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E-Myth – “Why most small businesses don’t work & what to do about it”

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Virtual CFO | Entrepreneurs Will Be Successful If They Know Their Target Market

 

If business owners think that they’re going to be successful in selling their product and service without doing any advertising, virtual CFO says they are simply setting themselves up for failure. Entrepreneurs often are so enthusiastic and passionate about the product and service that they’ve been able to develop, that they think the product is willing to Simply sell itself. However, even the most successful and well-known products in the world still needs to advertise themselves on a regular basis, and so business owners that are simply starting out for the first time, need to understand they need to do the same thing. And while they’re not going to be able to afford a national television campaign. What they need to do, is figure out who their target market is, and consistently market to them.

If business owners do not figure out who their target market is, they may be left wondering how they reach their ideal and likely clients. If they’re going to do any sort of marketing, whether this is advertising online with Google Adwords, on Facebook or with retargeting ads. Or if they are going to put ads in the local paper, send out flyers, or even go door-to-door and introducing themselves to clients themselves. Virtual CFO says that when business owners don’t know their target market, they may be at a loss for figuring out where to start or how to advertise. However, figuring out their target market first and make it a lot easier for a business owner to say this is what their plan is going to be.

The first thing that entrepreneurs should do, as soon as they are starting out as identify their target markets as the specific geographical location where their business is going to be located. This way, they’re going to have the added benefits of having their customers be more likely to gain recognition of the business by driving past it and seeing their signs. This also allows an entrepreneur to go door-knocking, and it’s going to help them especially if they ever do deliveries, have their product and service, or if they have to make house calls like if they are a contractor. Virtual CFO says this is a great place to start.

As this marketing plan works, virtual CFO says that business owners will increase the revenue of their business slowly, which is going to allow them to add to their marketing budget and slowly increase the geographical location of their target market. When they do this, they will be far more likely to grow their business, and overcome the high rates of failure that entrepreneurs face in Canada. The most important thing to remember is that in order to succeed, a business owner must have a business plan. Ideally, this will be a living document that business owners can update on a regular basis, such as once a year. And provide guidance for business owners to allow them to ensure that they are staying on course, and they are doing all of the things that they need in order to be successful. If entrepreneurs do not have a business plan, they might end up working very hard in their business, but not getting the results they desire.

Virtual CFO | Entrepreneurs Will Be Successful If They Know Their Target Market

The target market is where business owners are going to start marketing their business in order to generate results says virtual CFO. Any effective marketing plan is going to include the target market. Therefore, when business owners create their business plan, their business plan should contain a section devoted to marketing, which will identify what this target market is. If business owners do not identify their target market, they often will not understand where they should start with their marketing, which can affect their ability to grow the revenue in their business. As Peter Drucker, the author of 39 different business books says, nothing happens in business until somebody sells something. As the failure rates for business owners in the first year is 15%. The sooner a business owner can have an effective marketing strategy when they open the door to their business, the better.

Often, virtual CFO says the problem is that business owners don’t have a marketing plan at all. However, another problem is that business owners spend a significant amount of time researching the national numbers for their business plan and marketing plan. Virtual CFO says this can be a significant waste of time, because most small entrepreneurs aren’t likely to get National coverage, or at least right away and their business. It’s a complete waste of time, because it is completely irrelevant for most small businesses, at least when they are starting out. Therefore, business owners should research their own City, and understand that their target market is not going to be the entire city.

Similar to how entrepreneurs should not identify their ideal unlikely customers as everyone, because in all honesty, not everybody is going to be a customer of every business. Even the most inoffensive business is not going to have a hundred percent of the people buying. So by identifying everyone as their ideal customer, it can be misleading. It’s like a chiropractor saying that everyone with a spine is their ideal client when this is simply not true, because a large percentage of the population will never actually visit a chiropractor. Therefore, business owners needs to think very seriously and very carefully about their target market.

When they understand who their target market is, and who their ideal unlikely buyers are, then they should include that in their business plan, and even more importantly within the executive summary of their business plan. The reason why, is because if an entrepreneur is ever going to get financing, they’re going to need to show their business plan, and when that loaning agency, financing company, or financial institution looks at the business plan, often the only part they will read is the executive summary. But if an entrepreneur includes information about their target market within that executive summary, then it will show them that they have a marketing plan, that has been well thought out, making them feel more confident in loaning their money to that business.