By steve Woodburn

For those of us born in the years since WWII, the economic times we’re currently facing are probably the hardest we’ve ever seen. Our IRA’s are dropping like rocks from a cliff, homes prices continue to decline along with the equity we once had in them, jobs are being eliminated in huge numbers and credit is tighter than a camel trying to squeeze through the eye of a needle! Meanwhile we see our government giving hundreds of billions of our tax dollars to save companies that should have known better while the rest of us struggle to make ends meet without a bailout in sight for our families.

As the headline says, tough times never last, despite how dark it may seem at the moment and the sun will shine once again although the landscape will never be the same as it was. Its times like these that help us become smarter and stronger if we are willing to do things differently and make uncomfortable choices. Remember the old saying; you can’t keep doing the same things the same way and expect different results. That’s the definition of insanity. Now would be a good time to start doing some things differently and you may find the results are much better than you expected. Part of this thinking should involve planning and setting goals because if you have no goals, you’re like a cork on the water going wherever the tide may take you.

The famous philosopher-baseball player Yogi Berra once said, “If you don't know where you are going, you might wind up someplace else!” Goals with specific steps help you go from Point A to Point B and once you’re at Point B, you determine the steps needed to get to Point C and beyond.

Below are a few thoughts on things you may want to do differently during these times to help you toughen up:

·        Differentiate between what you want and what you need: Despite the economy advertisers continue to pound us with messages of all the things we need in our lives. The newest LCD TV, a new car, the latest game system for our children, vacations and more. Now is the time to be tough and differentiate between what you want and desire and what you need. Better to pay off your debt than to increase it; better to live without luxuries for now and put the extra money in a savings account just in case. The same holds true for business expenses.

·        Be honest with your children: Talk with them about what is happening in the economy and with your family finances. Ask them what they would do if they were in your shoes. Most kids “get it” and are willing to sacrifice the pleasures of today. What they need most is your love and the assurances that you will get through this as a family and come out stronger on the other side.

·        Buy Generic: This sounds like an easy one and it is. Do you really need to wear the most expensive clothes by designers? The generic brands at stores like Target and Wal-Mart are usually made just as well and the main thing missing from them is the little icon the famous designer puts on them. Not wearing that fancy logo may save you 50%. Same thing when you go grocery shopping. Stores brands are typically much less than the name brands and many times come from the same factories. There are some name brand products that truly are worth the price difference, but I’ve found that’s the exception and not the rule.

·        Get Creative in all areas of your life: I recently was able to save $60 a month by bundling my phone, Internet and cable service with the same provider. I switched natural gas companies and saved another $20 a month. With interest rates so low I’m looking at refinancing our home loan that may save us another $200+ a month. Look at where you are spending money and see if there are ways you can eliminate some things completely or reduce costs by switching service providers or calling them and negotiating a lower rate. If you don’t make the call, you’ll never know and many companies right now are willing to discount and negotiate if it means they’ll keep you as a customer. Examine your business expenses with the same eagle eye to see where you might be able to reduce monthly costs that hurt cash flow.

No one can predict the future and its likely 2009 will continue to provide challenges for us like we’ve never seen before. But these tough times will pass and the skills and creativity you put to use now will make you a smarter and tougher adversary when the “good times” return.

Mistake #6: Not Clearly Defining Your Product or Services' Benefits

Today's highly competitive marketplace is constantly changing and often consumers are confused about the products and services they purchase. Educating your customer is critical. Defining your product or service benefits is imperative. If you can't put into writing what makes you different from the competition (i.e. local vs. out of state) or, what makes your product or service different from the competition (i.e. organic vs. processed) how can a potential customer make an informed decision to buy. By defining the unique selling proposition for your product/or service you will help your target audience differentiate you from the competition. Isn't that what you need to do to increase your sales?

Mistake #7: Underestimating the Value of Your Existing Customers
 

Most businesses think that the way to increase sales is to focus primarily on new customer acquisition. Unfortunately, this often means poor customer service to existing customers who, if serviced well, could provide a strong revenue stream to keep your business healthy and strong. And sadly, the lack of good service and communication with an existing customer often means that customer will go elsewhere to find what they need or want. After all, who wants to be taken for granted? If you want to stay in business and grow, you must be sure to turn existing customers into lifetime customers. Call to say thank you. Check in to see if their needs are being met. You might feel like you're wasting your time, or being a pest, but ask any customer who stays loyal to a particular company and you'll always get the same answer: "Good customer service!, it's why I stay and when I don't have it, it's why I leave." Listen and learn!

