Posts Tagged ‘Advertising’

Promote Yourself To Success

By Eric Gilboord

In addition to or independent of regular advertising activities, there is another area of marketing known as sales promotion. This includes special promotional activities like trade programs to sell more products to your distribution system, consumer programs for sales to end users, sampling, discounts, two-for-ones, bonus packs, premiums, contests, cross-company tie-ins and coupons of all types.

Jack had a ladies wear store in a popular mall. His customers were loyal and he could always count on a steady stream of business while accepting the usual seasonal ups and downs. The mall hosted several other stores also selling ladies wear. Over the past few months, he noticed a drop in sales and less store activity, even on traditional busy days. As the frustration built up, he began to think something different was going on at the mall.

He went for a walk and noticed a lineup at competitors’ store. A big sign read, “Today only meet Judy Jay” —a popular TV soap star. He noticed some of his own customers in line and asked them what was happening. Jack learned that his competitor had been bringing in a different soap star each week and had been running this promotion for a month. He also found out they were rewarding their best customers by sending an announcement out in advance and admitting them a half hour earlier to meet
the celebrity, if they made a purchase that week. In a conversation with some of the store staff he learned they had a full year’s worth of promotions planned.

Jack knew he had to fight fire with fire by preparing his own promotional program. He developed a promotion calendar that included activities built around seasonal themes and special sales. He incorporated signs in his store, ads in the local newspaper and a direct marketing mailing to any customer who had made a purchase in the past 12 months. He made sure his customers knew that each month, a new and exciting activity was going to take place. He went one step further and doubled his marketing budget by running promotions in partnership with other retailers in the mall.

Sales promotions are developed for the following tactical reasons:

1.To build traffic at point of sale. This could be at your store, office, or a trade/consumer show.

2.To promote trial during a launch phase. If you have a new product or service you will need to create some excitement to generate special interest in this new offering.

3.To counter competitors’ tactics. Your competition just started a new advertising campaign and customers are drawn to their special offer. You need to fight back and regain the attention of your customers.

4.To level seasonal sales peaks and valleys. Sales may seem to be on a roller coaster ride sometimes, and you need to have more control over cash flow and inventory management.

5.To control over-stock situations. The brand new widget you imported is turning out to be a dud and you can’t afford to carry the stock indefinitely. It’s time for a blow-out sale.

6.To gain leverage and to stretch your advertising budget. Use cooperative programs with other marketers whose products or services are complementary to your own, e.g., software and computers, swimming pools and water treatment supplies, men’s suits and shoes.

7.To complement your regular advertising program. Promotions add a different dimension as part of a multi-disciplined strategy.

8.To develop your customer/prospect database. Not every business requires customers to supply contact information. A quick way to gather names of existing customers and prospects is to run a promotion and get them to fill out a ballot.

One of the key considerations when planning a promotional event is to be absolutely clear on your target group. You want to develop a program that appeals to a specific person. Offering a mountain bike as a prize to a target group of senior citizens may not be the best choice for the majority of the audience.

Sales promotions can be announced in the marketplace via media advertising, direct mail or point of sale. Support materials include coupons, promotional packaging, scratch-and-win tickets, magic ink cards, banners, T-shirts, hats, pens, etc.

And that’s According 2 Eric

ERIC GILBOORD is a specialist in making marketing easy for business owner/operators and any staff with sales or marketing responsibility. He demystifies marketing so they can use it to generate sales today and grow their businesses faster. Eric believes in blending traditional marketing with new media/social media. ROI is a must. Eric is a popular speaker, coach, columnist and author of many articles and books on moving a business up to the next level.  The Expert Business Calls for Marketing Advice… That’s Easy to Understand. For more information call 416-686-2466. To sign up for his marketing tips newsletter and to read his blog please visit: www.EricGilboord.com

Posted by Jameel in Growing Your Biz, Marketing on May 6th, 2011

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Five conditions for cultivating a successful Facebook strategy: PART TWO

By Darrell Cook

4. The best brand-building vehicle

Rather than looking to sell products through your Facebook page, recognize that most Fans are seeking an educational experience. The more value-added information you can provide, the more your brand will become a trusted resource. As you begin your Facebook strategy, think about how you can help your Fan base. Provide good advice by educating them about topics based on your area of expertise. A good example is to feature a post about “the top ten things to look for when buying a (your company’s offering). Fans love to be informed. Taking a leadership position on specific topics can secure trust and brand loyalty. A good way to learn more is to follow Facebook marketing to discover how Facebook drives results with other organizations.

