by Michael Perini, ABC
perini & associates
Officials at the Small Business Administration (SBA) report, “seven out of ten” new employer establishments survive at least two years and 51 percent survive at least five years.
Small business owners I know tend to blame the bank, the government or their partner.
Here are key reasons that I have heard from business owners as to why their business failed:
“The math didn’t work.”
“The owner got in his/her own way.”
“Poor accounting.”
“Insufficient marketing or promotion.”
This post will focus on marketing, which if not done correctly, will surely weigh down a business and could even sink it. How can I make this observation? Well, just ask the customers, or ex-customers would be more appropriate. In many cases, they have a better understanding than the owners of what wasn’t working. Here are questions that each small business owner needs to honestly answer with marketing and public relations:
1. Do you promote your business and your products, services and capabilities or do you keep a low profile? Small businesses often minimize the importance of promoting the business properly. In fact, many of them don’t even focus on promoting their products and services at all.
2. Do you have good branding where your business reputation precedes you (i.e your business is known to be good in something)? Or, do you have a bad reputation instead? There are small businesses that do not make use of the full-spectrum of marketing activities. For example, they choose only to advertise but ignore publicity-related activities such as product launches or issuing press releases. Another fault: Business owners try to do all the marketing themselves to save expense. You wouldn’t pull out your own teeth, would you? Get a professional to assist.
3. Do you over-promote your business by taking credit for what you didn’t do in the business arena? Or, do you over-estimate what you are capable of delivering? For those who do embark on marketing initiatives, they promote their products and services too aggressively that they end up generating ill-will among their prospective customers.
4. Are you aware of who your REAL customers are or do you just think there will always be a “revolving” door of customers? Yes, there are small businesses that forget about the importance of customer-relationship management in ensuring long-term sustainable sales. Results: They find themselves stranded with a huge revenue hole when key customers abandon them.
5. Are you over-reliant with your customers? In other words, take advantage of them? Remember, a negative image will be generated towards businesses which make false promises or claims to their prospective buyers in order to make a sale.
One of the biggest reasons why a business fails is lack of action to their written marketing plan. I can’t emphasize this enough: Marketing is an active part of your business, it is not a set and forget aspect of you business!!
In order to ensure that your business succeeds having a good handle on marketing and public relations strategies and activities is a MUST!
Don’t try to do all the work yourself. Ask a marketing and public relations consultant for assistance. Pick one that will listen to you and partner with you to drive business upward.
Finally, look at marketing and PR as an investment not as a cost. With this view you will be in a better position to succeed where your competitors will likely nosedive.