The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their intuition to make business decisions. While this informal knowledge is important in the decision making process, it may not provide you with all the facts you need to achieve marketing results. A marketing strategy will help you in defining business goals and develop activities to achieve them.
Here's How:
1. Describe your company's unique selling proposition (USP).
2. Define your target market.
3. Write down the benefits of your products or services.
4. Describe how you will position your products or services.
5. Define your marketing methods. Will you advertise, use Internet marketing, direct marketing, or public relations?
Tips:
1. Your Unique Selling Proposition sets you out from the rest, don't try to develop a marketing plan without one.
2. It's important that you have a budget developed for your marketing plan. Marketing is an investment.
3. Revisit your marketing plan at least once every quarter. Are you on target? Do you need to revise it?
What You Need:
* A place to concentrate.
* A pen or pencil.
* A notebook or journal.
Thursday, July 21, 2011
How To Find And Sell To Your Target Market
When I teach small business classes on marketing strategy, I often ask participants the question, "Who are your customers? Who will buy your product?" I am often surprised that otherwise savvy small business people either have no idea who will buy from them, or they assume that 'everyone' will.
Assumptions like this can lead to wrong decisions, wrong pricing, wrong marketing strategy – and ultimately, business failure.
The most successful small businesses understand that only a limited number of people will buy their product or service. The task then becomes determining, as closely as possible, exactly who those people are, and 'targeting' the business's marketing efforts and dollars toward them.
You, too, can build a better, stronger business, by identifying and serving a particular customer group – your target market.
One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people.' Become a specialist!
For example, in my business, an eco-tourism company, we made some specific decisions early in our market planning. As a charter boat business, we knew that there were plenty of fishing charter operators in the area, and 'party boats' as well. So we decided that we would offer sightseeing or special event charters, and that we would not allow alcohol on board, or fishing rods. Yes, this decision eliminated a percentage of the market – but it also gave us a 'niche' that we could capitalize on, and expanded our market in a way that other charter operators could not take advantage of.
Next, you need to understand that people purchase products or services for three basic reasons:
* To satisfy basic needs.
* To solve problems.
* To make themselves feel good.
You'll need to determine which of those categories your product or service is the solution to, and be prepared to market it accordingly.
Your product or service may fit more than one category, too – our charter business primarily targets folks who just want to feel good – spending a day out on the water, relaxing and being waited on. But it also targets people who have visitors coming from out of town, or even overseas, because we represent a solution to the problem of "What will we do while our company is here? How can we entertain them, or show them our area?"
The next step in creating an effective marketing strategy is to zero in on your target market. Continue on to the next page to learn how to use market segmentation to define your target market.
Assumptions like this can lead to wrong decisions, wrong pricing, wrong marketing strategy – and ultimately, business failure.
The most successful small businesses understand that only a limited number of people will buy their product or service. The task then becomes determining, as closely as possible, exactly who those people are, and 'targeting' the business's marketing efforts and dollars toward them.
You, too, can build a better, stronger business, by identifying and serving a particular customer group – your target market.
One of the first things you need to do is to refine your product or service so that you are NOT trying to be 'all things to all people.' Become a specialist!
For example, in my business, an eco-tourism company, we made some specific decisions early in our market planning. As a charter boat business, we knew that there were plenty of fishing charter operators in the area, and 'party boats' as well. So we decided that we would offer sightseeing or special event charters, and that we would not allow alcohol on board, or fishing rods. Yes, this decision eliminated a percentage of the market – but it also gave us a 'niche' that we could capitalize on, and expanded our market in a way that other charter operators could not take advantage of.
Next, you need to understand that people purchase products or services for three basic reasons:
* To satisfy basic needs.
* To solve problems.
* To make themselves feel good.
You'll need to determine which of those categories your product or service is the solution to, and be prepared to market it accordingly.
Your product or service may fit more than one category, too – our charter business primarily targets folks who just want to feel good – spending a day out on the water, relaxing and being waited on. But it also targets people who have visitors coming from out of town, or even overseas, because we represent a solution to the problem of "What will we do while our company is here? How can we entertain them, or show them our area?"
The next step in creating an effective marketing strategy is to zero in on your target market. Continue on to the next page to learn how to use market segmentation to define your target market.
Friday, July 15, 2011
Tuesday, July 12, 2011
What is a limited Partnership?
Business partnerships can be either general or limited, and as far as tax codes are concerned, exist as long as profits, losses and costs of a business are shared. While general partnerships are more common, limited partnerships are a popular method of raising capital from passive investors who prefer to not be involved in day-to-day business operations. Limited partnerships (LPs) have two sets of partners, namely one or more general partners who have personal liability and one or more limited partners who are not liable for debts. Business owners who do not want the liability for the debts incurred by the corporation prefer this option. Limited partners usually do not play any role in the day-to-day management of the company.
