7 Costly Small Business Marketing Mistakes to Avoid

Everybody makes mistakes and entrepreneurs are no exception. But for an entrepreneur with a limited budget, committing mistakes too often can be very costly. It is an open secret in the business world that most of the mistakes that can be committed in business have been committed; so why not just learn from them, saving you the agony of committing them yourself.

With that said, here are 7 costly small business marketing mistakes every entrepreneur must avoid:

1. An Incongruent Marketing Message

To effectively sell your product or service, your customer has to “get” the marketing message. A customer-centric marketing message educates your prospects and persuades them to become customers. Too many small businesses make the mistake of focusing their message on the product or company, instead of how the prospect would benefit by purchasing their product. Prepare the right marketing message with some of these in mind:

o Identify the prospect’s problem.

o Explain to the prospect why the problem should be solved immediately and explain why your product or service is the right solution to their problems.

o List the benefits your prospects would enjoy upon purchasing your product and provide an unconditional guarantee to allay any fears they may have.

2. “Spray-and-Pray” Marketing Instead Of Precision Marketing

The days of marketing as a zero-sum game are over. You must demand accountability from your marketing efforts, expecting tangible results in the form of a healthy ROI (return on investment). Differentiate your marketing messages and target them to meet the specific needs and wants of your prospects and customers.

Many small businesses are guilty of the dreaded “spray-and-pray” marketing ideology, which inevitably drains their resources to the point where it very often leads to their demise.

Do not commit this same mistake, but instead practice precision marketing, where every aspect of your marketing and advertising efforts are measured and tracked for maximum returns.

3. Failing To Realize Marketing Is About Value Creation

To create a sustainable small business, you have to market something of value to the prospect and customer. Marketing is your business and creating value for your customers should permeate through all your marketing efforts. Strive to always over-deliver because customers love to receive more than they expect and the easiest way to do so is to develop a thorough understanding of their wants and desires.

4. Selling Instead Of Educating

You must have heard about the age-old principle that “people love to buy but hate being sold to.” It is a principle that will continue to hold true for ages to come, but unfortunately, many small businesses still fail to adhere to it. The fastest way to get rid of a prospect is to try forcing a sale out of him or her.

Education-based marketing, however, is a powerful marketing strategy to overcome this problem of being sold to. This strategy makes use of giving away valuable information, educating your prospect about the benefits of owning your product or using your service, offered to them as free reports, video cassettes, CDs, or DVDs in exchange for their contact information.

It is a strategy that builds trust with the prospects resulting in a much higher closing ratio. So, forget about throwing a sales pitch and try educating your prospects instead for a higher conversion rate.

5. Failing To Test

The biggest mistake any entrepreneur can make with their business is the failure to test every possible variable most important to their customers. This applies to both online and offline marketing efforts.

I can understand if small businesses faced more difficulty with market testing because of limited budgets years ago, but the Internet has done away with this excuse. It has become so cheap to conduct price tests and sales copy tests and identify what campaigns, keywords, and metrics give you the best ROI online that not testing any of these has become a cardinal sin.

6. Not Following Up With Prospects Or Customers

Small businesses spend a great sum of money acquiring customers, which makes it all the more difficult to understand why many of them don’t follow up with their customers, or even their prospects after the “front end” sale.

It has been well documented that true riches are to be found in the backend sales and the reason for this is simple. If a customer or prospect raises his or her hand to do business with you, it means an element of trust has been established and a business relationship is ready to be formed. They are more then likely to buy from you repeatedly if you make it a point to capture their contact information and develop a follow-up system for communicating with them frequently.

7. Selling To The Wrong Target Market

Never assume that your product or service will appeal to a general audience because this assumption has profoundly resulted in many small businesses shutting up shop. Large businesses are guilty of this too, but you can save yourself from committing such a rash mistake by asking yourself these two questions:

o Who are your customers, or who is your target market?

o Who will use your service, or who will buy your product?

Answer these questions with absolutely clarity and segment these markets by demographics and psychographics to zero in on your ideal customer. The time spent doing this correctly will add nicely to your bottom line.

Just remember that to succeed, you must be prepared to fail, so don’t fear the eventual mistake but learn from it.

Online Business Solutions in the Current Marketplace

What’s The Problem?

Have you thought about starting a web based business? If so, you will probably have thought about various obstacles that might hamper you and have recognised the need to find certain online business solutions. For example how will you create a website, how will you develop your marketing strategy, how will you ever cope with high volumes of enquiries, or how will you process payments for the sale of your goods or services.

None of these concerns are new and there are practical business solutions for all of them. Too often companies end up trying to put together the web business puzzle without guidance, or without knowing the right questions to ask. The planning and development of a website has similarities to creating an architectural theme for a building and as the title of this article suggests the solution to most of the problems that you might anticipate, can be found by taking the time to research the current marketplace.

The Increasing Demand For Online Business Solutions

There’s definitely an increasing demand for online business solutions, but as quickly as this demand grows, new innovative technologies emerge to help tackle our biggest problems. Small business owners are quickly realising the incredible power of online marketing and for anyone who is serious about taking the plunge, being able to find reliable information and advice can be critical.

As technological advances continue to gather pace there is more demand for faster, more efficient and less complicated business solutions and the increased popularity of the internet means that there are also more and more people in search of them. Consider the slow computer speed of some computers in the past, a common irritation that many of us have experienced. We now get irritated if we have to wait more than 5 seconds or so for a page to load.

