Nick Fulford of Cancan Communications is the third of our Startup profiles, where we go straight to the hub of the action by speaking to entrepreneurs who have literally just started up.
We find out what made them decide to start their own business, how they got it off the ground, the obstacles they’ve overcome and the barriers they still face. We’ll look at their hopes and aspirations for the future, and then, in six months time, we’ll go back and find out how they’re getting on.
Name: Nick Fulford
Age: 28
Business: Cancan Communications
Type of business: Marketing and PR agency
Start date: April 2002
When did you first decide you wanting start your own business?
After University I started my own business with friends. We learnt a lot and worked hard but ultimately it failed due to a lack of experience and finance.
I subsequently worked for other companies and enjoyed the stability of a regular salary, until that is the .com bubble burst. With the lessons of self-employment and the marketing skills acquired over the years, the timing was right to ‘start up’ once again. I also was able to bring the financial and operational skills of my brother on board to further give the business a chance of succeeding.
Tell us about Cancan Communications
Cancan Communications is a PR, marketing and branding agency that specifically works with start-ups, small businesses and entrepreneurs. The agency is run by myself and my brother Anthony. We are based in London but have clients across the South East. We got going from my kitchen at the start of the year and officially launched in August. We have now grown to six clients.
Was it your first business idea and where did it come from?
This certainly wasn’t my first business idea. I am the type of entrepreneur who has a new idea every month or so! Typically I see a gap in the market and immediately try and think of a solution to try and fill it. I actually find it fun and stimulating to do this. However, cash and time stop me from following all my dreams - maybe one day!
The idea for Cancan came from the fact that most decent PR and marketing agencies want to work with the largest possible clients. As a result start-ups and small business typically get short changed. Cancan doesn’t work with big business. We are totally committed to helping small business grow.
We were helped by a former client of mine starting his own business - MeetingZone.com and asking us to look after the new companies PR, marketing and branding. We obviously owe MeetingZone a great deal.
Was your decision to start a business inspired by any other companies or individuals?
There can be very few people in the UK who can say that PR and marketing are in the blood as much as my family. My father and my grandfather both had their own small marketing agencies. Our great-grandfather is a classic entrepreneur. After losing his leg on The Somme in the First World War he decided to pave over front garden and open a petrol station. By the 1960s he had built it into a major company called VIP Petrol.
What makes you think there’s a market for your business?
Cancan recognises that for the typical small business, the fee structure of a standard PR and marketing agency makes it impossible to afford. We have therefore tried to position our business model around what is affordable for the start-up. We obviously need to be very strict about our own costs in order to maintain margins.
Once you’d decided to start a business, what did you do first?
Proper research to establish that the opportunity was real, and then think of a good name for the business. It was actually my wife who came up with Cancan, but we love it. I think it not only represents our attitude but also have connotations of colour, energy and maybe being a bit cheeky.
What research did you do?
We had to be able to use the domain name for the company and this must be a first check for all new businesses. Both .com and .co.uk were available so our name was viable.
Using the internet it is also possible to get a feel for competitors’ activities and where their focus lies. We found that no London agency was specifically targeting small companies and start-ups. We filled a gap in the market.
PR is a relatively small industry so it is quite easy to find out what others are doing with their companies.
What advice did you seek?
With a client already on board we were in business from day one. Business Link was approached and for operational information about the legally required structures, they provide good solid fact-sheets.
We also brought in a friend who is an accountant to make sure that we were clear on our financial projections and dealing with VAT etc.
What other help did you get?
A family friend acts as a mentor and guide for us and his input is invaluable. All companies need an independent third party to bounce ideas off and to help calm things down when the storms of confusion are threatening. The most important thing they can do is help to keep your ambitions in perspective.
Does the government need to provide more help to people trying to start a business?
Yes, give new businesses more tax breaks. The biggest problem we see for new businesses (apart from their need for a good image and promotion) is raising finance. Few start-ups want to approach venture capitalist because they don’t want to loose any control and venture capitalists are driving too hard a bargain and as a result are doing less deals. There needs to be more of a middle ground between both sides so that we can see more small business launch with proper money behind them.
Talk us through the process of writing your business plan.
My brother has a MSc in Entrepreneurial studies so has an appreciation for how to put together a business plan. We are also using role models of businesses which already exist to guide our growth. No specific software was used. However, well constructed financials are crucial as you can make numerous assumptions but they only become real when you see the numbers.
How useful has your business plan been and do you think you’ll stick to it as your business begins to grow?
Small business is so much about responding to external forces. We are trying to stick to our financial projections and this guides our activities. We review these projections every week to keep them relevant.
How much did it cost to start the business?
About £20,000 which includes our salaries for the first six months.
How did you fund this?
Personal funds so that we can keep total control over the business.
Similarly, how are you funding your running costs until the business takes off?
Personal funds, too, but we also use a low-interest rate credit card which is incredibly flexible and does not bring with it the complications of typical external business finance.
Have you made any provisions for business not being as prosperous as expected?
When reviewing the financials, we are always considering best case / worst case scenarios. Putting these numbers into the spreadsheets means we can be sure that we can stay viable and encourages us to think about how we can maintain the business even if we see a sharp fall in sales, for example.
