Virtual CFO | Should Entrepreneurs Market to a Large Market
When business owners start their company, they often believe that an effective marketing strategy is to Market to as many people as possible says virtual CFO. They think the key to success is letting as many people as possible know about the products and services that’s their company offers. And while this might feel like a valid strategy, there are several reasons why it is not. The main reason why, is because it takes a lot of money to Market effectively too many people. And since entrepreneurs typically have a very limited budget, they will not get the results they expect from marketing to several people. Therefore, there are other strategies that are more important and effective for the typical entrepreneur.
The reason why marketing to a large number of people is ineffective, is because in order for any customer to make a purchasing decision, they have to be comfortable with a company. This means they have to see advertising from a business on average of 4.3 times before they take action and make a purchase. This is true even for large companies. Therefore, when an entrepreneur is marketing their business, they have to be prepared for advertising at least four to five times with the same people before they start seeing a return on their investment. The larger the number of people they Market to says virtual CFO, and the more money it’s going to cost them to have them see the ads 4 or five times.
How much more effective strategy is to start with a small area, so that business owners know they will be able to be consistent. Virtual CFO uses this as an example, if a business owner only has enough money to send 5000 Flyers out, they will be in a much better position to send 1000 customers a flyer five times. Then they would if they sent 5,000 customers a flyer once. Has the market to a small area, and it starts generating results, a business owner is going to grow their revenue. As their revenue grows, business owners will be able to increase their marketing budget, and therefore start to gradually increase the target markets that they have, and start generating more results.
Business owners need to understand however, that this method takes time, so they must be patient as well as consistent. If they start and stop their marketing efforts, because they’re not getting their return on investment like they expect, not only will it take a longer time to see that return, but they’re also going to have to spend more money on their marketing efforts. Therefore, when business owners start to advertise, they need to choose their method and their target market wisely, and then and don’t quit.
The sooner business owners can figure out their target markets, the sooner they will have an effective strategy for trying to grow their business. 50% of all Canadian entrepreneurs fail says virtual CFO. And the number one reason why businesses fail, is that they are unable to find the customers to buy their products or Services. Therefore, understanding an effective target market and advertising strategy can significantly help business owners overcome these odds.
Virtual CFO | Should Entrepreneurs Market to a Large Market
Many entrepreneurs starts their business, thinking that it’s going to be easier to get customers than it ends up saying virtual CFO. Therefore, they often don’t create a business plan or a marketing plan, and when they do start advertising, they start advertising to the largest number of people possible. However, if a business owner created a business plan with a marketing plan within it, they would understand why this is an ineffective strategy, and they would learn what they needed to do differently. In fact, the simple Act of having a business plan is very important, and can increase business-owners chances of success. For example, the software company Palo Alto decided to do a survey in order to find out how effective business plans were in increasing Revenue. What they discovered was that 50% of all entrepreneurs who have any kind of business plan was 50% more likely to grow their revenue than entrepreneurs who did not. It’s just like Benjamin Franklin said if you fail to plan you are planning to fail.
What will happen if a business owner has a plan, particularly and advertising plan, is that they’re going to know exactly what they’re going to do to market their business as soon as they open the doors. They will have a target market figure it out, and know exactly how they’re going to start finding their customers. When they have a business plan, and they know their target markets, virtual CFO says it is of utmost importance for business owners to include that Target Market in the executive summary of their business plan. the executive summary of a business plan is the brief synopsis that is at the start of this very important document. And the reason the target market needs to be listed here, is because this is often the only place that a banker, or financing company will look when they are making their decision on whether to loan money to an entrepreneur.
The reason why people only look at the executive summary is that it should have the most important aspects of the business plan outlines in it says virtual CFO. And the target market is so important, because not only does it affect the marketing plan of a business. But it also influences several other aspects of the business plan itself including cash flow projections, and even pricing. When financers, bankers, and even high-level investors look at Saint entrepreneur’s business plan when they read the executive summary and see the target market in there, they will know that an entrepreneur has thought out many different aspects of the business, and of how they’re going to get customers. and this will give them a lot of peace of mind that the business owner will be able to continue to generate revenue, and that they can pay back the loan if they get it.
The monthly business owner has a plan says virtual CFO, it’s important that they don’t put it on the shelf and never look at it again. The most effective business plans are living documents, and should be read and updated on a regular basis when does its owners do this, they will be significantly more prepared to increase the revenue in their business for years to come.