BizBuilding

Turn Your Dream Into A Business

2012-01-26T06:28:00.000-08:00

We all have tons of great ideas, but it’s not that easy to take these ideas and turn them into a reality. Starting a new business is hard, but if you have a desire to create something new and take pride in things that you create, starting a business is very gratifying. Successful entrepreneurs have the independence to be innovative and make bold decisions that can change the future. They are passionate about what they do and being successful at it. When you’re doing something you truly enjoy the work does not seem that hard.

Here are some of the things that go into making your dream into a business reality….

1: Know your vision. You must always know what your big picture is, and what you’re trying to accomplish. Your vision is separate from your mission. The vision refers to the big picture of what you’re trying to accomplish.

2: Know your mission. Your mission is what you’re going to do; it is your purpose. You should use action words like “establish, build, sell.”

3: Know what you’re going to do. Your goals are important, and you need to set targets that also have deadlines associated with them. You should not have more than three goals at any one time.

4: Know why you’re going to do it. For every goal you set, you should have a reason for why you want to accomplish that goal. If you don’t have a reason, then it shouldn’t be one of your goals!

5: Know how you’re going to do it. This is the step that makes a dream reality. You must create strategies related to your goals and objectives. This step is all about the approach and style you will take to what you’re trying to do.

The professional team at BizBuilding (www.bizbuildingstrategy.com) is available to help you develop a Business and/or Marketing Plan that will lead to your business success in 2012. Call today for a complementary consultation (201 914-2737) or email ellen@bizbuildingstrategy.com

Transparency In Non-Profit Organizations

2012-01-25T06:05:00.000-08:00

In today’s economic climate, donors want to know what their contributions will be used for. When an organization provides transparency it fosters collaboration with staff, donors and volunteers that makes the donor feel as if they contribute more than money to the organization’s operation. Transparency helps to develop a relationship with the donor that is long lasting and vital to the organization fulfilling its mission.

Achieving transparency is not easy. In the hectic world of nonprofit management, transparency and financial oversight are often relegated to non-urgent status as staffs and boards at times view these responsibilities as “chores” that do not advance the organization’s mission. But research and experience has shown, time well spent on creating and implementing financial oversight systems and a culture of openness are significantly beneficial in the long run. To maintain relevance, stability and growth, nonprofits should develop systems that are open, compliant and diligent.

Here are some recommended steps an organization can take to achieve transparency:

1. Nonprofit boards should institute formal policies and procedures to ensure that there is responsible management of all financial documents (e.g. budgets, audits, expense reports, compensation, petty cash and invoices).

2. Board members and relevant staff should review, approve and track budget and organizational financials on a monthly basis.

3. Accurate and complete financial records should be maintained at all times.

4. Nonprofit organizations should undergo annual audits or reviews by an independent and qualified financial expert.

5. Clear policies for reimbursement of documented business and travel expenses should be created.

6. Board members should question patterns of spending that seem at odds with stated organizational policies and objectives.

7. Boards should create or enhance their audit or finance committees and recruit directors or committee members with relevant professional experience.

8. Charitable organizations should use the Internet and other electronic media (e.g. blogs, Twitter, Facebook, website, Flickr, YouTube, Linked In, e-newsletter) to disclose information such as annual reports, names of board members, as well as mission and vision statements.

Clearly, the nonprofit sector has come under increased scrutiny by the government and private contributors. Establishing consistent and transparent financial oversight systems will go a long way in maintaining the public trust and cultivating financial support.

NON-PROFIT DONORS DEMAND FINANCIAL OVERSIGHT

2012-01-24T06:17:00.000-08:00

In today’s economic environment, non-profits that watch over finances and share financial, programmatic and other information with their constituents build stakeholder confidence and are far better capable of fulfilling their missions, delivering effective services and adequately addressing donor concerns.