5. The use of promotional coupons

I am often asked about the use of coupons with Facebook. Used wisely, coupons on Facebook can become a leading sales channel. However, this tool is frequently misused; for example, the company that offers coupons on Facebook just to sell items so they can clear inventory, or using coupons to drive sales that coerce consumers into purchasing additional items. These tactics rarely get results and will turn off Fans. The best use of promotional coupons is when Fans select the “deal.” Try posting three different coupons and ask your Fans to participate by selecting which they feel would be the best offer. The most Fan votes to a particular coupon will be the one you should move forward with. By doing this, your Fans enjoy the gamesmanship of voting. Moreover, Fans appreciate the fun, and by posting voting results throughout the contest, you can even get Fans to solicit other non-Fans to become members so they can boost the voting for the non-leading coupon.

Conclusion

Every small business can increase their brand strength through a Facebook presence. By using the tips in this article, you can quickly get started promoting your company and building a Fan base. Use your website to post a Facebook invite, along with including your Facebook page URL on signatures, letterhead, labels, etc. Learning how to advertise on Facebook is a great way to promote your business. Facebook even offers a number of guidelines and recommendations to get you started. The main thing is to get started right away and enjoy all the valuable relationships you can create.

Darrell is Vice President of Sales and Marketing for Conversys. His focus is to steward the North American growth for Digital Promotions Marketing. His career spans a wide range of technology and Internet companies throughout North America and the UK. From small start-ups to Fortune 500 firms, Darrell excels at bridging offline business processes with effective online channels. He is currently a Board of Director of the Retail Advertising and Marketing Club of Canada (RAC), and former Board of Director of the Internet Advertising Bureau of Canada.

Posted by Lynnette in Growing Your Biz on March 18th, 2011

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A creative approach: Five-steps to a more effective Market Position

By Mark Wardell

Creativity is the most powerful tool you can use to make your marketing message memorable. But to use it properly it must first find its way into your marketing strategy. From here, the beginnings of a unique (ultimately unstoppable) market position can grow. To learn how to get there, read on.

1. Envision how your business could stand out in the world.
Every person is an individual; so too is a business. The world needs variety. It is up to you to discover what is (or could be) the unique value you bring to the marketplace. It is through your market positioning statement that you ultimately declare this to the world.

2. Understand why creativity is so important.
There is more to marketing than simply standing out. Awareness, by itself, is not enough. Think of all the dot.com companies that crashed, despite the millions upon millions of dollars that were spent on advertising. By itself, creativity has limited value. Pointed in the right direction, however, it can be an extremely powerful tool. So, before you hire a marketing company for your next big campaign, make sure they understand what makes your business stand out from the crowd. A good marketing company will then creatively shine the spotlight to showcase how your business is unique.

3. What Market Positioning really means.
What does the term “Market Positioning” really mean? Think about it like this: there is a continuous flow of business happening all around us. People are always buying and selling. Market Positioning is about aligning your business within this flow. Your goal is to find your place in business world around you. How do you do that? By answering this one basic question: “Why should someone buy what you are selling?” Within the answer to this seemingly simple question lies the power to shift your business into high gear like you’ve never experienced before.

4. A promise that reflects your entire business.
At its most basic level, your marketing position is a promise. It is a promise that you will fulfill your customers’ needs each and every time they do business with you. For example, you might promise to be reliable, to save them time, to save them money, or to make them look good… you fill in the blank. Whatever your promise is, it is critical that your business takes it on as its unified purpose. Marketing is not confined to one department, but rather, your market position must permeate your entire business. In other words, if marketing promises something, the rest of the company needs to deliver on that promise.

