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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