Virtual CFO | Successful Businesses Know Their Target Market
When entrepreneurs start their business, they should already know exactly who their target market is saying virtual CFO. Which means, that they have done the research necessary to understand not only who their ideal unlikely customers are, but where they are located, and how they are going to reach them. This type of planning is very important for business owners to do if they want to overcome the odds that Canadian entrepreneurs face. Industry Canada says that half of all entrepreneurs fail in business, and 15% of them fail within the first year alone. The number one reason why entrepreneurs fail, 42% of them cannot find customers for their products or Services. Rather than make the assumption that their business is simply didn’t have a customer base. A business owner should realize that those businesses likely did not mark it, or they likely did not Market effectively. Therefore, entrepreneurs can increase their chances of success by understanding their target markets and coming up with an effective advertising plan to reach them.
Successful entrepreneurs also know that in order to have those customers be inspired to call the business, they need to see an ad from a business or hear from the business an average of 4.3 times. This means, that an entrepreneur must be ready, willing, and able to reach out to each customer five times before they can expect a response. Luckily says virtual CFO, anyway that an entrepreneur reaches out to their customers, will count towards this five times that they need to see them. Therefore if a business owner does a mail-out campaign, if they advertise in the local paper, if they are advertising through Google AdWords, and have retargeting software, that’s can be enough for a business owner to reach out to the customer enough times to inspire them to call the business.
However, the fact that a business owner must be prepared to contact customers five times before they will buy anything, virtual CFO says the smaller the target market, the better. It can be exceptionally cost-prohibitive for a business owner to try to reach an entire city for example because they have to do it too consistently five times. Therefore, a business owner will be able to generate more results by focussing smaller first, and increasing the size of their target market as they generate revenue in their business. When entrepreneurs understand this, they can create a marketing plan that will actually work, and help them grow their business.
How a business owner is going to choose the target market however is sometimes a question says virtual CFO. The recommendation is for entrepreneurs to start with customers that are directly in the geographical area of the business. Not only does this make sense, because it includes the convenience factor. But also, if a business owner ever has to travel to see customers, do home deliveries, or as a contractor for example, the closer they are to their business to see the customers, the more cost-effective it’s going to be to service them says virtual CFO. By doing this, entrepreneurs can end up with an effective marketing strategy that can help them overcome the odds in the business.
Virtual CFO | Successful Businesses Know Their Target Market
While successful entrepreneurs will have a business plan, that includes a section devoted to marketing that outlines who their target market is saying virtual CFO. Entrepreneurs that have any kind of business plan will be more successful than entrepreneurs who don’t. This has been proven by the software company, Palo Alto, who did a survey and discovered that businesses that had any kind of business plan were 50% more likely to grow the revenue in their business than entrepreneurs that did not have a plan at all. This is proving the quotes from Benjamin Franklin that said, if you fail to plan, you are planning to fail.
Therefore, it’s very important that business owners understand that they must have a business plan. But if they are struggling with what to put in their business plan, it may not help them as much as it could or even should. Therefore, when business owners are creating their marketing plan, they need to understand how important getting the right target market is to the success of their entire plan. Many entrepreneurs make the mistake of thinking that they should Market to as large an area as possible, to reach as many customers as they possibly can. And while this might sound like an effective marketing strategy says virtual CFO, not only can this be cost-prohibitive, but unless a business owner can consistently reach out to them five times, a business owner is not going to generate results for there be that way. Therefore, if the target market is identified as an entire metropolitan area or an entire city, they may want to rethink that plan.
Once they figure out the target area that they are going to focus on, which should ideally be a small, geographical area close to the business or the business owner’s home. Virtual CFO says they need to include that in the executive summary of their business plan. What the executive summary is, is the synopsis at the beginning of a business plan that has a brief overview of everything that is contained within the business plan. The reason why this is important to include the target market here is that the executive summary is often the only part of a business plan that people read. People including bankers, financial institutions, and high-level investors. Virtual CFO says if a business owner wants to increase their chances of obtaining financing, alone, or having someone buy into their business. They need to ensure that they are including their target markets in the executive summary.
The reason why the target market needs to be here is that it is going to influence the marketing plan, the projections of the cash flow in business say virtual CFO. It will even influence the pricing a customer has. Therefore, if a business owner wants to increase the likelihood of obtaining financing, they need to ensure that its target market is included in the executive summary of their business plan.