Non-profit finances not only include fiduciary requirements, but also address reporting of capital, personnel and programmatic expenditures. In today’s fast-paced and regulated environment, it is essential that organizations establish a financial oversight committee – separate from the agency’s treasurer and CFO – for major campaign efforts and ongoing operations, especially to assure donors at all levels that the organization has proper procedures and practices.

It is vital that organizations promise donors and other types of public support that they have a special responsibility to maintain trust and utilize funding to fulfill their stated mission. Non-profits today must be diligent in setting policies and adhering to best practices to assure donors that they are in force and guide organizational decision making at all times.

Do You Have A Clear Vision For Your Business????

2012-01-09T04:38:00.000-08:00

A common quality that all successful leaders have is a clear and exciting vision for the future. This is something that only the leader of a business or organization can develop. Only the leader can envision the future and plan for it each day.

Successful leaders take the time to think through and develop a clear picture of where they want their business or organization to be in one, three and five years. Leaders have the ability to communicate this vision in such a way that others "buy into it" and eventually share their common vision.

It is the vision of future possibilities, of what the business can achieve, that arouses emotion and motivates people to give their best. The most powerful vision is qualitative, aimed at and described in terms of values and mission Then to put to put together a quantitative outlook that presents the vision in terms of money and numbers.

Financial forecasts for your business are vital, but the commitment to a common vision and to make that vision into a reality is far more exciting. Positive focus will create the business you envision. Negativity drains the energy from it and puts roadblocks in front of your efforts to achieve success.

A positive leader who is calm and collected creates a business vision and makes it a reality. A recent Stanford Business School study showed that the two most important qualities required for success in leading a business are, first, the ability to put together a cohesive team and, as a leader, to be a functioning part of that team. A key part of a leaders job is to select the members of this team, set objectives, delegate responsibility and be part of the process to get the job done.

The second quality key to a leader’s success was found to be the ability to function well under pressure, especially in a time of crisis. Keeping your cool in a crisis means to practice patience and self-control under difficult and/or disappointing circumstances. The character and quality of a leader is often demonstrated in these critical moments when under fire. It is at these times that everyone is watching, observing and privately taking notes about your performance.

To start the process of developing a clear vision of where you want your business to go and how you intend to get there is to develop a business plan. Access where your business currently is, what has been successful and what has not. Then think about what your business will look like in three to five years.

The professional team at BizBuilding (www.bizbuildingstrategy.com) is available to help you develop a Business and/or Marketing Plan that will lead to your business success in 2012. Call today for a complementary consultation (201 914-2737) or email ellen@bizbuildingstrategy.com

Jumpstart Your Business To Profitability

2012-01-06T06:20:00.000-08:00

Jumpstart your business to profitability in 2012 with a new business, marketing and/or strategic plan.

BizBuilding (www.bizbuildingstrategy.com) providing assistance to small and mid-size companies on issues related to strategy, business planning, finance, and operations, is offering a January 2012 business assessment service to help you write and implement strategies for your business success in 2012.

The professional team at BizBuilding is available to help you develop a Business and/or Marketing Plan that will lead to your business success in 2012. Call today for a complementary consultation (201 914-2737) or email ellen@bizbuildingstrategy.com.

10% discount on all business planning services if you join this blog and/or like us on Facebook

Start The New Year Off On The Right Track….Get A Professional Marketing Plan

2012-01-03T05:43:00.000-08:00

A marketing plan is a blue print for the marketing activity necessary to achieve the goals set out for a business. Well-developed marketing plans are invaluable to a businesses success. A good plan will target available resources in the most efficient and effective way to enable the business to achieve its objectives. There is no better time than the beginning of the year to develop business and marketing plans to achieve these goals.

Here is a snapshot of some of the components that are part of an effective marketing plan:

1. Define Your Business:
- What is your mission?
- How do you go about achieving this mission?
- Who are your customers and what are your sales channels?
- What makes your business unique and sets it apart from your competitors?

