One of the first questions I ask business owners is What is Marketing? The typical response is a perfect description of advertising, but the concept and importance of Marketing is usually something that has neither been taught nor researched. Webster’s Online Dictionary (2007) defines "marketing" as the process or technique of promoting, selling, and distributing a product or service.

If you have spent any time reading my previous posts you will notice a recurring theme when it comes to business development. That theme is "Marketing is the Key", from product development, inventory analysis, process design, product pricing, and advertising. 

The purpose of this post is to underscore the importance of thinking as a marketer and not just a business owner. Once you are able to put on your "marketers goggles", you will begin to make better decisions on how to best fulfill your customers needs and clearly see how every effort toward that end affects your business.

A marketer understands the marketplace is always changing and customers tastes are as inconsistent as the weather. Therefore, as I mentioned in the previous post, you must always be watching for changes, whether product trends or consumer trends.  

Putting on the marketer goggles also allows you to be more objective when designing ad pieces, stationary, logos and other visual media. You will begin to ask yourself what message does this piece send? Does it allow your target markets to know you have the solution to their needs? Does it speak to the concerns and beliefs of your consumer? Does it brand your company as someone they want to do business with?

Finally, your marketer googles will help you analyze your business practices and processes to determine if every effort is being made in turning out the highest possible quality for your customers. By walking through every process from sales to shipping and receiving, you create a relationship between each stage of the processes and all of those who take part in delivering your finished product.

You will begin to question if your packing material compliments your company’s packaging or if UPS has a consistent enough record to trust your merchandise in their hands. Remember everything involved in your business represents your business and looking at every aspect through your marketers goggles will not only heighten your chances of fulfilling your business goals, but will provide your customers with a product that is inciteful, thoughtful and considerate of their needs. 

Business Development, Process Analysis | No Comments »

We as business people and entrepreneurs tend to dwell on revenue generated by our daily pursuits. We focus on increasing sales and market share, but what about profits? When our daily routines produce profits for the company what happens to them? The first thought is expansion, retiring debt, increasing employees and inventory, but what is your plan for getting your money back out of the business?

Have you designed a budget that allows you to return the intial investment made by you and/or others? It is not sacrilege to pay your principles from the profits of the company…you just have to include it in your budgeting, which really the point of this post.

Budgeting can be as effective in increasing profitability, as your sales and marketing strategies. Too many times businesses do not maintain a written budget that accounts for all expenditures. This leads to unnecessary expenses, redundant practices and a lack of competitive pricing for services, materials, and supplies.

When setting up your budget, be sure to use a spreadsheet or an accounting program that allows you to determine what percentage of revenue each expense represents. This will give you a basis for analysis of expenditures to determine if best practices are in use in areas such as purchasing, employment costs, and debt repayment.

Once your have established your budgeting protocol, analyzed your expenses, corrected any irregularities or needless practices, it is time to budget for the coming year. This is where you begin paying yourself and/or other stake holders. Be sure to consult with your CPA (because I know you have one), to make sure your allocations are in line with IRS standards and set a repayment level that is commensurate with your rate of growth and profitability.

Finance and Investing, Process Analysis | No Comments »

Quality Improvement is one of the cornerstones of a successful business. It creates a organizational culture of innovation and empowerment, but most importantly strengthens the relationship between producers and their customers. Achieving a high quality philosophy through total quality management takes more than just striving to be the best. Every facet of a company’s existence must be dedicated to providing an ever-changing, ever-growing system of processes that incorporates upper managements vision with employee execution and customer expectation. This philosophy is best executed by a strategic plan that clearly dictates the company goals and expectations and provides every employee with a clear understanding of how total quality will be achieved.

Management, Process Analysis | 2 Comments »