Archive for July, 2011
14 Keys To Improving Your Small Business Marketing
No matter what industry a business is in, no matter what product or service a business sells, no matter what size a business is, These 14 keys are a main contributor to the continual growth and success of a business. Actually this is the reason why I call them ‘The 14 keys of effective marketing’ because they open up your business to that all important pathway to constant success.
if you or I were to go down to the gym to either look at loosing a few pounds, or to build muscle mass to tone ourselves up, I doubt that we would get on the tread mill or the rowing machine just once and then say ‘that’s enough no need to do anymore of that’ nor would we lift up a dumbbell and do one bicep curl, never to repeat it. We understand that doing the exercise only once is not going to have any effect or change to our health and fitness at all.
However despite this obvious realisation there have been numerous occasions when business owners have commented to me that the last marketing campaign they ran, didn’t work. I can guarantee that when I am told that, the answer to my follow up question, “how many times did you do the campaign?” is inevitable, once!
Even if your campaign is not brilliant, you will get a far greater response, along with a more profitable outcome if you commit to it than if you had a brilliant campaign and did it just once.
I am not just talking about money here. To have an effective marketing strategy you need to ensure you also invest the time and energy it rightly deserves to ensure you achieve the levels of success you want. This links into key number one. If you are committed to running a campaign, you will have to be prepared to ensure you invest the time to do it. The campaign will not be effective, the keys will not open you up to the pathway of business growth if you only do your marketing now and again or when you can fit it in. which brings us nicely on to the third key.
It has been said that it takes between seven and nine times for a marketing message to be seen before a person reacts to it. In fact trust is a major reason why people decide to part with their money and buy a product or service. People are not going to believe in you as a manufacturer of a product or provider of a service, or even trust that you can deliver quality or even still be around 6 years or even 6 months from now if your message is only around once or twice. The more your message is seen or heard the more you will build trust and faith in your ability to be a quality company to do business with.
Also a mistake that is commonly made by companies is to change the message. If you live in the UK, do you believe Fairy washing up liquid effectively cleans your dishes? I am sure you do. Did you know that this message had not been changed for over 50 years? The message had stayed the same, with the child waiting for the container to be empty so they can use it for some game or toy they are making. ‘hands that do dishes…’ It is only till recently that Proctor & Gamble the makers of Fairy liquid changed it by bringing in Ainsley Harriot. And that is mainly due to the fact that we have changed the way we predominantly wash up, no longer standing at the sink but rather choosing to load our dishwashers.
Nescafe Gold Blend got the nation hooked with its consistent advertising campaign in the 1980’s with the attractive couple who lived next door to each other borrowing coffee and sharing a cup or two around awkward, funny and romantic situations.
Be consistent. Once you know what works, leave it alone.
In a survey done in the USA to determine why people buy, one reason was because they felt confident in the business they were buying from. I touched on this point in the 2nd key.
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It doesn’t matter where you live, the US, the UK, Europe, Australia, the result will be the same. In fact when I am asked to critique a business, be it their marketing, sales skills, presentations or customer service, the first thing I look at is are they promoting confidence to their customers? If a potential customer is not confident in you as a provider, in your product or service, then no matter how much money you send on your marketing, how slick your sales team are, what state of the art equipment you use to present your business to the world, you will find that without confidence in you, customers are not going to buy.
Too often I see businesses quit and give up marketing campaigns because they are not seeing the results they want, immediately. You have to ensure that you have patience when it comes to marketing otherwise it will be extremely difficult to carry out the first four keys to effective marketing.
Marketing is not just advertising in a newspaper or on the TV. It is not just direct mailing or posters in the local high street. Marketing is everything we do and it is important to also understand and accept the fact that individual marketing tools rarely work on their own. However, you will soon discover that combining different marketing tools does work, very effectively. The wider your assortment the greater your success.
How easy is it to do business with you? The reason I ask this is because in today’s society time is precious and people are now reluctant to waste it. So you need to ensure that you are running your business for your customers’ convenience rather than yours. I regularly see frustrated people coming out of banks between 12 and 2pm each week day. The reason why they are frustrated is because they want to get their banking done during the only spare time they have during a busy day – lunch time. The problem is this is the optimum time for everyone else, but what makes this experience frustrating is that most banks also allow their cashiers to go to lunch during this time too, so the number of desks open is actually reduced thereby increasing the waiting time to be served. Not very convenient is it – maybe this is one of the reason why banks are so disliked?
