| As more and more people join the ranks of | | | | campaign, you need to understand the details of |
| entrepreneurship, more and more information comes | | | | your target market so that you can provide |
| available about the right way to drive the success of | | | | messages that are the most effective for each |
| your startup. The SBA offers a list of factors | | | | segment of your market. |
| common among successful startups, such as "has | | | | Whatever type of business you are starting, posting |
| employees" and "knowledge of the business." The | | | | a website is an absolute must. Consumers these days |
| Inc. 5000 fastest-growing companies article offers | | | | are more apt to run a quick internet search for a |
| other interesting statistics about the various factors | | | | local restaurant than check the phone book, and |
| that drive the success of these ventures. At the end | | | | more and more Americans are sporting smart phones |
| of the day, any and all business success can be boiled | | | | that allow them to find any type of business on the |
| down to three keys - Planning, Marketing, and | | | | go. Even businesses serving the smallest of markets |
| Financial Management. | | | | benefit from the reasonable cost of hosting a |
| Planning does not mean simply filling in the blanks of a | | | | website. In one west Texas town of 1200 people, |
| ready-made business plan template or worse, buying | | | | the local motel increased its traffic by more than |
| a completed business plan for your type of business. | | | | 30% just by setting up a basic website and adding |
| Good planning should result in a virtual roadmap of | | | | the link to various hunting sites for free. The $10 per |
| your business idea and include every detail of how, | | | | month hosting fee pays off in spades! |
| when, where, and to whom you will sell your product. | | | | Of course, merely posting your site to the internet is |
| In order to create this depth of planning, you need a | | | | not enough. In fact, posting a website without |
| thorough understanding of your product and industry, | | | | marketing it is like creating ad copy and keeping it in |
| your area's legal requirements, your target market, | | | | a desk drawer - if nobody knows about it, it might |
| and the available avenues for marketing to your | | | | as well not exist! Search engine optimization methods |
| most likely customers. You need to develop an | | | | are not difficult to implement, but they do take time |
| accurate assessment of your sales and expenses and | | | | to pay off. Incorporate SEO into every marketing |
| how they will be affected by changes in other | | | | plan and be sure to stay on top of the efforts. Also |
| factors. You need a general idea of where you want | | | | be sure to include the website address on every |
| your business to be in the long-term, and plans that | | | | piece of marketing material from business cards to |
| are flexible enough to respond to the rapid changes | | | | print ads. |
| in today's marketplace. | | | | In addition to launching a website, your marketing |
| Planning doesn't end once your business is up and | | | | plan must incorporate methods from each of the five |
| running, but is a continuous process that keeps your | | | | basic elements in classic marketing theory - |
| business on track and alert to opportunities as they | | | | advertising, promotion, public relations, personal selling, |
| arise. All planning should include clear objectives - | | | | and direct marketing. Many new entrepreneurs are |
| goals that are specific, measurable, and achievable - | | | | familiar with one or two of these elements and so |
| with set deadlines for completion. As objectives are | | | | focus all of their marketing efforts there. |
| met (or not), the results should be evaluated and | | | | Unfortunately, they completely miss out on |
| lessons learned from these efforts should be | | | | opportunities to expand the customer base through |
| incorporated into future objectives. Consider using a | | | | the use of other elements. For the most complete |
| 90-day planning strategy, where objectives are set | | | | and effective marketing mix, consider how aspects |
| and completed within a 90-day timeframe. The | | | | of each element can contribute to reaching your best |
| shorter time encourages more realistic goal-setting | | | | targets and help build your brand. Each of the |
| while providing for the flexibility needed for small | | | | marketing elements includes a variety of methods for |
| businesses to grow and thrive in an ever-changing | | | | getting your message out. While not all methods will |
| marketplace. | | | | be right for your business, there will be some from |
| Marketing your business efficiently is absolutely critical | | | | each element that will be effective and should be |
| for all new businesses, but is often neglected by | | | | included in your marketing efforts. |
| first-time entrepreneurs. It is not enough to place an | | | | Before you can make the best decisions for your |
| ad in the Yellow Pages and post a simple website. | | | | marketing efforts, you need to define the precise |
| Search-engine optimization is a critical marketing tool, | | | | objectives you hope to achieve. Once you are clear |
| but one that tends to intimidate non-tech-savvy | | | | on what outcome you expect, it is easier to see |
| business owners. In reality, SEO is not difficult and | | | | how to get it done. For example, one of your early |