Mistake #8: Thinking that Advertising is Marketing

Often small businesses confuse advertising with marketing. Asked how they market their product or service they'll explain how they've spent lots of money on advertising but often the results have been poor. From experience, I can almost bet that these same people have also committed Mistake 1 & 2. Advertising is not marketing! It is a piece of marketing, but only a small piece, and with so many ways to get your product or service out in front of potential customers, advertising should only be considered if 1) You have plenty of disposable money to spend on big ads that can run at least five times to increase your odds of being seen. 2) You are pooling your money together with other companies with limited funds to provide a variety of services or products that work together or draw from the same customer base. This is called cooperative advertising and done well; it is the most effective way to get the biggest bang for your buck. Before you spend a dollar on advertising, spend the time needed on a marketing plan and a marketing budget. Both will provide the roadmap and tools for measurement to ensure that advertising is right for you.

Mistake #9: Ignoring the Benefits of Public Relations

Myth, myth, myth!!! Public relations is the most inexpensive and effective way to get the word out to your target market that you have a product or service they need and want. Open any newspaper or magazine, listen to any TV or radio show and you'll find that without small business stories, the press would have a limited amount of content to cover. So how do you become newsworthy? Develop a good story about your business, yourself, your product or service, a customer or your community involvement, and send it out as a press release to the appropriate editors, writers, or newscasters. You might not get a hit every time, but the more press releases you send (once a month is a good start) the better chance you have for peaking interest and eventually a story will be written. You'll be amazed at how much recognition and business will result from getting your business and face in the press.

Mistake #10: Expecting Too Much, Too Soon

Often, someone just starting a new business will get terribly disappointed because they developed a brochure, ran an ad, attended a networking event, or sent out postcards with little response. They get discouraged and lose sight that marketing is really about developing relationships and, like any new relationship; it takes time to build interest and trust. To turn a potential customer into a new customer, you must reach out to them with consistent marketing messages (at least six times...more if you're selling a high-ticket item) before they feel like they "know" and "trust" your company enough to take the risk of purchasing a product or service from you. Remember to stay the course, follow your marketing plan and talk to other businesses that have been down the same path you are on. You'll find there is no such thing as instant success. And if you are really unsure of what you are doing, find a business mentor or hire a marketing professional. You may find that by avoiding the ten biggest mistakes small businesses make, you are on your way to success!

About the Author: Susan Burnash is the owner of Purple Duck Marketing in Kirkland, WA. Her company focuses on marketing, public relations, and video production for businesses and nonprofits.

By Susan Burnash

Marketing is critical to the success of every business. Unfortunately, many businesses discount the effect it can have, and they forgo marketing because they believe they can't afford it or simply don't have the time or energy to create a plan. Perhaps this is why a high percentage of small businesses fail. But you don't have to be a statistic when you approach marketing with the importance it deserves. Below you will find some of the most common marketing mistakes businesses make.

Mistake #1: Not Developing a Marketing Plan

Most entrepreneurs or small companies are understandably eager to see a return on the investment of time and money they have made in their business. Ready to start cashing in, they either hit the pavement running or hire a salesperson to do it for them. But a business trying to sell a service or product, without first creating a marketing plan, is much like a marathon runner with no finish line. At first, you may feel like you are moving forward and passing some of your competitors by, but sooner or later you'll find yourself running in circles; frustrated, exhausted and sadly disillusioned by an idea that not too long ago created the exact opposite effect. What is a marketing plan and why create one? Because it's the foundation of your business and it helps you design your product and service, identify your target audience, and provide a roadmap to head you towards your final destination: Success. But equally important, a marketing plan provides the specific details needed to increase visibility, expand your customer base, and provide quantifiable methods to measure your return on investment (ROI).