5. The three critical questions.
To identify a unique Market Position for your business ask yourself three critical questions:
What is the greatest concern/need your customers have, and how can you resolve it? What is their bottleneck? (i.e., if you sell office furniture, your customers may have old furniture that they need to get rid of.) What is the greatest complaint your customers have about your industry, and how can you fix it? What negative preconceptions do they have? (i.e., insurance people, banking hours). What problems do your clients have that no one in your industry is addressing, and how can you solve them? Take the time to consider your answers until you settle on a marketing position for your business.

Maintain a creative approach throughout this exercise, and I guarantee, once you find it, you will be unstoppable!

Mark Wardell is President & Founder of Wardell Professional Development (www.wardell.biz), an advisory group that helps business owners plan and execute the growth of their companies. The author of seven business books, Mark also writes regularly for several national business publications, including Profit Magazine, the Globe and Mail, and CGA Magazine. Email him at mark@wardell.biz

Posted by Jameel in Growing Your Biz on March 14th, 2011

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STAPLES BizTIPs: Pitching to Media

By Small Business Expert Roger Pierce, BizLaunch

Advertising is the most expensive marketing option you can choose. While it does work, chances are your small business doesn’t have a lot of money to spend on newspaper ads, radio spots or television commercials. Instead, try to drum up some free media coverage about your business. Here’s how:

  • Talk about issues, not your business. The media won’t run a story about your upcoming shoe sale – that’s advertising, not news, so don’t waste their time. You must attach your business to some current and relevant issues that interest the media. For instance, a real estate agent might offer five suggestions to beautify a home in order to achieve a desirable selling price amidst this market of declining home sales.
  • Write a media release. A professional, one page media release should be written like a news story that’s already ran. Editors and reporters are busy people, so the less work they must do to fix up your release the more likely it will run. Use plenty of quotes and statistics, such as “painting your house can increase its value by $10,000.”
  • Follow up with media. News desks receive hundreds – even thousands – of media releases each day. Draw attention to your emailed or faxed media release with a simple follow up phone call. It’s a good idea to be prepared with a second story angle or media release in case the media person wants to pursue a different angle or needs more information.

Media coverage will put your business in the spotlight and build your reputation. It’s often more credible than paid advertising because it is a neutral third party saying good things about you.

You can learn more about this and other how-to topics in a free STAPLES BizLaunch Webinar. To find one near you, please visit http://www.staples.ca/bizlaunch today.

Roger PierceROGER PIERCE is passionate about helping entrepreneurs achieve success. Co-founder of Canada’s largest small business training company, BizLaunch.ca, he’s launched eleven small businesses of his own and personally experienced what he calls “the good, the bad and the ugly” sides of entrepreneurship.

BizLaunch advises thousands of Canadian startups through its popular how-to seminars and webinars delivered with partners such as STAPLES.

Posted by Lynnette in STAPLES BizTIPs on January 21st, 2011

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Small Business – Big Agency

By Ryan Timms, Group Account Director, MacLaren McCann

When it comes to marketing a business, most small business owners like to tackle the job themselves. This is no surprise to anyone who has ever spent a few seconds with a small business owner; a hands-on approach to all aspects of their business is what drives their success in the first place.

But while a small business owner will be familiar with every nook and cranny of their business, their understanding of the consumer, the competitive set and the media landscape is more limited – and rightly so. After all, there are only so many hours in a day!

That’s where the services of an advertising agency come in.

An ad agency brings far more to the table than a gaggle of martini-drinking, cigarette-smoking, all-black-wearing Don Draper wannabes. An agency provides valuable insight into what motivates a consumer; what societal trends affect a consumer’s wants and needs; how much space the competition occupies in the mind of a consumer; what a brand’s perceived identity is; and what forms of media are best for reaching a desired audience. Not to mention the creative ideas that have the power to transform a business and brand from wallflower to most popular person at the dance.

The problem, though, is that most small business owners believe that ad agencies are only interested in big, multinational companies with Chief Marketing Officers and a budget to buy airtime during the Super Bowl. Simply not true. Most agencies – good agencies, that is – do not discriminate between large and small clients (or their budgets, for that matter). Truth be told, many agencies long for more small business clients because the opportunity to do compelling and original creative work is often more motivating than churning out yet another “Summer Sizzle Sales Extravaganza.”