2. Define Your Objectives:
-These may include one or all of the following -
Ø Increasing sales from existing customers
Ø Getting new customers
Ø Increasing profitability
Ø Launching new products or services
Ø Moving into new geographical areas or opening up new markets
Ø Raising awareness of the business or brand
Ø Developing new distribution channels

3. Identify Your Target Markets:
-Types of customers or clients that your products or services will be sold

4. Develop Timeframes:
-Break down the achievement of the objectives by timescale
-Set out what needs to be achieved in the short, medium and long term

5. Marketing Methods:
-Tactics could include:
Ø Direct Marketing
Ø Graphic design (logo, brochures, leaflets, point of sale)
Ø On-line marketing
Ø Search engine optimization
Ø Public relations
Ø Sales promotions
Ø Channel marketing

- Factors that decide which marketing tactics will be most effective include:
Ø Available budget
Ø The nature of the type of target market
Ø Main sales points of the business
Ø Services and products
Ø Competitor activity
Ø Market conditions
Ø Availability of suitable media

The professional team at BizBuilding (www.bizbuildingstrategy.com) is available to help you develop a Business and/or Marketing Plan that will lead to your business success in 2012. Call today for a complementary consultation (201 914-2737) or email ellen@bizbuildingstrategy.com

Fall Fundraising Strategies

2011-09-14T05:00:00.000-07:00

At the beginning of September businesses typically try newthings to gain momentum after the summertime lull. For non-profit organizations September is thestart of the new fundraising season. Thisis an important time of year for fundraisers, because approximately 50% of allmoney raised from individuals comes in during the last quarter of theyear. So right after Labor Day non-profitsmust have a fundraising plan in place and ready to be implemented.

Here are some unique fundraising concepts that you can tryto enhance your current fundraising strategies….

1. Anniversary donors. These are people who have given during the fall season inprevious years. Treat them like the valuable supporters they are. Use livestamps or first-class postage. Use handwriting on their mailings. Send themcultivation communications early in September and communicate your recognitionof their loyalty to your organization.

2. Integrated campaigns. Give your donors the opportunity torespond to your campaign using whatever channel they prefer: mail, email, web,phone, mobile, social media. Make it easy for your donors to contribute usingwhatever method they are comfortable with.

3. Milestone mailings. Every year, there is a segment ofyour support base who reaches a noteworthy level of giving – e.g. 10 years, 20gifts, $1,000 of lifetime giving. These loyal donorsdeserve to be acknowledged. This type of recognition can increase participationlevels … and is a wonderful donor-focused stewardship practice. Never, neverlet your donors feel they are taken for granted. Personalized appreciationavoids that anxiety from creeping into their thinking.

4. Mail earlier AND later. Mail delivery is getting slower. In2011, nonprofit mail is arriving in-home at least one week slower than previousyears. So, mail your holiday appeals earlier. However, email and social mediaposts must be time-sensitive, so send those closer to the actual holidays and year end.

5. Be donor-aware. Before contacting a donor be aware ofwhat is happening for them. For exampleif a donor is from an area that recently suffered thru a hurricane be sensitiveto the fact that they might be in a difficult situation. Ask how they are doing before asking fortheir donation. Even if they can’t givethis year they will for sure remember your care and interest next time around.

6. RelationshipBuilding. Remember that donors are part of yourorganization’s family. Build andmaintain this relationship. Maintaincontact with them, show interest in them beyond their donation, and acknowledgetheir personal life events.

Donors say “yes” more often in the fall. They should becelebrated for that. Developing relationships with people who are interested in your cause will enhance your organization. The potential result is increased revenue per donor andincreased donor retention rates.

Using Your Website To Effectively Promote Your Non Profit Organization

2011-08-23T06:01:00.000-07:00

Your website is the home of your organization on the Internet and nothing is more important than making sure it attracts your followers. More specifically, your site has to excite your target audience (not users in general, but the folks you need to engage to move your mission forward) to facilitate the type of actions and interactions you want… such as online giving, contacting your organization for more information, registering for a program or signing a petition.