Mistake #2: Not Planning a Marketing Budget

Most businesses without a marketing plan also lack a marketing budget. And companies without both have the highest rate of failure. After all, would you run your personal life without a budget? If you said yes, you may be one of the unfortunate souls overextended with credit or on the verge of bankruptcy. If you own a small business, this can be avoided by simply creating and living with a well-conceived marketing budget. From the very beginning, and while you are writing your Marketing Plan, it is important to focus on the financial costs of implementation. A general rule of thumb says that at least 10% of your revenue should be designated for your marketing efforts. That means dollars specifically pinpointed for Web site design and maintenance, logo design and brand development, marketing collateral, both print and electronic, and paying someone, if you don't have the time, skills, or desire to do so, to handle all of your Public Relations needs. But make sure when allocating money for marketing that you also have a means for tracking your ROI. If your ROI is low after several months of trying a particular strategy, go back to your marketing plan and look at trying something different. If your ROI is high, stay with what is working, but go back to your plan and budget and accelerate to the next phase.

Mistake #3: Not Targeting a Specific Target Audience

How does the saying go? "You can't be everything to everyone?" When it comes to sales and marketing nothing could be truer. That's why identifying your target market is critical to your success. It is also critical to choosing the appropriate marketing techniques to reach potential customers. If you are selling a woman's product, be women-centric with your marketing, advertising, and PR campaigns. If you offer a service or product for small businesses, stick to small business publications and mailing lists. Targeting Fortune 500 companies is a waste of time and money. They already have established vendors in place. So, don't try to be everything to everyone.

Mistake #4: Not Developing a Clear and Consistent Marketing Message

Messaging is the careful development of the precise and concise language that quickly conveys the key message(s) you want known about your product or organization. In today's competitive landscape if you can't convey these messages quickly and have them resonate, you'll lose your potential customer to someone else. Make sure your message and images recognize your product, so be consistent. The last thing you want is to confuse a potential customer by losing focus on what is really important.

Mistake #5: Believing Your Product or Service Will Sell Itself

Many companies make the mistake of thinking that their product or service is so great and so different that they don't need to market it at all. This may make sense to you, but think of all the products and services you use today. Did any of them just find their way to your door simply because they were perfect for you? The reality is people need to be told why they should buy your product or service. They need to be convinced that they can't live without it. And once they have it, you need to provide them with customer service and personalized attention to ensure they will continue to use it. All of these things require marketing. If you have limited funds, start with business cards, a Web site, informational collateral (print or multimedia), an introduction/sales letter, and a customer service/thank you letter. Once things are moving along you can add direct mail postcards, electronic newsletters, video emails or product/service CD brochures to your marketing toolkit. No matter how great your product, don't forget you still need to market it to get it sold.

About the Author: Susan Burnash is the owner of Purple Duck Marketing in Kirkland, WA. Her company focuses on marketing, public relations, and video production for businesses and nonprofits.

Next Week: 5 - 10

It’s official. We’re in a recession. Recessions naturally inject fear and panic, which is only heightened by every discussion of market losses, layoffs, bailouts, and somber predictions. We’re only human after all; of course everything affects us personally and emotionally.

Fear is not a catalyst for productivity however.

With valuable advice pouring in from concerned and sympathetic entrepreneurs and proven leaders, businesses are indeed responding quickly to make decisions that equate to a secure and prosperous future—hopefully.

This constructive advice has helped businesses focus and weigh difficult decisions sooner than they might have without it.

However, over time, productive guidance has mutated into a glut of negative forecasts and grim predictions that pillage precious and vital airtime from contributing to the resolution of our financial predicament. Simply said, fear, and the dissemination of distress, slowly erodes hope, vision, and ambition, ultimately killing businesses instead of guiding them.

Fear inspires desperate actions. Hope (combined with clarity and inventiveness galvanizes action and engenders opportunities.

Opportunity vs. Emotion

These are emotionally charged times which only fuel emotionally-driven decisions. Unfortunately, the advice shared from many experts now and in the past is subjected to both literal and open interpretation, and thus guiding or misguiding the next steps of established businesses and emerging startups.

Don’t worry about getting ahead, instead, just survive…Cutting deeper and quicker is the formula to survive. - Sequoia Capital

There’s a distinct difference between mere survival and succeeding in real world business.  Many companies may unwittingly lock themselves in an isolated panic room instead of taking strategic steps to evolve and grow the business opportunity that exists today.

General advice is just that, general. One prevailing set of strategies and recommendations doesn’t apply to all.