Moreover, it’s a tremendous point of pride for an agency to play a role in transforming a rather less-than-famous business/brand into a famous one. Ad agencies, at the end of the day, don’t want to be treated like suppliers; they want to be treated like partners. Why? Because the more invested they feel in the effectiveness of the work they do, the better the work. There’s nothing in this agency mindset that favours larger clients over smaller ones. Just good clients who value the agency’s input over bad ones who don’t.

Visit any agency’s website and you’ll likely find the phone number and email address of someone specific to talk to about employing the agency’s services. And don’t worry about getting dinged for a 10-minute conversation. Agencies want your business and they are quite prepared to discuss what you’re looking for and what they can do to help before a single penny changes hands.

Ryan Timms, Group Account Director, MacLaren McCann. With 10 years of agency experience under his belt, Ryan Timms has honed his craft working on large, multinational brands, as well as with smaller, more entrepreneurial-driven clients. He spent four years on the Volkswagen Canada account, delivering best-in-class communications for both the Volkswagen brand and its dealer network. Since joining MacLaren McCann in 2005, Ryan has brought his passion for great creative and insightful strategy to Coca-Cola, Johnson & Johnson and Cadbury Chocolate. Ryan currently manages the day-to-day operations of both MasterCard Canada and Staples. Visit the website at http://www.maclaren.com/

Posted by Lynnette in Marketing on January 17th, 2011

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Pursuing the right marketing strategy for your business in 2011 requires a strong positioning statement

By Mark Wardell

In 2010, social media was the marketing breakthrough that took the world by storm. Cost effective, accessible, and for some businesses, statistically more effective than traditional advertising, social media marketing has proven to be a trend that isn’t going anywhere.

In fact, some big name companies out there (Pepsi, Ikea) have pulled back on traditional advertising in favour of amping up their presence on Twitter and Facebook. It has been rumoured that Oprah Winfrey employs three full time staff to respond to the Facebook posts she gets on a daily basis.

Indeed, there’s no doubt that 2010 brought us a new pace of communications in the social media realm. Which begs the question, what major marketing trends will 2011 bring, and how can your business make the most of them? My prediction: technology and social media will continue to provide new and valuable platforms for communicating with customers. However, now more than ever, companies will need to understand (and apply) the principles of marketing in order to be effective in the new spaces the future holds.

As a business owner, your principle objective is to find a way to let people know what you are offering and why they should buy from you, in the most engaging and effective way possible. In other words, you need a strong brand. To achieve this, consider the following two questions:

1. Why should people buy from your business, as opposed to any other business that sells similar products or services?

2. What’s so unique about your business?

If you don’t have specific answers to these two fundamental questions, or more importantly, if your customers and prospects don’t have specific answers to these questions, you’ve got a problem. There is a solution, however, and it’s called positioning. If you haven’t done so yet, I highly recommend spending some time defining yours.

Your marketing position is the relative location your business occupies in the mind of your prospects. When your prospective customers think of your business, do they consider you to be…
- the fastest

- the highest quality

- the most convenient

- the least expensive

- the most attentive

- the business with the best selection

Or do they just think of your business as one of many businesses of your type? Just one more place to go when they need your products or services?

An exercise in positioning will help your business stand out. When people think of Federal Express, for example, they don’t just think of a courier, they think of a “guaranteed overnight delivery service.” At its inception, it was a boldly unique position. Sure, Federal Express did a lot of other things well, but they focused their marketing efforts on overnight service. Now, even though other businesses might make the same claim, in the mind of the marketplace, the position truly belongs to Federal Express.
That’s the incredible power of positioning.

Your objective is to come up with a unique strategy that offers something of value to your market. Start by identifying the specific quality that makes you “number one” in the minds of your prospects and customers. This doesn’t mean that you don’t do other things well; this is simply a rallying point. Once you have identified your position, it becomes the marketing focus of your entire business.

Determining your unique position will require some careful consideration, some brainstorming and documentation. But I guarantee this is an invaluable exercise that will be well worth your time. The resulting document will be a guide that will see you through whatever trends arise in the coming year and beyond. By focusing on the quality of your position, customers new and old will keep coming back for more.

