Business Planning – Reducing the Risk of Failure by Developing a Low Cost Strategy

Many people believe that the risk of failure in starting a business on a low budget is a little high but I believe even a business with low budget can prosper if you can devise an intelligent strategy and stick to it. Just taking care of a few issues will eliminate the chances of failure. The economic situation of today’s world is not the best therefore many Guru’s would not advise you to start a business in a middle of economic turn down. Others have a completely different point of view and they consider this time to be an ideal opportunity to establish your business.

Entering the market at a time with a low budget when many potential competitors have taken their eye off the business ball does make sense. Low budget does not mean only mean spending less but it also means spending wisely.

First thing you need to start a business with a low budget is a fantastic idea. Keeping in view the market needs and customers demand you came come up with a real good idea.. A proper guidance is a must for a new entrepreneur therefore you require the services of skilled business consultant.

Your business does not only require obtaining finance and investment from a financial institution but a carefully crafted strategic business growth plan for a long term success. The strategy can be best designed by you with the help of skilled business consultant.

The start up of the business is the most difficult job because of tight cash flow. So it really doesn’t matter whether your start up investment is a bank loan, investment from some one else or a start up loan. If you can through the first few troublesome months then the chances of long term success are quite high.

The best way to market your business with a low budget would be keep as minimum as possible for advertising. This will help you strive hard to find methods of advertisement that are most economical. About 60% of world’s traditions businesses have their online counterparts this makes it clear that indeed online marketing is the most effective and economical way to promote your business. Most of the online marketing methods are free. Many businesses opt to promote there business through their online website so it would be a good idea to get your self an attractive website with almost all the information about the company and the products and look for economical methods for its promotion.

How to Start a Low Cost Home Based Business

Low Cost Start Up Businesses ideas are literally lying around, just waiting for you to snatch them up. In fact, there are so many of them, you might have trouble deciding which one you want. One thing is for certain, there has never been a better time for home business start-ups. So the sooner you get going, the better.

One idea out of the many for low cost home based businesses that you should know about is right here at your computer. Online auctions are big business these days, and it’s likely you already have items ready you can post for sale.

With the profits from sales on those things you might otherwise call junk, you can hit your local flea markets, estate sales, and garage sales for more goods to sell online. You will be amazed at how easy and profitable this is!

Another low cost home business that you might want to consider is to buy vending machines. These are generally low-cost and low maintenance, and you can place them everywhere from your large local companies’ break rooms to carwash waiting areas.

The possibilities for where to put vending machines are as limitless as your imagination. Ideas for what to put in them range from peanuts to bubble gum. You can pick up this type of item at any discount club or grocery store for a song and pull in big profits in the bargain.

You can also form a personal errand service. The need for these just can’t be stressed enough. People are so busy these days that getting to the dry cleaners can feel like trying to get to the top of a mountain.

Other people who are in major need of a personal errand service are the elderly. They are particularly grateful to have someone to do their personal errands for them. Creating a personal errand service is a great choice for a low cost home based business because it offers so many people what they really want more of-time.

You also might want to consider car detailing as your low cost start up business. Americans spend more time in and money on their cars than anyone else in the world. And they’re willing to pay $150, and often a lot more, to have their cars clean and shiny. If you love cars and being outdoors, this is the low cost home business for you.

Moving services are also a good choice from the list of low cost home businesses. Do you know anyone who wouldn’t love to have someone else do the heavy lifting when it comes to moving? Didn’t think so. Plus, they’re willing to pay big bucks for someone else to do it! Also, this is an especially great home business if you live near a college or university. If you like physical activity, a moving services business might just be the ticket for you.

If having fun is more what you have in mind consider becoming a party planner. You can plan parties ranging from children’s birthday parties to gala events for large local corporations in your area. The terrific thing about this low cost home business is that you get to go to lots of parties! After all, you simply must be at those parties to make sure all those little details you planned for so carefully are attended to correctly!

The list for low cost start up businesses could go on for days. Hopefully, you’ve found the one for you or have gotten the idea for one from this brief guide. The main thing you want to remember when choosing the business that’s right for you is to consider your likes and dislikes.

After all, it’s going to be your business and you’ll be spending lots of time at it, so make sure it’s something you enjoy. After you make your choice, make a plan for the things you need to do to get your business up and running. Follow it, and before you know it, the checks will be filling up your mailbox!

Cost Effective Small Business Marketing Strategies and Tips – Part Two

In my previous article (part 1), I discussed Marketing Keys, Marketing Plan Components and Creative Marketing. Now I will get into specific, cost effective marketing methods and strategies you can use today to increase your company’s exposure and profits.

MARKETING METHODS

Internet

-Highly targeted and extremely economical

-Extremely Interactive

Magazines

-Targets your niche

-Creates credibility

-Establishes Identity & Brand

TV

-Can be very cost effective

-Great for demonstrations

Direct Mail

-Highly targeted

-Medium that allows you to go through the entire sales process.