In a conversation with veteran CEO and financier Steve Larsen, currently co-founder of Krugle, he advises:

Of course, don’t be stupid. Have enough cash to run your business, but I think the doom and gloom crowd are getting too much airtime. Look for opportunities. Difficult times are when they’ll most likely occur. When we’re at ‘steady state’ and things are normal, good opportunities are much harder to find with GREAT opportunities nearly impossible. It is during periods of tumult and transition when you can spot things that lead to the greatest returns—if you are alert. So be alert.

In every recession, abundant opportunities are inherently rife. To simply believe that this is a generic time to step off of the playing field to warm benches or take a seat in the spectator bleachers in the hopes of emerging once again to readily have a shot at winning the game is illogical. Businesses, and customers, do not stop making decisions—they’re just more discerning during volatile economic climates. But make no mistake, if you choose to stop vying for customer attention, the world will move ahead without you.

This is your time to vault in front of your competition, to earn rapid and sweeping visibility, for a fraction of the time and money that was required to excel during the “good days.”

Your rivals are retreating right now, so what are you going to do about it?

Chinese military strategist Sun Tzu advised in The Art of War:

When weak, feign strength…Attack him [your enemy] where he is unprepared, appear where you are not expected.

Whoever inspires you, remember, tomorrow’s leaders are born, tested, and proven, today. This is your moment.

Development vs. Revenue Generation

As a startup, you are now, officially, on your own. You can’t count on your VCs saving you or some magical offer from Yahoo or Google showing up to bail you out. — Jason Calacanis

If your company is guided by a board of advisers or group of investors that are not actively in tune with the real world opportunities and hurdles of your business, then their advice and direction may be questionable. Either they’re investing in the development of a product/service or they’re investing in the development of a commercial business or acquisition opportunity.

Depending on goals and milestones, there’s a stark difference in not only how the company is run, but also how its leaders assess and implement critical cost-cutting measures or where additional investment may be required. And, if users or customers are involved, the process of cost cutting isn’t necessarily a sweeping solution.

If resources are dedicated to research and development, assess the state of progress coupled with the runway of current cash and expectations. The key question is, “how can you get from here to there with less than what you’ve already been spending or planned on spending this year?”

For those companies who rely on customers to market products and either hit profitability or simply attain proof of concept through adoption, customers are not expendable. Cutting or freezing any program that connects your solution to your customers is dangerous and requires careful consideration. This IS the time when businesses must invest in the transcendence from survival to market leadership. This recession is temporary, but business is constant.

Do Not eliminate marketing or sales efforts. Okay, I’m biased here, but cutting marketing and sales has a direct and reverberating impact on future income, so don’t be surprised if next quarter’s numbers are down. Without support, sales will continue to trend downward.

Be wise as you evaluate your sales and marketing efforts. With the right team, you may want to consider maintaining or increasing financial support in order to excel while your competition retreats.

Do create an innovative and cost efficient formula for running a concentrated, sustained, and proactive outbound marketing program that effectively creates a bridge between your core customer’s needs and your product.

While companies are cutting costs to extend their runways, consumers and businesses are reducing spending in parallel. However, it’s important to remember that customers are not freezing spending altogether. They are and will continue to research, invest and procure the solutions, services, and products that will help them succeed, offer entertainment, or streamline aspects of their day-to-day work-flow. And, they’ll also continue to make impulse decisions just for the hell of it.

Building Your Business in a Recession

Obviously, capital preservation and cost cutting do not equate to sustenance or growth. The driving factors are poles apart when striving to merely stay alive vs. building a business.

If you’re sheltering cash to focus on development, then cut the services and expenses that will not impede your ability to cross the threshold to market success. If you’re conserving funds to prolong life, then realize that the only fountain of youth is cash itself. Focusing energies on generating revenue, increasing visibility, and enhancing customer loyalty are the most effective strategies for underwriting longevity, and hopefully growth, especially during an economic downturn.

The real question you have to ask yourself is, “How will my customers find me today and tomorrow?”

I’m not sure if this is a newsflash or not, but customers do not typically go out of their way to “discover” your products and companies. They have choices and it’s the job of any marketing and sales-centric business to reach their customers where they go for information—otherwise, they’re out of the decision making process by default. Marketing and sales are the conduits for connecting prospects to your business.

In a down economy, tomorrow’s leaders are born today. It takes vision, focus, and a hyper-connected sense of what customers are seeking, why, and where.