Mark is President & Founder of Wardell Professional Development (www.wardell.biz), an advisory group that helps business owners plan and execute the growth of their companies. The author of seven business books, Mark also writes regularly for several national business publications, including Profit Magazine, the Globe and Mail, and CGA Magazine. Email him at mark@wardell.biz

Posted by Lynnette in Growing Your Biz on January 14th, 2011

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An Interview with Terry O’Reilly, co-founder of Pirate Radio & Television, and host of the award-winning CBC radio series, “The Age of Persuasion.”

By Donna Marrin

Tell us about your business and how you started it.

Terry O'Reilly

Terry O'Reilly

Pirate is a creative post-audio production company. Essentially, we create the sound and music for TV and radio commercials. We create all sound effects, write the music, and direct all the voiceovers for both mediums. Pirate has eight sound directors in Toronto, and another four in New York. Pirate is also unusual in that we have a creative department, so we write and create ideas from the ground up for clients as well. I co-founded Pirate in 1990. Pirate is the company I could not find back then. I was a copywriter for ad agencies for about ten years, and when I needed a radio script or the sound done for a TV spot, I always found myself fighting with the directors. Instead of directors enhancing my work, they were always trying to change or alter it. What I really wanted to find was an audio company that directed from a writer’s point-of-view. So that was the genesis of Pirate – a creative audio production company that worshipped and protected ideas.

In the beginning, did you have any doubts, and if so, how did you overcome them?

You always worry a bit when you launch a company. And our company had no real precedent in Canada. I never worried that ad agencies wouldn’t be interested in working with us; I mostly worried about running the “business of the business”–in other words, the day-to-day accounts payable/accounts receivable/line-of-credit part of running of a business, which was brand new to me. Thankfully, my co-founding partner was good at that. We were a good team back then. He had the business chops, I had the creative ones. Today, I have equally savvy business partners in Tom Eymundson, Chris Tait and Tom Goudie.

What was your early vision for your business, and how has it changed over time?

It was to be a “radio only” company, initially. But over time, we found ourselves doing as much TV as radio. So we became a radio and television sound company. And today, we do more TV than radio. As well, we never had any ambitions to expand past Toronto, but now we have four recording studios in Manhattan.

What has your biggest learning curve been in terms of building your business?

For me, learning the “business of the business,” as I mentioned above. And, as we grew, learning how to manage people. It was easy in the early days, when there were just six of us. But as we passed the twenty employees mark, then thirty, then forty, the demand for people management grew. A company’s culture is its biggest asset, and that means finding the smartest people per square foot. It gets more and more challenging as a company grows, because the culture strains with each person added.

Describe a day in the life…

The best part of my job is that it’s different every day. But as a rule, I will have one or two meetings with clients in the morning, then have a couple of conference calls. Next, I’ll have a recording session from noon till 5:pm. Then I’ll jump back to my desk to answer emails and phone calls. I have a two-hour commute, so I’ll listen to actor auditions for upcoming jobs while I drive. I also write and research my Age of Persuasion CBC radio show in stolen moments—mostly nights and weekends. And I do a lot of thinking about the show in the car. I record the show every Thursday. On Tuesday mornings, I have a meeting with my three partners to discuss and update the business of our Toronto and New York Pirate offices.

How do you find balance between your business life and your home life?

Very important question. Nobody is truly successful unless your family and your business are both cared for. I am extremely busy. Pirate is more than a full-time job and so is the Age of Persuasion. And I just co-wrote a book, and I’m writing another one. I have a lot of speaking dates throughout the year across the country and I’m working on a screenplay with a good friend of mine. With that said, my family is the most important thing to me. Spending time with my wife, Debbie, and my three daughters is a top priority for me. We’re a close family and we like to spend a lot of time together. You can’t be successful unless your spouse is 100% with you. Debbie is beyond incredible. She used to work in the advertising business, so she understands the pressures and demands. Our daughters are the joy of my life—so smart, so funny—they teach me a lot. This business can make you a bad dad/husband before you know it, because it’s so demanding and unforgiving, but I have to say, Debbie deserves a lot of credit for making sure that didn’t happen. She is our family’s Rock of Gibraltar.

Do you have a favorite business tool or resource?