Pros of Limited Partnerships:
* Generally, pass-through taxation is applicable to limited partnerships, meaning that the tax burden is passed on to the partners instead of the partnership itself. Thus, profit earnings are passed on to the partners in the form of wages, income, and profit payments and each partner pays tax that is proportionate to his individual share of profits.
* A business can obtain much-needed investment capital by giving more passive investors the option of reducing their risks by becoming limited partners
* Since there is no direct involvement of limited partners in the management of the business, general partners enjoy full autonomy and have the right to make important business decisions.
* In the case of a general partnership, all partners are responsible for the debts and other liabilities. The liability of a limited partner does not exceed his capital investment in the company.
Pros of Limited Partnerships:
* Generally, pass-through taxation is applicable to limited partnerships, meaning that the tax burden is passed on to the partners instead of the partnership itself. Thus, profit earnings are passed on to the partners in the form of wages, income, and profit payments and each partner pays tax that is proportionate to his individual share of profits.
* A business can obtain much-needed investment capital by giving more passive investors the option of reducing their risks by becoming limited partners
* Since there is no direct involvement of limited partners in the management of the business, general partners enjoy full autonomy and have the right to make important business decisions.
* In the case of a general partnership, all partners are responsible for the debts and other liabilities. The liability of a limited partner does not exceed his capital investment in the company.
How to Start Your Business
Many of us dream of working from home, setting our own hours and being our own bosses. Often times we see advertisements online and in print media, claiming thousands of dollars per week for stay-at-home jobs. These, of course, are scams which want you to order some fairly redundant, freely available information for a hefty price. Real home businesses start small with realistic profit expectations. They often fail, but with the proper discipline and acumen, they can succeed. After all, Steve Jobs started Apple (AAPL) as a home business out of his parent’s garage. People often consider home businesses for a variety of reasons. Common ones include:
* Supplementary, side income to a primary job for a spouse
* Inability to leave the home (injury, pregnancy, etc.)
* Desire to become an entrepreneur
* Having a marketable idea, and enough free cash flow to explore it
Home Businesses are Lemonade Stands
You can start a home business selling anything. The range is only limited by your imagination and state laws. Let’s take the simplest business model for a home business, a lemonade stand. A lemonade stand has no additional real estate costs, as it is set up in your own front yard. You are responsible for controlling the production of the lemonade, and you are clear on the profit margin – what you make between the cost of a pitcher of lemonade and your asking price. You are aware that any changes to the weather – the main variable – will affect your supply and demand. You know that if you can’t sell your product in time, your product will go to waste and equal lost profits, or at least cause a surplus in your inventory. As simple as it is, this classic example has all the components of a small home-based business.
How should we go about starting a home business? Here are some things to do to prepare:
* Know your own talents
o What are you good at?
o Do you have a marketable skill?
* Know your strengths and weaknesses
o Focus on your strengths
o Find other people who can help you complete tasks which you are weak at. These can include remote employees also looking to work from home, or your family and close friends.
* Organize your ideas
o Decide which ones are feasible
o Write down a comprehensive business plan
If you are focusing on an outsourced contract service, you may need to build a work portfolio to advertise your previous works. For example, graphic and web designers need comprehensive portfolios to show clients. Virtual assistants need testimonials and free consultations for clients.
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If you wish to focus on a product based business, such as making quilts or gift baskets, you need to have a realistic production bottleneck based on your current capabilities. Assess the base cost of your product and the profit margin. If you are a one-man operation, it is not realistic to meet 100 orders daily. Start small, and don’t bite off more than you can chew. Grow slowly, and hire more people to help if you have steady orders coming in. Set order limits to avoid being swamped with orders and losing punctual credibility.
Reviewing your Business Model and Cash Flow
Now you have to see if your business model can actually be profitable. If you were previously living paycheck to paycheck with little cash savings, then starting a home business can be an incredibly stressful venture. If you have substantial savings, however, this can be far easier and allow more clarity in your decisions.
For example, if you decide to sell small handmade gifts for $20 each, and you are able to produce and sell ten per day at a materials cost of $15, you could theoretically earn $50 per day, and up to $1,500 per month. That’s an extremely optimistic example, and even working without a break 365 days through the calendar year, you would only make $18,000 annually. That seems like a lot of work for a mediocre paycheck. However, if you ramp up your production capabilities and hire some assembly line workers, you could easily double or triple your salary. Even better, you could hire on a team manager to oversee the operations and be able to take some time off as your venture runs itself. The time and effort needed to make a product is a key variable in the survivability of most home businesses.
A low-margin, high-volume approach, like the example mentioned above, is bound to be more successful than a high-margin, low-volume approach, which many home businesses attempt. For example, if you are able to produce homemade pottery for $10 each and customers are willing to pay $100 for each piece, but you are only able to produce one per week, then you would only make less than $360 monthly, or $4,320 annually, which would be impossible to live on. This is a huge obstacle for many entrepreneurs attempting to start an art-based home business such as sculpture, painting or photography, since your choice of helpers would be limited by skill and their impact on your product’s signature style.
