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How To Start a Business – Simple Marketing Framework
Posted by: | CommentsFirst and foremost, thank you for the people who have posted comments and sent emails. My initial free budget of $100 from Google Adwords is almost gone and the campaign met my expectations. It would’ve been more successful if I created a good landing page or had a clear call to action, but that will have to wait given my schedule. Going forward, I would very much appreciate it if anyone who comes to this site via Adwords or through a search would kindly leave a small comment. That’s how I’ll know that people are getting some value from reading my posts and help me going forward.
Okay, back to “How to start a business”. In my last post, I started to write about the ”7 Steps to Marketing Success”, which I recommend to any new or existing business owner use to jumpstart his/her Marketing efforts. But, before going into each of the seven steps, I should’ve started with this post, which outlines my simple marketing framework for any small business:
- Opportunity Identification
- Find a “Target Market”
- Build a Marketing System Around That “Target Market” (e.g. 7 Steps to Marketing Success, 4 Ps, 4 Cs, etc.)
I will be going through each of the steps in this simple framework and later explain each step in the “7 Steps to Marketing Success”. I hope you read through all the steps chronologically and give feedback on this framework later. I like numbers and sad fact is that the odds are already stacked against us in starting a new business. A statistic I found was that 40% of businesses fail within the first year, 80% within five years, and 96% before ten years. A good way of increasing your odds is to have a plan and have a better idea of what you’re getting into (I didn’t say “know what you’re getting into” because no one ever will). Yes, it’s easier said than done, and there are many variables that you won’t think about until you face them, but I can guarantee that having a framework as a foundation to start your business will increase your odds. Or you may decide that you’re better off working at your current job.
7 Steps to Marketing Success
Posted by: | CommentsI just created an ad for one of my Google Adwords campaign and wanted to see if it leads people to this post. When I was more active in the coaching community I gave seminars and taught people Duct Tape Marketing’s “7 Steps to Marketing Success”, which is a good roadmap for any small business to follow and implement:
- Narrow Your Market Focus
- Find and Communicate a Core Difference
- Package Your Business
- Create Marketing Materials that Educate
- Establish Your Lead Generation Trio
- Automate and Dominate
- Live by the Calendar
Overall, I think that this is a very good strategy for most small businesses to follow as many don’t have a plan or many times have trouble knowing where to start. Within each of these main steps there are several substeps, but I will try to discuss in more detail about each step and later post a pdf for people to download. What are your initial thoughts on these 7 steps?
Trying Out Google Adwords
Posted by: | CommentsIt’s been a long time since I posted, but it’s just been hectic lately. After seeing all the emails for a free $100 credit towards starting a Google Adwords account, I finally created one. But, what really triggered this is that I’m now responsible for managing our online marketing campaign. Luckily, there’s actually good “free” information out there on how to learn this stuff. I’ve spent several hours reading up on this, but it seems easy enough to get started and I know it will take some time to become an effective marketer online. It’s a good skill to acquire and I will periodically post updates on our progress.
219 vs. 212
Posted by: | CommentsA few hours ago Congress passed the Health Care Reform Bill by a vote of 219 to 212. I don’t know how people do their math, but I’m finding it hard to believe that paying for 32 million uninsured people which will cost almost $1 trillion will help reduce our federal deficit. Hhmm… I heard most of the arguments for this bill this past weekend with the best one being that this will encourage more entrepreneurs to start businesses because they don’t have to worry about getting themselves health insurance. In principle, I believe everyone supports people getting access to health care, regulating insurance companies (i.e. denying people with pre-existing conditions, redefining what pre-existing means, and removing coverage caps), etc. But, I’m not sure that increasing taxes during these economic times and putting more burden on small businesses is the right solution (there might be some tax credits, but I know there are many SMEs that can’t afford health care for all their employees). And, it’s very disturbing when many of these experts on the news (and politicians) don’t even know the details of the bill and can say with a straight face that this will not put more burden on the public and the economy. We’ll see what happens with the upcoming Senate vote and in the November elections.
Don’t Forget Your Current/Existing Customers
Posted by: | CommentsThe hope is that once you sell something to a customer that person or company will be your customer for many years to come. But, reality is that you have to continue fostering that relationship or risk losing that customer without even knowing it. As an example, we recently lost a customer who bought an entry-level product to manage one part of his business but later bought a full suite of products from a different company because we lost contact with him.
Many times, we bend over backwards to win that first deal but end up forgetting that we still need to work hard at maintaining that relationship. Especially in this economy, don’t forget your current/existing customers as they can be your best allies, references, and customers. As the economy improves and businesses begin to invest, if you have maintained that relationship, it’s almost guaranteed that your customer will at least talk to you first before looking elsewhere.