I have to say I love Twitter. It is the best resource for sharing information I have seen to date. I am constantly reading Tweets and downloading incredible information and research, both for my business and for my radio show. Can’t say enough about it.

What is the key to your success?

Going above and beyond the call of duty. Plain and simple. Under-promise and over-deliver. It’s my motto. I am in Las Vegas as I write this, judging an award show. Vegas constantly reminds me of that thing America does so well—service. A big, bright smile and a “what can I do for you?” attitude that couldn’t be more helpful, prompt and efficient. I think Canadian businesses need to re-learn that lesson; that the highest level of service will attract the largest amount of customers.

What is the one piece of advice you would like to give to others thinking about starting a business?

Decide what type of business you want to be—a small one or a big one. A small shop can be wonderfully liberating and nimble, but has limitations. A big shop has unlimited opportunities, but you have to constantly feed the beast. It’s not a question anyone really asks, but it’s one everyone should contemplate.

 

pirate_homeTERRY O’REILLY began his career as a copywriter for some of Canada’s top creative ad agencies. In 1990, he co-founded audio production company Pirate Radio & Television, which now has eight recording studios in Toronto and New York City. Terry has won a few hundred awards from around the world for writing and directing. Marketing Magazine chose him as one of Canada’s “Most Influential” marketing people, and he was also named Canadian judge for the inaugural year of Radio at the 2005 Cannes Advertising Festival in France, Radio Jury Chairman of the International Clio Awards in Miami, and Radio Jury President for the London International Advertising Awards. When he’s not creating advertising, he’s talking about it as host of the award-winning CBC radio series, “The Age of Persuasion.” He co-wrote a best-selling book based on the radio series, published in Canada by Knopf and in the U.S. by Counterpoint Press. The advertising industry has given Terry the Les Usherwood Lifetime Achievement Award and the Fritz Spiess Lifetime Achievement Award for Television. He has a wonderful wife and three lovely daughters. Who like some of his work.

P.S. Read a review of Terry’s book, “Age of Persuasion” here.

Posted by Lynnette in Small Business Spotlight on September 22nd, 2010

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BOOK OF THE MONTH

THE AGE OF PERSUASION: How Marketing Ate Our Culture, by Terry O’Reilly and Mike Tennant

You’d have to be living in a cave to not realize that “advertising has insinuated itself into virtually every aspect of twenty-first century life” (to quote a line from The Age of Persuasion). Even in that cave, I bet there are some who took the time to brand themselves: Tom Thumb was here; Joanie Loves Chachi… you get the idea. The fact is, on any given day, at least 300 and as many as 6,000 marketing messages are lobbed your way.

Terry O’Reilly and Mike Tennant, the ad men behind The Age of Persuasion, a radio show that airs on CBC and Sirius Radio, wrote this book to provide a back-room view of the advertising industry. As an entrepreneur, you might wonder what you’d stand to gain from reading about this topic. It’s not as if you have the kind of budget that Mr. Reilly and Mr. Tennant are accustomed to, right? It’s important to note, though, that your message will always be competing with the big boys, even in your local newspaper. And, if your message is competing with up to 6,000 other messages, yours had better stand out! 

This book gives you a sneak peek into the inner workings of the ad industry. It will also inspire you to think outside the box when it comes to marketing and advertising your business—even when that advertising consists of a simple message on a business card. 

When this writer was taking her advertising courses at college, there was a big-name muffler shop whose tagline started with, “Nobody beats…” This small, mom-and-pop garage, based in a small town that I can’t remember now, based ALL their advertising on, “We’re the nobody that beats…” It was smart, humorous, and certainly left a lasting impression. 

Sure, this book may seem like it’s written for those in the business, but it offers much more than that. It takes you through the history and inner workings of the advertising business in a charming, story-telling style. Many business books read like textbooks and are a chore to get through—but if reading is an outlet for you, you’ll find that this entertaining book makes you think! 

“It’s a must-read for everyone living in this Age of Persuasion,” as written by Doug Checkeris, chief executive officer of MediaCom North America. 

TERRY O’REILLY has been promoting the Power of Radio for many years now. He has a long history in the ad business as a copywriter and director, has won several prestigious awards, including three advertising industry lifetime achievement awards. He co-founded the audio production company Pirate, based in New York and Toronto. 