| much can be done for free with just a few hours of | | | | objectives will be to draw a specific number of |
| computer work per week. In addition to online | | | | people to your website. To accomplish this objective, |
| marketing, a combination of the five classic marketing | | | | you will likely incorporate a number of marketing tools |
| elements (advertising, sales promotions, public | | | | such as offering a premium in the form of free, |
| relations, personal sales, and direct marketing) also | | | | useful information on your website, conducting online |
| must be incorporated into a successful marketing | | | | advertising that allows potential customers to click |
| plan. | | | | through to your site, using direct marketing email |
| Your marketing efforts must be carefully researched | | | | blasts to your customer contacts, and employing |
| and evaluated to ensure you are getting the best | | | | search engine optimization methods to improve your |
| return for your marketing dollar. Marketing is how you | | | | site's representation on the search engines. |
| drive customers to your product and keep them | | | | Establishing a clear objective allows you to focus |
| coming back - it is not a business factor to be taken | | | | your efforts on a specific target and evaluate how |
| lightly. Take the time to learn and understand all you | | | | your marketing efforts worked out. |
| can and use the right tools to ensure your marketing | | | | Marketing planning is critical to the success of any |
| plan is complete, workable, and gives the business its | | | | business. No matter how great the product, it won't |
| best chance to succeed. | | | | actually sell itself. It will take some time and |
| Financial management is a key to success for obvious | | | | motivation to consider all the options and monitor the |
| reasons - the primary purpose of going into business | | | | success of each effort, but the payoff will come |
| is to turn a profit! It is critical for the business owner | | | | with increased sales and rapid growth. Learn all you |
| to set up an accurate accounting system and to | | | | can about your target market, set up your business |
| understand how to evaluate the numbers. You need | | | | website, and do your homework to develop the best |
| to understand your business's financial reports and | | | | marketing plan for your venture. Schedule periodic |
| profitability ratios in order to track and manage all | | | | reviews and updates to your marketing efforts to |
| areas of your business. For many first-time | | | | ensure your budget is consistently driving the |
| entrepreneurs, dealing with the numbers seems | | | | maximum sales possible. |
| overwhelming. In reality, a good small business | | | | Financial Management |
| accounting software does the hard work for you by | | | | Of the three keys to business success, financial |
| producing the needed financial reports. Learning to | | | | management is often the most feared among |
| read these reports and understanding how to use | | | | entrepreneurs. Even if you don't consider yourself a |
| them (comparing ratios to past performance or to | | | | "numbers person," keep in mind that the down and |
| industry averages, for example) is not that difficult, | | | | dirty reality of running a business is in the numbers. If |
| and is a huge factor in whether a business succeeds | | | | the business isn't profitable, it won't last long. |
| or fails. The trick is to stop telling yourself that you | | | | Managing finances the right way is actually not that |
| are not a numbers person - if you are a business | | | | complicated, especially with the tools available, but is |
| owner, you are a numbers person! | | | | a critical factor in the success of any business. |
| Planning | | | | There are a few things to think about before |
| The first of the three keys to business success is | | | | starting your business that will simplify the financial |
| Planning. This does not mean throwing together a | | | | management. There are several accounting software |
| basic business plan using ready-made templates, or | | | | programs on the market that cater to small |
| crafting a paragraph that says all the right things filled | | | | businesses. Although Quickbooks by Intuit is currently |
| with industry jargon. Actually planning your business | | | | the most popular and is very easy to use, Peachtree |
| entails delving into the details of every aspect, from | | | | Accounting by Sage is a better choice for any |
| legal compliance to marketing to operations. Planning | | | | startup with intentions to grow. Peachtree is just as |
| is not just a requirement for startup, but should be | | | | user-friendly, and includes some less-than-obvious |
| an integral part of business management. | | | | features that make it the best choice. |
| Obviously, startup planning is critical. A good plan will | | | | Peachtree is completely GAAP compliant, meaning it |
| create a road map for starting and running your | | | | meets or exceeds all generally accepted standards |
| business. You will be knowledgeable about every | | | | for accounting. Quickbooks is not, and when you |
| aspect of your venture and comfortable making the | | | | need to produce financial statements for banks or |
| best decisions at the right time. For every area of | | | | investors, you will likely need to pay your accountant |
