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 So you’ve gotten your business
going. You have a customer or two. The phone is
ringing…a little. For any business to grow and prosper
long-term, it needs a solid foundation that includes a
marketing plan.
A marketing plan is a road map detailing the “route”
you’ll take to get your business noticed by potential
clients. By following a properly crafted plan, you’ll
know what to do and why you’re doing it, while avoiding
some of the mistakes that can cost you money and future
growth.
“If You Build It, They Won’t Necessarily Come”
The first part of any marketing plan is a basic
understanding of your market, competition and whether or
not an opportunity exists for your product or service.
My first business venture was to make very expensive
looking floral wreathes. All my friends and neighbors had
them on their front doors and I knew I paid $100 for mine,
so why not make and sell them myself! What I didn’t
consider is that I have expensive taste and in order to
make a profit, my wreaths were priced significantly higher
than the local craft store. If I were in a more affluent
area, it may have worked, but not here.
I started the business on a hunch and didn’t truly know
my market or competition. Had I done my research, I may
have used lower cost materials, made less elaborate
products, sold them in a different area or skipped the
venture all together. What I learned is that my opinion
combined with my friend’s opinions is not a strong
enough basis to launch a business.
“No, I’m Not Going to Stop for Directions.”
When starting a business you generally know where you want
to end up and you might have a vague idea of how to get
there, but what if you get lost? A marketing plan is like
a road map or corner gas station used as a reference tool
to keep your marketing on track. If you run into
“construction traffic”, a properly developed plan will
offer options to keep you motivated, organized and headed
in the right direction.
“I Want to Rule the World… Or Do I?”
Do you want a home based business with one or maybe two
employees or a large firm with several hundred? How do you
feel about travel, making cold calls, the Internet, can
you type? How fast do you want to grow and do you have the
resources to keep up with the growth? Your goals as a
business entity will dictate how and to whom you market.
My second business venture was a used toy business. I hit
every garage sale within 10 miles of my home and bought
all of the solid plastic toys I could find. I also put up
signs at day care centers offering to buy used toys
directly from parents. My goal was to have my own garage
sales business and earn a profit on the toys I had bought.
This time, I didn’t consider my personal goals before
embarking on my business. I didn’t like going inside
strangers homes to pick up their toys. I had nowhere to
put the enormous stockpile I had amassed and wasn’t
willing to hire employees to gather enough toys to
generate the revenue to cover a storage unit or store
front. I wanted a little “mom” business, not a full
blown corporation.
Had I considered my true goals, I would have marketed
myself as a service provider to day care centers – found
out what they wanted and would be willing to pay, and then
gone out to find it - no storage issues, no going into
people’s homes, no employees required.
“It’s Report Card Day!”
Even the best marketing plan needs to be constantly
evaluated and adjusted to keep business growth on track.
The results of your efforts may not be bringing in
attention or revenue you require. The economy, business
environment, competition or technology may have changed
necessitating a shift in your plan.
Making adjustments to a marketing plan is healthy. Even if
you paid a mint for a professionally developed plan,
you’ll want to review your status and results at least
every six months to monitor effectiveness. When buying a
plan, it’s important to ask that follow up support to be
part of the package.
“I’ll Just Put It On My Credit Card.”
Before developing a marketing plan, you’ll want to have
a ball park budget in mind. Once your plan is complete,
set a budget and stick to it!
It’s easy to spend more than your annual revenue on
marketing activities and supplies when you first start
out. Make sure your budget is realistic before committing.
Every dollar spent should have a trackable outcome –
even if it takes several months or years to realize.
“Plan Your Day and Work Your Plan’
By following a properly developed marketing plan, you’ll
minimize the growing pains that often accompany a business
start up. Revenue growth will be reasonably predictable
and you’ll be laying a foundation for long term
stability. Your business will run more efficiently because
next marketing steps will have been laid out in advance.
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