Singing the Marketing Song

It's the start of fall, and to me, the beginning of the business year again. This actually happens to me several times a year; January, when the year is shiny and new, and the fall, after a refreshing break over the summer. But there's a price to pay for this time of summer relaxation -- I've now got to get myself going and start a marketing campaign to make up for the lax days I've just gone through. Thankfully, I have a marketing plan that allows me the time to take off and play during a couple of months of summer and helps me to ramp back up in September. Do you have a marketing plan?

A marketing plan is, like a business plan, an effort to put down on paper various items of your business. While a business plan looks at several parts of the business, such as location, revenues, equipment, and all the other important aspects of starting, running and growing a business, a marketing plan focuses on the different things to be done in order to get the customers in the door, buying what you're selling.

The first thing you need to do is decide what your objectives for marketing are -- do you want to sell, educate, get people to walk in the door? When you have objectives and motivations, then you can start the work of the marketing plan.

There are some very important sections to a plan: you need to know your customer base. Who is going to be the most likely to buy from you? Young, old, male, female? Are they local or is this a wider ranging clientele? Who else is selling the same items (services) and what about their product appeals to their customers? Market research is very important here. You need to know the competition -- their prices, their marketing mix, how do they get their customers in the door?

Then you need to know what advertising venues are going to work the best: TV, radio, yellow pages, etc. What are the things people like the best about your product/service? What do they like least? By knowing this information, you are better able to market to the good parts while working on changing those areas that are not as well appreciated. At the same time, you can create marketing materials that bring to the forefront the best while downplaying the not so good.

Finally, you need to put a budget together so that you have an idea of what to spend and how best to spend it. What are the various costs? What is the most cost-effective? Where do you get the best ROI? When you have those answers, you will know what is the best, most efficient method of advertising.

The life and times of a small biz person

             I have known since I was 11 years old that I would grow up to be an entrepreneur. As a kid, I owned a craft shop with my mom and sister where we made handmade items and sold them out of my folks' basement. Called Things-n-Stuff, it was a lot of fun and actually made a little bit of money -- mostly from family and friends but it was a great learning experience. During the summers I worked with the neighborhood kids and we had a "day camp" where we read, played (actually getting exercise) and did the kinds of things that kids don't do any more because they're too busy in front of computers, TVs and Gameboys.

            As I grew older, I started babysitting and did things like deliver newspapers for contractor wages (50 cents an hour I think at one point!). Along with all these great efforts I worked as a library page, in a gift shop on the Indiana Toll Road, and in college in the Psych department. Of course, even there I typed term papers for other students and helped with editing. So, it's no surprise that after graduation from my Master's program (and while working on my PhD) I started my own business as an Administrative specialist -- becoming involved in incubators, referral groups and training programs for businesses long before they were the "THING" for businesses to do.

In the big city people were interested -- even excited -- about doing things to help support their companies; there was a sense of anticipation and looking to the future. People wanted their dreams to grow into reality. They had ideas and were willing to do whatever it took to get those dreams to come to fruition. The SBA has organizations throughout the country that were created to help these nascent businesses start, and prosper. The Women's Business Center in Springfield, VA was always buzzing with women -- young and old -- who were taking classes, networking, competing with business plan contests. There was always something going on. It was a great time for the world of entrepreneurs.

Now, however, back in small town midwestern USA, things are much different. Of course the economic environment over the last 8-10 years has not helped, but I feel a sense of fear; of desperation. People have lost their jobs. They've lost their customer base. They've lost their businesses. Money has been really hard to come by and people have retrenched. They seem to be looking for the pot of gold at the end of the rainbow; chances to get big buck referrals and meeting just the right person at networking events. The promise is there, hanging in the air -- if you do this, they will come. But I haven't seen Kevin Costner building the baseball field, and I don't believe that simply by hanging out one's shingle, that the work will be there. It takes a long time, hard work and experience to get a business off the ground.

Unless you're awfully lucky, just being in the right place at the right time, isn't going to get the business where you want it to be. You can make the best darn widget in the world, but unless you know how to market it, how to cost it out, how to maintain your books, and much more, you're eventually going to fall flat.   I think it’s very important to have those dreams -- to work towards getting that business off the ground with smooth sailing. But I also think that one must not put all their eggs in one basket. Understand that you need to network. You need to get and give referrals. You need to read, to study, to talk with others who have been there and done that before. It is a very hard, challenging existence, but if you can determine that what you provide is something that the people want, and if you can devote the time and energy to letting them know you can provide it, then you'll be well on your way to being an entrepreneur. Good luck!!!!!

How to Get and Give Quality Referrals

By now I’m sure everyone has heard of the term networking – and has been out there meeting and greeting other businesses for many years. But do we really understand what SHOULD be involved in networking? That I’m not so sure of.

