Tri-Valley, Contra Costa, Alameda County Direct Mail Coupon Advertising

How to get Great Clients

2012-08-21T10:38:00.002-07:00

What is a Great Client? Your Great Client is the customer who (fill in the blank)

They could be:

Your biggest client
The client who always pays early or on time
The client who always meets your deadlines.

We all have a different definition of what makes up Great Clients. My question to you is how do you get more of them?

First off, how much time are you spending on the clients that are unreasonable, difficult or have a hard time paying? Start tracking the time that you spend with these clients. Once you see how much time they take up, you will be more willing to move away from them and concentrate on getting more of those great clients that you truly enjoy working with.

Start with figuring out which traits make up your great clients. You can use the 3 examples above to help you get started.

Second, brainstorm on how you can get new great clients just like the ones you currently have.

Do you need to

Change how you’re prospecting leads to get bigger accounts
Set up an automatic payment plan when you first sign the customer up to avoid late payments.
Ask for referrals from your other great clients.

Finally keep perfecting your methods and clients list. You deserve to come to work and look forward to working with your clients.

If you liked this article you may want to check these out too:

5 Simple Ideas to Find New Clients

Setting the Right Price to Sell your customers

Time Management - 5 tips and tricks

2012-08-14T08:54:00.001-07:00

Productivity is measured by results; however, if something always seems to get in the way of you being effective, the following may be helpful.

For most of us, routine tasks become obstacles without even knowing it. By streamlining your tasks and setting priorities, you can better manage your time, thus increasing your effectiveness and productivity.

Prioritize Your Day

A to-do list is great, but too often we have more to do than we have time to complete the list in a day. Tasks get delayed, dropped, or add pressure to finish when it is not necessary. Even though you may have a thousand and one things you want to do each day, the reality is you need to complete some tasks, while many other tasks can be delayed. What you need to do is identify those items that require your immediate attention. These should represent your to-do list for that day. By selecting the significant tasks, that is, the need to do and the immediately need to do with realistic time frames for completion of each will start you on the path to effective time management.

At the end of each day evaluate your list, did you complete each task in the time estimated? If more time was required note that for future use, if less time was required, note that as well. If some tasks were not completed, or even started, note this, too, and add them to the next days to-do list. Finally, draft tomorrows task list before you leave the office.

By following this simple procedure, while maintaining a consistent pattern of setting realistic task lists and monitoring your completion rates and time, you will find you will begin to accomplish more, reduce your feelings of inadequacy, and improve your productivity.

Have Stated Objectives for Meetings

To often we go into meetings with employees and clients with no agenda or clearly understood expectations. Before a meeting, identify the purpose of the meeting, points you want discussed, and the result or results you expect to achieve. Write all this down and take your written notes with you into the meeting. As each objective is achieved mark it on your outline. Any changes, modifications, or lack of action should be identified, as well.

Avoid wasting time by starting to list your expectations in order of importance. This will save time and enhance your ability to quickly reach consensus of your key objectives.

Take Time for Yourself

As successful business people, we are typically workaholics; however, to maintain your focus and creativity, you need to step back and give yourself time to reenergize. This means get out of the office, for brief periods of time, and go for a walk. Use such moments to think about something other than your business or work. You will be surprised how often business solutions will pop into your head during these times of reflection. The added bonus is your body will benefit from the reduced pressure and the exercise will do you good.

Have Established Answers for Frequently Asked Questions

When frequently asked the same question by either employees or customers, take note of it and draft a simple, understandable answer that can be used as the standard response. Or, if possible, just come up with a quick answer that can be shared with staff as company policy. Either way, this will avoid having to deal with the same issue directly every time it is raised. This has the further advantage of allowing you to save time for more important issues.

The exception to this approach is when the question identifies a potential or urgent problem. Then, of course, you need to resolve the problem.

A Clean Desk is an Efficient Workplace

I saved my favorite time management tip for last. Stay ahead of your tasks by organizing your desktop, keeping files neat and orderly in designated cabinets, and place on your desk just one task or project at a time. Computers have simplified this with the ability to store large amounts of data by various categories or tasks. Take advantage of the software available to organize your business records, letters, memos, reports, accounts, and projects. Make hard copies of those items that are essential and use a back-up software program for all critical aspects of your work.

Develop a schedule for routine tasks, such as, signing checks, returning phone calls, and answering mail. Set aside specific times of the day to perform these tasks. Make sure others, in your office, know you are not to be disturbed during these times.

* * * * * * *

In the future, other suggestions will be offered to enhance your efficiency. Let me know what time management tricks work for you and any comments you may have concerning my suggestions

Like our Tips
Here are other articles that you may find helpful
Spending Time Wisely
Power of Full Engagement
Make the Most of your Work Hours

HOW WELL DO YOU HANDLE CUSTOMER COMPLAINTS?

2012-08-06T08:44:00.000-07:00

Amazing, as it may seem, customer complaints can be a major sales opportunity. How you deal with customer anger with a sales clerk, frustration with a product, or the irritation of a faulty billing system can influence future sales and customers’ attitudes about your business. Your approach to customer complaints will play a significant role in determining how successful you are in retaining and growing your business.

Here are five steps to a successful resolution of customer complaints:

1. Understanding the problem . . . I have found that the best way to approach a customer with a problem is to ask as many questions as possible to clearly understand the issues and concerns. This approach has the added benefit of demonstrating your level of interest in their complaint and offers me a non-combative way to deal with what can be an emotional situation.

2. Communicating your desire to correct the problem . . . After I come to understand the customer’s concerns or issues, I express my sincere interest in finding a reasonable, mutually agreeable solution to the problem. This is, typically, achieved by spelling out the steps I am prepared to take to resolve what appears to be the best way to correct a troubling situation.

3. Identifying specific, satisfactory solutions . . . Once you have indicated a possible solution to a problem, it is important to try to get the customer to accept the proposed solution as a mutually agreed decision. This is a critical step and is essential in building strong customer relations.

4. Achieving a positive resolution to the problem . . . This step affirms a fundamental approach to business in that solutions must reflect a “win, win” attitude to be really successful. Customers will react positively to you and your business if they believe you are trying to meet them halfway in resolving issues.

5. Making sure a similar problem is avoided in the future . . . Solving a customer’s problem is not finished until you have corrected the cause, and this can take many forms of corrective action. It may be as simple as explaining to employees or sales staff the correct way to deal with an issue, or it may be as complex as changing a manufacturing procedure. Whatever caused the problem, in the first place, needs to be dealt with and a procedure put in place to assure its recurrence is avoided in the future.

I hope these ideas prove useful in your business, and I would appreciate learning about approaches you have found to be successful in dealing with customer.

