Small Business Marketing Tips

When operating a small business, recognizing the key differences between large and small businesses can help you make decisions that are appropriate for your specific business structure, which can be the difference between a thriving business and a struggling one. In particular, effective marketing and advertising techniques can vary greatly between small, mid-sized and large businesses.  What works for mid-sized or large companies may not work for a small business, simply due to lack of financial or other resources necessary to market products and services. For small businesses, one of the most important factors to consider in a marketing campaign is cost. The following tips are inexpensive, yet effective ways for small businesses to market products or services on a large scale.

Pay Attention to Your Customers

While you are trying to gain more customers, do not forget about the customers that you already have. It is much easier to get more business from the customers who already know and trust you than from someone brand new. Take advantage of this by offering special deals to existing customers or releasing information to them before you release it to the general public. One idea is to send regular newsletters to customers by mail or email, keeping them informed on what the company is doing now and in the future. The better you treat your current customers, the more likely they will be to recommend your company to other potential customers.

Partner With Other Small Businesses

Find a non-competing small business serving consumers in your target market and negotiate a joint promotion. Your small business can offer to publicize their products or services to your customers, and in exchange they can publicize your products or services to their customers. For example, if your business is sending out a brochure, you could include a leaflet or business card from the other business and vice versa. This is a great way to reach a whole new audience at a very low cost. 

Use Social Media

Successful businesses of all types are steadily using this effective method for business purposes, especially marketing and advertising. Social media has quickly become one of the easiest and fastest ways to advertise virtually anything. More than 750 million people use Facebook every day, making it the most popular Web site on the Internet. It would be unwise for any company, large or small, not to use social media. By creating profiles on sites like Facebook, Twitter or LinkedIn, you can personify your organization and instantly become more appealing to existing and potential customers and clients. Customers can get updates immediately through the use of these profiles, making them feel more connected with the company. It would also be beneficial to create a blog and be active on other blogs. The more active your business is on social media, the more likely people will remember it. This marketing technique is incredibly useful, and it is free to create most social profiles.

Why keeping up with the Joneses can be detrimental to your business

Unique tactics set your business a part from competitors.

Monitoring the strategies and tactics utilized by your competitors is necessary in the process of developing your company’s unique strategy. Evaluation of competitors can help your company stay abreast of various industry trends, which can help you meet your customers at the point of need. Examining different techniques used by similar companies, as well as increased or decreased sales and popularity during the time that the tactic was used can help you gauge whether similar techniques may be of value for your company as well. However, when developing your marketing and publicity campaign strategy, be careful not to completely mimic the tactics used by your competitors.

For instance, if you are planning to open up an ice cream shop and found that the ice cream shop down the street experienced increased media exposure after it hosted a free lunch-time ice cream social for workers in the area, it would not be wise to do the same ice cream social/free giveaway type event. First of all, no one likes a copy cat. The public and the media can see right through a business that does not really have anything unique to offer. While it is true that everyone loves to get something for free, at best you may get a few people who stop by to grab a free ice cream cone and leave. The media surely will not cover an event that has been done before, so rather than reaching the workers and the entire coverage area of the news station that covered the story as the original ice cream store had, your exposure will be limited to those who pass by; not to mention the added cost of providing tons of free ice cream with little if any return in generated publicity. Even if your ice cream is better than your competitor’s, you may experience less than stellar results for using an old idea.

Aside from not producing the desired results, there are other, more severe consequences to not developing a solid marketing and publicity strategy that is unique to your company. The fact is, all companies are different. While it may seem that two ice cream shops that are a block a part with similar products, pricing and customers could successfully utilize practically the same plan, there are many other factors that affect the success of tactics that must be considered.

In my aforementioned scenario I did not mention how long the first ice cream shop had been in business. If the shop was well established, chances are the company has loyal customers that would turn out for almost any event. It may not be as easy to get those same customers to come to your new ice cream shop. It is also possible that the ice cream social coincided with a company anniversary or other unique milestone, which may generate more attention from the media than the opening of your ice cream shop. Longevity often wins over something new, unless your business idea is truly unique (an ice shop is typically not considered a revolutionary idea). In addition to knowing the circumstances under which a tactic was successful, it is also important to take note of when the tactic was successful. Maybe the ice cream social was held prior to the construction of a shopping mall in the area. Now that the mall is near, a lot of workers use their lunch break to shop, so hosting an event during lunch may not be a great idea—even if it is free.

