Your EnterQuest Bulletin - Issue 178
 |
| Thought for the week: "Ability will never catch up with the demand for it." Malcolm Forbes |
|
In this week's issue:
If
you have any questions about your business idea or target market, or need help tracking down a grant, subsidy or business support
in your local area, then send an e-mail with your query and location to the EnterQuest
information team and we'll do our best to help.
Send
your question to enterquest@cobwebinfo.com.
 |
To
access over 800 factsheets, guides and small business reports, go
to www.scavenger.net. |
Deadly small business marketing sins and how to fix them
Over the many years that we've worked with and supported start ups and small businesses, something that stands out are the two consistent areas where new business owners tend to fail, or specifically the business areas that they fail to understand.
Lack of financial acumen is one such area, which we'll cover in more depth in future bulletins. The other is marketing failure, which we'll tackle here today.
OK then, so what exactly is it that causes marketing failure, and what are the common deadly sins that start ups and small business owners need to address as a priority?
Sin 1: Not having a marketing plan
David Frey, marketing guru and author of our UK Small Business Marketing Bible, has made the point that studies have proven that small businesses with a marketing plan are more likely to outsell and outperform their competitors. But small businesses that have any sort of marketing plan are in the minority.
Here are a few quick tips to help you create your first marketing plan:
- Tip #1 - Start your plan by studying and documenting the specific reasons why your customers buy from you, or why you believe your prospects will buy from you.
- Tip #2 - Create a message (or messages) that focuses entirely on the results from Tip #1.
- Tip #3 - Break your plan down into mini-plans, such as 'referral marketing plan', 'advertising plan' and 'publicity marketing plan', which will focus on delivery of the message in Tip #2.
- Tip #4 - Review your plan on a weekly basis to monitor and fine-tune your efforts and tactics continually.
Sin 2: Forgetting to sell to your current customers
Many small business owners believe that once you sell your product or service and the happy customer walks out the door, the deed is done and you need to move quickly on to the next prospect. While that's true, your next prospect might also have just walked out the door!
Many business owners tend to think, "My customer just bought a widget from me - they're not going to buy another widget so why waste my time on them? Let's find a new prospect". This is especially true if your product or service is a high-ticket item. The fact is that you should be getting 60% to 70% of your business from your current customers through referrals and repeat business.
In your marketing plan you should be including customer appreciation events, monthly or quarterly newsletters, and direct mail offers all designed to stimulate repeat business. In addition, every small business should implement systems that generate "multiple streams of customer referrals".
Sin 3: Not testing and tracking your marketing efforts
A great retailer once said, "Half the money I spend on advertising is wasted; the trouble is I don't know which half". There's nothing worse than spending money on a marketing campaign and not knowing whether it worked. It's even worse when you continue to spend money on a marketing campaign that you think is working, but really isn't.
The only way to invest in your marketing efforts with confidence is to test a campaign, track it and measure your results. That's why it's always worth offering something of low risk, like a special report, video or audio CD, to get people to respond immediately via the phone or your website so that you can track your response.
This strategy also allows you to capture your prospects' contact information so that you can continue to follow up with them.
Sin 4: Failing to follow up your prospects
David Frey also highlights the results of a study, done by the Sales & Marketing Executives Club of Los Angeles, which revealed that 81% of all sales happen on or after the fifth contact. If you're a small business owner and you're only doing one or two follow-ups, imagine all the business you're losing.
Not following up with your prospects and customers is the same as filling up your bath without first putting in the plug.
If you follow the advice given in Sin 3, you'll have all the information you need to follow up with your prospect. The first key to creating a successful follow-up marketing programme is to create a lead capture system that is accurate and reliable.
The second key is to develop compelling follow-up marketing literature that will drive traffic to your website or phone calls. The third key is to systematise the process so that it happens day in and day out.
Sin 5: Spraying and praying instead of focusing on your niche
Despite what you might think, not everyone is a good prospect for a product or service. If that were the case, why would you spend your precious marketing budget trying to reach them? It doesn't make sense. If everyone is your prospect, no one is your customer.
Unfortunately, too many small businesses try to use the television, radio, newspapers and other 'mass' media channels to 'spray' their message to everybody and 'pray' that enough people see or hear it to make it worth the investment.
Instead of spraying and praying, find out exactly who is buying your products and services, and market to people just like them. If your prospect is 45 years old, is married, has three kids, makes over £40,000 and owns two cars, find out the areas where those people tend to live and market only to them. Your response rate will go up and your cost per sale will go down when you begin to target your market.
Sin 6: Doing the same as everybody else
Did you know it's estimated that your prospect receives, on average, over 3,000 marketing impressions a day? With all that clutter to compete with, how do you make your small business stand out?
How do you differentiate your business in a way that separates you from the competition? Is it with ads that say 'best prices', 'biggest selection' or 'superior service'? Everyone else is saying the same thing! You need to differentiate your business in a way that stands out from the crowd and gets noticed.
A simple way to do that is to keep a close eye on the marketing methods used by other businesses outside your sector that really capture your attention and make a note of them. Then borrow and modify those strategies and ideas to create your own unique and compelling message.
While it's true that the majority of small business owners are committing one or more of these sins, you can do something about it to improve your results and prospects of success. In a practical sense, the challenge for you is to take just one or two of the marketing sins that you're committing and focus on improving them. When you've got them nailed, move on to another sin and overcome that one as well.