5 Simple Ideas to Find New Clients

2012-07-26T13:02:00.000-07:00

Finding new clients for your business can be the most difficult, but one of the most important things you can do as a business owner. The burning question on my clients’ minds is where to look and what to do. Here are a few easy and even fun ways of finding new clients:

1. Targeted Mailing – Not all targeted mailings has to be expensive! There are many options out there to help you target your clients while staying within budget. If you wanted to do something a little fancier, the United States Post Office just introduced a new product called “Every Door Direct Mail”. The service allows you to send out postcards to targeted local neighborhoods.

2. Network – You could take advantage of your local chamber’s events, join a networking group or get involved with your alumni from your university. Attending meetings will give you a chance to meet other local business owners who may buy from you or become a referral source for your business

3. Involve Friends and Family – Word of mouth advertising will always be your least expensive and strongest form of advertising. Make sure to let them know the type of clients you are looking for your business.

4. Go Online – Have a strong online presence whether it’s a website, social media or a blog, Your website can be your best sales person night and day. A blog allows you to give informative information to your current and potential clients, which causes you to stand apart from your competition while social media allows you to connect with your fans and followers on a daily bases. All these methods together provide you a way to stay in front of your consumers as well as a way to find new clients

5. Free Samples – Everyone loves getting something for free! Depending on what your product or service is giving a free sample could be a great way to introduce your self to new clients

Keep in mind that the key is to have a diverse plan and what worked ten years ago may not work today. Have Fun and Enjoy the process

We would love to hear from you!

What ways do you find new clients?

40/40/20 Golden Rule to Marketing Success

2012-07-11T13:10:00.000-07:00

Have you ever asked your self “Why is my Ad not working?” Many of my clients have and I like to share this little secrete with them and now with you. The 40-40-20 rule has been used since the 1960’s to build the worlds best marketing campaigns. It’s simple straight to the point, and tells you what you need to know to get the most out of your advertising budget: Here is the Formula

40% Audience

40% Offer

20% Design

Audience = 40%

A target market can be a specific neighborhood, income, or age of the home. Deciding who is your target market is very important to your direct mail success. Mailing to the right people who are more likely to buy your product or service is the best way to spend you advertising dollars.

Offer = 40%

A strong offer goes a long way to getting people to call or come through your doors. Add an
expiration date to cause a since of urgency and get your potential customers to call or come in
sooner versis later.

Design = 20%

A well-designed ad is non cluttered, but is easy to read and gets your point across in 3 seconds are less. Everything from the design to the paper and print quality is an extension of your business image and should all be taken into consideration.

When you consider these 3 factors as a whole, you will reealize one will not be able to work with out
the others. Each factor should all be taken into consideration when putting together a marketing piece.

Feel free to let us know how you have used the 40-40-20 rule in your advertising.

We also love and encourage any questions that you may have

How to Design an Effective Coupon Ad that Works

2012-06-25T09:00:00.000-07:00

Coupon advertising provides a very small amount of space to give the information that motivates customers to use your services or products. To attract customers, you need to provide the right information, in the right format, over a sufficient period of time. Whether you design your own coupon ad or have one of our advertising specialists prepare it for you, make sure you study the copy, artwork, and offer carefully.
Here are a few questions to ask yourself that will help you decide if your ad is ready for publication:

Does your ad should have a specific message that tells about your product or service? Is it concise and to the point? Can you remove words that aren't needed?
Is what you're saying in the ad reasonable, factual, and believable?
Is the offer good enough to entice someone to act? Would you use this coupon?
Have you set up a system to track your returned coupons? It can be as simple as a small code in the disclaimer, or changing colors for different advertising products.

Direct mail advertising works best when you have simple message, a believable statement of fact about your product or service, a specific offer for that product or service, and once you know the ad is working for you, a consistent, repeatable campaign to keep your name, offer, and information before a target audience in a specific area.
I know we have presented these suggestions in the past, but they should be repeated as often as possible. This approach works and, if you use them, you will find a greater degree of success in your direct mail advertising. Let us know any methods or approaches to direct mail advertising that have worked for you.

How to Sell to Anyone

2012-06-18T08:51:00.001-07:00

If you read this far you most likely have an interest in selling a product or service. So, the first thing you need to understand is not everyone knows they have a use for your product or service. Selling is best achieved by knowing what your prospective customers needs. This is achieved, usually, by asking questions that leads to understanding what problems need to be resolved, or filling a gap in a persons life. In other words, for some people they know something is missing and your product or service may help them. While, on the other hand, some people may not have a clue as to how your product or service could improve their life.

The five basic rules of selling to anyone:

Know your potential customer’s wants
Know your potential customer’s needs
Know your potential customer’s beliefs
Know the value your potential customer places on 1, 2, and 3 above
Know your potential customer’s urgency to acquire or use your product/service

The only way you can successfully sell a product or service to a potential customer is by asking questions. Here is the key to selling: asking specific questions, listening carefully to the answers of such questions, and offering helpful, meaningful options. The active involvement of your interest in another person’s situation is essential in formulating a positive environment that meets the needs of a potential customer.

Thus, to sell to anyone, you must believe in your product or service, be very familiar with its benefits and limitations, and capable of presenting it in such a way that others are convinced in your sincerity and honesty.

This does not mean that sales will occur every time, but following these basic principles will increase your potential for selling to anyone.

Part 2: How Can QR Codes benefit you?

2012-06-08T09:00:00.000-07:00

They're starting to show up everywhere these days; in stores, on vehicles, print ads... the ideas are really limitless.

QR codes aren't as common here as they are overseas; Europe and Japan have been using them for some time, but they are slowly showing up more and more in American media, and as smartphones and similar devices become more commonplace, QR codes are sure to make more appearances in our daily lives.

What can QR codes do for you and your business?
They started as a way to track parts in vehicle manufacturing, but have, over the years, been used in many other forms. Recently it has started to become more prevalent in marketing and advertising.

When you buy a print ad, you have a limited amount of space. To use our own product as an example, you have a print area of 8 inches by 3 inches; that really limits the amount of room you have to share information with your prospective clients and still design an effective, eyecatching ad. A QR code can directly link the person looking at your ad to your website, blog or Facebook page, where the space is unlimited to tell your story and share information about your products.

Imagine this: An interior decorator includes a gorgeous photo of a sitting room she designed, and includes a QR code with the photo. When a reader scans the included QR code, they're taken to the designer's photo gallery, which showcases the entire house she decorated, or maybe a gallery of other living rooms.

How about a general contractor? He could feature a photo of a kitchen or whole house remodel, and then QR code could take the viewer to a blog post about the process; this would give the contractor the chance to discuss the quality of their workmanship, the extra effort he puts in to keep everything clean, maybe a written or even video testimonial from the happy homeowner!