In the end, trying to keep up with the Joneses, or doing everything your competition does, can be detrimental because all businesses are unique. Find what makes your business special and use your tactics to draw attention to your strengths. If you are a soccer-mom-turned-business-woman and are new to the ice cream business, capitalize on what you know. How about offering a play place or noon story and ice cream hour for parents and children who visit your shop?

Learn how Writings by Design can help you develop and execute a strategic marketing and publicity campaign that is unique to your company.

Small Business Tips for Long-Term Success

Building relationships with customers results in security.

The failure rate for small businesses is incredibly high. Many small businesses rely on "good products," "good ideas" or "good services," rather than on proper preparation, business structure, funding and marketing  strategy. While having a sound product and/or service is also a must, a business with a great product or service that is not supported by strong, fundamental business concepts will not be successful in the long run.

• Plan for the worst. Businesses that are prepared for financial and public relations crises can handle them in a proactive, rather than retroactive, fashion, which will be beneficial in the long run.

• Know your strengths and weaknesses. When businesses are aware of their strengths, they can capitalize on them and sell the company better to customers and clients. Additionally, knowing weaknesses is equally important so improvements can be made.

• Build a relationship with your customers or clients. Establishing a relationship with customers and clients is essential. Especially during times of economic hardship, loyal customers help keep businesses afloat.

• Don't try to grow/expand too fast. Growing too fast can also be detrimental for a small businesses. Prior to running a huge advertising campaign (or other marketing tactic), businesses must ensure that they have the man power to support the company's efforts if there is a surge in demand.

• Know your competition. Keeping an eye on competitors is beneficial because businesses can not only see what other businesses are doing successfully, but also what tactics other businesses have tried that have been unsuccessful, so they can avoid going down the same path.

Poll Shows Small Business Owners Weary of Government Regulations

According to a recent Gallup poll, complying with government regulations is the biggest obstacle small businesses are facing in the current economy. The poll asked small business owners throughout the country, "What do you think is the most important problem facing small-business owner like you today?" Respondents were not given options to select for the open-ended question. The results are as follows:

• Complying with government regulations - 22%
• Consumer confidence - 15%
• Lack of consumer demand - 12%
• Lack of credit availability - 10%
• Poor leadership, government, president - 9%
• Cash flow - 7%
• New healthcare policy - 5%
• Competition from big business and overseas - 4%
• Lack of jobs - 4%

While little immediate action can be taken to rectify some concerns listed by small business owners, such as poor leadership and new healthcare policy, there is action small businesses can take in other areas. 

Complying with Government Regulations

Small business owners who have won government contracts or those who have attempted to understand the immense amount of red tape involved in the process of contracting with the government. For small business owners who have not yet taken this step, understanding and complying with other regulations regarding taxation, employees, health and safety, and conducting business in general can be a daunting task.

Consumer Confidence/Lack of Consumer Demand

In addition to being tough on small businesses, the poor economic climate has likely negatively impacted the clients and customers of the small businesses that depend on them for survival. Many consumers lack confidence in the economy, which means they are hesitant to spend money. Small businesses can overcome this problem by continuing their marketing efforts during this time. Although marketing does take time and does require money (sometimes), the payoff is well worth it. It is much more cost effective to keep loyal customers than it is to gain new ones. Clear, consistent communication builds lasting relationships.

California Law Prohibits Credit Checks for Certain Employees

Earlier this week, California Gov. Jerry Brown signed a bill that would prohibit employers to request credit reports from job candidates for certain positions. The bill, AB22, which will be effective as of January 1, 2012, restricts the use of consumer credit reports in the hiring process to individuals who will work in law enforcement, a financial institution or the California Justice Department, among others.



