Let me start this post by asking you a question…
How would you like to increase your turnover by between 20 and 100%, with very little effort?
If you are anything like the majority of small businesses, you won’t have a Business Plan in place (if you don’t you can create your own Strategic Plan here). instead of learning how to market your business proactively, a large majority of businesses tend to do “reactive” marketing, which can be demonstrated by the graph below:
The typical Feast / Famine cycle of a business.
You put in the effort and start to see your sales increase (point 1), so you stop your marketing to concentrate on servicing the new business. But as you get into February, you find that sales are starting to drop (point 2), so you decide you must do some marketing again. So another marketing push begins, and again sales start to grow, so you stop your marketing and focus on dealing with the new customers…
And so it continues throughout the year… Up, down, up, down, up, down…
Now look at graph 2:
Smoothing out cashflow for little extra effort.
The red line shows a constant increased turnover, from a “pro-active” marketing approach (point 3). By having a pre-programmed marketing sequence, you are continuously marketing and thus minimising this up-down sequence (which also reduces ‘feast or famine’ issues with your cashflow).
The shaded areas (inverted triangles) show missed revenue opportunities – money you could easily have made without much extra effort at all!
Now, I appreciate that no business will produce a, perfect “sawtooth” graph – there are far too many influences which will change the shape of the graph for your business – but you can be certain of one thing…
If you use a ‘reactive’ marketing approach, you are losing between 20 and 100% in lost revenue.
What sets successful businesses apart is they have a pre-defined marketing plan and proactively market their business.
A well-known example of someone who used a proactive marketing approach was Joe Girard. He had a plan. He worked to that plan. Every day, he knew exactly what he had to do – which cards he had to send out to who. And it was through this consistent, pre-planned, pro-active marketing approach that he became the “Number 1 Car Salesman” – for 12 consecutive years!
You don’t have to look far and you’ll see examples of pro-active marketing all around you.
Take your local Supermarket. They run a continuous marketing programme – EVERY DAY. Between 5 and 10% of their products are on offer at any one time.
It might be “10% off”, or it might be a “buy 2 get 1 free” or some other such offer, but they are continually marketing to encourage their customers to buy more at the time of purchase – a powerful and proven business growth technique.
If you do find yourself taking a “reactive” approach to marketing, then I seriously suggest you look at changing to a pro-active continuous approach.
Once you have learned how to market your business, you will find it’s far easier to implement than you might think and you will see a substantial increase in the growth of your business.
If you would like to share any of your personal experiences, observations or the results you’ve achieved using these or similar tips, please leave your comments and/or thoughts below. I always love to hear from you: