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Starting Up Small Business

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How are you going to go about getting your public to know you even exist?



Promote! Promote! Promote!

Well that all sounds simple, but say you're a financial specialist, a boat builder or llama farmer. They probably didn't teach the basic principles of starting small business promotional campaigns in boat-builders? school. So what do you need to know, and how do you go about it?

Let's start with the ?Basic Principles? of promotion:

What is Promotion?

Promotion (pro'mō′?shun) n. Anything, as advertising, public appearances, etc., done to publicize (get the attention or interest of the public) a person, product, event, etc. The New Webster's Concise Dictionary2003 Encyclopedic Edition

Why do you promote?

The purpose of promotion is to make sure people know you are in business. You promote because if you don't, you won't make it in business. You promote because it is communication that you need to engage in in order to survive. You promote in order to expand and get the attention or interest of the public for your products or services. You promote because if you don't, no one will know you exist and no one will buy from you and?well, you get the point.

How do you promote?

There are more ways than you would ever think. Have you ever heard someone say, ?I never promote and I am always busy? OR ?I don't have to promote, all my business comes from word-of-mouth?? They may not be aware of how they're doing it, but I promise you they are promoting somewhere. Maybe they just go around telling everyone they talk to, that they don't promote. (Sound funny? It's still promoting.) Maybe their larger-than-life running water faucet in front of their store attracts so much attention that they don't need to do anything else. Well here are some ideas you can do ?knowingly? to drive in the business.

?Greeting your customers with a smile is a great place to start.

?Calling your customers after they have had a chance to use your product is a good way to promote that you care about their experience with your organization. It can also create an opportunity to make more sales.

?A neatly packaged product, the shipping label on straight, promotes that you take pride in what you do.

?Always keep up-to-date brochures or catalogs about your business in your reception area for people to see and take with them.

?If you have customers coming into your business, make sure they are greeted pleasantly, professionally, and immediately.

Anything that gets the attention or interest of the public for the company, its employees, its products or services (in a positive way) is promotion.

But how do you go about promoting to the masses?

Here is a story that could save you thousands of marketing and promotional dollars, as well as months or years of experience.

?I was working as the Communications & Promotional Director in a medium size business. We were fortunate enough to have our own commercial printing press, that put out lots of very fancy letters, catalogs, brochures and other promotional items, and oh yes, envelopes to put them in. My full time pressman and his helpers, spent several days each week getting everything printed, cut, folded and sent over to the mailing house.?

?There, they had machines that automated all the stuffing, sorting, addressing and stamping. All in all everything was going very well. We were sending out about 40,000 pieces per week at a cost of about $10,800.00, and getting around 120 to 140 good leads per week. This generated an average of 2 new sales per week for a product that cost around $12,000, and re-sign income of around $45,000 more. We weren't growing very fast, but we were making money.?

?THEN?911 hit. ?

?Suddenly, nobody wanted to open envelopes. Our leads were dropping to nothing. We were heading toward our own disaster like so many other companies did. I knew I needed to promote, but what good did it do if nobody read it!?

?I was talking to the owner of the mailing house and he suggested the use of POSTCARDS instead of letters. So we decided to give it a try. Unfortunately, I had much less money to allocate towards promotion, so I started by sending about 20,000 postcards weekly. The total cost-per-piece, needing only one day on the presses, half the labor at the mail house and a substantial decrease in postage, was reduced by about 60%.?

What was the result? Try 120 to 140 leads per week!

Why?

?You don't have to open a postcard!

?You see it right away, the bright picture is not hidden from view by an envelope.

?The message leaps right out and you can't ignore it or throw it in the trash unopened (the fate of many bulk mail pieces).

Postcards are the best medium to reach new customers when starting a small business promotional campaign.
Starting Up Small Business


It is with much hope that every entrepreneur sets off starting a Small Business. Making money was his main objective. Failure was never in his mind but things don't seem to happen the way he had planned for. Even the hope for Survival seems to have disappeared and Failure haunts him at every turn. Why does this happen and happen so often to numerous small business entrepreneurs?

The four major mistakes often made by new small business entrepreneurs are:

1. Improper or No Research:

The most fundamental thing to do before starting a small business is to do a market research to find out whether there is sufficient demand for the product or products you have to offer.

Perhaps the reason for the failure to generate the funds is that there is no market for your product or the market is saturated. The need for your product in your area of business activity should be your prime consideration before starting a small business. Only if there is sufficient demand for your products, you will be able to generate the funds necessary to help you run your small business, survive and succeed.

2. Improper or Under Funding:

Quite often the urge to start a small business is so great that the very vital aspect of funding is not given due importance. Businesses are started on a shoe string budget and shops open with very little stock and offices with insufficient equipment. To ensure the purchase of stock and equipment it is absolutely essential to have proper funding in place before commencing your business. Furthermore your business might take several months to start making a profit and hence funds are necessary to help your small business survive and keep your morale up during these early months.

If you don't have sufficient funds of your own, it will be wise and proper to obtain a loan before starting your business. This could be obtained from your bank or you can seek the assistance of the Small Business Administration which offers numerous loan programs to assist Small Businesses.

It is important to note that the SBA acts primarily as a guarantor of loans made by private and other institutions.

Taking huge loans out of proportion to your needs can also be detrimental to your small business since provision has to be made for higher interest payments.

3. Insufficient Advertisement and Promotion:

No Business can be successful unless the public is made aware of the existence of your small business and its products. The best of equipment and stocks cannot generate sales unless the public is made aware of it. Hence advertising your small business and the products before the commencement of your business and thereafter should be a major consideration. Failure to do so has been the cause of failure of several small businesses.

4. Unnecessary expenditure:

One of the major causes for the failure of a small business is the improper handling of the funds. Extravagant expenditure at the initial stages such as the purchase of expensive cars, equipment and expensive business lunches completely out of proportion to your needs can eat into the capital and leave your small business with very limited working capital. Hence proper and wise handling of funds especially at the early stages can make all the difference between success and failure.

Conclusion:

Failure to avoid the above mentioned mistakes for one reason or the other can be detrimental to the progress and success of your small business.

Securing the services of a consultant to help you plan out your small business before starting will be a wise move to ensure success.

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About Author
Both Joy Gendusa & Kanaga Siva are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Joy Gendusa has sinced written about articles on various topics from Marketing, Sales and Negotiation and Marketing. Joy Gendusa founded PostcardMania (http://www.PostcardMania.com) in 1998, her only assets a computer and a phone. By 2005 the company did ov. Joy Gendusa's top article generates over 27100 views. Bookmark Joy Gendusa to your Favourites.

Kanaga Siva has sinced written about articles on various topics from Site Promotion, Home Based Business and Small Business. Copyright © 2006 Kanaga SivaKanaga Siva has a wealth of experience in Marketing and operating a successful Home Based Business. You are welcome to visit his Free Home-Based Business Website for Articles, Resources, Ideas and Advise to start a. Kanaga Siva's top article generates over 60500 views. Bookmark Kanaga Siva to your Favourites.
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