If your home business is meant to supplement your primary income, it may be a much less stressful venture; after all, if it falls through you still have your regular job. However, if you plan to devote all your time to your home business, you have to make sure you have enough savings to make it through some rough patches, especially at the beginning, when initial setup costs, especially advertising, can be staggering and send your monthly balances deep into the red. While there are no shortcuts in home businesses, as many advertisers claim, hard work and persistence can pay off big in the long run.
* Supplementary, side income to a primary job for a spouse
* Inability to leave the home (injury, pregnancy, etc.)
* Desire to become an entrepreneur
* Having a marketable idea, and enough free cash flow to explore it
Home Businesses are Lemonade Stands
You can start a home business selling anything. The range is only limited by your imagination and state laws. Let’s take the simplest business model for a home business, a lemonade stand. A lemonade stand has no additional real estate costs, as it is set up in your own front yard. You are responsible for controlling the production of the lemonade, and you are clear on the profit margin – what you make between the cost of a pitcher of lemonade and your asking price. You are aware that any changes to the weather – the main variable – will affect your supply and demand. You know that if you can’t sell your product in time, your product will go to waste and equal lost profits, or at least cause a surplus in your inventory. As simple as it is, this classic example has all the components of a small home-based business.
How should we go about starting a home business? Here are some things to do to prepare:
* Know your own talents
o What are you good at?
o Do you have a marketable skill?
* Know your strengths and weaknesses
o Focus on your strengths
o Find other people who can help you complete tasks which you are weak at. These can include remote employees also looking to work from home, or your family and close friends.
* Organize your ideas
o Decide which ones are feasible
o Write down a comprehensive business plan
If you are focusing on an outsourced contract service, you may need to build a work portfolio to advertise your previous works. For example, graphic and web designers need comprehensive portfolios to show clients. Virtual assistants need testimonials and free consultations for clients.
Ads by Google
Business Plan Template – Personalize, Print and You're Done! With My Fill-In-The-Blanks Template
Growthink.com/BusinessPlanTemplate
Managing Your Money – A Free, Safe & Simplified Tool for Managing Your Money. Try It Now!
www.perfios.com/managingyourmoney
CFA Institute – Explore New Avenues in Global Finance.
www.cfainstitute.org/India
Class 1 to Class 12 – Lessons, Animations, Videos & more… Math, EVS, Science, English, SST…
www.MeritNation.com
If you wish to focus on a product based business, such as making quilts or gift baskets, you need to have a realistic production bottleneck based on your current capabilities. Assess the base cost of your product and the profit margin. If you are a one-man operation, it is not realistic to meet 100 orders daily. Start small, and don’t bite off more than you can chew. Grow slowly, and hire more people to help if you have steady orders coming in. Set order limits to avoid being swamped with orders and losing punctual credibility.
Reviewing your Business Model and Cash Flow
Now you have to see if your business model can actually be profitable. If you were previously living paycheck to paycheck with little cash savings, then starting a home business can be an incredibly stressful venture. If you have substantial savings, however, this can be far easier and allow more clarity in your decisions.
For example, if you decide to sell small handmade gifts for $20 each, and you are able to produce and sell ten per day at a materials cost of $15, you could theoretically earn $50 per day, and up to $1,500 per month. That’s an extremely optimistic example, and even working without a break 365 days through the calendar year, you would only make $18,000 annually. That seems like a lot of work for a mediocre paycheck. However, if you ramp up your production capabilities and hire some assembly line workers, you could easily double or triple your salary. Even better, you could hire on a team manager to oversee the operations and be able to take some time off as your venture runs itself. The time and effort needed to make a product is a key variable in the survivability of most home businesses.
A low-margin, high-volume approach, like the example mentioned above, is bound to be more successful than a high-margin, low-volume approach, which many home businesses attempt. For example, if you are able to produce homemade pottery for $10 each and customers are willing to pay $100 for each piece, but you are only able to produce one per week, then you would only make less than $360 monthly, or $4,320 annually, which would be impossible to live on. This is a huge obstacle for many entrepreneurs attempting to start an art-based home business such as sculpture, painting or photography, since your choice of helpers would be limited by skill and their impact on your product’s signature style.
If your home business is meant to supplement your primary income, it may be a much less stressful venture; after all, if it falls through you still have your regular job. However, if you plan to devote all your time to your home business, you have to make sure you have enough savings to make it through some rough patches, especially at the beginning, when initial setup costs, especially advertising, can be staggering and send your monthly balances deep into the red. While there are no shortcuts in home businesses, as many advertisers claim, hard work and persistence can pay off big in the long run.
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