When are real profits made? Is it when a sale is made? If you think that the answer is yes, then please don’t. One sale will only produce a small profit, maybe only actually covering costs especially if you are working to a tight margin. The actual time you make real, productive and rewarding profits is when you have ensuing activity and you get your customer to buy again, or provide you with referral business. It is actually after the point of the first sale that the real marketing begins. Subsequent sales and business from customers produces the real bench mark for business growth and success, that of real profit.
There will be times in your business when you take it and what it offers, for granted. It’s natural to do so because you are working in it everyday, around the same products or services. However customers are not as absorbed in your business as you are and we all know people like surprises. Make sure your marketing keeps your customers surprised and as a result, excited.
If I asked you to tell me how successful your last marketing campaign was would you be able to tell me? If you measure the results you get from your marketing you can effectively double your profits. You do this through making the necessary adjustments needed to your copy or stopping a campaign that is not working. Some of the different ways to market your business that you will learn in another podcast will get you these results. Dependent on your product or service, they may actually fail. You are not going to know which one is working and where if you are not measuring them.
I had a client you for 3 consecutive years ran the same £600 a year advertising campaign in a business directory and never received any enquiries. If he had measured the result after just the first year he could have saved himself £1200
This actually works two ways because involvement refers to your relationship between you and your customers. The first way is the relationship you have with your customers; do you follow up on leads? Do you speak to them in the correct manner? Do you provide quality service? And as a result the second part comes into effect, your customers’ relationship with you. Do they continue to do business with you? Do they refer others to your business?
Business is all about having a relationship with your customers. The better the relationship you have with them the higher the chance that they will stay loyal to you and continue to frequent your business. So get involved.
Most business owners are used to competing with companies who provide similar services or products to them. This is an antiquated view as co-operating with businesses that offer similar commodities to you will increase your presence in the market place, along with your profits, when done right at a reduced outlay both in time and money. Additionally there will be businesses local to you that provide products or services that compliment yours. Co-operating with these businesses in your marketing opens doors to a new customer base you never taped into before and thereby enabling you to increase your profits. We will look at this concept in more detail in the podcast on fusion marketing.
In today’s society it is no good being reluctant to use the many assortments and styles of equipment available to market and promote your business, such as computers, emails, specific software packages, the internet, mobile phones, fax machines, palm top pc’s and the like. All these and more will help you keep promoting your business and striving forward to increase your profits.
You could waste your time and money sending out marketing materials to everyone and anyone; putting it simply, people who don’t really want it. Or the most effective way as the marketing guru Seth Godin describes it is through permission marketing. Get the permission of your potential clients to send marketing materials out to them. Get them to opt in to receiving material from you, rather than opt out or throw it away. By doing so you are really targeting your efforts on those who want to hear from you, and more importantly more likely to buy from you.
So we have covered 14 keys to highly effective small business marketing. I urge you to critique the marketing campaigns run by your business. Look and see how many of these 14 keys you are not doing then begin to add them in to the way you run your small business marketing. You will be glad you did.
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Effective Business Management is All Encompassing
Today, good business management requires that executives and leaders understand the process of change and how it affects the work place. It is essential that those in authority realize the importance of leadership in managing change, as well as how employees react to change. Business management is only effective when great leaders are able to communicate messages that decrease employee’s resistance to change, and assist in encouraging individuals to move through change in a positive manner, so that problems can be avoided.
Dealing with conflict is another aspect of good business management that must be addressed. There are many types of conflict that may occur in the work place; in business management, managers and leaders realize that conflict can arise in many areas, from difficult employees to hostile customers or resentment issues. Those in positions of authority understand when it’s in the best interest of the company to cooperate, how to communicate effectively, and how to manage conflict. They also know what steps to take to prevent conflict altogether in many cases.
In effective business management, resolving conflict takes skill and negotiating skills as well. Effective leaders know how to use positive language to change other people’s impressions, how to listen, and how to differentiate between good conflict and bad.