It is harder to figure out how to donate money online than it is to spend it online. Online giving typically takes users 7% more time than making an online purchase. It’s even harder to volunteer time, or to give away things.

The key to motivating users to give online (or to pursue donating items or volunteering), is to make sure your content is compelling and show’s your organization’s “unique value proposition” or what their gift will be used. One of the ways this can be accomplished is by personalizing your organizations work with photos and video showing the good work you are doing.

Once you convince your followers to support your programs it is important that you make it easy for them to immediately make the donation. This can be accomplished by having an easy to use and secure link to your online account or pay pal connection. If the process is not easy and quick the donor becomes frustrated and frequently gives up.

It is important to remember that your organization’s website is its home and it is important to make guests welcome in this home.

Strategy and Decision-Making

2011-08-10T07:13:00.000-07:00

As an experienced management consultant and Managing Director of BizBuilding, a firm that provides management advice to small and mid-size businesses, I spend a lot of time doing strategic planning and helping companies plan for the future.

With the current economic upheaval I’ve found that my concept of strategy and the way I advise my clients has changed significantly.

First, strategy now seems to be as much about good decision making as good planning. Rather than thinking of myself as the expert architect of a process that will eventually yield strategy, I now work with business leaders to make good decisions…. in real time.

In arriving at these decisions, we draw on some of the tools used in the typical strategic-planning process, but apply them to making the crucial decisions that need to be made multiple times a day by managers and other business professionals.

Second, formulating strategy is an explicitly financial exercise. Understanding the economics of any potential decision is critical. It doesn’t make sense to develop a strategy first and then consider the financial implications, even though that is still a standard planning approach. I now view financial literacy and rigor as job requirements for both business executives and strategic consultants.

Third, I have come to believe that strategy must always be tied to brand. Good decisions reinforce a company’s brand, while bad decisions ultimately tarnish it.

When I start working with managers, I typically ask how they think the marketplace wants them to be NOW. Understanding your customer and knowing their needs is crucial to having a successful outcome. In the past many consultants worried that this question was only concerned with the end result….making a profit….and did not consider the process (or operational structure needed) to get to this end. With the economic strain that many businesses are under now, keeping true to your customer (and financial implications) is vital.

As the recession and its aftershocks linger, the margin for error financially and strategically is extremely thin for most businesses. Strategic consultants who emphasize helping managers make the best possible decisions on behalf of their company—as quickly as possible—provide the greatest help and return on investment.

Survival Plan For Tough Economic Times

2011-08-09T08:55:00.000-07:00

As discouraged as you might feel, there are things businesses can do today to get by in these challenging economic times.

Businesses can survive and position themselves to be ready as the economy improves. The two primary strategies are to minimize cost and maximize revenue…a difficult task, but not impossible.

Survival Plan

· Cut Waste: Use business resources only to improve customer value.

· Stay Lean: Focus on operational efficiencies.

· Review Resources: Regardless of the economy it is always necessary to review basic resources including human and financial assets.

· Re-negotiate: The recession is impacting vendors and suppliers. Make sure you are talking to those who supply resources your business needs. Establish a payment plan that you can live with. Most vendors would rather have something rather than nothing.

· What Makes You Special: Define your unique value proposition. Why your customer should use your services rather than competitors.

· Keep Customers: Make retaining your customers a high priority.

· Know Who Your Best Customer’s Are: It the old 20-80 rule. 20% of your customers produce 80% of your sales. Keep in touch with them and consider offering Rewards for your most valued clients.

· Promote Your Business! It is more important to do this in a down economy than during normal market conditions. Businesses should allocate at least 3-5% of Gross Revenue to marketing. You must find low cost but effective ways of doing this. One dollar invested in marketing should produce three dollars to your bottom line. E-Marketing is most likely to be your best bet. Use websites, newsletters, blogs and social networks.

· Review Your Profit Centers: Eliminate products and or services that are not selling well and or have poor margins. Customers are more likely to be shopping for things they need during difficult times.

