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

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Virtual CFO | Learning Effective Marketing Strategies is Important

 

Business owners think that they don’t need to to create a marketing strategy because they will be able to easily find customers, virtual CFO says they run the risk of not being able to find customers at all. Many entrepreneurs think that’s because their product is so universally appealing, that they are going to have customers find them very easily. However, business owners need to know that advertising is how customers find businesses, so if they don’t market their business, and have an effective marketing plan, they will not generate the response that they need to grow their revenue and stay in business.

In fact, industry Canada did a survey and found out that 15% of all business owners in Canada sales within the first year of opening the doors to their business. 30% of all entrepreneurs in Canada failed within their second year of business. And half of all entrepreneurs that open their business in Canada or out of business by 5 years. The number one reason these failed entrepreneurs gave for the reason why they were unsuccessful is that they were unable to find customers for their business. This shows how vitally important in creating a marketing plan is.

The next mistake that entrepreneurs make other than not creating a marketing strategy at all, is trying to Market to too many people at once. Virtual CFO says they believe it’s an effective strategy, because the more people that know about their business, the more customers they will get. And this assumption is dangerously wrong. It takes more times of connecting with a customer before they will buy from a company then many entrepreneurs realize. No matter what the company is, or who the customer is, statistics show that all customers needs to be contacted by business and an average of 4.3 times before they make their purchasing decision. Any form of advertising that a business owner does will count towards this. Whether it’s a billboard, the sign on a notch Pandora’s business, an ad on the internet, flyer in their mailbox, or even having a business owner reach out to their target market personally.

Therefore, it could be difficult or impossible for a new entrepreneur to be that consistent with a very large target market. It can be cost-prohibitive, and if a business owner does not connect with them enough times, it will be a waste of money, because they will not get any customers at all. Therefore, virtual CFO recommends business owners start with as small the market as possible, and advertise very consistently with that group, and they will see how much faster return on investment.

As they start to see customers come in from their marketing efforts in a small Market, virtual CFO says business owners will start to increase the revenue of their business. When this happens, they can write it into their business plan that they are going to expand their target market slightly, and maintain the same consistency in order to generate the results that they desire. When do its owners realize they need to start smaller, it can help them achieve they need to grow their business.

Virtual CFO | Learning Effective Marketing Strategies is Important

if business owners do not have a business plan, they may find themselves not knowing the most effective ways to market their business since virtual CFO. Just like Benjamin Franklin said, if you fail to plan, you’re planning to fail. Studies have shown that entrepreneurs that have business plans will be 50% more likely to grow the revenue of their business than businesses that don’t. Therefore, if entrepreneurs want to increase the chances of their business succeeding, they will need to ensure that they not only have a business plan, but there’s a marketing plan within it that they can follow to help them achieve their business goals.

When they have a business plan, the marketing plan within it will help them know exactly what they’re going to do in their business to find customers. Included in that plan should be what’s a business’s target market is. Similar to how business owners often say everyone can be a client of theirs and this is not true. Business owners simply should not say the entire city that’s they have their business in are the customers they are going after. The larger the area, the harder it’s going to be for a business owner to Market to them consistently. Therefore, understanding their target market is extremely important.

One of the most effective strategies that small entrepreneurs can Implement according to Virtual CFO is starting to Market in this specific geographical area that’s the business is located in. The reason why, is because as customers gets and entrepreneurs marketing, they will also be driving or walking past the business, and seeing the sign, reinforcing the number of times that customers need to hear from a business or see their branding in marketing before they will buy. Also, many customers make purchasing decisions based on convenience, so they will catch this market share as well if they searched advertise in the geographical location of the business.

another reason why business owners should advertise in the geographical location of their business according to Virtual CFO is that as a standout advertising, customers will also be driving or walking by their business. When they see the sign, this will reinforce the advertising that they are doing, and it will count as one of the times that a customer needs to see messages from a business before they’ll make their purchasing decision. Also, if an entrepreneur ever needs to do deliveries, or House calls if they are a contractor for example, starting with the area that is closest to the business can help reduce the time it takes to service these customers.

When business owners understand what their target market should be when they open the doors to their business, it will help them hit the ground running, and know exactly what they’re going to do to start generating customers for their business. When they are able to do this consistently, they will be able to increase the revenue of their business, and avoid going out of business because they cannot find the customers they need to succeed.