The possibilites are endless. There's cure to be a way to put this popular new technology to work for you... to get you more customers. It's just a matter of finding the best way for you.

This short video (4 minutes) will give you an overview of some businesses that are using QR codes in some exciting new ways:

The question is this: Will your customers use QR Codes? We'd love to hear your story!

Part 1: What are QR Codes?

2012-06-01T09:00:00.000-07:00

It seems like every few months, a hot new marketing tool comes along that everyone is talking about. In the last several years, we've seen personalized mailing pieces, followed by email marketing, then text message (SMS) advertising. The current trend is something called a QR Code, which stands for "Quick Response Code" and was developed by Denso-Wave, a Japanese subsidiary of Toyota, in 1994.

You've probably seen them around town, even if you didn't know what it was at the time.
Here's what a QR code looks like:

How does it work?
The first step is to download a QR code reader to your iPhone, Blackberry or Android device. There are many free versions available through iTunes and other sources. Just search "QR code reader" and your operating system and you'll find thousands of choices!

Using the QR reader app, simply scan the QR code, and it will take you directly to a web page. This can be a great way for potential customers to quickly and easily access information about you and your products. Because it's so easy to create customized QR codes (no special software needed!) you can send interested parties to very specific spots on your website or blog... anywhere, really!

How do I get my own QR code?
It's fast and easy to include QR codes in your advertising; you've probably already seen them, even if you didn't know what they were at the time. They're popping up on print advertising, television commercials, in stores... I even saw a big one on the back of a bus that I could scan from the passenger seat in the car behind them at a red light.

It gives you the opportunity to share an incredible amount of information with interested people, with very little effort on your part.

Turning again to Google, just search "QR code generator" and you'll find dozens of options. Just go to one of those sites, put in the information you'd like to include (a URL, a phone number, just text...), click the Generate button and voila! A working QR code pops up on the screen.

Save it to your computer and you can use it just like you use a piece of clip art. It's really that easy.

Next week, we'll look more at how you can really utilize this trend and how it can benefit your business.

5 Reasons Your Ad Isn't Working

2012-05-18T12:00:00.001-07:00

Too often an ad will have too much information, be too confusing, have too many offers or not run often enough. Coupon advertising is, by its nature, provided in a small space. We have seen many clients try to cram too much information into this space thinking that they will get more leads, but this is not true. We have also seen clients not give their ad enough time in the market to see a true response rate. There are a few good reasons for this:

When designing your ad consider each ad as a specific, narrow statement about one item or service. Don’t clutter your message with more information than the customer needs, your goal is for the customer to call you so that you can solve their specific problem.
Avoid confusion! Identify the main point of the advertisement, make sure you have one specific statement that is believable and factual.
Stay away from too many offers. If you must have multiple offers limit them to no more than two to three. Avoid exaggerated claims or vague statements. And, focus your ad on what the customer wants by identifying a product or service that is relevant for the time or season.
Once you have an offer that is working, keep using it!
Repetition is essential in assuring increased response. Repetition reinforces your offer and the more often you put the offer or information about your offer before the customer the more likely you are to generate a sale. Too often business owners look to make one big, bold statement and spend a large sum of their advertising budget in the process and these “big, bold” efforts are not as successful as planned. Most of us are slow to grasp an offer either because we do not see the need or the timing is not right. Repetition of your offer combined with a targeted message will increase your chances of making a sale.

Coupon advertising is not rocket science, but it is wise to follow certain rules or guidelines to be successful. By following the rules suggested above you will enhance your chances for a direct mail advertisement program.

Now, it’s your turn! Let me know what has worked for you and why. If you want to challenge my observations, I sincerely want to hear from you. Golden Mailer is trying to identify as many business owners in the community as possible, to share ideas, opinions, and experiences, to help you increase your commercial opportunities. Your participation would be very useful, and we would love to share your insights in future posts.

Adapt to Changes - Part 9

2012-05-12T09:00:00.000-07:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Our final habit in this series concerns a topic that can be very difficult to accept, especially if you have devoted an enormous amount of time and energy in creating your business. Many times we have faced those “little bumps in the business road” that have kept us up at night. Generally, we find a solution that is compatible with our business expectations; however, once in a while, we have to change course and plot a new approach or game plan. Adapting to change can be a very personal experience, but being willing to consider other options is critical in a changing economic environment, as we are currently experiencing.

Golden Mailer has found these nine habits to be very useful in developing our business model they have proven very beneficial in achieving a sustaining our place in a very competitive market. As a brief review here are the 9 habits have found to be the most useful in building our business:

Adapt to Changes
Possibly the most difficult habit to acquire is that of accepting change, after all, your whole existence for putting your business together was to achieve a specific mission that had been successfully implemented and was serving yours and the communities needs. At least up until the demand for your services or product began to falter, you may find it difficult to accept the need to alter your business plan or vision of the company’s future. Well, lets face it, if you are not willing to adapt to the changes in the market place, or to the impact of new technology, or to the competition’s improved innovation, your business is going to be run over, and you will be left in the dust.
How do you avoid such a disaster? Well, you adopt change, make it your partner, and seek out new ideas for conducting business, by either experimenting with alternative products or services, or by considering various “what if” possible changes. The commercial environment is not a stationary workplace, it is in constant motion, and so should you be in a constant state of awareness about potential changes that might negatively impact your business. You must remain a positive, up beat owner who is aware of the business environment and all the options that affect your life’s work.

One final thought; persevere in all that you do. The challenges you will face in your business endeavors will only be overcome if you approach them with a conviction of absolute commitment. Seek solutions until the last moment, you will discover that consistently pursuing these habits will lead to a better destiny than you had originally dreamed possible.

Speaking of adapting to change:

What changes have you had to make in the past four or five years to assure your business remains competitive?
How has your business adapted to the innovations in computer applications related to marketing, billing, and customer service?

Keep Your Employees Involved - Part 8

2012-05-04T09:00:00.000-07:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Habit number 8 is possibly the most fun as well as rewarding for you and your employees. Aside from the importance of managing a success business, employee participation enhances productivity and quality assurance.

Golden Mailer has found these nine habits to be very useful in developing our business model they have proven very beneficial in achieving a sustaining our place in a very competitive market. As a brief review here are the 9 habits have found to be the most useful in building our business:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Keep Your Employees Involved
If you are a one person business, you may think this habit does not concern you, but that isn't true. Golden Mailer is a family owned and operated business because the family was always involved, either at the dinner table, or helping out on weekends and after school. So,even as a sole proprietor, you may want to keep your family involved, if for no other reason than a way to prepare your children or spouse to take over the business should you become ill or wish to retire.

