I was a Yellow page consultant for nearly 25 years and spoke to thousands of businesses during that time. We received what were called, New Ins, or New Connects, throughout the campaign. They were companies with newly connected business phone lines that presumably were just opened and needed a contact. They didnt always want advertising, but received at least a complimentary listing in both the white and yellow pages. Therefore, when I got one of these companies, they got my full attention and a phone call. So we would meet and I would do some fact finding about their business. More often than not, I was surprised to find out that they lacked a business plan. They had no idea what to expect over the next several years: no short or long term goals, marketing program, customer tracking system, or follow up procedures. Instead, they open their doors and expect the customers to come in droves to buy their tires, soup, or whatever they were selling. When I suggested that they need to advertise to get the ball rolling, they might respond with one of the following: (a) We spent all our money on the building, etc. and theres nothing left. (b) Well be relying on word-of-mouth for our advertising. (c) We already have a sign in front of the store. Isnt that enough? (d) We have a website and that will take care of us. (e) Were going to print flyers to stick on windshields of cars in the area. (f) Advertising is over-rated, we need customers instead. (g) If we make a bunch of money this year, well try a small ad next year. (h) Well have lots of sales and discounts. That should do the trick. There are probably too many more to remember, but Ive most likely heard most of them. The business person honestly believed every one. So, I would give them their free listing and be on my way. A year or so later, I would get the disconnect order for the same phone number, meaning they were out of business, By now, you can guess what a business needs to survive. It begins with planning and money, and plenty of both. Actually, it wouldnt hurt to have a great product or service, but thats not essential. Many terrific businesses get by with average goods and services that are promoted well and backed by good people. But, by far, having a viable business plan that includes a realistic budget for a marketing program, goes a long way. I discovered that most new businesses underestimate their expenses while over estimating their income. Be conservative and figure your costs on the very high side and returns very low. Then if youre wrong either way, youll be pleasantly surprised. Finally, never be content with the number of customers you have and promote, promote, and promote some more. Businesses fail because they are unwilling to adapt to changing conditions or relax too much. Always be thinking of new, creative ways, to attract and retain customers and I wont be getting that dreaded disconnect notice regarding your business. |
