How do you get noticed if you have no money?
Imagine a business with expenses rising, the turnover static or falling. The entrepreneur realises that the business simply has to find new customers, but there is little or no money available for marketing. What should the business do next? In desperation maybe the entrepreneur has thought of doing something like:
Sadly the outcome is likely to be a poorer and sad entrepreneur. One time advertising may bring a few enquiries occasionally but is almost always a waste of money. The post is probably collected by a messenger who will discard the flyer, and a prettier web site will not bring more enquiries if nobody visits the site.
A smarter way is for the entrepreneur to realise that if he has limited funds, he needs to reach the people likely to buy from him as efficiently as possible; he cannot afford to market to people who will never be his customers. It is amazing that this simple piece of logic is so often ignored. The very first step is to identify who his most likely customers are, and then to figure out the best way he can communicate a marketing message to them. For most businesses in this situation this will be a highly focused message, getting to the right people with as little as possible waste. Sometimes this may be as simple as forming an alliance with a non competitive supplier to the target market. This would apply to photographers, event managers, courier companies and many more – maybe almost every business. To make this work the alliance must benefit both parties. The allies could agree to introduce each other to their customers, share exhibition or other marketing costs or offer bundled products. Continue reading
Moving a business to a new location can be like starting all over again. By Ed Hatton
An entrepreneur moved his event management and wedding planner business to a new province where no-one knows his business. He needs to attract clients but isn’t sure where to begin. He has been distributing pamphlets, but so far no-one has gotten back to him.
This entrepreneur had a thriving business doing wedding planning, parties and corporate event management and then he moved to a different province. When he started operations in his new location he realised just how much personal reputation and word of mouth had meant. In the new location he is unknown and potential clients are wary of entrusting important events to him.
The business must be started again in the new location. As before, he has to build a client base and a solid reputation to provide a platform for growth. He has the advantage of being experienced in running events and weddings, so he does not start quite as ‘cold’ as he did originally. Against this are a number of part-time wedding planners and event managers who are established and compete with him for business. Continue reading
Securing advertising income in a massively competitive environment requires smart strategy and good delivery – by Ed Hatton
An entrepreneur wants to approach businesses to advertise on his free business listing website. He has all the stats of how many visitors he has to his site but he doesn’t know what angles to use.
This entrepreneur has chosen the online sector for his new business. One of the key issues is the speed of development; new innovations change the landscape all the time. Another risk is the extent of the competition. There are thousands of directories, and hundreds of search engines, all trying to attract people searching for information or potential suppliers.
In this heated environment it is easy to focus on the measures that the industry uses – page impressions, unique visitors and click-throughs. But these are only measurements of traffic. The entrepreneur’s business must find and address a need profitably if it is to survive and prosper. All the visitors in the world mean nothing unless visitors use the information from the directory to buy or enquire about services. Similarly companies listing on his directory are there to source new enquiries which they can turn into business opportunities.
So now the question becomes ‘how can this directory generate business opportunities for the business listed?’ This must be done in a highly competitive environment with industry giants and thousands of small competitors trying to do the same. Continue reading
Responding to a need is a great way to start a business, but it is not as simple as it seems
An entrepreneur has recognised that government departments and some private companies often pay their suppliers very late, or make wrong payments. Together with her spouse who runs a human relations consulting firm which is fully accredited with ETDP-SETA, she has the knowledge and expertise to set up policies and train people to fix this problem and so improve service delivery. However she has not be able to form a strong sales and promotion strategy.
This woman dreams of becoming an entrepreneur while she runs the department which pays suppliers in a large company. She sees entrepreneurs struggling to get paid on time by government departments, local authorities and some large companies. She knows she could put the right policies, processes and training in place to turn the situation around. Her spouse could do the training and the combined service would enable departments to make payments on time. President Zuma, in his State of the Nation address suggested that this improvement in service delivery was vital, so the need for the service is there.
Who has the need?
This business opportunity looks like a textbook case of identifying an unmet need and having the capacity to fill that need. But, and this is a lesson for all entrepreneurs, first ask who has the need. For instance consider out of order traffic lights. The motorist desperately needs them fixed, but the duty pointsmen earn their living from them. The roads department is judged on performance but has harsh budget restrictions, so they may have mixed feelings. The point is that answering a need may have to include appropriate strategies if the party with the need is different to the party who will pay. Continue reading
This article was written by Ed Hatton for
the column the Start up Coach and published by the South African edition of
Entrepreneur magazine in February 2011 and is posted here by their kind
Growing a business in a niche market
needs a strong understanding of your clients.
A young entrepreneur has developed a personal PA service. Her company handles the
personal, social and home management aspects of her clients’ lives. She wants
to market her service to entrepreneurs, as she believes this is her ideal
target market: people who do not have time to take care of daily non-business
related chores themselves. However she is not sure how to cost-effectively
market her service to such a niche client base.
This entrepreneur has devised a service to support busy and successful people who do
not have the time to manage homes, social activities, gifts, pets, bills,
licenses and the many other activities that are a part of modern lifestyles.
She has identified her target market as successful entrepreneurs who do not have
support systems in place. As a typical start-up the company needs steady income
from contracted clients. Like many entrepreneurs she had developed a website,
and placed a couple of adverts in a lifestyle related magazine, but has had no
I wonder how often I have heard the phrase ‘and we didn’t even get ONE lead from that…’ Remember this: A single advert or
sign that describes your business is highly unlikely to bring sales leads.
Advertising is great at generating enquiries from prospective clients, but only
as a part of a campaign. Start-ups with limited marketing budgets usually need
to find alternate ways of finding prospects. Continue reading