From much of what was already discussed in the previous sections, you probably understand the importance of communicating the values, visions, and expectations of the business to your employees; however, employee involvement goes a step farther because good employees take their role in the business very seriously and you always want to have highly motivated employees, their involvement in the business will greatly enhance the potential for success.

Periodic informal meetings, luncheons, after work get togethers, or even weekend outings, give employees another format in which to exchange ideas or pleasantries outside of the formal business setting. These opportunities give people the sense of belonging and a feeling of unity. Employee involvement is a way of showing you care, but more importantly, it is another way of recognizing their contribution. It is also a way of rewarding them for the work they are doing. It's important that the employees recognize that you appreciate their role in achieving the purposes of the business.

Management of your staff is a challenge, but if you do it right, it can be one of the most rewarding aspects of your business career. Seeking to involve your employees is a habit that leads to enhanced productivity and better employee relationships.
Speaking of keeping your employees involved:

How do you keep your employees involved in your business?
What methods have you found to be most effective in motivating employee involvement?
How important is employee satisfaction to you and the success of your business?

Stay on Top of Profits & Cash Flow - Part 7

2012-04-09T10:59:00.001-07:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Paying close attention to your financial reports can save you many sleepless nights and uncomfortable conversations with your banker or your accountant. More importantly, tracking your cash flow will assure timely payments of invoices and payroll. Keeping a close watch on your profit margin we have found to be far more critical than market share, especially during slow periods or while in a down economy.

Golden Mailer has found these nine habits to be very useful in developing our business model they have proven very beneficial in achieving a sustaining our place in a very competitive market. As a brief review here are the 9 habits have found to be the most useful in building our business:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Stay on Top of Profits & Cash Flow
Maintaining this habit will pay dividends every day that you are in business. Most business owners underestimate the amount of capital required to cover unexpected expenses or periodic slow-downs in the economy. Sometimes, this lack of preparation is due to unrealistic income projections or an over confidence in the owner’s ability to control the costs of doing business. Whatever the cause, the importance of staying in tune with your profit margins and cash flow far exceeds your market share or increased sales volume.
The critical point is this: don’t spend more than your income. This does not mean that you should avoid borrowing. Short-term bank loans may be important during certain periods of the business cycle, and certainly during the start-up period; just make sure your operating expenses can be covered by your income for a given period or cycle. A business typically requires a year or two to break even. Also, any new product or service will also require a period of time before it is self-sufficient. This means you need to anticipate such financial demands and plan for the additional costs and funds required while sustaining the business through these transitions. Your ability to predict the amount of funds required to launch a new venture or expand existing services or products will determine the level of success your business will attain.

Of all the habits discussed, the challenges faced in your business usually surround the issues of money. So, endeavor to make this habit a “must do” effort every day before, during, and after you close the shop. It will help keep you in business and out of debt.

Speaking of staying on top of profits and cash flow:

Do you have an accounting system that allows you to frequently review your profit margin and cash flow?
How critical is the management of your cash in operating your business?
Do you have complete control of all billing, collection, deposits, and payment of invoices, or do you delegate these tasks to others?

Be Consistent & Follow Through - Part 6

2012-03-19T09:31:00.000-07:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Part six presents two habits that are directly related your management skills as well as your attitude. Being consistent means you hold firm to your agreements, and that your actions are compatible with your stated intentions. Of course, follow-through is act of being consistent. We have found in our business that these habits are important in sustaining long-term relationships and customer satisfaction. How well you execute this habit will be a major factor in determining the level of success you will have holding customers and building your business.

Golden Mailer has found these nine habits to be very useful in developing our business model they have proven very beneficial in achieving a sustaining our place in a very competitive market. As a brief review here are the 9 habits have found to be the most useful in building our business:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Be Consistent & Follow Through

Many business owners have failed because they were unable to develop or lacked these habits of consistency and follow through. Good management skills is another way to describe these habits because without them your potential to neglect your responsibilities to your employees, and your customers will surely lead to your business’ downfall. Attention to detail is essential to the success of your business. This includes not only the running of your company, but, also, attending to employee and customer needs. You are the “mother hen”, in other words, you need to watch over every aspect of your business until you shut it down.

As the leader of your business, you must provide the motivation and climate to assure the productivity of yourself and your employees. Your ability to hire, train, delegate, and manage your employees will be enhanced by adopting these habits of consistency and follow through. Your objective in embracing these habits will be beneficial as the manager of your business when you face new challenges, create new opportunities to expand, and think through all of the strategic issues you will face in the daily operations of your company.

Your business will be built upon your ability to get things done, either by your self or through others. To overcome indecision and procrastination, you have to approach each day with an urgency and commitment to complete every task as though the survival of your business depended on it, because it probably will. This habit has saved many from becoming a failed business owner statistic.
Speaking of being consistent and following through:

What management skills have you used to make sure employees follow through on assigned tasks?
How do you motivate your employees, and yourself, to stay on task?
Have you established a method to make sure you are consistently providing a level of service or quality that meets your standards?

Just as a reminder, here are the 9 habits we are presenting in this series: (1) Know Your Market & What Your Customer Wants, (2) Develop a Mission Statement and Business Plan, (3) Create a Repeatable, Scalable Business Organization, (4) Develop a Culture of Discipline, (5) Be Professional, (6) Be Consistent & Follow Trough, (7) Stay on Top of Profits & Cash Flow, (8) Keep Your Employees Involved, and (9) Adapt to Changes.

The following is a brief discussion of “habit” Number 6.

Be Professional - Part 5

2012-03-08T12:04:00.000-08:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Golden Mailer has found these nine habits to be very useful in developing our business model they have proven very beneficial in achieving a sustaining our place in a very competitive market. As a brief review here are the 9 habits have found to be the most useful in building our business:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Be Professional
Owning a business is a serious undertaking and requires a certain degree of attention to conducting your affairs in a professional manner. By this standard, a business owner should project a level of quality in every thing that positively reflects back on you, your company, and your employees. This means ethical business practices, attention to details in yours and your employees’ dress, conduct, timeliness, and service.

A professional attitude will convey a certain status as well as offer an image of character and standing within your field of business. Your business is offering an important service or product to your community; how you conduct your business will speak volumes about you and your company. Finally, how you and your employees appear before customers can be the difference between a sale and a missed opportunity. Although, this is a short statement on the subject, it is, nonetheless, an important habit to have.

Attitude plays a key role in how we conduct our lives as well as in how we run our business. The challenges before you will be greatly enhanced if you face them in a professional manner. This is one habit that will reward you in a number of ways.

Speaking of being professional:

What modifications to your business operation have you adopted that reflect a professional attitude?
How often have customers commented about your company’s professionalism?