| your business, you will be familiar with the options | | | | to clean up the books before you present the |
| and the advantages and disadvantages of each. | | | | numbers to anyone. For a growing business, the basic |
| Whether you ultimately decide to outsource or | | | | Peachtree program significantly outlasts Quickbooks, |
| delegate certain functions, such as bookkeeping, | | | | in terms of how soon you will need to pay to |
| marketing, or other non-core competencies, you will | | | | upgrade and add users. In addition, once your |
| have a solid understanding of the outcomes you | | | | company reaches the point of needing a |
| expect. | | | | comprehensive, enterprise accounting system, only |
| In addition, good planning will alert you to potential | | | | Sage offers an appropriate product. Thus, switching |
| opportunities and threats to your business idea and | | | | over from Peachtree to the Sage enterprise |
| get you thinking about different ways to handle | | | | accounting product is relatively streamlined, while |
| them. If a marketing effort isn't working, you will | | | | switching from Quickbooks to any appropriate |
| have several backup options ready to go. If the | | | | system is a greater hassle (and a greater expense). |
| market demand changes, whether increasing or | | | | Managing your business finances is, of course, more |
| decreasing the desire for your product, you will be | | | | than just keeping the books. Successful |
| ready to respond such that your business | | | | entrepreneurs schedule periodic reviews of the basic |
| experiences limited growing pains or is able to change | | | | financial statements to identify opportunities to |
| direction quickly. With this sort of in-depth picture of | | | | improve profitability. They calculate basic ratios and |
| your business, your risk is greatly reduced and there | | | | learn what they mean in comparison to both the |
| will be few surprises as you build your business. You'll | | | | business's past performance and to the available |
| be the entrepreneurial version of a boy scout - | | | | industry averages. With the accounting software now |
| always prepared. | | | | available, these tasks are far easier to complete than |
| The need for good planning doesn't stop once your | | | | ever before. The basic financial statements can be |
| venture is up and running. Ongoing planning for | | | | produced with a few clicks of the mouse, and |
| growth and preparation for changes is essential, | | | | learning what the numbers mean is not as |
| especially in today's marketplace. It is best to | | | | complicated as most people think. |
| establish the habit of continuous planning early in the | | | | A third key component of financial management is |
| life of your business. At least every 90 days, | | | | forecasting and budgeting - essentially future planning |
| schedule time to review how the business is doing | | | | for financial management. Many new entrepreneurs |
| and develop objectives for improving profitability and | | | | have trouble with these processes, electing to simply |
| the efficiency of your operations processes. Even | | | | up their previous performance by a standard |
| businesses that are booming can make | | | | percentage for each new year, if they bother at all. |
| improvements by streamlining processes, improving | | | | In fact, forecasting sales and expenses and setting |
| inventory management, motivating employees and in | | | | budgets for various aspects of the business should |
| many other areas. | | | | be completed periodically in the same manner as |
| Large, established corporations conduct strategic | | | | good startup forecasts are developed, considering |
| planning sessions as a matter of course, but are not | | | | any changes and anticipating any threats or |
| always successful implementing their objectives | | | | opportunities along the way. |
| through the layers of bureaucracy. As your business | | | | Good forecasts allow you to be more flexible in, for |
| grows, include your key employees in your planning | | | | example, your marketing efforts. If you have a clear |
| processes. Encourage your staff to contribute ideas | | | | sales target, you are more apt to evaluate the |
| for dealing with opportunities and threats. Keep an | | | | outcomes from each of your marketing tools and |
| eye on your industry, and be prepared for the | | | | make better decisions about the best use of your |
| inevitable changes. Develop clear objectives that can | | | | marketing budget. Setting budgets for expenses |
| be measured, and evaluate the progress frequently. | | | | allows you to identify problem areas before they are |
| To make good planning an inherent part of your | | | | out of control and make changes in your business's |
| company's culture over the long term, develop good | | | | internal processes to improve efficiency and |
| habits now. Schedule time to set objectives for | | | | profitability. |
| yourself and hold yourself accountable for meeting | | | | Developing solid sales forecasts and expense budgets |
| them. The way you do business now will be the | | | | require thorough planning. There are three basic |
| foundation for the culture your company develops, | | | | methods for determining the sales forecast - |
| so be attentive to the standards you set for | | | | Value-Based, Resource-Based, and Market-Based - |
| yourself and plan now with the future of your | | | | that tell you the minimum sales that will be |