The Sales Process is “FOR” Your Customers
Posted by: | Comments Before my current position, I founded a software company that developed a POS solution for the restaurant industry. When we were starting out, I was the only salesperson in our company. I believed in my heart (my apologies for being a little sentimental) that the product we created and sold was a good product that solved our customers’ problems. Without hesitation, I later sold a system to my in-laws who own a restaurant. Everytime I made a call or gave a demonstration to potential customers, I took it as an opportunity to educate them and believed that this process was actually “FOR” them so that they can get more information to make the best decision for their business. Just to be clear, it didn’t mean that I didn’t want to make the sale, but that I was okay if they decided that our solution was not the best fit for them. 
So, I hope that the next time you’re picking up the phone or meeting potential customers, you’re looking at it as an opportunity to educate them and not just an opportunity make a sale. It’s worked for me thus far, thinking that the sales process is “FOR” my customers.
So, what’s the point of this story? Similar to my previous Sales role at my own company, I know that Ideal Software Systems has a very good product and is a very good company (i.e. products that solve customers’ problems; company with great, smart people who care about our customers’ success). Therefore, I have no hesitation in contacting potential customers and answering any questions they might have about our products or services. So, I hope that the next time you’re picking up the phone or meeting potential customers, you’re looking at it as an opportunity to educate them and not just an opportunity make a sale. It’s worked for me thus far, thinking that the sales process is “FOR” my customers.
Is Your Redemption Counter Up To Snuff?
Posted by: | CommentsToday I joined a seminar “Redemption 2010 for the FEC and the Street” hosted by two panelists, John Maurer and Jim Chapman, which changed my view of the FEC (Family Entertainment Center) industry. I’ve listened to many high profile businessmen from Fortune 500 companies and have been to a few large tradeshows, so I was very curious about what these speakers would talk about and how they would present their material. I came out a little impressed as they spoke well and taught me a few things.
Some of the topics they discussed were: 1) Trends, 2) Redemption Counters/Prizes, 3) Cranes and 4) Promotions. I will try to give a short summary. First, for Trends, customers are expecting higher end products like laptops, TVs, iTouch, and iPads (i.e. the latest stuff). These items create an incentive for people to save their tickets and come back more. Second, for Redemption Counters/Prizes, are your redemption areas and bins “full” of prizes? It just makes sense that nicely organized and fully stocked counters are more inviting and leave a better impression that ones that are not. Third, for Cranes, operators should check that they have proper signage, are clean, and should have a bill acceptor. Also, cranes should not have the same prizes as the redemption counter and should be placed on the way out of your facility for the potential to generate extra revenue (i.e. impulse spending). Finally, for Promotions, the presenters shared some interesting and creative ideas such as first jackpot wins 1,000 tickets, beat the GM/Owner, birthday wheel, blind skee-ball/basketball, etc.
Differentiate and Dominate
Posted by: | CommentsHow is your product or service different from your competitors? If you can’t clearly and succintly describe how you are different or unique in a sentence or two then you have a big problem. If you can’t do so, you will eventually find yourself competing on price ONLY. And, that’s not the game most businesses wants to play in.
Do You Have a “Sales Buddy”?
Posted by: | CommentsToday I was on a Sales/Demonstration call with my colleague. I asked her to help me out as she knew the software much better than I did. While she was giving the demonstration over a web conference, I was initially taking notes on the main points the potential customer shared and asked us. Over the course of the 1.5 hour session, my colleague and I began to work as a team and helped each other ask the customer the right questions that allowed us to better understand his business, pinpoint his issues, and showcase the benefits of our solution. As a team, we were very effective in engaging the customer as we both tried to help each other and did not fall into any pre-defined role (e.g. one person only asking questions). In this particular situation, and many other Sales calls, it can be very helpful to have a “Sales Buddy” in the same room. Sales is not always a one man/woman show! Know your limitations and do what’s best to give you the greatest chance to close a deal. So, who’s your “Sales Buddy”?
People Are Saying “BAD” Things About Your Company
Posted by: | CommentsNowadays, with Social Media and all the blogs out there, every company has to keep their eyes and ears open to what’s being said about their company. If you don’t, then you can be in big trouble. As everyone knows, you can have 100 very satisfied customers, but if you have one or two very dissatisfied customers, those few can literally make your life a living hell. How so? Well, they will usually be the loudest (they will tell as many people as they can about their bad experience) and may find ways to discredit your company (e.g. post a negative blog about you).
As an example, I got an alert today on a blog post that had a previous customer write how “extremely disappointed” he was with one of our software modules. You can tell from this post that he was quite angry as he decided to switch to a competitor’s software. But, of course, that’s just one side of the story. There was never a mention that he decided to stop paying his bills a while back and stopped receiving updates as a result.
Circling back to the title of the post “People Are Saying BAD Things About Your Company”, companies now have to 1) listen to what’s being said about their company and 2) use that information to react accordingly. If you don’t, just realize there might be a few people out there (customers, critics, competitors, etc.) negatively influencing your brand and reputation! I’m seeing it already, and I can almost guarantee that it’s happening to your company too!