Virtual CFO | Understanding Your Target Market
One of the most important things that an entrepreneur can do for their business plan, is to understand who their target market is as virtual CFO. Will many business owners tend to think that everyone is their target market, this is Never the case. Business owners need to find their ideal and likely buyers and then markets to them specifically. When business owners identify who their target market is, they often make the mistake of believing that they need to reach as many as they can possibly manage at a time. And while this sounds like a valid marketing plan, and actually isn’t.
The reason why business owners should not try to reach as many of their ideal and likely buyers as possible, is because this can be expensive as well as effective. The reason why, is because business owners need to understand that even their ideal unlikely buyers that are ready to make a purchase needs to hear from an entrepreneur an average of 4.3 times before they make a purchase. Therefore, business owners need to get in front of their ideal clients several times before they can expect the results. Therefore, when they start small, they’re going to be able to not only spend less money. But generate more response for the money that they do spend. Virtual CFO says business owners should think about marketing to a thousand of their ideal clients 5 times rather than trying to reach 5000 of their ideal clients at a time.
Since a business owner needs to get in front of their ideal customers an average of 4.3 times before they will buy, the sooner a business owner can start getting their advertisements in front of them, the better. No matter what their marketing is, it is 4.3 times of any of their branding messages. Therefore, if a business owner is paying for Google AdWords, and sending Flyers out, and doing door knockers, if there are ideal unlikely buyers C all of those things, it’s counts towards the 4.3 * they need to see their marketing before it’s effective.
The biggest rule of thumb bad to Virtual CFO says that business owners need to keep in mind, is that consistency is the key. The worst thing that a business owner can do, starts and stop their marketing efforts. If they do, they might lose those customers that are almost through that important buying cycle, and when a business owner starts marketing again, they are going to have to start from scratch with that customer. Therefore, a business owner needs to ensure that whatever marketing efforts they start, that they keep up with consistently. This is another reason why it’s very important to start small, and generate results first. If AB is owner tries to Market to too many people at a time, it can be a large cost, but a business owner cannot afford to maintain.
The sooner an entrepreneur is able to implement an effective marketing strategy, the better says virtual CFO. 50% of all Canadian entrepreneurs fail because they aren’t able to find their customers. When business owners are able to find their target market and effectively advertise to them, they will stand to overcome those odds a lot easier.
Virtual CFO | Understanding Your Target Market
Not only should entrepreneurs understand who their target market is since virtual CFO. but they need to include that Target markets and their business plan, their marketing plan, as well as ensure the target market is included in the executive summary of their business plan. The reason why it’s very important for entrepreneurs to have their target market included in the executive summary is that this is often the only part of a business plan that financing companies, Banks, as well as high-level investors look at. Therefore, to ensure that these people that will help an entrepreneur financially can see the most important aspects of their business plan, they need to include it in this summary. In addition to that, business owners often want to review their business plans on a regular basis. But they run out of time, and so they refresh their memory with looking at the executive summary. This is why it’s important to have the target market included here.
The reason why it’s so important to have the target market in the executive summary says virtual CFO is because it is going to formulate and entrepreneurs marketing plan, including aspects such as their pricing, they’re projections, and what they are going to do for marketing immediately, as well as in the future. With how important it is the executive summary is the best place for it to be, in addition to the marketing plan section of their business plan.
If business owners do not have a business plan, this can directly impact the success of their business. The reason why is because software company, Palo Alto did a survey and found that entrepreneurs that had a business plan or 50% more likely to grow their business and increase the revenue than businesses who did not have a plan at all. It’s just like the Founding Father of the United States of America, Benjamin Franklin said: if you fail to plan, you are planning to fail.
Even if entrepreneurs do not have a business plan, virtual CFO recommends they write out a plan as soon as possible. Having it on paper is extremely important, and business owners can use that, to start building an actual business plan. They can contact their accountant to help them with this extremely important document that can help an entrepreneur grow their business. By including the target market in their business plan, business owners will formulate an effective marketing strategy that can help them grow their business.
A business plan is so important to the success of a business says virtual CFO, that the most successful entrepreneurs will have a business plan even before they open the doors to their business, and we’ll follow it regularly and update it yearly. If entrepreneurs are serious about wanting to grow their business and be successful, they need to guess a business plan as quickly as possible. But not only that, they need to ensure that they are following the business plan in order to help bring it to fruition.