The reality is that there are hard costs tied to customer acquisition and retention. The key is to observe and listen to your customers to ascertain the most active and direct channels to reach and engage them.

Here are several, targeted and affordable suggestions:

1. SEO – Customers actively use search engines to find relevant solutions. Keyword and organic search optimization is an inexpensive and effective means for gaining strategic presence.

2. Blog Relations– It’s not just about news and pitching the A-List, creating a consistent and visible brand requires the inclusion of the authoritative, peer-to-peer blogs that your customers and influencers read for information, help and perspective. Oh, and be wise about using embargoes.

3. Media/Analysts – Reporters and analysts cover your space and by simply writing about your company or product, they can position you as an option among your customers; especially when they’re researching options to validate decisions.

4. Direct Sales – Some of the most successful companies right now are concentrating on direct outreach to the decision makers instead of hoping to influence them from the sidelines.

5. CRM – Building a customer-focused business saves money and increases revenue. Focusing on customers and empowering them improves business processes, product development, and also offsets marketing expenses as “involved and participatory” customers transform from a cost-center into an active surrogate sales force.

6. Participate – Social networks are much more than mere time killers. Participating across the social communities where you’re customers and prospects are active and vocal provides a looking glass into their thoughts, requests, opinions, dislikes, and recommendations. It also provides you with priceless opportunities to combat negative perceptions while also positioning your company as a resource.

7. Thought Leadership– One of the best ways to demonstrate thought leadership is to actively share your thoughts where they count. Contributing articles and posts to industry publications, forums, and blogs increases visibility and unobtrusively contributes to your sales strategy by helping customers find you.

8. Blog and Blog Comments– It may seem trite or perhaps even worthless, but I can guarantee that finding the time to host and contribute to a blog that demonstrates the expertise of you and your team is priceless. People are looking for information and direction, not just from your blog but others as well. Go where they are and offer counsel, contribute to the dialogue and establish trust and authority in the process. Why wouldn’t you position yourself as a resource for your customers or prospects? Too busy you say? Empower your staff. Contract outside experts to contribute to creating a one-stop-shop for insight and direction—just be transparent about their involvement. It costs less than you think to build a community around your product, or at least what it stands for.

9. Network in the real world– Participation isn’t solely relegated to online networks. Opportunities to meet and cultivate relationships in the real world are abundant. Meetups, industry events, groups, unofficial lobbycons associated with your favorite events are continuous and more valuable with your involvement.

10. Involve Your Community – Save money and time by involving your customers in the development process of your new and iterative products as well as your go to market strategy. Alpha customers are often ready to assist with the validation of your business model and also the honest feedback associated with your product benefits and features.

11. Websites are not Just Web Pages – Your Website must make an emotional connection with visitors, while also conveying stories and value propositions that specifically capture the attention of your customers – otherwise, all of your hard work and investment of time and money in sales and marketing campaigns will generate traffic, but lead to a dramatically reduced conversation ratios.

12. Innovate – Always learn and improve everything in order to stay relevant.

Buy When No One Is Buying

If it ain’t broken, don’t fix it, is the surest path to obsolescence. Equally, swinging the axe without accuracy and grace will also send you packing. Constraint forces and inspires creativity. Operate not from fear, but from vision, determination, and ingenuity.

In a down market, generally speaking, this is the time to strategically cut dispensable expenses, but also invest in growth. It may appear as common practice, however, current actions demonstrate counter intuitiveness. You sell when people are buying, not when people are selling. You buy when no one is buying, not when everyone is frantically bidding the price up. These are indeed the times to invest in the success of your business and your personal brand.

Remember, the economy is a yo-yo on an escalator. It might go up and down, and down some more, but eventually, it’s always going up (once we fix it, this time).

Any company that intentionally pulls itself from the radar screens of potential and existing customers will find itself on a direct path to the Deadpool.

It is during these most difficult times when character is truly tested and defined.

To paraphrase Al Pacino from Any Given Sunday, the inches we need to be successful right now are everywhere, and it’s up to us, and only us, to fight for them. And when we add up those inches, it will make the difference between winning and losing. Find and keep the people who will fight for those inches with you. That’s a team. Either you win as a team or you all lose as individuals.  But fear will not help you win at all.