MIKE TENNANT is the co-creator and writer for the CBC’s radio series, the Age of Persuasion, and often runs workshops on creative communication. He has written several award-winning campaigns for clients throughout North America.

Posted by Lynnette in Book of the Month on September 15th, 2010

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An interview with Rick Spence, president of Canadian Entrepreneur Communications & Business Columnist for The National Post

By Donna Marrin

Rick Spence

Rick Spence

I have a great idea brewing for a start-up. How do I overcome those doubts hovering in the periphery?

Many entrepreneurs are in such a hurry to launch their business that they skip important steps. Long before you open your doors to begin serving customers, you should be fine-tuning your product development and market-research work to make sure your product or service is the best it can be, and that it’s truly what your target market is willing to buy.

One of the best ways to eliminate doubts and make sure you’re on the right track is to take a leaf from high-tech companies and do beta-testing with potential prospects. Let people try out your product or service for free. Let them work with it, discover its uses, and identify the “bugs” or flaws that might have escaped your notice. Use these prospects’ feedback to create a better product for your market’s needs.

There’s nothing more important than engaging with potential customers early in the startup process, to learn what their actual needs are, what kind of solutions they’re really looking for, and how much they are prepared to pay for them.

How do I need to prepare before I approach a bank with my idea?

Very carefully. Understand first that very few banks are interested in financing startups; their margin on commercial loans is too small for them to tolerate much risk. Understand too that banks lend against assets, not against ideas, dreams or profit projections that may never come true.

No matter how flashy your business plan might be, your banker will lend to you only if you personally are a good credit risk. That means that you need a solid credit history – pay your bills and credit card balances on time! – and assets (such as a house with a small mortgage) that are worth lending against.

You can prepare by being able to demonstrate to the bank that you can read a financial statement, that you understand the importance of break-even, and that you are prepared for the daily drama of cash flow. But if you really want to impress your banker, demonstrate that you (and preferably friends and family as well) have believed enough in your business idea to invest substantially in it already. If you and your closest loved ones aren’t willing to take a risk in your business, why should the bank?

I’m about to launch my business. Are there ways of advertising to the general public without incurring huge fees?

You don’t have to spend a fortune to get your message out (although it would help). Make sure you narrow your marketing focus to reach only the target market you’re after. If you’re just advertising to affluent professionals, for instance, or you’ve opened a retail store on the west end of town, it makes no sense to buy a newspaper ad that reaches the whole city.

Look at these seven alternatives to blowing your budget on the mass media:

· Put up ads or posters in selected areas that will reach your target market.

· Target free or low-cost digital media such as Craigslist, eBay, or pay-per-click advertising (e.g., Google’s Adwords)

· Create eye-catching promotions (sales, contests, discounts, etc.) that will attract customers and encourage word-of-mouth publicity (the best kind you can have);

· Consider sponsorships or creating your own events that will put you face to face with your best prospects (e.g., if you’re targeting executives, get involved with a golf event)

· Get out and meet potential customers through appropriate networking events

· Use LinkedIn to snuggle closer to specific decision-makers

· Encourage referrals by offering a discount or other incentive to people who recommend your services to other customers

Can you suggest some actions I can take to help me better learn and understand the needs of my target market?

Great question! This is your most important challenge in business. There are numerous market-research techniques you can use: customer surveys, interviews, focus groups, statistical research, geographic market analysis, etc. The important thing is to find the technique that best fits your budget and your market sector. Best place to start: ask your local public librarian for the best sources of date on your market. Best free research you can do: grab a clipboard and go to where your customers are. Ask them about their experience with products or services like yours, what problems they have, and what benefits or inducements would make them seek out a new supplier.

My day is busy enough as it is. How important is it for me to devote time to exploring social media?

If you are a natural writer or communicator, you can make friends fast through new channels such as Facebook, blogging, Twitter or YouTube. But if you’re a busy entrepreneur who would rather meet clients and customers face to face, social media may not be a first priority. Do yourself a favor: explore Facebook. Figure out what you think it’s good for, and what your prospects might expect from a Facebook “page” (or mini-site) for your business. Then think through whether you have the time and talent to create new business-related content that would engage customers and prospects and help build stronger relationships. Statistics show that more and more people every day (300-million on Facebook alone) are relying on social media for news, relationships and all kinds of decision-making. But unless you have access to good content and marketing skills, you may find social media a lot of fuss over nothing.

