How can a small
business have a big impact? I hear this
question often and I wanted to share a real world perspective, I reached out to
one of my most successful clients whom we'll call Bob. Bob is a small business owner who has taken the legal
profession by storm over the past 10 years with a very impactful strategy.
We had a great discussion about the challenges of being a small business owner
and ways in which a sound strategy can have big impact. Here are some of the things we discussed.
Develop a Strategic Plan!
One of the critical areas that we discussed was having a plan. In 26 years of
advertising sales, I received countless calls that started out the same way "
How much does it cost to advertise my business?" My typical response? What are you trying to accomplish? What's your plan? The response? "We just want to get our name out there." That's when the conversation would go
sideways. "Getting our name out there" is not a plan. Many small businesses struggle to articulate a strategic plan.
You might be a great operator, but how do you harness what you do well and convert that into actions that will draw in new customers? Every dollar you spend, in fact every decision you make as a small business owner is critical and having a well-developed plan will help guide you to better informed investments and decision making.
Focus And Be Great At Something
One of the keys to the success of Bob's business is focusing on being great at one specific service. When they decided to shift from taking all customers to focusing on one area, the business exploded. Author Peter Drucker says it best "Concentration is the key to economic results." Think about some of the most successful small businesses you have experienced. Their success is built on being known for being the best at offering a specific service. If you want to see your business soar, make sure your strategic plan is centered on being consistently great at one thing that consumers need, and success will follow. It may sound counterintuitive but focus on one area and watch your business soar.
Investment In Marketing It's Not An Expense!
Do you look at
marketing as an investment or an expense? Years ago, a local celebrity built a night club, and we received a
call from their PR representative. They told us they spent $5 million dollars on the building were now out of money so didn't really have a marketing budget and needed a cheap ad campaign. Needless to say, the club was sold not too long after
opening. You must market your business to potential customers, or they won't know you're there. Did I really just have to say that out loud? That's why it's wise to invest in
marketing your business. While there is much debate about what that
investment should look like, I have heard many owners spend in the range of 8 - 12% of annual revenue as a common advertising investment level. But every business varies as I have seen some as low as 5% and others as high as 22% of
revenue. Unfortunately, because many view marketing as an expense, it's the first thing that gets cut when revenue is down. While other owners understand that one of the best times to be aggressive with their advertising is when competitors fear the economy and stop advertising.
Work With People Who Are Smarter Than You!
You may know your business well and be an expert at what you do, but does your expertise include developing a go to market strategy to take you to the next level? To be successful and have Big Impact it is wise to seek input from people who have had a track record of building brands and helping others position better articulate their dreams. The most successful owners I know are smart and driven to succeed but have enough humility that they don't feel compelled to be the smartest person in the room. If this aspect of strategy is not your thing, get guidance from a subject matter expert with a track record of success. Find someone you can trust.
The Joy Of This Blog
The Joy of this blog is that while there are many keys to success and having a Big Impact as a small business, these are four keys that many of your small business competitors will overlook. If you want to beat the competition and need of a strategic partner The Joy Of Business Strategy might be the perfect fit. We are here to help you Plan - Focus - Win!