Develop a Culture of Discipline - Part 4

2012-02-27T11:34:00.000-08:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Develop a Culture of Discipline
By now you have probably come to realize that discipline is a critical element in the formation, operation, and success of your business. As indicated earlier, there are a number of reasons why businesses fail, but failure to control yourself or your staff can lead to serious consequences. As with any habit, the examples you set to assure that you, your employees, and the company, in general, always tries to achieve a consistent level of service, quality control, and customer satisfaction will be rewarded with increased sales and productivity.

How do you establish the level of discipline that can guarantee success will depend on how consist you are in maintaining the standards of performance you expect of yourself, your staff, and your venders. Obviously, this starts with you and is projected to all concerned though your behavior, policies, and employee standards of performance. On time performance, commitment to quality of service and products, rapid response to solve problems, and a policy of fairness will only be achieved if you establish acceptable levels of behavior and follow through with consistent rewards.

Unacceptable outcomes are not allowed, but should be corrected immediately with training and an explanation of the company’s policies. Discipline is a way of producing a specific character or pattern of behavior based upon rules or guidelines that achieve the best intentions of the company.

Self-control is a challenge for most of us, but, if you can face the formation and control of your business with a sense of discipline, you will have overcome a major obstacle. And, gained a valuable habit in the bargain.

Speaking of a culture of discipline:

What method would you include to assure the culture of discipline in your business?
How have you structured your business to encourage employees gain an appreciation and awareness of the importance of discipline in their work efforts?

Nine Habits for a Successful Business - Part 3

2012-02-21T09:32:00.004-08:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Part Three focuses on creating a repeatable, scalable business organization, that is, “habit” Number Three.

Create a Repeatable, Scalable Business Organization

The way you organize your business operation will go a long way in determining your survivability. Too often, a new business owner will not have the management skills to design and structure a company to meet the needs of customers, employees, suppliers, or lenders. So, first things first, make sure you have a sufficient understanding of finance, purchasing, selling, production, hiring and managing employees. Knowing what you do well and seeking help in those areas you are lacking sufficient skills will go a long way in determining your level of success.

We found that structuring our business in relationship to our level of skills, resources, energy, and staffing levels was critical to our ability to manage the company. By this we mean operate “a repeatable, scalable business organization”, which implies you only take on as much as you can handle and keep your operation simple. Another way to consider this approach is to remember: we all make mistakes. The challenge for you is to structure your business to allow for recovery from your potential mistakes. This is far more difficult than it might seem at first. So, constantly, hold to a routine for every function required to operate your business from the smallest detail, like how and when you order supplies to how you write-up a sales slip or monitor staff performance. Each aspect of your business should be performed the same way each time, i.e., repeatable operations. Further, you should never grow too fast or exceed your capacity to deliver products or services, i.e., scalable operations.

The most significant challenge you will face, in organizing and managing your business, involves the designing and controlling the growth of your company. By endeavoring to overcome the desire to expand to rapidly or create loosely control staff, but seek habits that avoid these problems, you will a better chance at securing a prosperous future.

Speaking of a repeatable, scalable business organization:

How have you structured your business to survive the current economic conditions in your community?
How have you controlled the growth or downsizing of your business during this market cycle?

Nine Habits for a Successful Business - Part 2

2012-02-16T09:17:00.000-08:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

The 9 habits we have incorporated into Golden Mailer’s business model have proven very beneficial in achieving a level of sustainability in a very competitive market place. Here, again, are the 9 habits we presented in Part 1 of these series:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent & Follow Through
Stay on Top of Profits & Cash Flow
Keep Your Employees Involved
Adapt to Changes

Part two focuses upon the development of a mission statement a business plan, which is “habit” number two.

Develop a Mission Statement and a Business Plan

Every successful business has a business plan, but, before you can develop such a plan, you need a statement of purpose or mission. The significance of such a statement may seem obvious, but too often business owners forget to identify the core values that will lead to success, such as, always add value to your customers’ experience or share your vision with customers. This is sometimes done with a motto, such as, “Put the Law on Your Side” or “I Guarantee It!”. To develop an effective business plan you must first be able to clearly state why you want to start your business and what you expect to achieve by establishing such a venture. Of course, once you have established a mission statement, you can begin the demanding work required to draft your business plan, which should contain the following elements:

A description of the business, and your vision for the business, which will include your goals and how you will achieve them;
A task plan and staffing needs;
An analysis of potential problems and how you plan to solve them;
A financial plan, which includes: capital equipment and supply list, balance sheet, income statement, cash flow analysis, sales forecast, and expense statement;
An analysis of your competition;
A description of your marketing, advertising, and promotional activities; and,
A description of how you plan to manage the company’s growth.

An essential aspect of this planning effort is to carefully study and describe how you will avoid overexpansion of your company. A common mistake, not realized until it is too late, is confusing fast growth, rather than controlled expansion, as success. This error in judgment has, too frequently, lead to many early business failures. Plan your business to grow, but at a pace consistent with income earned and within your ability to cover expenses. To achieve this objective follow the example of the next habit.

Your commercial endeavors will only be enhanced if you approach the development a business plan and your mission statement in a serious manner. By discovering the purpose of your business and creating a plan that addresses the critical elements that offers the best opportunity of survival are the habits that will lead to your success.

Speaking of a mission statement and a business plan, we'd love for you to share your thoughts on the following questions:

How have you used a business plan to start your company?
What elements of your business plan have you found to be most useful?
What were some of the major changes you have had to make to your business plan?

Nine Habits for a Successful Business - Part 1

2012-02-10T09:00:00.000-08:00

“Sow an act, and you reap a habit.

Sow a habit, and you reap a character."

Charles Reade (1814-1884)

The rapidly changing environment of the commercial world today challenges many business owners. For those of us who have been around for more than a few decades, the rules a successful business operates by today are very different from those of 20 to 30 years ago. Innovations in technology have dramatically reduced response times and increased customer expectations of services and products. Trying to hold a “competitive advantage” for most business owners is a serious struggle. Statistically, recent data shows that, across sectors, 66% of new establishments were still in existence 2 years after their birth, and 44% were still in existence 4 years after. It is not surprising that so many new establishments disappeared within the first 2 years after their opening, and then only a smaller percentage disappeared in the subsequent 2 years. These survival rates do not vary much by industry. Yet, the desire to be your own boss compels us to start a new business or remain in an existing business.

The real question is: What sets a successful business apart from an unsuccessful business? There are a number of studies, articles, and talking heads giving opinions on this subject. Many of their ideas are very good, and some are highly useful. As Golden Mailer has been successfully in business for over 30 years, we thought it would be useful to share some of the business practices we believe have been critical in building and sustaining our company.

