Small Business Marketing: Top 7 Secrest to Making Money in Small Business
By Joe Gelb
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Double your business profits by following these seven powerful techniques. Today, people place great emphasis on building a profitable small business and protecting their income in the event their jobs are eliminated. These seven action steps can help you build your business now. These strategies and tactics will help you focus your energies, better manage your time and reap more profits from your small business.
- Start a service business. Service businesses typically require little start-up capital and give you the opportunity to get into business right away. With a service business, you can promote your business, win a client or project, perform the service and make money. Service businesses give you relatively high financial and operating flexibility since your initial investment is likely to be relatively small. You should also gain greater confidence to take calculated risks because your losses are likely to be relatively small in the event your business fails.
- Narrow your focus. The more successful entrepreneurs and businesses concentrate on one theme. Even though your business plan may entail offering a range of products and services, start with one single offering. Select the one product or service where you can add high value. Build your business one step at a time. Perfect that initial product or service and make money. Then you can branch out and expand.
- Promote your business vigorously. The key to success is generating publicity and marketing yourself and your business. Work towards attaining favorable write-ups in your local newspapers and trade magazines. Develop a presence on the Web. Without marketing and promotion, the market will not know about you and your offering and your sales are likely to be low. Provide superior quality service to your customers and ask for repeat business. Generate positive word of mouth and seek referrals.
- Keep your costs low. Many businesses fail today because they achieve one or two initial successes and then move into fancy offices and build a staff. For as long as practical and even a bit longer, run your business from your home. Do everything yourself. Concentrate on winning and executing business at a profit. Reinvest your profits in your business in marketing and promotion and creating higher value-added products and services.
- Enlist top professional advisers. Consult a lawyer. Depending on your field, you may want to incorporate your business; this is designed to shield you from personal liability. You may need to obtain certain licenses and meet other requirements and criteria. An attorney with experience in your field can help you draft a set of contracts and other legal documents you’ll need in your business. Second, hire a top tax accountant. An accounting adviser can help you structure your business and maximize your after-tax income—the money you keep.
- Ask for the sale. When you strive to build your business, it is likely that you will pursue many leads and especially at the beginning you will convert only a small percentage of those leads into sales. When you make a pitch to a prospective customer and complete a project for a satisfied customer, ask for more business. Be polite and professional, but don’t be bashful.
- Collect the money and cash the checks. The secret to earning big profits is to collect money—cash. Many companies concentrate on generating accounting (GAAP) earnings, but pay less attention to structuring their business to generate free cash. First, you have to develop a pricing structure and then agree on pricing and terms with your customers. Then you have to prepare a contract and send out invoices. Most important, you’ll have to follow up and demand timely payment from your customers. Finally, be proud of yourself when you deposit those checks in your bank account. Reinvest your cash wisely and productively.
Growing a small business can be a wonderful and thrilling adventure. Perhaps more valuable and rewarding is when you structure your business so the probability of success becomes sky-high. Then you can double or triple your profits, enjoy your efforts and live the life you seek.
Joe Gelb, CPA and Attorney, is the President of Small Business Advisors, Inc. and the author of two great books: Building a Million Dollar Service Business; and Tax Accounting for Small Business. Joe is the Editor of the breakthrough Publishing Gold ezine on marketing and promotion. Visit: http://www.PublishingGold.com.
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Article Submitted On: November 26, 2004