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However, a business owner is not going to be able to do this if they don’t have a marketing plan or a business plan in their business. In fact, it’s an important way to help ensure that an entrepreneur is going to be able to Succeed in Business.
Industry Canada did a survey to find out why half of all Canadian entrepreneurs were failing in business. And what they found, was that 42% of all failed entrepreneurs said that not being able to find enough customers. Was the number one reason why their business was not successful.
Typically, businesses that are unable to find customers are not marketing their business effectively. Or marketing their business at all. Illustrating how important having a marketing plan as well as a business plan is to business owners.
Once an entrepreneur understands what makes them different from their competition, that can actually help them create an effective marketing plan. By knowing who their ideal and likely customers are. And what message they should be receiving. To get them to try their company out instead of their competition.
However, many business owners might not know what a differentiating factor is. CFO Services says that these are any ways that an entrepreneur’s business is different from their competition. These don’t have to be massive earth-shattering ways that their businesses are different.
They can be small things that might not seem like a big deal to an entrepreneur. But to a customer, they might be extremely important according to CFO Services.
Therefore, a business owner should create a list, with every single way that they can think of that they are different from their competition. That might be a long list or a very short one. But once they have that list, CFO Services recommends that they narrow down that list to about three things.
These three things are what an entrepreneur is going to focus on doing exceptionally well. So that they can become extremely good at it. If they tried to excel at everything on that list, they might not do anything particularly well. Which is why it’s extremely important for a business owner to narrow it down to a few things. Ideally that they are extremely passionate about doing very well.
Once an entrepreneur has these differentiating factors that they are going to focus on. They can create their marketing plan, and even put this information into the executive summary of their business plan. Because the executive summary is a synopsis of the most important parts of the business plan.
And what sets a business apart from their competition is extremely important. Knowing this, be very powerful to an entrepreneur who is looking to gain market share in their industry.
if business owners do not have a business plan says CFO Services. They are impacting their ability to achieve their business goals. Primarily oh, because they won’t have a place where they have made their business schools concrete. Or figure out what they need to do every day to achieve those goals.
In fact, Palo Alto, the software manufacturing company did a survey in order to figure out how effective business plans were. At helping, entrepreneurs succeed in growing their business. What they discovered, was that entrepreneurs with a business plan. We’re 50% more likely to grow the revenue of their business. And entrepreneurs that did not have a business plan at all.
Understanding what sets the business apart from their competition is extremely important says CFO Services. Because that’s not only will influence the marketing plan to a great degree. But it can also help Focus the business plan. And help an entrepreneur know exactly what they are going to do to market their business as soon as they open the doors.
However, many entrepreneurs may not understand what makes a differentiating factor. Or they might be looking for the great big race at their differences from their competition but CFO Services says it doesn’t have to be large ways that they are different. Small ways can be just as impactful.
A great example of this is convenient or customer service can be an extremely important differentiating factor. Because a lot of customers choose where they purchase products and services based on customer service or convenience to them.
A great example of this would be a business that offers free delivery in an industry that typically does not offer that. Or if they offer free pickup as well says CFO services. It could be the fact that they are able to order or book online. Or that the business offers a warranty in an industry that doesn’t typically offer warranties. Or an extended warranty in industries that only typically offer a one year warranty.
It could be some of their competitive advantages could be considered differentiating factors. Such as using only extremely high-quality materials or ingredients in manufacturing their products. Just like the Independence movie theatre. That wanted to stand out from the chain movie theatres around them. And by using the highest-end Gourmet Popcorn, and charging no difference prices. They attracted customers who wanted better snacks for their movie-going experience.
Even the location of the business could be considered a differentiating factor. If the business owner has chosen are a particularly unique location for their business. such as a health food restaurant opening up next door to a gym. Pet supply store opening up close to an off-leash Park.
All of these ways that sets a business apart from the competition can help them market their business. And appeal to customers who might be interested in those differentiating factors. and when they get that consistent marketing message out, they are going to be able to be more likely to gain customers and grow their revenue.
