Here’s the thing: a successful competition business comes from structure and proper forward thinking, not just initial hype.
If you’re looking to launch your own comp business and start as you mean to go on, look no further. Let’s get into what you need to get started.
This might seem like an obvious one, but it’s important we don’t overlook the basics! Because the reality is, you need to get your business plan down before you do anything else.
If the numbers don’t work, your business doesn’t work. Here are some key things to consider:
First things first, try to figure out what model you want to go for with your comp business. Will it be skill-based, or maybe a prize draw? This stuff matters for legal reasons, so make sure you decide on which path you want to take.
Deciding on your ticket price, versus the cost of your prizes and your marketing spend, can quickly make or break the numbers if you’re not keeping a close eye on your margins. This stuff all adds up fast!
Plan out exactly how your draws work, from entry to winner selection, and how prizes will be delivered to the lucky winners without a hitch. It might sound simple, but a smooth, no-fuss customer journey isn’t just a nice to have – it’s what keeps people coming back for more.
Not the most exciting stuff, we know. BUT it’s an integral part of setting any business up for success. Getting your T&Cs down, along with ensuring your comps run fairly and transparently, are key for building up that loyal customer base.
Always remember: your audience is what brings you revenue, not the prize. No audience? No entries. No entries? No business.
Simple as.
With this in mind, don’t overlook the importance of building your audience, especially in the early days. A great starting point is to decide on a niche and build around it, which will automatically help attract that core audience who are into what you’re offering. (You can always build around this – broad appeal can come later.)
We all know that socials are a great way to get your brand or business out there these days, so prioritise building a following on platforms where the attention really is these days, such as Facebook, TikTok, and Instagram.
While on socials, try to let your content do the heavy lifting for you to build that initial trust and core following. Think real winners, live draws, and big moments such as launches – the kind of stuff that keeps the buzz going and makes people feel part of it. Just make sure that your funnel is actually converting first, before beginning to bring paid ads into the picture.
Ultimately, your business needs enough cash to get through the early stages. And while you don’t need to stress about amassing huge capital, you do need a buffer to get you going and keep you afloat.
To begin, make sure you can budget for the basics. By this, we mean the prizes, platform, and marketing spend – these are the core pillars of your business’ foundation when it comes to getting it off the ground.
Another thing, don’t assume you’ll sell out straight away. Many businesses go through times where things aren’t going as swimmingly as you’d maybe imagined, particularly in the early days, and that’s okay. With this in mind, it’s good practice to manage cash flow between competitions to make sure you can keep things running smoothly.
Another thing we recommend is to reinvest smartly, especially in the early days. Putting those early profits back into the business helps keep the momentum ticking over – whether that’s boosting your prizes, upping your marketing, or working on the overall experience.
Get that right, and you give yourself a much stronger platform to scale and grow.
In the UK, the comp business is a quickly growing market. So standing out is what gets, and keeps, the attention on your business.
To set yourself apart from the competition (as it were), try offering something a little different that others may not. This could be as straightforward as your prizes or pricing, but also your format or the overall experience you create. Anything that makes your target audience stop scrolling and think gives you that automatic edge.
Building a signature brand that’s unique and recognisable to you is also another key step when keeping your business memorable. You could also try adding a little edge or extra value, such as offering gamification or a real community people can be a part of.
This shows that your comp is offering more than just a prize to be won.
Making your business a success is not a matter of luck, but a combo of structure and proper consistency. Most businesses fail because they lack a plan, an audience, and a solid jumping off point.
At Zap, we’ve seen what works, and what doesn’t.
Want to learn more? Get in touch and we’ll help you get started.
