How To Let People Know
You're Open for Business
Sales and marketing.
The very phrase causes some people
to cringe. It immediately conjures up images of the car salesman who
jumped them the last time they stepped on a lot, or of the local
discount furniture store hawking its wares on cheesy late night TV commercials.
To them, this is sales and
marketing. And they don't want any part of it.
Small wonder. You don't want to
be sold to; neither do your customers. They want the same things
you do: quality products or services at a fair price that they can
get easily.
They want to know how you differ
from your competitors and whether you'll stand behind your sale if
there's ever a problem. They want to make a satisfactory
purchase--just as you do when purchasing from them.
Simple, right? Yes and no. Once
you're in business for a while and have established a loyal client
base, it becomes easier to maintain your cash flow.
But until people know you're open
and ready for business, you're going to have to do some work to get
them to your door. How quickly you do that will depend on your
product or service, your target market, your budget, and you.
Do you have to spend big bucks on
advertising? No.
Let me give you an example:
My hairdresser operates out of his
beautifully decorated converted garage, has a one line entry in the
yellow pages under "Beauty Salons," does no advertising,
has no signage on his property, and yet has a booked solid, six week
waiting list. Women have literally put off seeking emergency medical
treatment to get to their appointments.
Why? Because he's good, he's fast,
and his prices are competitive. He can color, cut, and style your
hair in less than thirty minutes, shampoo, cut, and style in less
than twenty. He's available at 6am or 9pm, five days a week, and the
majority of his clients are professional women who see him before or
after work, or on their lunch hour.
I would estimate his income to be
in the low to mid six-figure range. He'll probably retire before he's fifty.
So what's his secret? How did he
build such a following in less than five years? As I said
before, he's good, he's fast, and his prices are competitive.
Oh, there is one other thing.
A couple of years ago, when his
word-of-mouth business became so good that he thought he might have
to hire someone else to help, he decided to limit his new
clientele to by referral only. He thought that would stem the flow.
It had the exact opposite effect.
Why? The exclusivity appeal. His
clients feel privileged to be included in his client cache, and boast
to their friends that he doesn't see "just anyone." He
could probably charge a lot more than he does and still have a booked
solid schedule.
He doesn't need to spend money on
advertising--his work speaks for itself. His clients are like walking
billboards. One of my friends is always beautifully coifed, so I
asked her one day who did her hair. That conversation lead to my
current patronage.
So how can you get to the point of
almost more business than you can handle?
As I said before, it will depend on
your product or service, your target market, your budget, and you.
Your
Product or Service
If you're selling a service, you
may be limited by your location and/or the number of hours a day that
you can perform the task. If you have a yard maintenance business,
for example, you'll probably limit your clients to a certain
geographic area, like a certain subdivision or a certain part of town
to decrease drive time and maximize productivity.
Therefore, you'll limit your
promotional activity to that area of town you service.
If you're selling a popular
product, you may be limited by production, supply, season, or
perishability. You can artfully assemble only so many flower
arrangements in a day, for example, or you will only be able to
locally sell strawberries from your garden in season.
Your advertising should try to
create urgency to reflect the limited supply. "Order now to
ensure delivery by Mother's Day," in the case of the flower
shop, or "available only while supplies last," in the case
of the strawberries.
Your
Target Market
-
Who is your customer?
- What does he look like?
- What is her occupation?
- How much money
does he make?
- How does she
spend her free time?
Depending on your product or
service, you may think this analysis silly. "I own a dry
cleaning shop," you might be saying, "everyone needs dry cleaning!"
Not true. If you don't have any
clothes that require dry cleaning, you don't need a dry cleaner. If
you can't afford to use a dry cleaner, you either won't buy clothing
labeled "dry clean only," or you'll buy one of those
products you can use at home in your dryer.
To further narrow the field, I can
only think of six men I've known who are fastidious enough about
their appearance to insist on having their shirts laundered by a dry
cleaner. All of them are in positions of authority who, for some
strange reason, usually handle the drop off and pick up themselves.
So I ask again, if you are a dry
cleaner, who is your customer? The answer: professionals, mostly
female, with household incomes in excess of $50,000. This demographic
can afford to buy and maintain special care clothing.