Performance is another area that falls under exceptional business management. Performance management covers several areas, from employee discipline and job evaluation to appraisal or review of job performance in regards to salary increases. Managers must be able to determine the cause of problems in performance, which can be difficult to diagnose.
Strategic business planning, leadership and customer service are also essentials of managing any business effectively. In order to stay competitive and profitable in today’s business world, it is necessary to know what direction the company wants to go, and how to reach that goal even amidst constant change in the business environment. Continuity planning is another area that should be addressed in business management; it would be catastrophic for a natural disaster or other disruption to destroy a business that has been nurtured to a successful and profitable level.
This is just the tip of the iceberg regarding business management. Today, thriving, successful companies and corporations realize that the key to remaining profitable and competitive in the market place often boils down to effective business management in every aspect. Superior leaders, excellent communication, and the ability to adapt to change are all essential in good business management.
Free Tanning Salon Business Plan
When obtaining a business loan for a tanning salon business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Tanning Salon, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
When obtaining a business loan for a tanning salon, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Tanning Salon, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a tanning salon business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Tanning Salon will provide a number of high technology tanning beds that will be used by the general public. The Company will generate revenues from the ongoing usage of these tanning beds on a daily basis and through the sale of tanning salon passes that will allow frequent patrons to pre-pay for their tanning salon needs. The business will generate extremely high gross margins from its services.
The third section of the business plan will further document the services provided by Tanning Salon, Inc.
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of 0,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Tanning Salon to profitability while ensuring that the business loan’s payments and its covenants are met at all times.
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance’s of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Tanning Salon will continue to expand through organic means including increasing the Company’s advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Tanning Salon locations after the third year of operations.
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
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Tanning Salon Location Establishment – ,000
Tanning Salon Beds – ,000
Working capital – ,000
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the Tanning Salon
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Tanning Salon, Inc.
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Tanning Salon to a third party for a significant earnings multiple. Tanning Salons usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
As stated in the executive summary, the Tanning Salon will generate ongoing and highly predictable streams of revenues from the ongoing sale of tanning salon services to the general public. The business will charge per session in one of the Company’s tanning booths. At all times, the business will follow all state and federal regulations regarding the operations of tanning salons.
The business will generate additional revenues from the sale of prepaid tanning salon packages for regular patrons.
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today’s environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Tanning Salons tend to remain economically stable as individuals continually seek to have quality tans in regards to approving their appearance. As such, the tanning salon will be able to remain cash flow positive and profitable in any economic climate.
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
Tanning Salons have increased tremendously in popularity over the last ten years. More and more people are frequenting these businesses as people have less time to obtain a tan by sitting outside. Additionally, the importance of people’s outward appearance has become more important in the last decade, with more men and women trying to obtain a youthful look. With these changes in taste, the growth of the tanning salon industry has swelled. There are over 8,400 companies operating within the United States that own, operate, and manage tanning salons. Gross revenues for this industry have now exceeded billion dollars, and the yearly growth rate of this business has exceed 8% for each of the last five years. On an aggregate basis, the industry employs more than 100,000 people and provides gross annual payrolls of 0 million dollars.
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Tanning Salons, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Tanning Salons.
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
The Tanning Salon will place prominent signage on the facility to draw a significant amount of foot traffic.
The business will maintain listings in the Yellow Books.
The Tanning Salon will also maintain an internet website that showcases the Company’s operations, hours of operation, and relevant contact information.
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business’s operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Tanning Salon intends to use a number of strategies that will create instant traffic and customer flow to the Company’s location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall into he Company’s targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company’s hours of operations, tanning salon services, and specials that are occurring within the store on a regular basis.
The business will also maintain a highly informative website that showcases the Tanning Salon’s services, its hours of operation, and other relevant information in regards to the Company’s services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses such as tanning salons.
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Tanning Salon, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 through a business loan in order to launch the operations of the business.
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
Profit and Loss Statement for your Tanning Salon
Cash Flow Analysis for the Tanning Salon
Balance Sheet for the Tanning Salon
Business Loan Amortization Tables