinson explains. MovieTime™ opened at the beginning of winter when DVDs were in demand. The business operates seven days a week and the long hours were exhausting. Respectable daily takings encouraged her to employ a full-time assistant. When the weather warmed up, however, profits plunged and the weekly wage began taking its toll on cashflow. Notifying the assistant that her hours would be cut was a difficult task but Ms Robinson knew it was necessary in order to keep her business afloat.
Keeping a Tight Rein on Spending Needs Continual Monitoring
Another difficulty has been the need to spend more during months when there are numerous new movies released. “It’s a Catch-22 because I need to purchase the movies to keep the customers coming, but if I purchase too many I cut my own throat.” Keeping the balance precise requires continuous monitoring.
Purchasing software that allowed customers to browse the MovieTime™ catalogue from a computer in the store had been an unwarranted expense. “I didn’t need to do this as customers could access my catalogue through my website on the same computer so it was an unnecessary double-up.”
Creating Innovative Marketing Solutions is Hard Work
Having limited funds to spend on marketing, Ms Robinson has had to be resourceful to create marketing solutions for her store in Ngongotaha, New Zealand. Branding has received significant attention. “I’ve made an effort with my signage and have had many comments on how professional it looks. Some people have even asked if this is a branch of a chain store!” With an eye to the future and the potential for later diversification, Ms Robinson was persistent in seeking a trademark for the MovieTime™ brand.
A monthly newsletter containing movie information, community notices and competitions is unique to her store. Customers are rewarded with ‘frequent renter points’ entitling them to free rentals when they have enough points in the system. A selection of movie merchandise from the USA and UK is available both in-store and online, and is unique to her store.
She has worked hard to make a name for herself within the community she operates from, taking advantage of special or seasonal events to promote her business. People are familiar with who she is and what she does, and she sees community involvement as an important aspect of growing her business and building credibility.
Strategies that have Contributed to the Growth of MovieTime™
· “I don’t purchase every movie released. I will always shop for my target market.
· I won’t employ people who don’t know anything about movies. MovieTime™ staff are movie freaks or no one.
· I won’t sit back and wait for the business to thrive; it won’t. It needs hard work, innovation and dedication.
· I will always try new things, I’m not afraid to take calculated risks.”
While acknowledging the pitfalls, Ms Robinson has no regrets about embarking on self-employment. “The success and failure of MovieTime™ comes down to how much work I invest. I've done many things I'm proud of, and I can pat myself on the back because I’ve given it a go.”
