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Friday, 7 October 2016

MM Tip #1 - Thou Shalt have a Marketing Plan!

Are you "Flying by the Seat of Your Plans?"

When I worked with the Business Owner Development program, a FEW years ago, it became apparent very quickly that most of the businesses I was helping had no marketing or business plan. In fact, 85% of them were technically bankrupt!

My job in this program was to work with 32 different businesses helping them implement the things they were learning into their own businesses. It was my responsibility to go into each of these businesses once a month for 2 hours and help them with incorporating the program principles into their businesses.

When I discovered that they had no plan whatsoever, we would sit down and draw up a simple 12 month cash flow projection, so we could get some idea of where they were at with their business. I will always remember the expressions on their faces as they realized that they were going deeper and deeper into the 'red' as the months progressed. The realization would hit them that they were 'technically bankrupt'!

All too often people get a great idea or inspiration about a business they could start and just vaguely figure out what some of the key costs are without realizing that there are many more things to take into consideration than just opening their doors.

Once you open your doors, who is going to come through them? How will you attract customers to your doors? Will they want to come in when they get there? Where are you going to find these so called customers? What will you help them with? Why would they want to buy from you? What is your competition doing? Better yet, who is your competition? 
What are your costs of advertising, production, supply, etc?

Most new business owners know what the rent is, internet, hydro, phone...the basics. Then they have no idea how to cover these through their sales of products and services.

Just doubling your cost of materials is not enough. You need to take into consideration ALL your costs, as well as what the market will bear, hence what the competition is charging.

I met with a young entrepreneur a few weeks ago. She had invented some great make-up that was natural and was selling her product for only a few dollars. My question to her was, "How much money do you need to make each month in order to cover all your costs?" Her response to me was, "$1500/month." What do you think she was missing in her plans?

Even if she was living on the street, there is not enough money to pay herself a wage that would cover her basic living needs. She had no idea where she needed to go with her pricing.

Is this you? Are you forgetting all the things you need to consider with your marketing plans?

If so, here's a solution, Rapid-Fire to Retire.

Christine Till
The Marketing Mentress

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