 

The overall concept of networking is to meet people in other businesses and to exchange cards and numbers. According to www.dictionary.com, networking is: a supportive system of sharing information and services among individuals and groups having a common interest. This, on the surface, is easily accomplished.

 

“Hi, I’m Nancy from Business Success Unlimited. Here’s my card.” You can give out a lot of business cards that way (and get them as well). But what is really accomplished here? Not much except getting rid of your cards.

There are actually a couple of forms of networking that go on in the business world on a regular basis. There are events such as an "After Hours Get Together" where people stand around and chat while munching on snacks and balancing a glass in the other hand. Here you have people bumping into you greeting you, asking you what you do and then moving on. You have very little time to get to know the other person, and most of the time the object seems to be to hand out as many cards as possible.

The other type of regular networking is a weekly or monthly meeting where people sit around a table, introduce themselves and share leads or referrals with each other. Today’s article will discuss this type of networking in more detail.

A referral group, as this type of meeting is often called, is a great form of marketing as you have a ready made audience that’s mission is to support other people in the group. However, all too often it seems that (in this form of networking as well as the other forms) people decide to get out there and network with only themselves in mind. In other words a “gimme attitude”. I can tell you right now, this is NOT going to work well for you. 

How this type of networking should work is that you go into a networking event or meeting with the idea that you can help others. YOU become their marketing arm. When you help provide them with quality leads (we’ll discuss this later), then they will, in turn, provide the same to you. How do you do this?

Called Spheres of Influence, most people have a circle of some 200 others that they know. And each of those 200 knows another 200 – an ever widening ripple of contacts for a business network to connect with. Here’s a scenario of how it might translate: 

Joe Realtor has been getting requests from his new home buyers/sellers for someone that can come into the home and fix little things like power washing or carpet cleaning. He asks the others in his networking group if they know of any really good handymen that can handle this type of job. Charlie Home Builder says, oh yeah. I have a great handyman service that I use all the time. Let me get in touch with him and have him call you. His name, by the way, is Harley Homebody.

Later that day, Harley calls Joe and they set up a time to meet and talk a little about what they both do and are looking for. Eventually, Joe has someone that he feels comfortable referring his clients to (his clients become happy campers) and Harley gets a lot of new business and can become repeat or additional referrals.

This is a simplistic way of describing how referral networking operates, but it gives you a good idea of a very possible end result when done correctly. But, another thing to keep in mind is the difference between leads and referrals. Often people in these groups are pressured into thinking that they have to provide names ... This can be anything from “I think I heard my neighbor next door say he was going to sell his house. Hey Joe, why don’t you give them a call.” to I saw a little league team that needs new t-shirts. Ms. Printer, why don’t you track down the Paulie’s Pizza and Sub Shop and tell them about your t-shirt printing business.” These are called LEADS and are basically nothing more than cold calls – or at the very best, lukewarm calls.

A referral, on the other hand, is like the previous example of the handyman. The person GIVING the referral makes sure that it is something that is really wanted and then does what he or she can do to arrange a “meet” between the two people that will be conducting the business together. The way to start getting these referrals is through creating a sense of trust between yourself and the other members of your group. It is not always quick and easy, but it is well worth it in the long run.

It can be very frustrating for someone to get lead after lead after lead and to have nothing ever materialize. You wouldn’t want to be in that situation would you? So, here are a few tips to get you started in the networking arena:

 

1. Make sure that when you provide a referral its one that you KNOW should be pursued. Talk to the person wanting the work first to make sure that he or she should be expecting a contact from the referral recipient. Then let the “recipient” know that they should call so and so, as that person is expecting their call. 

2. Always be on the lookout within your circle of 200 for people who need the services of those in your network and actively market their businesses for them with these 200 contacts. If you hear of someone needing something, talk to them right away to find out what it is they need and how someone in your group might be of service to them.

3. On the other side, if you are the recipient, follow up with that referral right away. Don’t let it grow cold and then become frustrated because it doesn’t pan out. When given a name/number/email, contact them right away. Tell them that you got their name (or whatever) from your colleague and was told that they needed x service – something you would be happy to sit down with them and discuss. Have your credentials ready and your praise for the colleague that gave you their name.

4. Don’t sit back and expect to start receiving referrals right away. It is a process in which you must earn the trust and respect of the others in the group. This can be done, in part, by following tips 1, 2 and 3 above. Also, you always need to provide the best quality service to your clients (and this includes the others in your group) that you can. By providing top quality the others know that you do what you say and they will feel comfortable giving others your name... Remember, its their reputation on the line (as well as yours) if you screw up the work they have referred you for.

Marketing and sales are two of the most important ways that a small business gets their clients and their revenues. Referral groups are a great, and inexpensive way to do that marketing and sales. Remember these tips and get out there and start networking. You’ll begin to reap the benefits soon.