Posted by adb_print
Posted on 29th March 2016
Oh the importance of just two words.
What else is more important in business than Lead Generation?
New leads. An abundance of leads. Good quality leads. 24 hours a day, 7 days per week leads.
I have been consulting with micro, small and medium business owners (SME’s) for around the last 8 to 9 years here on the Gold Coast and Brisbane.
An average week consists of around 4 to 5 meetings.
I certainly do not claim to be an expert or guru. The following is factual.
Time and time again I meet with SME’s with one common goal, to help them grow their business.
Typically, I’ll start our meeting with this question –
“How much does your business need to turnover each month just to survive?”
The answers I receive are usually varied from, “I don’t actually know”, or “roughly about (insert a guessed figure here)”
How can we achieve something if we have no idea of the end goal?
How do we know if “it” is working or “good enough” if we cannot, or have not measured it?
Too many business owners are making incorrect decisions or judgements purely based on emotions instead of the facts and figures.
How often have you heard someone in business quote that they have “tried radio before” or “that flyer drop didn’t work”.
Really? I will always ask.
I ask the question, please define the term “work”?
What was the expectation of the campaign?
What tools were you using to track results?
The fact that your phone did not ring as you desired does not mean the marketing campaign failed.
Yes, it failed your expectation. However, what was your expectation to start with?
A flyer campaign that drove an extra 50 visits to your website is not a failure in marketing it simply shows us that there is a lack of conversion from the website to a phone call or email.
This can be fixed with a little work, easy.
Truth is, most marketing and advertising campaigns are not tracked thoroughly and the business owner has not predetermined the end goal.
* A side note – I cannot believe how many business owners do not have Google analytics installed in their website!!
If your current website designer, developer, guru, expert blah blah blah has not installed this FREE software seriously ask the question WHY NOT?
Here is a link on how to do it yourself or contact me and I’ll do it for you 😉
Many years ago I met a successful entrepreneur who taught me quite a bit about running businesses.
He also taught me this – “You have to know your numbers”
Sounds pretty basic right?
The explanation was a little more in depth and the following conversations were even deeper, however, “You have to know your numbers” is really ground zero.
I have learned quite a lot over the years regarding marketing and running businesses.
The more I am educating and educated, the emphasis increases on knowing my numbers.
Knowing these suckers is paramount to a rock steady foundation. Simple.
If you feel you do not need to know your numbers, my advice is this – Get out of business now and go get a job.
Business is not for everyone.
Some of the hardest working people I know have tried their hand at it and failed.
Some of these people make a great living working for others.
Genetics, personalities, ambition, leadership attributes, who knows the perfect combination?
I also personally believe getting into business is way too easy.
The powers to be, grant an ABN as easy as ordering a cheeseburger these days.
I suppose it makes the unemployment numbers look a lot better than reality too.
The government looks good on paper, and you get a business. Seems like a win-win until reality sets in.
I have seen many small businesses start up over the last 9 years or so.
I have seen many, many more close-down and I believe more could be done to assist new entrepreneurs in the start-up stage.
Education is the key but unfortunately it costs money.
Educating new drivers prior to giving them licences has significant proven results in other countries but it costs money. Instead of education here in our Country we just add more speed cameras and increase revenue. Silly really, if you ask me 😉
Here is a copy of a document you can use to stimulate thought on your own business and your own numbers for a 12-month period.
This is usually a great start for business owners to see what they know.
Obviously, there may be some expenses and costs listed not relevant and there may be others you incur that are not there, please just fill in as best you can.
My tip is also this, box number one that asks “Take home wages” please write in here anything above $60 to $80k for the year. By all means list 250k if this is your desired goal.
A full time entrepreneur should earn at least a wage of $60k to $80k
Fill in the rest, calculate the total and fill in the Turnover = $
* Please have a look at this and fill in your own numbers prior to reading on 😉
I have lost count how many times I have been through this with SME’s
I enjoy it. I get a real kick out of it.
No, I do not find the enjoyment coming from lack of one’s understanding of their numbers.
I enjoy watching and helping people get “it”.
Just like I love the look on my children’s faces when they get “it”, whether it’s the puzzle they worked out, the final piece of Lego to create an awesome castle, or when they find Dad’s secret hiding spot for the choc chip biscuits……….okay, maybe not that last one.
Helping a new business owner or someone stuck in a rut is the same comparison though.
The point of this exercise is to clearly show us that our business will in fact have expenses
and costs and it will need to cover them somehow. Hopefully, at the end of paying these expenses there will be some left for us to take home.
Over 90% of business owners that go through this with me will fail to add the last box with the big question mark.
It is sad but it is true.
Very rarely will anyone suggest and list a marketing / advertising budget.
How did you go?
We are usually so focused on selling our products and services that the focus is lost on buying.
We need to buy leads.
How on earth can we possibly be so naive to believe we can sell anything without customers?
Buying leads. Who? What? Where? When? How?
In this day and age, I would strongly recommend you start with on-line leads through your Website, organic search engine rankings and social media.
Yes, my company provides solutions for many types of marketing campaigns but this blog is not about me selling anything other than a thought process surrounding marketing budgets.
A regular figure appears of around 200k Turnover total when I consult.
I will use this figure from here.
Often, I am now asked by SME’s “what is the magic number”?
“What percentage should I be investing back into my marketing and advertising”?
Is 5%, 10% fair?
To be honest, there is no magical formula to work this out.
Yes, I would strongly recommend that somewhere around the 5% to 10% is certainly a good starting point.
Yes, if your total was around the 200k figure welcome to your new marketing budget of $10k to $20k per annum.
Don’t be scared of it, embrace it. This is just a number we need for you to earn the desired goal.
10k investment, 200k turnover and you take 80k home after tax? Sounds reasonable to me!
Want 120k next year? Invest another 5k then. Go on then.
The ‘fun” starts now, well for me it does.
I enjoy marketing. I live and breathe it.
I enjoy buying and investing in leads for as little as possible so my company can be more profitable. It is fun, for me.
I hate bookkeeping. It has to be done but I hate it so I don’t do it. I pay someone who enjoys it to do it for me.
Many SME’s I meet hate marketing and I totally get that.
But, it has to be done so if you are not doing it then pay someone else to do it for you.
Someone who really loves it…………… 😉