So where do you concentrate your
advertising effort? On those people most
likely to do business with you.
A small ad in a local professional
newsletter will garner more business than a coupon campaign in the
local paper, particularly if you offer some special service, like
pickup and delivery or care for draperies and leather goods. Oh,
you'll get a few people in because of the coupon campaign all right.
But if they find a competing offer in next week's paper, they're gone.
A loyal customer base is
your key to stability, so that's where you should concentrate your
advertising effort.
Define your target market, see
what they
want, and give it to them.
Your Budget
Advertising doesn't have to be expensive.
Advertising agencies will tell you
that "image is everything," and try to get you to spend a
lot of money on a media campaign. But if you allow yourself to think
"outside the lines," you can come up with some pretty
creative, shoestring advertising ideas.
Let's say you've decided to make
money from your favorite hobby, cake decorating. You've been doing
cakes for your family and friends for years, and they've convinced
you that you could make a profitable go of this. You have all your
supplies, but you have a tight, tight ($100) beginning
advertising budget.
How can you get spread the word?
First, make a list of the local
family and friends for whom you've done cakes in the past. Get
their addresses and put them in your computer database (I'm assuming
you have access to a computer or you wouldn't be reading this now).
Go to the post office and get some white, pre-stamped 3x5 post cards.
Use your word processing program to print your data base addresses on
the front and this (or a similar message) on the back:
|
Dear Family and Friends,
This is just a note to let you know
that your kind words have finally convinced me to start that cake
decorating business I've always talked about. It's called "It
Takes the Cake." I'll be doing all those themed birthday cakes
you've enjoyed over the years as well as my famous seven-minute
frosting layered wedding cake with the sugared flowers.
Could you help me spread the word?
As a little incentive, I'll pay you a $5 finders fee for every order
you direct to me over the next 60 days. Business associates, friends,
neighbors, whomever-just have them call me and say you sent them.
I'll pay you at the end of each month for orders filled during the
month. And of course, please call me for any of your own cake
decorating needs-I'll give you a special discount. Thanks for your help!
It Takes the Cake · 123 Main
Street · Anywhere, USA 19001 |
Remember, the best place to
start is your satisfied customers, if you have them. Most family
and friends will be happy to help spread the word, and you'll always
find one or two social butterflies who will bring in repeat
referrals. Ditto on teenage entrepreneurs looking for a quick buck.
Up front advertising cost: .20 per
post card, $5 referral fee (will be paid from your profits).
Secondly, think of your target market.
Who buys decorated cakes? Brides-to-be, Party Planners, Parents.
Contact bridal shops, party
planners, and party supply stores in your vicinity. Ask them if you
could display your business card. You might even want to offer them
the same (or higher) referral incentive you gave your family and
friends. These people could bring you a lot of business if you handle
them correctly, so cultivate these relationships with care.
Up front advertising cost: box of
business cards, about $30; referral fees (to be paid from your profit).
Finally, watch for upcoming
events in which you might be able to participate. Generally,
there's always some sort of local bridal extravaganza every winter to
promote the upcoming summer wedding season and showcases the local
vendors. Ask the local bridal stores if they're participating, and
find out whom to contact for all the details. You may need to buy a
booth (around $50 in most cities), but all media advertising will be
paid by the extravaganza sponsor.
Are you getting the idea? You don't
have to spend a lot of money to go after your target market.
You
Depending on your personality,
you'll favor different kinds of advertising to others.
If you're an outgoing
"people person," you'll be more likely to wrangle an
invitation to speak about your business at the local Professional
Women's group than if you're the quite, shy type.
Similarly, if you prefer anonymity,
you might do well with direct marketing or online campaigns that
allow you to sell with no face-to-face contact. Figure out what's
right for you, because that's the one you're most likely to
successfully execute.
So definition is the key to
spreading the word about your new endeavor. Assess your product or
service, your target market, your budget, and you (abilities,
preferences), then go from there.
Again, planning is the key to success.
Plan your work and work your plan and you can't help but succeed.
Good luck! |