· Innovate New Products and Services Offerings: Product development is the life blood of all businesses. Identify what your customers need and fill those needs.

· Think Strategic but Act Tactically: Take time to think about long term planning. It is difficult to get to where you are headed unless you set a direction.

Reinventing Your Business

2011-08-02T12:15:00.000-07:00

Rebranding has become a strong global technique to retain consumer confidence especially when business has gone sour or competition threatens to narrow profit margins.

Some companies also rebrand when they expand their business, if the old brand does not fit well with the new model, or where modern trends demand that the company discard obsolete aspects of their brand.

Experts say branding is about perception — it defines a business or product from the competition. The ultimate purpose of any re-brand is strengthening connections with its customers.

A good example is Chartis Insurance Company Ltd who rebranded immediately after their parent company AIG was hit hard in the financial crisis. The regional branches of AIG in Kenya and Uganda also quickly rebranded fearing the shadow of the financial crisis would cause customers to flee to other companies. AIG maintained that its brand, associated image and public perception were important factors for its business and tried to discourage the rebranding. Chartis survived because they managed to convince their customers that there was a distinction between it and the old company.

Another example of successful rebranding is India’s Bharti Airtel who dropped Bharti from their name retaining only “airtel” with all letters in lower caps in its India market. This mobile telephone company later rolled out its new brand across its global footprint in Asia and Africa The new identity gave them the opportunity to present a single, powerful and unified face to customers, stakeholders and partners around the world.

Successful rebranding requires the company to inform the public why it is making the change and how the new company will look. Keeping the public informed of their actions helped to make the change more acceptable.

Birthday Marketing….

2010-04-15T14:14:00.000-07:00

So today is my birthday…and I’m having a lot fun!!

It is nice to have one day a year to feel special and do something completely out of the ordinary. It is also a great time to review what happened during the previous year…achievements, personal growth, disappointments... and plan for the coming year. I always enjoy celebrating with family and friends…also hearing from people that I’ve lost touch with. It seems birthdays are a good time to renew and strengthen relationships. This year several major retailers tried to build their connection with me as a consumer by celebrating my birthday with me!

About three weeks ago I started receiving beautiful cards from many of the retail stores where I shop. These are stores where I either belong to their loyalty club or signed up for email updates. Each card included some sort of enticement to get me into their store (or to sign into their on-line store). Anthropologie sent a card with a ‘birthday candle” necklace and 20% off coupon. BCBG went one step further allowing 20% off each sale for the entire month of April. Compared to these stores, Brooks Brothers gift was a bit meager offering a $20 off one item coupon.

In the cosmetics department, Lancome was the big winner. They gave five full-size products with any purchase in honor of my birthday. This seemed much more generous than the small birthday sample that Sephora gave me. The Clarins counter in Bloomingdales did not send me anything in advance, but when I mentioned to the cosmetician that was my birthday she filled a shopping bag with many full size products and samples.

So, is sending birthday presents to loyal customers a worthwhile marketing strategy. I say resoundingly YES. First, these retailers successfully got me into their stores, which gave them at least a chance to make a sale. Offering a discount on everything in the store including new merchandise was an incentive to make a purchase. Most new summer items probably will not go on sale until mid-summer so I was able to get them immediately at the sale price. But perhaps most of all, these companies made me feel appreciated and I in turn am now a very loyal and happy consumer that will certainly return.

The companies that sent me birthday presents made me think about the companies that did not. Nobody (not even my trainer) at the exclusive health club where I am a member said happy birthday even though the date is clearly highlighted in my profile. Nor did the expensive hair salon I frequent made mention of my special day. I will not give up my gym membership or change stylists, but I do feel less connected to these places than I did before. In contrast, the retailers that did send me birthday wishes and presents in most cases got me to make a purchase I probably would not have made had I not gotten the birthday card. They definitely strengthened my loyalty and connection to them.

