For some it might be counter intuitive, but think about it.
As a business owner what do you want to do when times are tough. You want to cut back.
You cut back on marketing, advertising, and coaching. Why? Because you believe business is going to drop big time and you go into hibernation mode. So in your mind you logic that the best thing to do is cut back on all the EXTRAS.
But are they really EXTRAS?
Lets look at each of them.
How has your advertising been working up until now? Has it brought you in business? Is it paying for itself?
Say you are running a monthly ad that costs you $500. It brings you in 50 customers per ad run and the average order is $15. So your return after ad costs is $250.
Now lets say you expect business to drop 30% in this tough period. So instead of getting 5o orders you will only get 40 at $15. Now the return is only $25 and more likely its a negative if you have product costs. So for discussion sake we will say that in this scenario after expenses you are actually losing $75 on this ad.
It would seem clear that you should not run this add again. Right?
If your product or service is a one off then there might be a need to hold back, but if your customers buy from you on a repeat basis you might be really harming your business.
In the above situation if you were losing $75/month and stopped the ad you would save $900 (75×12) over the year. But by doing this you would also lose out in getting 420 (35×12) new customers as well. If you have only a 40% retention rate of customers it would me that you would lose out on $2520 in repeat business the following year (40% of 420 -> 168 x $15)
As well it is important to realize that in tough times the advertisers probably have more ad space available and would be willing to cut you a deal during this time period. Try to see the big picture.
Even from this basic example it can be seen how detrimental it would be to your business to eliminate advertising during tough times.
Marketing is more that just conventional advertising, it is not just about letting people know that you have a product and where you are located. It is about creating a relationship with your customer. Its giving the client the opportunity to see how important they are to you, to know that they are under your protection and have their best interests in mind. The media ad you put out might bring in a customer once. The way you market yourself and your business will determine whether they are one time purchasers or lifetime clients. When you market yourself effectively and put in the effort to stay at the front of your clients thoughts. They even in tough times they will stay loyal to you, and they will not even leave you for a lower priced competitor.
If the above conversation on Advertising/Marketing and marketing gave you insights on how you can grow your business, you are already seeing the power of training.
To often you stand alone, you try to succeed all by yourself. You put an unrealistic expectation that you should have all the answers and if you cant do it, it will just prove that you are a failure. The reality is that you cant do it alone. You are only on this earth for a short time (you should be blessed to live to a ripe old age), there is only so much you can learn on your own. By benefiting from what others have learned you eliminate a lot of time and frustration and bring the possibility of greater prosperity into your life.
As a Strategic Business Coach I am here to help you succeed. I spend all my time discovering what will make your business better so you can spend you time becoming super successful.
My Offer To YOU (A $500 value)
If you are serious about growing your own business, about putting in the effort and dedication that is required to help you business thrive. Then It would be my pleasure to spend a complimentary 30 min (I charge $1000/hr) on the phone with you to discuss your business and share some insights on how you can create geometrical growth.
If you think you cant do much in thirty minutes, I will give you a recent example. I man called me up, he has a vending machine business. His business was stagnant in the past few year and now he is interested in seeing it grow. After asking him a few question, he realized that he had not raised his prices in a number of years. He was at least 20% below what his peers are charging. That insight from a thirty min conversation will add over $10,000 to his profits this year.
Enter you your name and email right now in the coaching insights box in the top right of the page. I will connect with you within 24hrs.
I look forward to your success.