So, what seven words could be the dagger of death to your business?
"We really don't have a marketing budget."
Count 'em. Seven. These are seven words that I hear at least once every single working day. Oh, and they can be readily interchanged with these seven words...
"We cut our budget to save expenses."
Channeling Cramer
Aaaaggggghhhhhhh! Don't you get it, people! Marketing is not an "expense" - it's an "investment"...a freakin' investment. I am jumping up an down at my desk right now, sleeves rolled up, voice an octave higher and eyes bulging from my skull just like Jim Cramer in on of his CNBC Mad Money tirades. Where are my buttons, buzzers and horns?
It doesn't matter who said it, it's true.
Advertising pioneer David Ogilvy, 20th century Czech playwright Milan Kundera, and Peter Drucker, the father of modern management, are all credited with saying..
“Business has only two functions - marketing and innovation."
If all three of them said it at some point in their accomplished lives, then they are all genius. If you have a business and you are not marketing it...why on earth would you even want to be in business.
The World's Oldest Profession
Many people believe that prostitution is the world's oldest profession. Others say that it's sales. I say it's marketing. It has to be. Here's why...
For arguments sake, let's examine the prostitution theory. Around the beginning of time, some young (or maybe old) lady said to herself, "Hey, I've got something to offer men." But, she saw her reflection in the water and said, "Wow! My hair is a mess. My face is dirty. My clothes are torn. And I stink." So, she ponders how to make herself more desirable. Maybe she goes to a girl friend or another man in her tribe and says, "So, I'm thinking about selling my "assets" in exchange for some dinosaur meet. What do you think I should do to become more desirable?" She actually does some marketing research. She takes their advice and cleans herself up, puts on a new animal cloth, and rubs some fragrant flowers on her skin. She adds some sizzle to the steak, so to speak. Then, she goes about prospecting and selling. Word quickly spreads throughout the land and she has more business than she knows what do with.
She certainly was innovative and she had a marketing strategy. Today, business owners still need to take a close look at their products and services and make them attractive to prospective clients.
Tough Choices Today
I've learned some very hard lessons as an entrepreneur. Each time I've started a business, I've gotten smarter and wiser. I know how easy it is to get caught up in the "business facade". We want others to believe we are successful by how our businesses appear to them. We need a nice office. We need the best equipment. We need employees. Right? Wrong!
I've had to make some tough choices with my own business. Do I work from my home or do I rent an office? Do I hire an assistant or just work longer hours? Do I hire sales people or handle the marketing and sales myself? Right now, I stay
If you have an innovative product or service to offer, you need to focus your resources (both time and money) on marketing. Without a strategic marketing plan or marketing budget, your business can't grow. I can use the gardening analogy about planting the seed, adding fertilizer, sunlight and water...but you don't need to hear that same ol' story again.
It's time to stop being the nice employer. This is YOUR business. You may have to let people go. You may have to move to a smaller office. You may need to temporarily freeze wages or cut salaries. You owe it to yourself and your employees to take necessary measures today so that you will be in business tomorrow. I've been there. I know it's not easy. But, it's what we as business owners need to do if we are to survive.
Planning and Budgeting Time
As we head into October, it's time to start planning and budgeting for 2009. It's no secret that our economy sucks and the cost of doing business is on the rise. More and more businesses are going to start filling the pinch. If your want to separate your business from the competition and position itself for growth, you need to allocate money to marketing and advertising
You are going to ask, "How much should I budget?" My answer is "as much as it takes." That could be a little or it could be a lot. If you budget a little, you'll grow a little. If you budget a lot, you'll grow a lot.
If you have $15,000 to market your business...you should be able to generate $15,001 in revenue. Would you be happy if your mutual fund returned five or ten percent? Of course you would. You need to view your investment in marketing with that same perspective. Yes, it does take money to make money.
I had a discussion the other day with a client who was lamenting over the number of clients who were "flaking out" on him. I asked him what percentage of "no shows" he had for appointments and what his closure rate was. I explained to him that his numbers weren't much different from mine...or from any other business. It's a numbers game. If you get one new customer or client for every 100 touches and you need 20 clients to be at 100 percent capacity, then you need to market your message to 2,000 new prospects. It's that simple. You know your numbers, figure it out! Or, better yet, let me help you figure it out.
Do Your Prospects Look Ahead for You?
The fact is, you need to be on the minds of your prospective customers at the exact moment they need to make a purchasing decision. It's like when I'm driving down the highway on vacation and everyone in the car starts getting hungry. We start looking ahead for a billboard, highway sign or the "Golden Arches" themselves, appearing over the tree tops. It's got to be like that for your business. You want people to start thinking about your products and services when they are on the road to making a decision.
That's why you need to stop using those seven words, "I really don't have a marketing budget." Replace them with these 18 words...
"I am willing to invest marketing dollars to grow my business for the benefit of myself and employees."
Once you make that commitment, you'll soon realize what Ogilvy, Kundera and Drucker meant.
To learn more about how BTK & Associates can help you with your marketing plan and budget for 2009, visit www.btkmarketing.com or call 317.696.6734 today!
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