Know Your Customer

2010-03-14T11:57:00.000-07:00

Every business knows that to survive and succeed it needs customers. Unfortunately too many businesses treat their customers like secondhand citizens who are merely their means to an end….turning a profit. Businesses frequently enact policies that negatively impact the consumer and cause such bad feeling that the client closes down the relationship and the business not only loses a customer, but also has its reputation tarnished. A company’s success is contingent on providing excellent products (or services) and also making sure customer needs are satisfied in a positive and pleasant manner.

An exclusive hair salon in NYC recently found that many of its long time clients were cancelling their regularly scheduled appointments. Each week they were serving fewer customers and most of these were first timers. When they called the BizBuilding team to help them figure out and fix the problem business was already down by 40%.

The first question asked was did the salon recently alter its business model or pricing? The salon owner insisted that nothing had significantly changed. Our team decided to do a customer evaluation with former clients of the salon. They all gave a similar response: They loved the services they got at the salon and the stylists were all top quality. Most of these consumers said when they left the salon after a haircut or color service, they felt special and looked great.

Then a few months ago the salon instituted a new policy: there would be an extra surcharge of $60 ($75 for long hair) to get a blow dry after a service. The customers were outraged. They did not want to spend the extra money for a process they thought should have been part of the already expensive service. When the salon owner finally acknowledged this change in policy, he explained that the blow dry process took too long and a stylist could see three more customers per day without having to do it. The surcharge made up the margin. He had not considered that his customers would have such strong feelings about this change in service practice and pricing.

The BizBuilding team came up with a solution that increased the profitability of the salon while satisfying the needs of the customers. The salon hired two style assistants who were solely responsible for complementary blow-drying. This freed up the senior stylists to see more clients. The increase in customers paid for the new hires and increased revenue. All clients in the salon database were sent a letter explaining the new procedure and offered a 20% off discount. They returned and business at the salon is better than ever.

Customer surveys and evaluations should be a standard part of business practice. Understanding customers changing needs and if they are happy with the way you do business is vital to keeping a business lucrative. Decisions to make strategic changes in the business practice must be reviewed with respect to consumer tolerance of these changes. Ultimately having satisfied and happy customers is the best way to achieve profitability.

Micro-Loans 101: A Credit Solution For Small Businesses

2010-03-12T04:33:00.000-08:00

When people hear about micro-loans they automatically assume it is an advantage for small businesses in developing countries. But the reality is that these small short-term loans are available in the United States. These loans are especially helpful during times of economic stress and often carry a business thru a few months of difficulty allowing it recover and even come back stronger.

The information below contains all the facts you need to know about micro-loans and hopefully will be a starting point to helping some entrepreneurs get through the current credit crunch.

What are micro-loans?

Micro-loans are small, short-term loans made to people who do not have access to more mainstream lenders such as banks. Making and servicing a loan involves administrative costs for lenders, therefore they will often refuse to make loans that are too small, to people that lack collateral, or to people that do meet their risk standards.  

Micro-loans were originally designed to help the very poor in developing countries get access to enough funds to build a business, but the concept also filled a lending gap in the developed world and today most countries have one or more micro-lending institutions. Although there are many different types of micro-loans, most micro-lenders are non-profit organizations that emphasize helping the poor.

Micro-loans in the United States

Although the concept first gained traction in the developing the world, it was soon realized that micro-loans could also help small businesses without access to bank loans in the United States. The first major micro-lender in the United States was ACCION USA, http://www.accion.org which is still the country’s largest micro-lender and has loaned about $210 million to more than 20,000 small entrepreneurs. ACCION USA is a non-profit organization that offers very small loans to small American businesses that do not qualify for traditional loans. The average ACCION USA loan amount is $5,300 and the loss rate is very low compared to traditional loans. Because micro-lenders are typically non-profit organizations, most micro-loans have very reasonable interest rates, as well.