Here are nine habits, we have incorporated into our business model that have proven very beneficial in achieving a level of sustainability in a very competitive market place:

Know Your Market & What Your Customer Wants
Develop a Mission Statement and Business Plan
Create a Repeatable, Scalable Business Organization
Develop a Culture of Discipline
Be Professional
Be Consistent and Follow Trough
Stay on Top of Profits and Cash Flow
Keep Your Employees Involved
Adapt to Changes

The following is a brief discussion of “habit” Number 1.

Know Your Market & What Your Customers Want

Too often, businesses are started for the wrong reason. If you think starting a business will make you rich, or give you more time with your family, or that you no longer will have to answer to anyone, then you are probably not going to succeed! However, if you have studied the local market and have identified a need for your specific service or product that is either not offered or poorly supplied by your competition, you may have a chance of succeeding.

This is just the first step in building a successful business, but it is the corner stone of any venture, because at the heart of every business is the delivery of a service or product that your customer wants to purchase. So, the amount of time and energy you dedicate to understanding your local market and how to provide what your community wants will better position your business. A few key elements of this effort should include a thorough analysis of your experience in the area of your business, the availability of operating capital to sustain you during the start-up and early operating phases of your business, the location of your business (or the range of your service area), the amount of inventory required to start-up and continue operation, appropriate pricing levels of your products or services, and, of course, know as much as you can about your competition.

None of this is to put you off starting your venture or continuing an existing, struggling business, but it should alert you to the potential difficulties you will certainly face as you develop and start your business. Understanding the obstacles you will face will better prepare you. Success can be yours if you patiently persevere, work hard, and follow the necessary steps to achieve your objective.

The challenges you will face in your business will typically evolve around meeting customer needs and the market environment. Seeking solutions, which satisfies your customers, is a habit that will lead to a better destiny than you had originally dreamed possible.

How long have you been in business?
What are some of your habits for success?
What types of hurdles did you have to overcome when starting your business?

We would love to hear your feedback and responses to the questions posed above; check back soon for further discussion of the remaining eight habits!

Understanding the Role of Science in Business

2012-02-03T09:00:00.000-08:00

When asked what you are thinking, you can typically answer because most of us know what is going on in our head. This is because one conscious thought, typically, leads to another. But, psychologists believe that that is not the only way the mind works. According to Daniel Kahneman, an influential psychologist and author of Thinking, Fast and Slow, says “most impressions and thoughts arise in your conscious experience without your knowing how they got there. You cannot trace how you came to the belief … (that) you detected a hint of irritation in your spouse’s voice on the telephone, or how you managed to avoid a threat on the road before you became consciously aware of it”. Dr. Kahneman points out “the mental work that produces impressions, intuitions, and many decisions goes on in silence in our mind.”

From this simple observation, a number of efforts by psychologists, economists, and marketing executives about ways in which they can identify and predict a consumers’ purchasing behavior have occurred. The following is a brief outline of their work and how technology is playing a key role in trying to understand how we put thoughts together to make buying decisions.

How Science May Impact Marketing Practices

Science plays a key role in practically every aspect of our lives. This is even true in the fields of marketing and advertising. For over fifty years, or more, psychological studies of consumer buying practices have proven useful in measuring the superficial aspects of packaging, branding, and displaying of a broad range of products and services. Over the past two decades, a number of technological changes have lead to a new field of study called neuroscience, a sub branch of which focuses on advertising and marketing interest. People working in this area of science refer to their specialty as neuromarketing or neuroeconomics.

Can Neuroscience Improve Marketing Practices in America?

To answer this question, let alone understand the subject, we need to determine what exactly scientists are talking about in the first place. This will require a paragraph of technical mumbo jumbo, but it will go quickly and exclude a large amount of detail. So, here goes:

Neuroscientists believe they have identified several techniques that allow them to study specific areas of the brain activated by a stimulus. Some of the work in this field uses a highly sophisticated imaging system called an fMRI (functional magnetic resonance imaging), which measures changes in blood flow related to neural activity in specific portions of the brain. As this is a relatively new process, the amount of information obtained from an fMRI study is rather limited because of the size and manner in which data are collected. Further, the information collected is limited by the nature of the brain’s ability to process and react to stimuli, for example, repetition of stimuli reduces the novelty, thus the usefulness of the data; further, the subject is constrained to avoid motion of the head, thus, reducing the opportunity to provide “real world” situations. Therefore, some researchers have elected to use EEG (electroencephalography) as a measurement technique in addition to the fMRI. EEGs are fairly good for measuring how involved a person is when he or she first looks at a novel object. Some researchers have combined EEG and fMRI with eye tracking, physiological responses, and survey interviews to draw reasonably accurate conclusions that are of value to marketers and advertisers.

As you can imagine this kind of “high tech” approach is expensive and the findings of such research is based upon small samples of participants. However, some of the results have lead to useful information about how consumers process purchasing decisions, because the stimuli selected to study can range from product placement, subliminal messaging, brands/logos, health/safety warnings, and product packaging. Another possible use for neuroscience-based advertising research is to help marketers understand how consumers respond to advertising as they experience it, but, more importantly, scientists believe they can identify emotional reactions that the customers ultimately store in long-term memory concerning the brand or product. This stored information in long-term memory may, most likely, influence a future purchase or usage choice. Neuroscientists believe the driving force behind such responses is emotion, thus understanding the emotional response to stimuli becomes very important.

Does Neuroscience Help Us Better Understand Consumer Behavior?

Advocates for neuroscience are very enthusiastic about the positive results they have achieved, and feel very strongly that with improvements in equipment and better understanding of how consumers process information and make decisions, the opportunities for more effective marketing approaches will be achieved. Another possible use of neuroscience-based research is to identify how information about a product, service, or brand is stored in long-term memory, which may influence future purchases or use of a service or brand.

As a small business owner, these findings may not be as important as they are to large corporation executives, mainly because, as a local owner, you have far greater direct contact with your customers, and have immediate feedback from them as to their likes and dislikes. However, the information and knowledge gained by neuromarketing research studies may prove very useful nonetheless in trying to compete with national firms in the future.

The reason you need to stay informed about major shifts in the methods used to understand consumer decision-making is to anticipate potential negative impacts such findings may have upon your business. Of course, it may be that at some point you will be able to use such marketing research findings in promoting your business or branding a new product or service.

Please feel free to offer your comments on this or any other of our articles. Your comments and suggestions are always welcomed.

Developing Your Marketing Plan, Part IV

2012-01-27T09:00:00.000-08:00

Evaluating Your Marketing Plan and Budget

The results of your marketing plan and budget, as noted in Part 3, are based on the method selected to determine the effectiveness of your efforts. That is, did you achieve the results you wanted? In Part 3, the marketing plan was finalized with the budget and tasks plan. The methods selected to evaluate how successful your marketing plan will meet your objectives and assist you in anticipating potential changes in your marketing effort is the focus of this article.

