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If business owners do not understand who their target market is says virtual CFO. They are putting their business at risk as soon as they open the doors to their business. The target market of the business is who an entrepreneur is the area that business owners are going to be marketing to their ideal and likely buyers.
If business owners who do not include the target market in their marketing plan as well as their business plan. Virtual CFO says that not only will their advertising plan be ineffective. But when a business owner opens the door to their business. They don’t know where their target market is.
Not knowing where the target market is is going to impact how effectively an entrepreneur will be able to Market their business. Not having a target market means that business owners might markets two different areas instead of the same one consistently.
And it’s that consistency that is going to have an entrepreneur getting a return on their investment. In fact, virtual CFO says that a business owner must get their message in front of their ideal and likely buyers an average of 4.3 times. Before they will buy from that business. This is true even if they are ready to make their purchasing decision.
Therefore, the more people that an entrepreneur can get that message to at least five times. And do it consistently. The more they are going to see a return on investment.
The larger the target market is says virtual CFO. And the less consistent an entrepreneur can get that message to them. Especially as entrepreneurs lack resources when they are new in the business. Typically having very little time and even less money.
Therefore, when business owners identify who their target market is. Then they will be better able to Market more consistently to the same area. And start seeing some return on investment for their marketing time and marketing dollars.
Virtual CFO says that if entrepreneurs only had enough money to send out 5,000 Flyers. They would be far better ahead to Market that flyer five times to 1000 customers. Rather than trying to have a thousand customers see that flyer just once.
When they understand this is how consistent they need to be. They will understand why a smaller target market is better. Because they’re going to be able to generate enough results. That will allow them to increase their revenue. And then gradually increase their target market as they make money.
As an entrepreneur increases Revenue. They can increase the amount of money they have for marketing their business. And they can start to utilize more paid techniques. Such as Google AdWords. They will definitely need to understand who their target market is when they start using online advertising. Which is why they need to have it clearly defined in their business plan before they even open the doors to their business.
Therefore, business owners needs to not only create a business plan. But they need to create a marketing plan. And in that marketing plan include their target market. This will allow them to generate even more results in their business. Helping them be more successful. Sooner rather than later and their business.
The reason why a marketing plan is so important says virtual CFO. Is so that entrepreneurs know even with an extremely limited budget. What they are going to do tomorrow get their business.
The target market is so important says virtual CFO. So that’s when entrepreneurs open the doors to their business. They will know exactly what they’re going to do For marketing, and in what areas they are going to do it.
many entrepreneurs lack resources including and especially money when they first open the doors to their business. Therefore, they need to utilize the most inexpensive and free methods of marketing possible. This can include things like cold calls, and door-knocking. As well as going to business mixers and marketing meetings.
However, if they don’t know their target market says virtual CFO. They will not know what area they need to do cold calls in. Or what area say needs to go door-knocking in. As well as what areas of town they should be going to mixers in.
The target market can be so important. That it will actually influence the whole business plan. And not just the marketing section of the business plan. It can influence cash flow projections. The target market can also influence pricing of the products and services. And it will definitely impact budget.
Therefore, once a business owner has worked out what their target market is with their virtual CFO. They need to include it in the executive summary of their business plan. Therefore, even if an entrepreneur only has time to read one page of their business plan on a regular basis. They will be able to read the executive summary. And remember the most important aspects of their business plan. And whether they are on target or not.
It’s also important for business owners to understand that their target market needs to be in their executive summary. Because if they are going for financing. Whether it’s to buy a building to grow their business. To do leasehold improvements. Or if it’s too buy an asset that will help them grow their business.
Financing companies whether they are banks, credit unions or even financing companies. Will often only look at the executive summary of the business plan in order to make their decision. On whether to Lone entrepreneur money or not.
By having an extremely well-written executive summary including the target market of a business. Can help those financial companies understand. That’s an entrepreneur has a marketing plan, so that they will be more likely to be able to pay back a financial institution of any loan that they get.
therefore, business owners needs to find someone who can help them with a business plan if they are feeling overwhelmed. And end up with an effective business plan, a marketing plan that includes a target market.
The sooner they can do that, the sooner they’re going to be able to overcome the 15% of entrepreneurs who fail in their first year of business.