Micro-loan borrowers

Mico-loans are generally targeted to very small businesses run by one or two people, such as independent child-care workers, caterers, small restaurants and food businesses, and small specialty shops. Independent contractors – like construction workers or craftsmen – are also frequent recipients of micro-loans. Micro-loans are also popular short-term bridge loans for slightly larger businesses, to help with immediate cash flow issues.  Many micro-lenders focus on lending to entrepreneurs in immigrant communities who cannot qualify for mainstream loans. Small businesses in poor or depressed areas also tend to receive more micro-loan attention than those coming from affluent areas.

How can you qualify for a micro-loan?

There are currently more than 250 micro-lenders operating in the United States, each with its own focus and minimum loan-qualification requirements. Small business loans from ACCION USA require the applicant to have a credit score of at least 575, not to have filed for bankruptcy in the previous twelve months, to be current on all bills and expenses (especially rent or mortgage payments), and to have less than $3,000 in outstanding debt. Small businesses must also be operational, have all licenses and permits necessary to conduct business, and have a regular cash flow sufficient to make monthly loan payments. Other micro-lenders have other standards, some of which are considerably less stringent than those of ACCION USA.

Micro-loans and the current economy

Not surprisingly, the recession and credit crunch have seen a large increase in applications for micro-loans. Although the default rate on micro-loans has increased some, it has not come near the levels seen in most other lending sectors. Most non-profit micro-lenders receive a significant portion of their operating capital from the government (via the Small Business Administration and a separate fund administered by the Treasury Department), so they have remained active lenders throughout the crisis. While larger loans – those of $10,000 or more – have become less common, small loans of between $3,000 and $8,000 have become easier to obtain. The loans are small, but they are often more than enough to solve temporary cash flow problems or to launch small business start-ups.

To Be Or Not To Be On-line: Is It Important To Small Businesses?

2009-11-28T14:37:00.000-08:00

For most of us, what we do in business is a compromise, between what we would like to do, what we should do, what is practical for us to do, and what we can afford to do. Indeed, in striking these balances we strive to make the right decisions about what is most important to the business.

Why should you take your business online?

Think of it as a meal. There is (often) a difference in what we would like to eat, what is good for us and what we can afford to eat. I still think the same precept holds true. If you are short of funds you might take a sandwich to work rather than go out and buy a Big Mac.

In the context of this discussion the critical decision is "do we really need a website and if so, what kind?"Will our customers use the Internet or do they prefer to have the face-to-face contact? Even with a strong customer base, the Internet allows us to expand our market to those people who make a majority of their purchases online. Now that more women than men are using the Internet, a business owner must ask this question, “Who are my primary customers?” In the majority of businesses it will be women as they are the prime purchasers of most products.

In addition, when it is cold and wet outside most people would prefer to shop online than have to expose themselves to the elements. This is not to say that they would have bought from the Internet as most people like to feel, touch, smell or taste what they buy as it all adds up to the shopping experience. But if the store had offered a special price reduction to buy online with a guarantee that offered satisfaction to the purchaser, might not the customer be tempted, especially if they were having cold weather?

An added factor is that email marketing (customer relationship marketing) helps the business owner create and strengthen loyalty with its existing customers. Whatever the term, building stronger relationships with existing customers is simply good business practice. It's a lot cheaper to keep existing customers than to find new ones.

What are the essentials you need to participate in the Internet market?

You need a website and that is where a number of small companies hesitate as they believe that a web- site is too expensive for them to develop and too technical for them to maintain. A website does not need to be too expensive or too technical. There are excellent pre-prepared websites or software that allow you to build your own.

Consider your website to be your shop window for local business. You would dress your window at least once a month, or more often, to show passers-by what you have to offer. So should your website present information to advise your Internet visitors about what you can help them with/ Internet Visitors are looking for answers to the problems they have. Your information must help them to resolve these problems. Promote your website address (URL) so that newcomers to your area will recognize it as a sign of quality products, good business practice, and great customer service.