The Purpose of the Evaluation

Evaluating each aspect of your marketing plan throughout the year will benefit your business in a number of ways. The primary purpose of your marketing plan and its budget is to control costs and measure the anticipated income of each marketing effort. Second, your evaluation will help you to coordinate tasks activities and staffing. Third, your plan provides an opportunity to measure the standards of performance and expectations of each task; further, it provides a means by which you can communicate the results of the standards and expectations to those responsible for implementing the marketing tasks. Finally, by constantly following the progress of the plan’s outcomes (and possible shortcomings) you have the means to identify and target needed changes in your marketing plan.

Measurement Elements of an Evaluation

Your evaluation should measure those elements of the marketing and budget that are most important to the success of your business. This might include:

How closely your actual expenditures met the budget amounts estimated
How closely your actual revenues met the budgeted amounts estimated
How closely your sales volume met your budgeted volume estimates
How closely your staff’s estimated time to complete or achieve task objectives were met
How closely your marketing objectives met or exceeded your intended expectations in reaching potential customers, informing the community about your products or services, or clarify your company’s brand
How often you had to modify objectives or tasks to achieve your goals?

This list is simply an example of the kinds of measurement criteria you might use in evaluating your marketing plan. As indicated throughout this four part series, each marketing plan is unique to your business’s needs. The evaluation reflects the priorities and needs of your business.

Please feel free to offer your comment on this or any other of our articles. Your comments and suggestions are always welcomed.

Developing your Marketing Plan: Part III

2012-01-20T09:00:00.000-08:00

Building a Marketing Budget

We have considered all of our marketing options, set our marketing goals, identified our marketing objectives, and prepared the tasks to be performed; however, our marketing plan is not complete until we determine the costs of implementing each of these elements. A marketing budget is an important part of our marketing plan.

The marketing budget is an estimation of the costs associated with the various tasks.

The tasks could be:

Staff time
Compensation
Related Expenses

The goal of the budgeting process is to distribute expenses over a period of time, typically by month and year, to assure moneys are available, as needed.

Budget Format
The easiest way to arrange financial information is to establish a format on a spreadsheet. Here is a simple example form: (Click to see it larger)

Across the top of the spreadsheet, list the headers for each marketing expense. For example: salaries, office expenses, development expenses, rental expenses, design expenses, promotion expenses, public relations expenses, technical design/support, etc. Along the left side of the spreadsheet is a wider than usual column to list each project, tasks and sub-tasks discussed in Part II.

The arrangement of your budget format will be dependent upon how you plan to use the information displayed. Make sure you give careful attention to items included during this phase of formatting your marketing budget.

Designing the Budget to Meet Your Business Needs
Your marketing budget will vary depending upon the type and size of business you own. Thus, if you own a small retail store, you may need only a few headers, along the top of your spreadsheet, for staff salaries, product promotion, newspaper advertising, direct mail advertising, web design/support, etc. On the other hand, if you operate a large, complex business with several product lines or plan to expand into a new marketing area, you will require a far more complex approach that may require more than one marketing budget plan for the various projects.
Another factor to consider is how do you plan to use your marketing budget? If you are only interested in anticipating monthly or annual expenditures, a simple chartof expense categories may be sufficient.
If you intend to monitor your marketing efforts over a period of years, you may want to consider a historical method of measuring each expenditure category by changes in business trends, market conditions, or alterations in your marketing approach. This will requireadditional columns that track percent changes or dollars of sales, or volume of sales, or costs from year to year. A comparison of sales volume to budgeted expenditures is a practical first step in this regard. Whatever comparative factors you use, keep the standards realistic and related to specific outcomes.

One Final Thought
For best results, connect the marketing budget to the company’s volume of sales and profit margins. Using past financial data, which measures marketing expenses as they relate to product or service performance, can be very useful in predicting future sales as well as potential problems.
Once you have identified the budget method and format, stay within the framework you have selected, this will assure a consistent and easy to follow financial history as you implement your marketing strategy.

Part IV will focus on evaluation tools that may assist in considering future marketing plans. Please let us know if this has been of any help and, as always, your comments and suggestions are welcomed.

Develoing Your Marketing Plan - Part II

2012-01-13T09:00:00.000-08:00

The Elements of a Marketing Plan

First things first, preparing a marketing plan is not rocket science. It is, however, a thoughtful process for identifying those business practices that are considered most important to you for the success and survival of your company. The complexity or simplicity of your plan is strictly up to you. For the purposes of this example, we will provide a simple marketing plan. A marketing plan, typically, consist of three key elements: goals, objectives, and tasks.

Goals

The purpose of goals is to focus your attention upon the strategic efforts that have the highest priority to improve, protect, or enhance your business. Draft your goals in clearly understood terms to convey the most important aspects of your company’s success in the future. Goals are broadly stated and indicate the direction the company intends to pursue to be successful in overcoming competition, enhancing profits, improving market share, and /or increasing staff, product, or service performance. Whether you have just started or have been in business for many years, the changing economic forces affecting all of use requires adapting, modifying, and controlling our situation. Two goals that illustrate the initial development of a simple marketing plan are:

Increase the company’s volume of sales by 15%
Improve community awareness of our company’s new service

Objectives

Objectives are directly linked to specific goals. In other words, they are the tactical steps to the achievement of a specific goal. They need to focus the efforts of the company by stating the path the company will take in achieving a goal. In many cases there are more than one objective in reaching a specific goal. Examples of objectives to achieve the sample goals stated above might include the following:

Establish a direct mail advertising campaign
Establish an in-house telemarketing program
Establish a Network of business associates and community outreach programs
Develop a public relation campaign that focuses on the quality of our new service

Tasks

Tasks are defined as clearly stated pieces of work assigned to assure completion of a specific objective. Each task has a measurable outcome that leads to or supports other tasks in accomplishing an objective. Some tasks have “subtasks” that are required to support or complete the main task. Examples of tasks to achieve the objectives described above might include such steps as the following:

Talk with three direct mail advertisers
Solicit employee applications for a telemarketing position

Follow a Specific Pattern

The drafting of a marketing plan should follow a specific, consistent pattern that guides the reader through a series of steps, such as:
I. Increase the company’s volume of sales by 15%
A. Establish a direct mail advertising campaign
1. Identify three direct mail advertisers

Make an appointment with each
Collect information on pricing, mailing areas and number of homes included in each mailer
Ask for their mailing calendar
Select one company
Develop ad copy and offer

B. Establish an in-house telemarketing program
1. Develop a job description, work schedule, and script
2. Solicit employee applications for a telemarketing position

Place employee ads in newspapers
Contact employee agencies
Post employee opportunity flyers at local colleges

3. Interview applicants
4. Select and employ an applicant
5. Train applicant

II. Improve community awareness of our company’s new service
A. Establish a Network of business associates and community outreach programs
1. Join the local Chamber of Commerce
2. Join a local nonprofit community service organization
B. Develop a public relation campaign that focuses on the quality of our new service
1. Identify public relation firms that successfully serve your community
2. Interview three such firms

Try using this model to develop your own marketing plan, or select another model that best suites your needs. A number of companies have developed computer based marketing plan models that you can order. But I would start with a simple pencil and paper exercise to identify the key elements that you require to meet your business needs.
The point is to prioritize your goals, objectives, and task. Make sure your entire goal, objective, and task statements are specific and consistent. Once you have identified the plan model, stay within the framework of your plan, this will assure a consistent and easy to follow chain of thought as you implement your marketing strategy. Part III will focus on the preparation of a budget and work plan that relates to your marketing plan. Let us know if this has been of any help and, as always, your comments and suggestions are welcomed.

