Small Business Marketing Stategy

So what's your small business marketing strategy? I'm willing to bet that close to 85% of the people reading this are scratching their heads now. Many small business owners fail to create a marketing strategy at all, instead focusing on tactics.

Let me give you one of the definitions of strategy from the fine folks at Merriam Webster: a : a careful plan or method : a clever strategem b : the art of devising or employing plans or strategems toward a goal

So a strategy is a plan and the implementation of that plan. Tactics are merely the methods with which which you carry out that plan.

Planning is important in small business marketing for a few reasons:

-Planning helps insure you keep a consistent marketing effort.
-Planning helps you set goals and move towards reaching them.
-Planning helps you set and stick to a budget.

Many small business owners are intimidated by the idea of a marketing plan. They think it needs to be a huge formal document with financials and charts. It can be that, particularly if you are going for funding. However, if you are just in business for yourself, your marketing plan can be very simple.

Here are some items I think it should include:

-Your overall vision, value proposition, and unique selling position
-A list of your target markets, and what you know about them
-Your budget for marketing
-A list of strengths and weaknesses with the customer facing side of your business.
-A list of steps you are going to take (I recommend a marketing calendar)
-There are three ways to increase your revenue, and your plan should take each into account:

1. Increase your number of customers
2. Increase the amount of your average transaction
3. Increase the frequency at which your customers buy from you

Most marketing efforts I encounter focus only on #1. However #1 represents the most expensive, difficult, and slow method for increasing revenues.

Remember that marketing is not just advertising and PR. Your plan should encompass your customers' entire experience with you. It might include changing the way you answer the phone, more frequent followup calls, cleaning the bathrooms at your store more often, adding plants to your reception area. your plan also might include some kind of customer satisfaction survey, maybe during followup calls or during a visit to your business.

Your plan might also include presenting your products or services better, or repackaging them in different ways. It might have you creating a new brochure, or giving sales training to your staff.

Your plan should include the tactics you want to use, and a budget for each tactic.

There's an old military aphorism that goes: Even the best possible battle plan has not survived first contact with the enemy. This basically means that the unpredictable always happens - it's what makes life interesting. Do not be afraid to revise your marketing plan to respond to changing conditions. However, you still need a consistent and intelligent marketing effort.

You should be able to capitalize on new opportunities and respond to new challenges.

Plan and stay consistent - you will outpace most of your competition.

20 Small Business Tips, For Success

These are just some general tips to keep in mind as you design/operate your small business:

1. Take the time out to explore and understand whether or not you are compatible with running our own business. Some people are just plain happier and better off financially on the other end of the paycheck.

2.Get your personal finances in order. Before you jump into the entrepreneurship world, get your own money matters squared away.

3. Pick your niche. Many small business owners succeed in businesses that are hardly unique or innovative. Take stock of your skills, interests, and employment history to select the business that is best suited for you.

4. Benefit from your business plan. The exercise of creating a business plan is what pays the dividends. Answer the tough questions now before the meter starts running.

5. Do not think you need bankers and investors at the outset of your business. The vast majority of small businesses are bootstrapped.

6. Acquire the proper background. In the early months and years of your business, you will have to acquire many skills. Gain the background you need to oversee all facets of your business well, but determine what tasks you should outsource or hire employees.

7. Remember that nothing happens until a sale is made – How many good products go nowhere because they do not reach the shelves? Sales drive your business. You will need a good marketing plan to sell your product or service.

8. You have to see a customer to know one. N o matter how busy you are, spend at least 25% of your time with customers. You cannot make the proper business decision without understanding their viewpoint.

9. Solve your customers’ problems. The best way to satisfy your customers is not by selling them products but by giving solutions to their problems. There is a big difference.

10.Quality takes minutes to lose but years to regain. Quality is not a destination, it is a never ending journey. After you have strayed from quality’s path, your journey maybe sidetracked forever.

11. Put profitability first, rewards seconds. In small businesses, profitability must come first. Find out how to measure your cash flow and understand key financial ratios.

12. Hire supporters. If you intend to create a growing business, your number one duty is to assemble a great team of employees.

13. Do not do it alone. Find such help from small business peers, a mentor, even trade associations. They can help take some of the trial and error of beginning your business.
14. Vendors are partners too! Treat your vendors like customers and watch your partnership grow.

15. Make use of benefits. Understand how to provide insurance and other benefits for your employees and cut your tax bill at the same time.

16. Ignore regulatory issues at your peril. Federal, state, and local governments require licenses, registrations, and permits. Obey them or face losing your business.

17. Know the tax laws. Invest in understanding tax issues that affect your small business.

18. It’s the people! Whatever happens to a small business happens at the hands of the people who work for it. The evolution of the business is a result of their efforts.

19. Fast, good, cheap. Pick any two. Serious trouble awaits those who attempt to be all three in the market place. Stick with what you do best.

20. Develop a passion for learning. As your business grows, you need to change and grow along with it. One common denominator can be found in all successful business owners and that is a passion for learning.

Advertising vs. PR in Your Small Business Marketing Strategy

A great small business marketing strategy includes a mix of tactics. Advertising and PR are two very important tools that all small business owners need to be using regularly. Many small businesses I talk to do one of the other, but don't commit to doing both. Each has its strengths and weaknesses and are complimentary to each other.

