Starting Your Own Business Step 4 - Marketing and Advertising
7/05
This is the fourth article of a four-part series in this column about starting your own business. Marketing and advertising are essential for any business. No one can buy your product or service if no one knows you’re out there. Marketing and advertising must be a part of your start-up business plan because more so than the other three steps in this series of articles (Planning and Formation, Hiring Employees, Accounting and Taxes) marketing and advertising will require substantial cash outlays.
Advertising is the placement of ads in print, radio or television media, marketing involves the overall planning of a business’ promotional campaigns. A marketing professional can help you decide which format best suits your type of business. Some businesses may be perfectly suited for pennysaver or newspaper ads while others may be better suited for trade journals. Some businesses are particularly suited for television commercials. Your marketing plan must address how you plan to get the word out about your business.
Word-of-mouth marketing is one of the most important parts of your marketing strategy. Unlike advertising on television, the radio or in print media, where you are holding out your product or service for the general population, word-of-mouth marketing relies on clients and colleagues who have particular knowledge of your product or service and are willing to recommend you to others.
Chamber of Commerce meetings are great sources of networking. Any business is allowed to join and you are actively encouraged to promote your business. Another great networking opportunity is Business Network International (“BNI”). In BNI, only one individual from each particular trade or profession is allowed to join a group (one florist, one photographer, on financial planner, etc.). The idea behind BNI is to lock out your competitors and to refer business to other group members. In BNI the sole focus is on bringing in new business. Other organizations that assist with word-of-mouth marketing are local charitable organizations such as the Rotary Club and Lions Club. Unlike BNI where the focus is strictly on business, the focus of Rotary and the Lions is on charity and community service. Trade or professional organizations typically provide education benefits and also may provide a way for you to stand out among your peers. Each of these types of organizations provide different perspectives for growing your business by word-of-mouth.
Marketing can also include how you present your business to the public. It can be the professional manner in which your business answers its phones. It can be the look of your offices. Accountants, attorneys and financial planners may require well-appointed offices whereas a gift basket company that sells on the internet may simply require a large warehouse. A pediatrician’s office would be much different than that of a plastic surgeon.
While marketing and advertising were the fourth part in this series of columns, they are no less important than any of the other three steps and in many cases they are more important. Most owners of business start-ups are extremely knowledgeable about their trade or profession; however, they may not be as familiar with the various aspects of running a business. Where you lack the expertise, it is important to bring in qualified members to help your team. Whether it is a marketing consultant, accountant, attorney or other professional, it is important that you get expertise where yours is lacking.