If you do not currently do business in the state of California, the news is still pertinent to the rest of the country, as California is the seventh state to enact such a law, and at least 20 other states have considered similar action. A Congressional bill that would limit the use of consumer credit reports for employment purposes is also under consideration, but the House has yet to approve it.


For states that do not have a law to limit address to consumer credit reports, employers are allowed to obtain credit reports for both current and prospective employees. The employer simply must request permission from the employee or future employee, and notify the person if he or she was not promoted or hired because of negative findings.

Optimizing Social Media

Great video on social media.

Traits of Successful Entrepreneurs

Millions of people spend an insurmountable amount of time trying to get out of the rat race. Whether you are s six-figure salary earner or a struggling waitress making minimum wage, the simple fact is, the only way to gain true wealth is through self-sufficiency—in other words, the obtainment and maintenance of your own business.

Entrepreneurs are made from a different stock than their “9-to-5” counterparts. While gumption is a trait that must be present for all successful business people, entrepreneurs must be go-getters on a new level to experience true success and longevity—especially in a sub-par economy. If you think you have what it takes to be an entrepreneur, read the following to see how your characteristics match up. When you are finished, check out the U.S. Small Business Administration’s (SBA) Assessment to determine whether you are ready to start your own business.

Patience to Weather the Storm

Most people would agree that the majority of the good things in life take time. That said, how will you know if you’ve put in enough time and effort into your business where you should be experiencing profitability and growth? According to the U.S. SBA, the majority of small business owners do not make a profit until their fifth year in business—that’s if you make it to your fifth year, as 95 percent of small businesses close within the first five years. Are you willing to wait five years or more to see a profit? How will you sustain your lifestyle in the interim?

What about the lucky few businesses that experience profitability almost immediately? Whether it is due to low overhead costs or a revolutionary business idea, if your business makes money from the beginning, congratulations! While this is a great accomplishment, all roads to success, no matter how short or long, have dips and valleys. Successful entrepreneurs must be prepared to handle slow periods and should have a sound plan to do so.

Having an Extrovert State of Mind

While it is not necessary for entrepreneurs to be true experts, for the purpose of launching a business, having an extrovert state of mind can be beneficial.  This simply means that you must be willing to spread the word about your new business through networking. While you may plan to use expensive advertising and elaborate marketing techniques, nothing is proven to be more effective than good old fashioned word of mouth. Even in the beginning stages of your business (before you are ready to sell anything), making an effort to network with key players in and outside of your community is critical. You never know who you might meet that could possibly springboard your business to success. If you are proud of your new business, why not shout it from the rooftops?

Flexibility

Having a solid plan is critical to success, so you have a step-by-step guide to lead you through business operations. These plans come in the form of business plans, strategic marketing tactics and public relations strategies. However, successful entrepreneurs must be willing to deviate from those plans when necessary. Just because a tactic has worked in the past, doesn’t mean it will be successful the next time around. Responsible entrepreneurs know the importance of monitoring the effectiveness of all tactics utilized, so they can abandon the less-effective tactics at a moment’s notice.

Passion

Lastly, you must have a true passion for your small business. Without passion, walking away when the journey gets a little rough will always be an option. Passion will also create an inner sense of optimism that is essential for all entrepreneurs. After all, if you don’t believe in what you’re doing, who else will? While it’s wise to always have an exit plan, it should be your last resort, not amongst one of the first options. Only those with passion will last through the storm, and reap profits on the other side.

Preparing Your SBA Loan Application

If you need a business plan to jump start your company's funding initiative, contact Writings by Design today!

Small Business Administration Certifications

There are two great assistance programs available to small business owners through the U.S. Small Business Administration (SBA) that could help give your business the boost it needs during tough economic times. The assistance programs, the small disadvantaged business (SDB) certification program and the 8 (a) business development program, can be an asset to any type of business, regardless of length of operation. In addition to increased funding and training, becoming classified as an SDB or 8 (a) business can substantially increase your chances of receiving government grants or federal and state contracts.