Small Business Advertising Strengths:
-The biggest advantage with small business advertising is your complete control over the message. You get to focus on whatever you want, write the text, and choose the visuals. You ensure that your marketing message is delivered.

-You control placement. You choose the exact timing and media in which your advertising is placed. This is a huge advantage because naturally you are going to choose to place your ads where your target market is most likely to see them.

-You can repeat your messages over and over again. Effective small business marketing incorporates a high degree of repetition and consistency. Advertising can and should be run on regular schedules.

-With advertising, you (and your budget) control your marketing saturation. You can run the same ad across different publications serving the same market, run matching Internet advertising, put an ad on the radio, do cable TV, do outdoor advertising, etc. Ideally you need to be reaching your target market at least 4 different ways for them to respond.

Advertising Weaknesses
-Advertising generally costs money. Most small businesses don't have a huge budget for marketing. Sometimes being creative can help defray costs. Sometimes you can trade for advertising space. You may be able to do co-op advertising.

-Small business advertising needs to be very targeted to be effective. Sometimes the only choices you have in your community are mass-market like newspapers. You still need to advertise, but some of your marketing dollars will be spent to advertise to people who don't want or need what you're selling.

-Most small business advertising stinks. I hate to say it, but it's true. Many do-it-yourself advertisers don't understand that there are advertising fundamentals that work. A good ad will always out-pull a bad one. Here's my plug: If you can't invest the time and money to learn how advertising REALLY works, get yourself a small business marketing coach to help you build more effective campaigns. It will be money well invested.

PR Strengths:
-It's FREE! OK, you might incur a very small charge if you hire someone to write and distribute a press release for you, but this is minimal. I think the reason why most small businesses don't do PR is that they don't know how it's done. Again, get some coaching, or pay someone to do it for you.

-Press is trusted more than advertising. If you read a review that says that a new restaurant is the best thing in town, there's some credibility there. We tend to assume that a person who is writing an article is an expert, and that they are an uninterested third party.

-You can distribute PR globally. As long as what you are doing is actually interesting globally, you can distribute your press releases globally. This isn't necessarily as targeted as your advertising needs to be, but you're not paying for editorial. By the way, never pay for editorial, and don't advertise with media that promises to give you editorial as long as you advertise. This is unethical and transparent - and the credibility of the media will always be in question.

PR Weaknesses:
-You have no control over what the press is actually going to write or say about you. They may spell your name wrong, they may get some details wrong, they may choose to focus on something you don't want to highlight. In general this isn't a big issue, as long as they are saying good things about you.

-PR tends to be single exposure. Unless circumstances are really unusual, the press is not going to run the same story over and over again. I have been involved with an exception to that. I was doing something that corresponded with a current event and the press came to me again and again over 4 weeks for TV interviews. This was pure timing. It's difficult to engineer press like that without seeming mercenary.

-There is no guarantee that you're even going to get coverage. I was called to do a TV interview once and rushed into the city to meet the reporter and photographer. On my way in ,the reporter called me on my cell phone to tell me they were pulling the story because there was breaking news that they had to go cover. Depending on what's going on you may get tons of press or none at all.

You see that small business advertising and PR are different things. You need them both, and you need to work at both of them consistently. They are two important tools in your small business marketing toolbox.

Six Sigma for Small Business

It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results. Yet, it is incorrect to think that Six Sigma process improvement results can only be achieved by huge organizations. Small businesses can also succeed in implementing Six Sigma and reap the process improvement benefits that Six Sigma provides.

Certainly, there are factors that can be disadvantageous for implementing Six Sigma in a small business rather than a large business, such as lack of resources and expertise in change initiatives. However, there are also characteristics inherent in small businesses that can speed up the effective implementation of Six Sigma more than in large businesses, such as flexible process flows, a shorter decision-making chain, and higher visibility of senior management.

Six Sigma can work in any size business because the nature of Six Sigma is dependent upon characteristics inherent to any business, not on the size of a business. Six Sigma MAIC (measure, analyze, improve, and control) disciplines work no matter the size of the organization or even the size of the Six Sigma project.

Small businesses do have constraints that limit their ability to initiate a large scale Six Sigma implementation. However, there are ways to overcome these limitations. Small businesses don't have large reserves of excess cash to earmark for the massive training programs employed by the large corporations in implementing their Six Sigma programs. Small businesses generally can’t afford to have full-time Master Black Belts on staff and may not have the personnel with the skills and expertise to step into the role of Black Belts without extensive training. A certified Six Sigma consultant can act as your Black Belt for the initial projects until you have generated sufficient savings to be able to provide some of those savings for training your own people. Training happens at a slower scale for smaller companies but it still happens. Financially, savings realized from the first set of projects usually justifies the entire cost of the Six Sigma training.

Once some members of the organization have been trained as Green Belts, Six Sigma projects proceed with Green Belts executing Six Sigma processes. Incrementally, Green Belts are developed into Black Belts and new Green Belts are trained. Using a more gradual training approach addresses many of the constraints of smaller companies and allows them to implement Six Sigma at a pace a small business can more easily manage.

There is a benefit to implementing Six Sigma in a smaller business. Because of the size of a small business, the financial results and cultural transformation that stem from Six Sigma will propagate more quickly through a smaller organization. Focusing the Six Sigma tools at virtually any properly scoped project will drive savings to your bottom line and achieve breakthrough change in your organization.