| business in mind. | | | | acceptable (or your break-even point), the maximum |
| Marketing | | | | sales your business can produce with the resources |
| Marketing is the second of the three keys to | | | | available, and the amount of sales your market |
| business success, along with planning and financial | | | | assessment deems you should be able to close. If |
| management. Marketing is critical for obvious reasons | | | | your Market-Based forecast does not fall between |
| - if nobody knows your product exists, they can't | | | | the minimum and maximum forecasts, you need to |
| buy it! It is common for entrepreneurs to | | | | make some changes! All three of these forecasts |
| underestimate the importance of putting in the time | | | | should be performed during your startup planning and |
| and energy to find the best marketing avenues for | | | | any time your business undergoes major changes. |
| their business. | | | | Your initial expense budget should be as accurate as |
| As with everything else in today's society, marketing | | | | possible, meaning you should take the time to |
| is changing quickly, with new opportunities popping up | | | | research your business needs and find the best |
| every day and old standards falling aside. It is no | | | | resources for purchasing all furniture, fixtures & |
| longer enough for any business to simply hang out a | | | | equipment, inventory, marketing, and services you will |
| shingle and place a Yellow Pages ad. Rather, | | | | need before you start spending money. Once your |
| entrepreneurs must be aware of how and to whom | | | | business is up and running, schedule time once per |
| they are targeting the marketing message, create an | | | | quarter to review the actual expenses against your |
| online presence of some variety, and find the right | | | | budget. Make adjustments as needed, but also set |
| mix of the five classic marketing elements to | | | | objectives for controlling or reducing expenses where |
| maximize the return of their marketing dollar. | | | | possible, and always be on the lookout for better |
| Identifying your target market, or the consumers | | | | deals on supplies or services. |
| most likely to purchase your product or service, is | | | | If you are planning for growth, forecasting and |
| often overlooked by first-time entrepreneurs. Many | | | | budgeting are even more important. The sales |
| figure that the people who need the product will find | | | | forecast calculations will help you identify which |
| it and that will be enough. In fact, the most important | | | | resources (employee, equipment, etc.) you will need |
| aspect of identifying your target market is | | | | to increase and when, and your expense budget will |
| determining how to reach as many of them as | | | | help you set cash aside to do so. Without financial |
| possible within your marketing budget. For example, if | | | | planning, growing businesses often find themselves |
| you are selling a golf club cleaner, your market is | | | | unprepared for growth. A sudden burst of business |
| golfers, right? So, it would probably be beneficial to | | | | or opportunities to expand into new markets are |
| advertise in Golf Weekly, alongside all the other golf | | | | either missed or handled through knee-jerk reactions |
| gadgets. But what percentage of all golfers read Golf | | | | that cut into the profit potential. Taking the time to |
| Weekly? Certainly not all of them, not even ten | | | | include financial management in your ongoing planning |
| percent. Your broad market of golfers includes men, | | | | process will keep your venture poised to exploit |
| women, juniors, all economic classes, all education | | | | opportunities as they come along. |
| levels, and all areas of the US. In addition, there are | | | | Consistent periodic review of your financials is critical |
| different types of golfers - occasional, recreational, | | | | to the long-term success of your business. As a |
| competitive, the golf vacation crowd, the public | | | | business owner, it is to your benefit to learn and be |
| course crowd, members of country clubs. Which of | | | | comfortable with the numbers. No single part of |
| those demographics is really the most likely to buy | | | | financial management is all that difficult to master and |
| your product? By identifying multiple characteristics of | | | | understanding how each aspect of your business |
| the consumers most likely to be interested in your | | | | affects the others allows you to make the best |
| product, you can select different marketing tools for | | | | decisions to improve profitability. |
| reaching each market. | | | | Conclusion |
| Knowing your target market also helps you create | | | | These three keys to success -- planning, marketing, |
| effective marketing messages. A good message | | | | and financial management -- are true for any type of |
| convinces the potential customer that your product | | | | business. Begin your business development with these |
| solves a particular problem for them. However, the | | | | principles in mind and arm yourself with all the tools |
| most important problem that your product resolves | | | | you need to effectively plan, market, and manage |
| might be different for males and females, different | | | | the finances of your startup. Before you know it, |
| age ranges, or even Dodgers and Yankees fans. | | | | your venture will be up, running and making money! |
| Before you spend any money on a marketing | | | | |