February 7, 2013 2 Comments

When Small Business Fails to Grow – Part 3

Used FurnitureSo here’s the final word on what I think happened to this great little business. We’ve already established that the business owner was capable and knowledgeable, adept in most areas of running his store. The business was capitalizing on multiple marketing pillars and was taking advantage of many of its marketing assets such as owner expertise, location, publicity, unique product, and community relationships.

If so much was going right, what went wrong?

As I mentioned in Part 1, the owner felt that he was squeezed out because he could not compete with “the big boys”, notably Ikea.

Yes, the business could have had a more compelling USP (Unique Selling Proposition) but it was not far off. Most of the messaging about the store in some way captured how this shop was different from its competitors. It had a distinct advantage over competitors like impersonal big box furniture stores. When working with any small business client, our first step is to ensure they have a solid USP in place, because that is the foundation upon which all other aspects of the business can be built. (more…)

January 20, 2013 1 Comment

Systematize your Business Growth

When I speak with clients about the Core Four marketing steps that every business should undertake when looking for growth, part of my job is to help them understand that making marketing part of their business systems is vital to make their business a going concern.

Crafting a Unique Selling Proposition (USP), integrating that USP into all your marketing activities, setting up processes for customer relationship management (CRM), and establishing processes for joint ventures and alliances all contribute to making a marketing system that is repeatable, measurable, and effective.

If you do not have systems in place in your business, you are at risk. Here’s why. If your sales processes depend upon the knowledge of the business owner or the top sales person, you need those individuals in order to make a sale. Customers may buy because they like you, or because you have a business relationship with them. But if those people are not available, no sale can be made. By writing down the USP and ensuring it is communicated during every customer contact, you take the sales process out of the head of the business owner and the top sales person and make it into a system that anyone can use. (more…)

January 15, 2013 No Comments

Hidden Marketing Assets

How much money are you leaving on the table by not fully utilizing all of your marketing assets? If you have a small- to medium-sized business, with revenue under $5 million annually, you probably have some hidden marketing assets that can be leveraged to increase profits, without spending additional money on advertising. These are assets in which you have already invested.

Advertising is a huge expense. If you know exactly how much business your advertising is bringing you, then that’s good! If you can point to the marketing activities that bring in the most revenue, then you’re doing a great job at targeting your market.

But if you have a sense that you could grow, or reverse a downward trend, then there’s probably money sitting on the table in the form of customer data and marketing strategies that are not being put to advantage.

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January 6, 2013 No Comments

Grow your Business with an Up-Sell

A few simple words could be worth hundreds of dollars in increased revenue for your business. The most famous examples of up-selling, of course, are “Want fries with that?” from McDonald’s and in the movie theater “Do you want butter on your popcorn?”. Just asking if the customer wants another item gives them a chance to say Yes and adds money to that sale. Another obvious option is the up-size — “Would you like a Large for 25 cents more?”.

Nearly every type of business has the chance to offer an additional item. At the hair salon, if the customer is getting hair coloring, ask if they want their eyebrows and eyelashes colored as well. Salons already do a good job selling hair care products, but it works better if a similar item cannot be found elsewhere at a better price for comparable quality. If your car is in for maintenance, an oil change “while it’s on the hoist” is a good potential up-sell. It’s even more attractive if there is a discount from the normal price. (more…)

January 2, 2013 No Comments

Four Core Activities for Business Growth NOW

In a New Year, we all like to revitalize our businesses and make plans for growth and improvement. This is a great time to look at how you are spending your marketing dollars and what you can do to get more revenue without increasing your budget.

When I go through an opportunity analysis with a client, I look at four main areas where they can see rapid business growth:

  1. Their Unique Selling Proposition (USP) or extra value proposition.
    What this business does better than any competitor.
  2. Integration of the USP into all marketing and business activities.
    The business and all staff have to be “living” the USP in everything they do.
  3. Existing customer database. This is a huge, often-untapped resource
    in any small-to-medium enterprise.
  4. Alliances and partnering. This is a very powerful way to grow.

 

The free, no-obligation opportunity analysis is basically an asset-finding interview, where we discover the many ways that the business is leaving money on the table. Along the way, we often find other problems that can be quickly solved to increase revenue. (more…)

November 5, 2012 No Comments

All Businesses Need FOCUS

There are many aspects to creating and running a business. The one that needs the most attention, whether in startup phase or as the company grows, is sales. Without sales, i.e., without customers buying from you, you have no business.

It’s easy to get lost in the many details of getting your company set up and functioning smoothly. You need people, processes, infrastructure, stationery, a web site, marketing, fulfillment, and so on. And those things can consume a great deal of a business owner’s time. But all of that is unnecessary until you are making sales. Without sales, all of that is merely a drain on finances.

Instead, focus on the customer. The acronym FOCUS — Focus On Customer Until Sold — is a good way to remember that. You must know your customer inside and out. Who are they? Why will they buy from you? Why should they choose to buy from you and not your competitors? What do you need to do to reach those potential customers? What will convince them to buy now? What do you need to give them when they buy?

Once you have the customer-to-sold equation solidly in place, you have revenue as well as the luxury of time and capital to grow other parts of your business. Customers really don’t care if you have fancy stationery or a nice office. What they DO care about is what your product or service can do for them. Get that right, and growing your business is easy.

October 7, 2011 No Comments

Development Model for the Connected Age

Endorsed Development, a new way of attracting a market for products we want to create.

Since the Stone Age, products have been developed based on need. They were meant to solve problems and assist us in completing tasks. To begin with, it was survival tasks, soon followed by transportation tasks, trading tasks, and leisure tasks. In design, form closely followed function.

As we developed greater technical skills, we began to innovate. We refined designs to be more usable and more attractive. Occasionally, because of cost and demand for the products, designs were adjusted based on ease of manufacture. When we had to get something to market quickly, we concentrated on making it work and shipping it as soon as we could.

Design-Driven Development

With automation and the assembly line, speed of manufacture was handled so we concentrated once more on making things attractive as well as functional. We were still tied to the products-as-solution imperative, but we could add features that we thought were fun. Features became selling points, even though marketers kept reminding us that it was benefits, not features, that sold products.

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May 21, 2011 No Comments

Value of Social Media

Here’s a perfect example of how using Twitter and other social media tools pays off.

In reading the book Branding Yourself: How to Use Social Media to Invent or ReInvent Yourself, I was confused by a paragraph on blog templates. I tweeted my question to the authors via their Twitter contact info provided in the book. Within moments, I received an answer to my question, which generated a follow-up exchange.

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