Developing Your Marketing Plan: Part I

2012-01-06T09:00:00.000-08:00

“How Much Should I Spend on Marketing?”

How effectively you market your business depends on how much you spend and how successfully you promote your company. Of course, the amount you spend on advertising will vary by type of business and how long you have been in business. A good rule of thumb is to budget between 2% to 10% of sales income. Start-up businesses have, typically, less money to devote to marketing, but, generally, have to spend more than well-established companies, which have the leverage of prior customer satisfaction to sustain a company’s cash flow, thus keeping marketing costs at a lower level.

Begin with Two Major Factors

So, lets say, for the purposes of this presentation, that you fall within the 2% to 10% range. You are now faced with the very tricky task of determining how to spend your money wisely on a marketing approach that meets your income goals. The key to any expenditure of your resources is to remember that they have a direct bearing on your potential revenue. But, before you can think about how much you need to spend on advertising you must give serious consideration to a couple of major factors: (1) the development of the marketing brand or image your company wants to project, and (2) the type of promotion and advertising programs that best increases the sales of your products or services to existing customers and prospective customers.

Do Your Homework

As an initial step, if possible, look at what your competition, especially “market leaders”, are spending to promote their business. Identify the types of advertising media your competitors use, such as, direct mail, newspapers, magazines, radio, television, websites, social media, etc. Contact the respective advertising sources to learn how much they charge for their services based upon the type of ads your competitors have used. The objective should be to:

Allocate sufficient funds to position your business successfully to out perform the competition
Increase awareness of your company Increase revenue
In other words, if you want to succeed in business, you will have to aggressively invest in your business’ marketing efforts to achieve your revenue objectives.

Consider the Ultimate Low Cost Marketing Option

One way some business owners try to avoid a major cash outlay for marketing is to grow their business through word of mouth. This can be a very effective, cost efficient method to initially grow; however, most people discover that, sooner or later, their business stops expanding at a sufficient rate of growth to sustain their capital needs. At that point, they will need to develop a branding campaign to increase business. This, of course, will cause them to expend more of their income while at the same time they must now begin to develop a marketing plan. With that said, word of mouth advertising can still be a very important part of your growth strategy, and should be a part of your overall business approach to build your company.

Thus, to determine how much to spend on marketing, which assures your business survives in this challenging economy; you should begin by developing a marketing plan. In Part 2 we will explain the elements of a marketing plan, and how to develop a marketing plan that provides the most information for growing your business successfully. From the simple examples of how to prepare a marketing budget, you will be able to determine how much to spend on marketing your business.

Let me know your thoughts on how you have approached your advertising costs projections in the past as well as your experience in setting marketing goals and budgets. Your opinions and questions are always welcomed.

Americans look to small business owners for help in growing the economy

2011-12-30T09:00:00.000-08:00

Many people in America are expecting owners, of small businesses, to provide the leadership and energy to guide our country out of this economic situation, thus lowering unemployment rates.. How likely we will be able to achieve these expectations rest upon more than the country’s money supply and availability of credit.

People have to have confidence in the future direction of the government and financial institutions, the availability of jobs, and the security that comes with a regular paycheck. However, there are a few things we, as business owners, can do to help. The following suggestions may strike you as being too general, but they represent the bedrock of a successful business owners approach to managing and growing a company. Further, every successful company has employed the six factors described below, to one degree or another, since the founding of our country.

To meet the challenges of our current economic crisis, business owners need to:

Adapt to the current situation: If you haven’t rethought your costs, refocused your marketing plan, adjusted your business plan to account for shifts in the economy, you are already behind the curve. Business owners should look for ways to meet the changing needs of your customers. Start by presenting a revised pricing strategy and a new advertising and marketing program of information that addresses your customers’ current expectations.
Anticipate future changes: As you have probably noticed, the economic landscape is shifting rapidly throughout the world. Even though, our market may be located, for the most part, in one or more counties of the Bay Area, the economic decisions reached in Europe, Asia, South America, and the Middle East are directly impacting us as well. We need to stay informed and look beyond our borders to anticipate, as best we can, how the economic decisions in other parts of the world, as well in the United States, may impact businesses tomorrow.
Strive to insure a strong work ethic in yourself and your employees: Productivity, either by new technology or manpower, requires a constant focus on the output of the resources we have at hand. This means making sure the products and services our businesses offer achieve the results required to best meet the needs of our customers at a profit margin that will sustain a company’s viability. This will mean extra effort by everyone concerned with the business surviving.
Enhance the general well being and education of all in your community: This should begin with you and your employees by learning as much as you can about changes occurring in your field and other areas of interest. By increasing your knowledge, you can gain an edge on your competition while improving your chances for surviving the current economic downturn. As for the rest of the community, focus on their improved awareness of educational services offered in secondary and college courses. Finally, always remain involved with the education of the youth in your community. They may very well be future employees or customers, thus their economic success will benefit your business in the future.
Provide incentives for excellence: Set high standards for yourself and your employees, make sure you meet, or, better yet, exceed them. And, never accept excuses or explanations that are lame or inappropriate. The challenge for you and your employees is to understand the importance of the problems facing your business as well as the fragile nature of your current situation to stay afloat during these trying times.
Encourage a sense of perseverance and frugality: Don’t quit! Hold on as long as you can, continue to find ways to shave costs, consider options to meet your customers’ needs, and look for ways to add new products or services. Of course, you have to be practical, so, focus on changes or modifications, which have a proven record of success or, to the best of your knowledge, have the highest possibility of succeeding.

Those are my thoughts. What’s your opinion on how we, as business owners, can help in solving our current economic situation? I look forward to learning your thoughts on this topic. Until next week stay positive, persevere, we will get beyond our current problems and be in a position to take advantage of the next growth cycle.