Years ago, a woman I knew applied for and received a Small Business Administration loan to start a Gymnastic Training Business. I remember helping her with some of the planning. The SBA gave her a pamphlet entitled “Top Ten Reasons why Small Businesses Fail.” Now there were 10 reasons, but today I can only remember the top 4. Some statistics may have changed but the over-all concept is still sound.
The Number 1 reason is lack of capital to start the business, it always costs more to open than what you planned. Most people grossly underestimate what it takes to get the doors open. The Number 2 reason is proper management. Put a great idea in the hands of a moron and the results are not pretty. The Number 3 reason is location… you have heard it all your life “the secret to success is location, location, location.” You could make a less than ideal location work for you, but it will be difficult.
The 4th Reason is advertising! Or lack thereof …how many startup businesses have you heard of that have no plans to advertise? It always astonishes me when I hear this. The SBA says you have to advertise but you can’t be on every media outlet, on all ball park fences and shopping carts, maps and so forth. They actually recommend to new business owners to match up with one, or max two outlets and dominate them, if possible. They even said “Do not try to be everywhere. Stick with one or two and dominate them until it starts working.” This is simple solid advice I believe many of us have forgotten.
Pick something that matches up with what you sell and dominate that space. As you grow, you can dominate other spaces, but settle on one or two outlets first and buy as much as you can afford. But make sure it is enough. Don’t just ask how much does it costs – ask what does it cost to be effective? I guarantee you it is not just purchasing one advertisement.
Ask what does it cost to be effective? That is a completely different line of thought. Ask what does is cost to be effective and how does that compare to what company X, company Y, and company Z are doing? This is will give you the perspective you need to make an informed decision not only about the cost of the investment but what return it could bring you.
Don’t pray and spray your advertising. Select something, dominate it, and keep doing it until it works, which it will—given enough time. Then do more of it. I read it this week about Major League Baseball. There is a direct correlation between spending enough money to field a great team and winning. Same holds true with advertising. Those having success are not trying to spend the least. They know what it takes to be effective and they continue follow that path.
Not sure where to start -call us at Neuhoff Media Lafayette. Call me directly – 765-637-2143, send an e-mail to email@example.com, hire a carrier pigeon and send a note – which ever method of communication you want to use. Let’s connect. We can help you with a strategy to be effective in Greater Lafayette.
Neuhoff Media Lafayette
Certified Radio Marketing Expert