The first step in becoming certified is to understand what a small business is, and then you must know the difference between each certification/classification. According to the SBA, a small business is defined as an independent business having fewer than 500 employees, although the definition used for government programs and contracting varies by industry. If you qualify as a small business, in order to receive SDB or 8 (a) certification, the owner of the business must be economically and socially disadvantaged. However, the key difference between the two classifications is the owner’s personal net worth (I’ll talk about this more later).

In order to be considered socially disadvantaged, the owner must “have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group,” according to the SBA. Typically small business owners who are Hispanic, Native American, Asian or African American meet this requirement. There is also a broad statement saying that “other individuals can qualify if they show by a preponderance of the evidence that they are disadvantaged.” Due to this rather ambiguous language, many women small business owners can be considered socially disadvantaged as well if they can prove that they have been a victim of long-term gender-based discrimination. For example, if a woman faced discrimination from professors and administrators at a military college due to the fact that she went to a predominately male school, she could claim that the discrimination hindered her ability to form a business later in life. Women who have previously filed sex discrimination cases are more likely to be able to qualify as socially disadvantaged. Contrary to popular belief, White males are also not excluded from the “socially disadvantaged” group. If a White male has a disability or is handicapped in any way, there is a possibility he could qualify as socially disadvantaged. Those suffering from mental health issues, such as depression, or those who may feel as though they are socially disadvantaged due to religious preference could qualify, but must prove that they were discriminated against solely for those reasons.

Now that you know whether you would be considered a socially disadvantaged individual, you must figure out if you can also classify as an economically disadvantaged individual. This is where the difference between SDB certification and 8 (a) business certification comes into play. Small business owners can qualify for SDB certification if their personal assets are worth less than $750,000. If a small business owner’s personal assets do not exceed $250,000, he or she can qualify for the 8 (a) business development program. Please note: The SBA does not consider home equity as a personal asset. If a business is classified as an 8 (a) business, it is automatically SDB certified. However, all SDB businesses are not 8 (a) businesses due to the personal asset qualifier.

If you believe you qualify for either the SDB or 8 (a) SBA programs—or both—do not hesitate to apply to the programs. For more information, visit www.sba.gov.

To learn more about how Writings by Design can help your business apply for funding or certification programs, or connect with customers, clients and other key stakeholders, please visit us at www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call us at (866) 937-2361.

How Can Outsourcing Help Your Company?

Frustrated? Outsourcing can help!

Reducing overhead costs is the easiest way to save your business money, and therefore increase its bottom line. One of the simplest ways to reduce overhead cost is to eliminate or significantly reduce the utilization of full-time employees. Many companies have realized that outsourcing various services is beneficial in a plethora of ways. Outsourcing, using outside help to complete tasks that are normally performed in-house, is not a new concept, as companies have been utilizing outside advertising firms, accounting companies and distributors for decades. Small- to medium-sized businesses can also benefit from outsourcing other tasks, such as promotional materials, which has been proven to have significant advantages that outweigh monetary benefits—although those are nice as well.

In addition to saving money, outsourcing various marketing and public relations services has many long-term benefits for companies of various sizes and types. Long-term outsourcing benefits are as follows:

• Increased productivity and efficiency
• Reduced labor costs
• Reduced utility costs associated with workplace lighting and computer usage
• Reduced equipment costs for in-house staff
• Increase company attractiveness to investors—Invested capital will be spent directly making money rather than being poured into expensive salaries.
• Specialization—Outsourcing companies are often specialized in a specific area, rather than those who may be completing a project in-house who wear many hats.
• Increased competitive edge—Many small- to medium-sized businesses do not have the resources to compete with the in-house staff of large corporations. Outsourcing services provides smaller companies with an edge to compete.
• Increased focus on primary business concerns—Outsourcing writing and marketing services means that managers will have more time to focus on primary business operations, such as product development, distribution and sales.

Of course, there can always be too much of a good thing—outsourcing included. Sometimes it may not be wise to outsource all company writing or marketing services depending on the specific circumstances of the company. To avoid outsourcing too much or too little, prior to taking the leap into the world of business-to-business outsourcing, thoroughly evaluate current operations. How much is being produced and at what rate? Could outsourcing help you increase productivity and your company’s bottom line?