-Augmented with Follow-up Mailing and Telemarketing is very effective

Canvassing

-Provides personal contact, which can be the most effective

-Backed by targeted mailings and TV advertising increases its conversion ratio

Outdoor Billboards

-Constant Reminder

-Especially good for “Next Exit” Location traffic targeting

Indoor Signs

-Capitalizing on your marketing’s momentum

-Can be the most important sign – even more crucial than outdoor signage

-Signs don’t have to be static: i.e. Video Message, Slide Show, etc.

Online Marketing

-Absolutely the best medium which economically blends high interactivity with action

-Examples: Email, video & audio postcards, forums, blogs, websites, texting

-Very effective when content based

-Prospective customers are not constrained by time

-Good, targeted, updated content means repeat customer visits

-Great Follow up, Resale, Cross-sale and Up sell medium

-Exponential results when augmented by offline marketing

Classified Ads

-Very cost effective for a broad customer base

-Targets the very hottest prospects

-Confronts your competition head on

Brochures

-Only effective if combined with online and offline marketing

-Always a good after sale piece to keep the customer thinking of you

-Code the brochure, ask the customer to pass it out and provide discounts or referral fees back

Phone

-Telemarketing only effective if part of an Opt In Marketing Campaign, whether online or offline or both.

Reminder Tools

-Refrigerator magnet is the most effective

-Double sided or folded business card which provides mini-brochure capabilities

Trade Shows

-Targeted and motivated prospects

-Consider online versions

Publicity

-Public Relations driven marketing can be cost effective. Establish reputation and credibility

Community Relations & Sponsorship

-Establish powerful contacts and connections

-Great for image

-Great constant reminder

-Create an edge over the competition

-Needs to be sincere

COMBINE MARKETING TOOLS & METHODS

Creative Strategic Marketing is based on developing multiple Marketing Tools in concert to achieve an out-of-the box, competitively advantaged Creative Strategy. Marketing Methods should be integrated together for each cohesive Marketing Strategy, and then adjusted as the campaign proceeds and develops. Personally, I believe one of the most lethal combinations of Marketing Platforms are:

–Developing a Content Rich Internet Presence

–Online Marketing through Opt In

–Advertise free Articles, Newsletter, Guides, Webinar, etc. in a targeted Magazine Ad

This combination of print and online marketing is very cost effective, yet lucrative. Explore the possibilities.

The important thing to keep in mind when executing multiple Marketing Tools, Forums and Methods in a synergetic strategy is to carefully track and monitor the results, making Key changes as the initiative develops. This is where an online / internet marketing platform is so valuable because it can adeptly track results (i.e. conversion rate, response rate) in real time.

ONLINE MARKETING CALENDAR

A good Marketing Calendar is based on a 52 week year and helps considerably in planning and budgeting a Marketing Strategy. At any point in time, you can determine the best ads to run, what needs to be in inventory for the anticipated sales, the project costs and projected sales. The calendar should be an online platform for maximum interactivity, utility, access, flexibility and integration. The Marketing Calendar should be fully integrated with the Marketing Strategy, Strategic Plan and Budgeting Process for maximum utility. The calendar should be in an expandable spreadsheet format to reveal all necessary details for each marketing method within an overall strategy.

COST EFFECTIVE MARKETING STRATEGIES

Profitable Marketing does not have to be expensive! Some cost saving tips:

Cooperative Advertising

-Can save upwards of 50%. Partner up with a larger company, mention their name and get paid for the promotion. Spread the ad cost among fellow advertisers.

Per Order or Inquiry Payment Method

-Advertising costs subtracted after a sale or defined event.

Survey your Current Customers

-Costs pennies to do, yet gives you the most up to the minute market trends. Plus gives you an opportunity to Cross or Up Sell the customer at the same time.

Backend Products & Services

-Bundle your offerings to minimize your marketing cost per sale.

Code your Ads

-Codes allow you to track and measure your marketing strategy’s results. By keeping ahead of the campaign roll out you can adjust for maximum cost effectiveness.

-Online tracking is the most beneficial and cost effective means of keeping your marketing costs in line with your budget, while providing you where the most profits can be made per marketing dollar spent.

Don’t Use a Rate Card

-Make an offer for all your advertising – rates are always negotiable.

-A 30 second TV spot can be as effective as the more expensive 60 second one.

-Tap into Remnant Magazine Space

-Extra, unused ad space sells at substantial discounts.

TV Ad Tips

-Tight scripts and excellent prior planning cuts down the time costs.

-Do your Ad in 3-4 renditions move session.

-Use a production studio during off-peak times.

Concentrate Efforts on Established Customers

-Customers are 85% cheaper to market; Keep a good balance between Customer and Prospect marketing efforts.

-Exponentially expand your sales, cost effectively, through a Customer Referral Program.

-Up sell, Cross Sell, Cross Promote

Combination Marketing

A very cost-effective and successful combination is pairing a Magazine Ad with a Website. Offer a FREE Newsletter, Guide, E-book, etc and set yourself up as an Expert; mine the prospects data in a permission based, Opt In; Follow up free offering with product and service offerings. All your marketing efforts, mediums, tools and campaigns should be done in concert and combination as the results are exponential and the means cost-effective.

