There are many new business owners hitting the market these days as a result of all the layoffs in corporate America. Statistics show that 80% of these new businesses will be out of business within 5 years and of those that make it that far, 80% of them will fail in the next 5 years. So only 4% of the new business owners will make it through the first 10 years.
We must balance the failure rate with the reality that economic downturns are where most millionaires are made. So how can that be? There are many creative and motivated people starting their own business these days. The failure rate is more a result of the owners not knowing how to run a business. When you only need to concern yourself with being the best at your tradecraft it is easy to become an expert. When you then need to combine those talents with managing the company’s books, marketing, hiring, employee management, systemizing the processes, office politics, taxes, marketing budgets, etc. the job easily overwhelms the new owners. Shortly there after, they think it is easier to go back and get a job and leave all those troubles behind.
One alternative to this scenario is to have the owner build the business fast from the start to generate enough revenue to pay for “Good” help. How to select your advisors is the subject of a future post, but for now, pick your advisors wisely. So how do we build our customer base rapidly to start generating cashflow without spending too much of our capital? Here’s my recommendation in order:
- Establish your calendar to manage your time. Too often business owners get pulled in too many directions when they start their business and if they don’t have specific tasks on their calendar, will often miss doing the critical tasks necessary to quickly grow your business.
- Define what makes you unique. If you are not distinguishable against your competition, you will compete on price alone squeazing your margins to minimum levels if not totally eliminating them all together. Yes, some of your competitors will do crazy things when they get close to the end and if you have not carved out your niche and are only competing on price, you will also have to eliminate your margins to stay competitive in the price arena.
- Learn how to write ads, flyers and emails that sell. Know what needs to go into every piece of communication with your target market. I often hear people say that 80-90% of all marketing doesn’t work. The reason all too often is that the message is improperly communicated to the target market.
- Create money magnets for your products or services. All of us are experts in our own field. What we think is “common knowledge” really isn’t common. Leverage your knowledge by creating articles, pamplets, etc around your expertise. People need and want this information to help them decide to make a purchase.
- Learn how to leverage online services to market your money magnets and your product or service. There are so many areas this could cover and a well thought out plan can go a long way toward building your client base quickly. Social media is often looked at as the way to do this but as my post yesterdayon social media pointed out, it is only one online tactic.
The five steps above are the subject of an upcoming 5 simple steps marketing package for new business owners I am developing. If you would like to be on the list of people to recieve this package, please send an email to firstname.lastname@example.org. I will limit the pre-production number of packages to 50. Pre-production price is $127 for all 5 modules.
To schedule a 30 minute complimentary call with Roger to discuss your Marketing plan, visit this site and pick a time, slots are limited: https://my.timedriver.com/67LS1
Other resources to this issue are:
Managing your Cash Flow
How Healthy is Your Business – Business Health Check
Cash Flow Pamphlet
14 Most Common Business Owner Frustrations & How to Fix Them.
8 Biggest Sales Mistakes Small Business’ Make and How to Fix Them
Roger Hawk is the host of “Hawk’s Eye On Business: KBOI News Talk AM670” and has been coaching, teaching & consulting Businesses for over 18 years. He’s been seen in Who’s Who, Virginia Tech’s Scholar Library, Eagle informer and various social media forums. He serves on Eagle’s transportation committee, and has created numerous support tools to help Business Owners become financially successful.
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