No Time to Waste

As a business consultant working with clients from all walks of life there are definite similarities in most every small business with which I work. More often than not, entrepreneurs are at the end of their rope when they enter my office. With few resources and even less hope, they arrive desperate. They need money and they need it yesterday. Having been referred to me by someone they trust implicitly, I'm frequently their last stop at making their business work. I have to provide immediate results and show them the money.

Entrepreneurs by nature are action oriented, usually attributing their success to hard work, most prefer "doing" to strategizing. My challenge is to get them to stop moving just long enough to think long term. It's a difficult yet necessary task, without which they would have little chance of true success. Before making any strategic decisions I insist we set direction by establishing just a few goals.

Much Needed Cash

To bring in the desperately needed revenue, I look to these steps first. Let's just say they are like money in the bank for these business owners. By focusing on each in turn we can usually realize significant financial gains in a short period of time. Often we are able to gather enough working capital to "buy" a few months time before longer term strategies kick in.

1. Brand it. Having a brand will pay for itself over and over. Sure it's an expense but not nearly as expensive as not having one. Business owners jump in and start their business, thinking a brand is optional or worse yet, that a brand is a logo. Many decide to wait till they have made some money and can afford the cost of creating a brand. What they don't realize is their best chance for success actually comes from the branding process. It's invaluable to work through the Q and A exercises. The questions offer insight into areas of importance while the answers supply directional guidance without which a business will almost surely fail.

2. Know your market. Understand exactly who your target audience is and what they are buying from you. People with very good products sometimes make the mistake of believing that their market is "everyone". This is a costly misconception. When you create a marketing message that speaks to everyone, you succeed to speaking to no one.

Not understanding what customers are REALLY buying is another serious mistake. Business owner's focus on the product when the emphasis should be on the problem the product is solving. Both of these mistakes are expensive drains on time, money and opportunity costs that most businesses simply can't afford.

3. Market to your specific audience. Many business owners try to speak with large and diverse population segments at once. His or her concept is to create a message that is all-inclusive, leaving no one out. In reality, the message speaks to nobody and falls on deaf ears.

Marketing is very expensive, time consuming and difficult to measure. It's imperative that the message is hitting its market precisely for the benefits to be realized.

4. Establish the right price, immediately. Many businesses don't conduct research before setting prices. They use information that shouldn't enter into the equation to determine rates. It's important to get them right from the beginning, because they are more difficult to adjust later. Customers lose confidence when prices change frequently.

The most dangerous aspect of setting prices without research is there is no solid break-even point. Often entrepreneurs engage my company to help them increase sales through marketing. It all sounds good at first, but we soon discover that the amounts charged are not based on any concrete data and it is actually costing them money to sell their products. A successful marketing campaign would probably put them out of business more quickly. By setting the right price the first time you'll have an important competitive advantage.

5. Don't go it alone. Develop and maximize partnerships with other businesses that have brands that are cohesive with yours. Consider co-marketing with companies that have similar target markets. While the opportunities are virtually endless, some easy ones to take advantage of are:

o Host events together

o Pair complimentary products from a variety of establishments in marketing, advertising and PR efforts

o Barter services with each other

o Share purchases of equipment, bulk supplies and employee training

All of these tips offer significant cost savings while driving a business forward. It's a good idea to try to align with companies that have a large, current customer list. Not only will you get a bigger bang for your buck, you'll also have a terrific chance to increase your own database.

Winning Feels Great

While it seems time consuming to work through these tips and come up with strategies that address them, with a solid program it wouldn't take long. The tip that requires the most time is number five. In order to speed this one up, I rely heavily on pre-existing relationships. Long established and based on a strong foundation of trust, these relationships offer opportunities that provide substantial benefits for all parties. To learn more about how to create much needed "Win-Wins" read my blog.