Ellen Rosen Singer, MBA, Managing Director, BizBuilding Inc. and Executive Director, WomenTeachingWomen.org - 917 678-8937 ellen@bizbuildingstrategies.com

Essentials For Marketing Your Business

2009-10-05T14:49:00.001-07:00

A good marketing plan is essential for a business to be successful. It doesn’t matter if you are a small business or a major Fortune 500 company, there must be a plan in place that plots out the marketing tactics and strategies for the year ahead. Not only does a marketing plan plot out a direction for the marketing campaigns that will be in place throughout the coming year, but it also allows a company to look back on the plans from previous years to see what worked and what did not.
The foundation of any marketing plan is having a good idea of what your company does, the products it produces and the services it provides. If you don’t understand who you are and what you do then it is almost impossible to target the right people who need or could benefit from your business. Targeting your market will allow you to focus your marketing efforts on a specific group of potential customers that in turn will result in more sales. If you are targeting too many different groups, or the wrong groups you will be wasting your time and your marketing budget.
Once you have figured out who you are as a company, or what your company does, you must develop a ‘Unique Selling Proposition’ (USP) that tells your potential customers the specific benefits they will get if they buy your product or service. Your USP must be one that your competition does not, or cannot, offer. It must be strong enough to attract new customers. This is the basis for all your marketing and advertising efforts. It is the unique advantage you have to sell your business. The USP must be dramatic and memorable. It needs to stand out and attract new business. It should also generate word-of-mouth excitement to drive referrals.

After you’ve built the foundation of your new marketing plan, you need to put together a detailed profile of your target market. With this profile you can identify the perfect customers for your products or services. Your marketing plan must answer three key questions….

• What types of people make up your customer base?
• Where are they?
• What motivates them to buy?

Few businesses ever take the time to answer these - and other - critical questions about their target market in any detail. This information will put you in an excellent position to redirect your advertising and promotional efforts and money, refine your sales methods and tailor your marketing to the specific segments most likely to buy your products or utilize your services and will give you a significant advantage in the marketplace.

Changing Direction

2009-10-01T13:04:00.000-07:00

   A few weeks ago I visited a former client I helped start a business several years ago. At the time, I stood by him while he nurtured his ideas into a great concept and then helped him build this concept into a thriving business. We worked together on writing a business plan and putting together financing. Once he had the money to start the business I helped him find a location, set up operations, build inventories, develop financial systems and so on.

   When this talented entrepreneur finally opened the doors to his upscale store it took off with lightening speed. After only one year it was profitable and it seemed as if it would continue to grow as the years went by. That was five years ago. When he called me two weeks ago to come visit, I was excited to see how things had progressed, to see if he met all the forecasts we cautiously had written into the business plan five years earlier and to see how he was facing the challenges of these difficult economic times. Little did I know that I was in for quite a disappointment!!

   Nothing had changed in all the time that had gone by. Just about all aspects of the business had remained the same over the years. The same customers frequented the store, the same vendors were used, and they used the same marketing materials we had designed at the beginning. When asked why, this supposedly savvy business owner said there did not seem to be a need to change. His customers were loyal and happy. They spent lots of money in his store and for a while increased their spending to the point that he was exceeding his goals. Things were so good he saw no need to make a change… that is until the economic hardships that hit the USA a year ago started to impact him too. All of a sudden his loyal customers could not spend as much as they did at the beginning and many just stopped coming in. He was having difficulty paying his suppliers and everything seemed to be spiraling downward.

   This business-owners story highlights the fact that a business needs to continually develop just like people do. Nothing ever stays the same. It is great to have loyal consumers, but it is essential to constantly grow your customer base because circumstances change. A business plan is a fluid document and the goals it sets forth must be reviewed systematically to assess their achievability. As goals are retired, new ones need to take their place. If goals are not being met the reason needs to be found. Marketing plans also need to reflect the changing consumer base and culture. This is especially important during difficult economic times.

   So it does not matter if business is good for you, or not, find that business plan you did ages ago, read it over, and map out the next direction going forward…..