After working with the owner to build a solid foundation, the owner was able to create a solid marketing plan and increased their client base immediately.
I'm sharing this story with you because at least 80% of revenues generated in business are directly linked to marketing. If you think about it, most activities that we do in business are focused on getting new business in one form or another. Since marketing is such a critical ingredient for business, one must understand their business to understand how to implement marketing profitably.
When you understand business your marketing efforts will be effortless. To understand business I've listed Nine Basic Business Principles that a small business owner should know and understand before implementing marketing programs. It will help give you clarity in your business so that you will have clarity in your marketing and it will also help you think about your own internal infrastructure so that you can adjust as necessary.
Principle One--Why are you in business?
You should be in business to make money (profit) or if you have a non-profit to serve the community. Next, it's your responsibility to define what making money or serving the community means to you. Having a passion or doing what you love is wonderful; just make sure it's a profitable business. I had a client tell me that she's in business because she wanted to be financially free...guess what that's what we all want! Once we talked a little more, she revealed that she wanted to have kids and she knew she didn't want to be a stay at home mom but also knew that she wanted to be there for her kids. With this information, we worked on creating the infrastructure that will keep her from getting bored and that will allow her the time she needs with a new baby and as her kids grow. Her business will be exactly what she wants vs. another stressor that keeps her from what she really wants. Just cut to the chase and give a solid yet truthful answer.
Principle Two--What business are you in?
For example: If you sell equipment. Are you a manufacturer, distributor, or retailer? Understand what business you're in so that you can make better business decisions. It all starts with understanding your industry, then understanding that industry on multiple levels. Start by getting your NAICS code. You can use it for research, but the process of finding your code proves for good reading and brings about some interesting ideas.
The second piece is changing your definition. Are you in the business of selling door locks or are you in the business of providing security? Changing your definition can open up new opportunities.
Principle Three--Are you in business to make money or to create wealth?
There’s a difference between making money and creating wealth in business. In business making money is under-pricing your services because you need a client or promoting your business but you’re not quite sure of where your going but you’re still making a little money so you must be doing the right things. Basically, you’re making money but it has no value.
Now creating wealth is making money and knowing what to do with it. Creating wealth in business is about setting the right price, picking the right target market, speaking the business powerfully, all those activities a business owner must do to be successful; but we don’t necessarily understand how to put these activities in a format that works for our unique business situation and puts us in a position in the beginning for creating wealth.
Guess what, it’s time to cut through all the clutter and get to the CORE of what it really takes to get your business up and running and posed for not only making money but a business that will allow you to create wealth! It’s time to be SWIFT, get to the CORE, and focus on Execution and Profitability!
