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

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Virtual CFO | Should Entrepreneurs Market to a Small Market

 

What are the biggest mistakes that entrepreneurs often make according to Virtual CFO of is they try to Market to as many people as possible at a time. For example, if they open a business and a large city, they may try to reach everybody in the city at least once. Not only is this not a great strategy, but it can waste a lot of money while being very ineffective. And while business owners should be marketing to smaller markets, they actually are fearful that this is less effective.

Business owners need to take into consideration that in order for their target market to purchase from a business, they need to have been reached by that business and an average of 4.3 times. Even their ideal clients are ready to make a purchasing decision says virtual CFO. Therefore, a business owner will have a much more effective strategy by reaching fewer people more often than trying to hit everybody in a large area once. This is especially important to note because business owners are often very low on money, especially when they start out in their business. They are going to get much bigger response if they even market to fewer people. For example, if a business owner can only send 5000 Flyers, they will be much better off sending those flyers to 1,000 people five times than they would beat to sending five thousand people the flyer once.

When business owners understand this, they can figure out who their target market and will be, and often is going to be people that are in the specific geographical area of their business. When they know who their target market is says virtual CFO, not only do they need to put this in their marketing plan, they need to include it in their business plan and even put it in their executive summary. The executive summary is the brief synopsis of the business plan that is included at the beginning of this document. The reason why their target market needs to be included here, is because this is often the only part of a business plan that Banks, financing companies and high-level investors will read when a business owner is looking for a loan, financing, or money.

Often, a business owner has plans to review its business plan on a regular basis says virtual CFO. But they are too busy to do that on a regular basis, so they end up only reading the executive summary. If their target market is included here. who the target market is actually going to guide the entrepreneur’s marketing plan, their projections, the pricing of their products and many more things. Therefore, it’s not just important for business owners to know who their target market is, they need to remind themselves on a regular basis so that they can have the most effective marketing plan possible.

The reason why business owners often should start with their own geographical area as their target market is that it can be very cost-effective to service the people they either work close to, or live close to. If a business owner offers delivery, or is a contractor of any sort, the travel time is going to factor in greatly to the profitability of their business says virtual CFO. Therefore, business owners should consider very carefully who their target market should be, and when they are successful, grow from there.

Virtual CFO | Should Entrepreneurs Market to a Small Market

Business owners need to understand who their target market is, and advertise to their ideal and likely buyers in that market says virtual CFO. However, many business owners think that it’s going to be effective to reach as many potential customers as possible at a time. However, not only is this not effective, it can also end up costing an entrepreneur a lot of money without generating the results they need to grow. By marketing to smaller areas more often, business owners can generate more results for their business, and help them grow the revenue. Once they have increased Revenue in their business, they can gradually grow their business and increase their target market.

Business owners should also take into consideration that they should put this target market into their business plan. Business plans are a vital necessity to ensuring business owners can reach their objectives, and increase their revenue. If business owners do not have one, virtual CFO recommends that they stop everything that they are doing in order to get one created. Palo Alto, the software company did a survey and discovered that’s entrepreneurs that had business plans were 50% more likely to grow their business and increase the revenue then entrepreneurs who did not have one at all. If business owners truly want to succeed in their business, they will get a business plan made. The most successful entrepreneurs will have a business plan well before they open the doors to their business. They in fact we’ll have one before they’ve obtained financing, and we’ll follow that business plan very strictly.

Whence they have a business plan, business owners need to understand what’s the executive summary of their business plan is. Virtual CFO says this is a summary that’s is at the beginning of their business plan, which offers an overview of the entire business plan itself. The reason why this is so important is for many reasons. Often, this is the only part of the business plan that gets red, including by the business owner themselves. Therefore it’s important to have the target market included here, because it is going to be the driving force behind and entrepreneurs’ marketing plan and other aspects of their business plan.

No matter how a business owner is planning on marketing to their ideal and likely customers, they need to understand that reaching a smaller audience more often is far more effective. The reason why large corporations don’t advertise to customers once. But continually advertised in a variety of methods. Television ads, radio ads, ads in newspapers and on buses, this way, those companies can be sure that there are ideal unlikely buyers hear their message enough to be called into action. And while small entrepreneurs can’t afford National advertising such as television and radio. They can afford advertisements, such as Google AdWords, Flyers, door hangers and even reaching out to those customers in person.

By understanding their target market, business owners can come up with an extremely effective marketing strategy. Virtual CFO says that by adhering to the strategy, and reaching out to their ideal and likely customers enough times, business owners will be able to grow the revenue of their business.