How expectations have changed, the more efficient computers become the more we seem to demand from them and on the whole they don’t disappoint.

How To Find Suitable Online Business Solutions

If you are about to jump in and experience the exciting world of online marketing, it’s important to recognize that there’s a need to keep up to date with the latest marketing strategies. Finding the right business solutions for your company deserves careful consideration and although it will depend largely on your particular needs, plenty can be learned by looking at the success of others.

Identifying the most suitable online business solutions for your particular venture could help you to outsmart your competition, gain a competitive edge, expand your business more quickly and ultimately help to make your business more profitable. If this is true, then it’s surely worth devoting some proportion of your time to.

Carefully researching your competitors can help you to determining the kind of tasks that you might need help with. There’s no better place to start, than with the most successful companies in your specific niche. They will have already identified some of the common difficulties in that marketplace and will have found some of the most appropriate online business solutions already.

Search engines can help you to identify resources too, but you need to be as specific as you can with the search terms that you use. Major search engines gain their credibility by being able to efficiently direct you towards exactly what you’re looking for, so the more accurate you are with your search terms the more quickly you will find what you’re looking for.

There are online business solutions available for just about any problem you can think of and many of them are relatively inexpensive. The more time that you spend and the more thoroughly you research the market before launching your business, the more likely it is that your business will flourish and succeed.

Final Thoughts

Don’t make the mistake of leaving your company’s business solutions in inexperienced hands as this can be a costly mistake. Beware of any company that tries to woo you with vague promises, you can always check their credibility by looking at past results or by reading what other people are saying about them.

Try to learn by the experiences of people and companies that are enjoying success in your niche. They must obviously be doing something right and with the help of internet technologies you can find out much more about their techniques than you might think!

Is Going Direct Really Cheaper Than A Broker Or Price Comparison For Small Business Insurance?

The UK media is currently awash with advertising slogans from direct commercial insurance companies targeting small business owners in an attempt to make them switch their provider of business insurance.

‘Get 12 months cover for the price of ten’ and ‘You won’t find us on price comparison websites’ are typical of the slogans emanating from these companies, in a language more akin to the selling of car insurance than the traditional professional and almost stoic approach to the selling of business insurance cover.

In the current recession, price has become the determining factor in winning the war of market share for all goods and services and insurance is no exception. Prudent small businessmen and women are looking to cut costs in all areas of their business and the large direct insurance companies are well aware of this.

The large insurers are also aware that the UK market has over five million small businesses of which a fifth are sole traders, self-employed and people working from home, many of whom are familiar with purchasing their personal insurance direct with the provider, either by phone or on the Internet.

There are three types of provider in the current market for business insurance in the UK.

Intermediaries such as insurance brokers and agents, price comparison sites and direct commercial and business insurers.

Each has their own advantage and disadvantages, however whether one distribution channel is cheaper than another is often a subjective view from a particular trade, or dependent upon factors many of which cannot be quantified in price.

Direct Insurance companies claim to be able to offer cheaper polices because the cut out the costs of the middleman. It is certainly true that direct insurers do not have to pay an intermediary for the cost of the lead or introduction, however it is questionable whether this cost saving is actually reflected in the prices offered to the public.

Certainly there are economies of scale to be made by centralising the life-cycle of a policy from sales point to claim and renewal, however all those functions that are performed by an intermediary still have to be carried out in-house by the direct company and these have a cost.

Many large composite insurers often have distinct direct divisions with their own target market and premium rates. The same company may also have a broker or intermediary division or channel.

It is quite often the case that a large broker with a large book of business of, for example, small builders liability, will receive much more preferential rates then the same companies direct channel, because that insurance company wishes to retain that brokers clients.

Commercial Insurance brokers then are often able to offer preferential rates because they have more flexible schemes and arrangements than the direct channel.

One of the main benefits of using an insurance broker or intermediary in purchasing commercial insurance for small business, cannot be quantified in price and is worth the commission or fee that they may charge. That is advice, market and product information and knowledge, access to various markets such as Lloyds and some human help if the worst happens to a business and a claim is needed.

A commercial or business insurance broker is often able to negotiate far better claims settlements than if an individual were to deal direct with the insurer. The main reason for this is once again the insurer wishes to retain that brokers share of the total risk pool and will often pay out to a broker on an ex-gratia basis. This cost of this service is not quantifiable at the quote stage where small business cover may well just be valued for the price paid or the covers bought.

The third major way in which small business owners can purchase cover is by visiting a price comparison website. All the major UK comparison sites have recently begun to offer online cover aimed particularly at the small business sector, with under 50 employees. This is in direct competition with the direct insurers for television and media advertising space, aimed in particular at self-employed tradesmen and women who require business liability insurance and perhaps commercial van cover.

The comparison price proposition is that they can compare the market or at least a small section of it, to find the cheapest business insurance. They often do not provide any assistance in the purchasing decision-making process and the reality often is, that the cheapest commercial and small business insurance can be found in one of the other distribution channels.

It is therefore important that a small businessman shops around and takes some time to compare offerings including premiums, covers and services from all three sales channels. Prices tend to vary immensely by trade across the direct, broker and comparison markets and often it is a case of finding the provider or supplier who is the industry leader for a particular business type or trade in order to make large savings.

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