Website Design

-Web Design, Development and Optimization is very important, crucial in fact, but can be very expensive. –To cut Web design costs:

–Create your own content

–Write articles on areas you have Expert status or Knowledge

–Look at the web and decide what you want your site to look like and sketch it out, as well as, organize the link structure. Then have a designer lay out the website in a user friendly Content Management System, and you input all the content. Have the designer / developer review the site after your inputs for Search Engine Optimization tips.

Tip: Consider hiring a Web Designer / Developer overseas, such as from China or India, etc. They charge about $30 per hour (or less) verses $75 – 100 per hour. Make sure to carefully review a Designer / Developer’s credentials, referrals and past projects, to ensure credibility and reliability.

In the next article on Cost Effective Small Business Marketing, I will discuss Marketing Research and Targeted Marketing. Stay tuned!

7 Mistakes, Missteps, & Muck Ups That Cost A Business Coach Big (And How To Avoid Them)

As the old year comes to a close, I always look back to see what I did well and what could be improved. Below, I share with you my mistakes, missteps and muckups that I experienced in my business over the past year.

Many of these mistakes, missteps and muck-ups cost me money, so I share them with you so you can avoid these as you make your own New Year’s resolutions.

  • Mistake, Misstep and Muck-up #1 – Spending way too much time on my computer, instead of meeting people face to face. Networking online is great, however, it can never take the place of meeting face-to-face or having a conversation over the phone. Sending emails are so darn easy, but I found that I got too wrapped up with the ease of this technology. I even had a huge argument with one of my vendors because I tried to “break things off” with him over email. I should know better.

    LESSON LEARNED – Compliment online networking activities with face-to-face and phone meetings.

  • Mistake, Misstep and Muck-up #2 – Spending way too much time on the technical side of my business. I worked in the technology sector for close to 10-years and I pride myself in being a chick that knows her techie stuff. However, my digital knowledge kept me up late at night as I took responsibility for updating the content on my webpages, creating new autoresponders and creating new HTML pages for new products, instead of farming things out to others. For every new product or teleclass I would launch, it would take me 8-hours to get all the technical pieces ready.

    LESSON LEARNED – Hire a techie expert to maintain my website. Let it go.

  • Mistake, Misstep and Muck-up #3 – Not delegating my administrative tasks. There are certain things I hate doing in my business – updating documents, making them look pretty, writing content and writing sales copy for new information products. I just can’t stand doing these things and it would take me eons just to write one sentence. Then, that meant I would have to rush and write something quickly because I sat on it for too long and the deadline was an hour away.

    LESSON LEARNED – Hire a virtual assistant or copywriter to do all this stuff for me.

  • Mistake, Misstep and Muck-up #4 – Spinning my wheels targeting the wrong market. When I first started coaching, I was on a mission to inspire women to create the career they deserve. Although I was making money, I didn’t feel passionate about helping women climb the corporate ladder. It wasn’t until my mother came to one of my speaking engagements that she gave me the clarity I needed. With her wisdom and her keen eye, she helped me craft my current mission – to help business owners make more money using online media.

    LESSON LEARNED – Really listen to what my clients (and mom) are telling me about the problem they’re experiencing.

  • Mistake, Misstep and Muck-up #5 – Creating a bunch of cool information products all at once. Just because I can bang out 5 special reports in a weekend, doesn’t mean I have the manpower or energy to promote them all at the same time. I realized that in order to make sales on an information product, I really need to market them. Until I do that, they’re going to sit on my website, look pretty and go stale.

    LESSON LEARNED – Focus on one product for at least 3-months and use my affiliates to help promote the new product.

  • Mistake, Misstep and Muck-up #6 – Attending networking events that weren’t producing results. While networking is about building relationships, it should also lead to some quality contacts. Unfortunately, I attended too many networking events where everyone was like me – an entrepreneur looking for business. Although I made some great contacts, after attending the same networking events for 12-months straight, I noticed that my networking circle was stale and lacked any power.

    LESSON LEARNED – Stick with a networking event for no more than 4 consecutive events, analyze the results, then move on. Also, attend more networking events that puts me in touch with my target audience.

  • Mistake, Misstep and Muck-up #7 – Not spending enough on educating myself. As a entrepreneur, it’s so easy to forget that I have to invest in myself by taking courses that can help me learn how to do things better. In the first half of the year, I didn’t spend a dime and my progress showed for it. However, in the latter part of the year, I started to spend a bit on educating myself on new techniques and processes. Doing this put me in touch with how to do things better in my business, as well as meeting some phenomenal people and trainers. Plus, I noticed a spike in sales.

    LESSON LEARNED – Set aside at least 10% of all business income in a savings account to spend on educational materials.

These are what I consider to be the 7 mistakes, missteps and muck-ups that cost me money and I trust that by reading this, you will avoid them as you make your New Year’s resolutions.

Better yet, if you have a mistakes, missteps or muck-up that you experienced in your own business, list them, then write down the lessons you learned from that experience.

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