Are there a few key strategies I can use to take my business from good to fantastic?

1. Create more value than anyone else in your sector. Whether it’s through lower prices, better quality, faster service, or higher-quality customer experiences.

2. Know your customers. Understand their frustrations and unvoiced wants. Anticipate their changing needs so you stay ahead of the competition.

3. Treat your employees like customers; they too are the foundation of your business. Communicate with them all the time so they understand what they need to focus on today. Align their goals with that of the business – profit-sharing is just one way to do that.

4. Look for partners whose talents complement your own. Two people with matching skills (e.g., one is the marketing/sales whiz, while the other is more detailed-oriented) can take a business much farther than one person with one set of skills.

What is the most common learning curve that small businesses tend to encounter?

There are so many! Running your own business is one of the toughest challenges anyone can face. I know very smart business people who have succeeded in big corporations, and then failed miserably in their own business – often high-tailing it back to big business, where they have so many more resources and are expected to demonstrate a much narrower skill set. You must understand book-keeping and cash flow. If you don’t master the details of operations, money will run through your fingers like water. You must understand marketing. And you must learn to work with all kinds of people, including employees, customers, and suppliers, to build trust and create lasting, win-win relationships.

Is there a really great entrepreneurial quote you’ve read lately?

“Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.” William C. Durant, Founder of General Motors and Chevrolet.

What is the one piece of advice you would like to share with others thinking about starting a business?

Always be ethical. You want everyone you meet to go away feeling pleased to have done business with you, rather than regretting it. More than ever before, today’s web-based world puts your reputation on public display, for everyone to discover.

RICK SPENCE is president of Canadian Entrepreneur Communications and an expert in entrepreneurship and business growth. He writes a national column for the weekly Entrepreneur section of the National Post and is the former editor and publisher of PROFIT, The Magazine for Canadian Entrepreneurs. He speaks widely on business trends, marketing, social media and business growth. He can be reached at rick@rickspence.ca, or through his blog, Canadian Entrepreneur.

Posted by Lynnette in Getting Started on September 13th, 2010

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STAPLES BizTIPs: Attach your biz to hot news

By Small Business Expert, Roger Pierce, BizLaunch

Getting media coverage for your small business can dramatically boost sales. It’s much cheaper than paid advertising and, at times, far more credible. You could appear on television, get quoted in a newspaper or be featured on a blog.

The media industry needs experts to comment on current news stories and issues. For example, an image consultant we know recently appeared on a major market radio talk show where she discussed the look and image of party leaders running for re-election.

You’ve got to attach your expertise to the news of the day. Here’s how:

Send a Media Advisory. Send an email to your media database offering to comment on a hot news topic, such as the election, the economy, the Canadian dollar, gas prices or the environment. Explain why you are qualified to comment on a particular topic. For example, a tourism operator might speak about the effect of the weak US dollar on business.

Pursue a particular editor or reporter. Many journalists specialize in a particular “beat”, such as family, health, business, city news or politics. If your expertise is relevant to what they cover, approach them directly by email or phone.

Offer some statistics. Media love statistics, so collect numbers for them. Conduct customer surveys, compile industry data or report on buying trends. Send snippets of your data to your media contacts and offer to be interviewed.

Every day, media professionals must produce a lot of good content within tight deadlines. If you can help make their jobs a bit easier, you’ll be rewarded with some free publicity for your small business.

Roger Pierce

ROGER PIERCE is passionate about helping entrepreneurs achieve success. Co-founder of Canada’s largest small business training company, BizLaunch.ca, he’s launched eleven small businesses of his own and personally experienced what he calls “the good, the bad and the ugly” sides of entrepreneurship.

BizLaunch advises thousands of Canadian startups through its popular how-to seminars and webinars delivered with partners such as STAPLES.

Posted by Lynnette in STAPLES BizTIPs on June 11th, 2010

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