When you start a small business and you want to expand the number of customers quickly enough to pay for your expenses and payroll with a little excess it may take several weeks, months or even years depending on the size of the business and the industry you are in. In this article, we will show you how to shorten your timeline by a matter of weeks, or months and increase your cash flow which will help you to sustain your new business goals or expand beyond what you initially expected. Three things you need to remember are:
1. Sales Target
Initially you will have created a business plan, financials and determined monthly sales targets, as well as expenses and profit summaries. However, you must look very closely at your sales targets, some people think that well if we can get .5% to 1% of the local market in the first year or few months we will be okay and expand from there. But getting that initial 1% may be the hardest, because there is no traffic flow to your door. Nobody knows who you are and why they should go to you unless you have spent enough time previously working with friends, relatives and potential customers to show them a potential reason to choose your business over the current one in the market and give them incentive to initiate that decision.
2. Customer Base
You will need to develop your customer base, but if you have no customer base you will have to gain a customer base, 1 customer at a time. How can you do this quicker to increase sales to cover expenses and provide a greater profit?
You must offer initial incentives better in the market than other companies in the beginning or provide a greater service so that it spreads word of mouth quickly. Several companies have done this successfully, others have not. For example, in Canada, a company called the Brick, started in Alberta did so through offering great service and follow up, then great prices, then massive weekend sales with T.V. advertising. They did it slowly with 2 generations, but they did it continuously expanding and in a planned growth manner. The customers they developed told other customers, and they got good deals on items that were new to the market and something families needed and used whether it was electronics or furniture. It takes time initially, but you must have a good program or plan in place that drives incentives for customers to use your business, and then tell others and then come back to purchase more.
3. Product Comparison, Quality, Service, Selection
This is the nuts and bolts of the plan to market your business! What price are you going to charge, and how does that compare to others in your local market. If your prices are higher do you provide extra service, extra quality, extra guarantees? If you are offering better pricing, can you still cover your costs and make a profit?
Imagine a tale of two stores, one no longer in business and the other called Wal-Mart. Wal-Mart was not always the biggest player. Sam Walton had to help others drive and develop the business too. How was that done? Well they started to drive prices lower. How does that help? Well they increased the volume in buying and demanded and got better costing. Then increased the volume and drived down prices that brought in more customers. Then they started to advertise this using T.V. and it became their motto, mission to bring lower prices, all along increasing their volume and the number of stores. Sound familiar? Easier said than done, but attainable with the right amount of knowledge in business and team development.
In summary, you must understand your businesses potential sales and expenses before starting to determine what type of potential profit that will keep you in business. Then you must grow your customer base offering incentives that drives potential consumers and their friends to your business. After this you must continue to offer advantages: price; quality; service; selection that bring repeat customer and expand your business with new customers. Given these three things as well as alot of industry and specific business knowledge you will be better suited to develop, maintain and expand your business in the future.
http://www.usabusinessgrowth.com
We have consultants that have operated small businesses for over 20 years. We have been consultants and held positions in some of the fastest growing companies in Canada. We have held past management positions in retail, tourism, hospitality and sales for a variety of companies. We have increased sales by 200% in 2 months for an herbal doctor; increased sales by 30% in 4 months for a major Canadian Big Box Retailer and helped several entrepreneurs develop and sell their business. Our expertise is in the area of growth and business development. We have also been involved in developing business chapters in cities across Western Canada. In terms of charities we have been involved with several groups including Habitat for Humanity, United Way and local city soup kitchens. In terms of Business Development and mentoring we have volunteered with S.E.E.D.S mentorship review committee, ACE, YEA and university.
Article Source: http://EzineArticles.com/?expert=Daryl_Des_Marais
Small Business Start-Up Marketing 101 - To learn more about this author, visit Daryl Des Marais
's Website.
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Daryl Des Marais
(Visit Daryl's Website)
Mr. Des Marais has operated small
businesses for over 20 years. He has been
a consultant and held positions in some of
the fastest growing companies in Canada.
He has held past management positions in
retail, tourism, hospitality and sales for
a variety of companies. He has increased
sales by 200% in 2 months for an herbal
doctor; increased sales by 30% in 4 months
for a major Canadian Big Box Retailer;
200% sales increase 3 times in a row for a
service-based small business and helped
several entrepreneurs develop and sell
their business. His expertise is in the
area of growth and business development.
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