Achieving the success you want for your business will only happen with a genuine commitment to making small, continual improvements to your marketing over time. So get started on this today, and don't let up on it.
 |
For hundreds of practical tips and techniques about finding new customers, increasing sales and growing your business, check out the UK Small Business Marketing Bible. |
How to get your official paperwork right
Companies House estimates that every week it rejects around 100 error-strewn documents that have been submitted by businesses. These documents range from registration forms for new limited companies to company accounts that have to be filed every year.
Under the Companies Act, Companies House can reject documents that can't be scanned electronically, and you're obliged to deliver an acceptable copy within 14 days or risk a fine.
Here's a quick checklist of tips to bear in mind when preparing and submitting documentation to Companies House or any other official body:
- Documents should usually be A4 in size, on plain white paper with a matt finish.
- Text should be black ink or printed in black, in a clear, legible business font such as Verdana or Arial. Don't use coloured ink as this can disappear when a document is copied or scanned.
- Make sure any photocopies are clear and sharp - faded or grey copies won't scan well.
- Send documents unbound and unstapled.
- Double check telephone numbers, postcodes and company registration numbers to make sure they are correct - this is one of the biggest areas for errors.
- Give the correct address details, remembering to provide a personal address and not a business address where that is required, and vice versa.
- Remember to sign and date the form clearly.
For more guidance on ensuring that your paperwork is up to scratch, visit the Companies House website. You can also check out our informative guide to setting up in business as a private limited company, and our factsheet about preparing and submitting company accounts, for more practical tips.
Working for yourself is good for your health
Self-employment could be good for your health, despite the long hours and stress that sometimes accompanies running a business.
An independent report commissioned by the Department for Work and Pensions (DWP) has concluded that being in the right type of work boosts self-esteem and quality of life.
Being out of work is correlated with higher levels of obesity, and increased rates of disability and mental health problems than in the general population.
But if you do find life stressful, here are some tips to help you cope from Dr Trisha McNair, described in full in the health section of the BBC website.
- Think differently about your work - be positive.
- Target the causes of stress - reorganise your life.
- Stop being a victim and find a positive strategy to combat the problems you face - try relaxation exercises, for example.
Internet threats
Security firm Sophos has published a report on the top ten malicious software threats currently plaguing PC users. Many of the worms or viruses on the list have been around for a couple of years but are now present in new versions, which underlines how important it is to update your security software settings continually. Here's the list - click on each nasty for details of how to deal with it.
1) Netsky-P
2) Mytob-AS
3) Bagle-Zip
4) Nyxem-D
5) Netsky-D
6) Mytob-C
7) Mytob-E
8) Mydoom-O
9) Zafi-B
10) Mytob-FO
You can check out our guide to PC and Internet security for more practical tips about keeping your computer safe from viruses, malware and other online threats.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know what the term 'apropos' means?
a) officially approved or agreed
b) related or appropriate to
c) in draft form
d) adjacent to
Answer at the end of the Bulletin.
Rubbish provides inspiration for entrepreneur
A New York man has set up a business selling rubbish that he finds on the streets. The Guardian reports how the project came about when Justin Gignac wanted to prove to colleagues at MTV his theory that packaging was important. He now packages rubbish, such as coffee cups and subway tickets, into cubes and sells these on as souvenirs or pieces of art for up to $100. He is looking at franchising abroad and expanding to also sell wall-hangings made of rubbish.
New trap for cold callers
Beware cold callers - councils are creating more exclusion zones to stop you knocking on people's doors. Initially created to deter "chuggers" or "charity muggers" (the increasingly aggressive strain of charity fundraisers), the No Cold Calling Zones are being marked by signs warning door-to-door sales folk to steer clear. Some of the first zones were set up in Angus in Scotland and Enfield in London, the BBC reported. The phenomenon is set to spread - according to the Trading Standards Institute, half of the UK's local authorities and five London boroughs are now experimenting with the idea.
Online stamps available
The days of popping down to the Post Office to send off the items you've sold on eBay may be coming to an end, as Royal Mail introduces a new online shopping facility for stamps. You can choose from first, second and international delivery stamps and pay for them by credit card. You then print off your stamps, which come in the form of a unique barcode. Royal Mail hopes the 24-hour service will reduce queues in post offices.
Networking website for women in business
Forward Ladies is a networking website set up by a group of businesswomen who benefited from regular lunch meetings. The website includes details of events the group is organising, as well as a 'business opportunities' section where members can look for partners or investors for their ideas. Members can also post job vacancies on the site, as well as take advantage of special offers from associated firms.
Facts, figures and tools about local food and drink
Regional Food and Drink is a really useful website for small food and drink producers who are looking to expand their market. You can register free of charge on the site, which then puts you in touch with your regional food group. In addition to the producer directory, there is also a section for buyers looking for new products for their stores. On top of that, you'll find food facts and recipes, special offers and events.
This book aims to tell the stories of how 30 inspirational entrepreneurs got their eureka moment. It covers ideas that became reality against all the odds, as well as those that seemed buzzworthy at the time but lacked staying power. Each entrepreneur is profiled in-depth, and you can even benefit from reading some of their personal philosophies. Even Sir Richard Branson reckons this book is "essential reading for every budding entrepreneur". Check out:
Just one word answer
The answer is b).
Apropos means appropriate or in relation to.
You need to be as clear and legible as you can apropos your official business paperwork. |
Visit www.enterprisequest.com to access all back issues of the EnterQuest bulletin. If you have any feedback or suggestions for us to make this service more relevant please e-mail your comments to enterquest@cobwebinfo.com.
If you wish to discontinue your subscription to EnterQuest please click on the 'SafeUnsubscribe' link at the bottom of the bulletin.
Remember that we guarantee never to sell or give your e-mail address to anyone else.
Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
