How To Use Marketing and Sales To Explode Your Home Business By Sean M. Lyden Warning: Reading This And The Following Sales and Marketing Articles May Cause Your Business To Grow Beyond What You Are Presently Able To Handle. Are you willing to take the risk and put in the effort to build and grow a home-based business? Then read on and prosper! For in this issue of HOME BUSINESS® Magazine, we will tell you what you need to know to launch and maintain a winning sales and marketing campaign for 1998. The Problem Many home-based entrepreneurs don't know how to best market their products and services. Some neglect proactive marketing all together, praying earnestly and waiting for prospects to fall through the ceiling. Others market full-force, but produce shoddy publicity materials or other key marketing mistakes that kill their business credibility, pushing clients away. Either approach will keep you from achieving your business potential and financial dreams. The Bottom Line Whether you've been thinking about starting a home business or you're already a seasoned home-based entrepreneur, the principle remains the same — your business' survival and success hinge on how effectively you penetrate the marketplace. There fore, examine how the following marketing strategies and tools can help you boost your home business profits in 1998. The Home-Based Advantage Low overhead costs, no commute to work, the ability to be home with the kids — these are just a few of the advantages for the home business owner. Gear your marketing efforts to capitalize on these and other home-based strengths including: • Adaptability. The Information Age has escalated the rate of change in the marketplace. To survive and thrive, you must be prepared to act — and act quickly. As a home-based entrepreneur, you can make adjustments instantly, without having to cut through the red tape of bureaucratic decision-making procedures of larger business. • Technology. Computers, the Inter net, fax machines, and emerging video-conferencing can take home businesses to a more level playing field with bigger companies, empowering entrepreneurs to accomplish tasks that used to require hiring staff to perform. • The Part-Time Op tion. Unlike conventional store-front businesses that require full-time attention and high overhead costs, home businesses can be operated part-time, at low cost, and — depending on your financial goals — can be phased into full-time operations. Taking Your Business To The Next Level A common reason home businesses fail is because owners neglect the up-front planning needed to position their ventures. Once you have defined your market position — where you want to take your business in the next year — you will have moved one step closer to success. Begin by taking inventory of where your business is right now. What specific goods and services do you provide? How do you set yourself apart? What is your business' reputation? How are you perceived by your customer as far as your prices, reliability, and other elements of your products or services? If you already have a business, seek feedback from existing clients. The next step is to project where you want to take your business in the next year. What market position do you want to occupy? Is the niche market you want large enough? How will your benefits outsell those provided by the competition? Do you have the ability, capital, resources and support to make your market position a reality? Your answers will give you the information you need to begin designing or updating your marketing plan. Planning For Profit Once you have determined where you want to go, outline the essential steps to get there. Begin by writing a one sentence purpose (mission) statement for your marketing campaign. The rest of your plan should include a brief description of each of the following: • Benefits of your products and services. • Your target market. • What marketing tools will best help you achieve your mission. • Your market niche — what sets you apart in the market place. • Your marketing budget. Keep your marketing plan brief. The more concise you make your marketing plan, the more effective it will be in evaluating your marketing efforts throughout the year. Finding Your Niche This is often the hardest task for a beginning home-based en trepreneur — but also one of the most crucial. In order for your venture to survive in a competitive marketplace, you must distinguish yourself from other businesses and find a niche. What makes your business unique? Why should someone choose to buy from you over a competitor? Prospective clients want to know. If you can give them a compelling answer, you will position yourself as a leader in your industry — boosting your profit potential. Marketing Tools That Hit a Home Run No matter how you choose to publicize your business, one principle should guide your promotional material: Get to the point — fast. You're vying for the attention of consumers bombarded each day with advertisements from countless companies — some being your competitors. Don't waste any time getting your message across. Ad — Vantage You have determined your market position and drawn up a marketing plan; now you're ready to proactively spread the word about your products and services. One effective tool is mass-media advertising. You have a variety of media choices — depending upon your target market and your advertising budget — including magazines, newspapers, television, radio, and the Internet. Start by evaluating how and where your competitors advertise. What's working for them? Take their best ideas; then design your own winning layout, positioning yourself as having the best offer. Seductive Headlines As the first phrases seen in advertising copy, headlines should arouse enough interest in the reader so that they will want to read or listen on to learn more about your product, price and offer. To get ideas about what headlines will work best for you, scan different types of ad copy, particularly those from your competitors. Effective headlines: • Capture the customer's interest • Build business credibility • Highlight the most important benefits • Are always positive. Testing Your Ads Advertising can be expensive, but for just about any business a mandatory investment. To get the most out of your ads, test them by the following criteria: • What is the quantity of leads or prospects that the ad generates? Compare this amount in terms of a unit cost of advertising (dollars in advertising per leads generated). • How many of these leads convert into sales? Different advertising media — due to the audiences they target — will vary in the numbers of actual closes. Continually check the response from your ads, make changes or run a new ad if necessary. Regional & National Exposure Magazines and trade journals are the Energizer Bunny of the advertising tools — they keep going and going and going. Not only do magazine ads have the longest "shelf-life" of any advertising medium (giving your business exposure for as long as that issue is in circulation), but you can make reprints of that ad that will last you forever. You could run an ad in a major national magazine (a cost-effective option for home-based entrepreneurs to build credibility and compete with larger companies) and then order reprints of that ad to use as powerful credibility pieces in sales presentations, direct mailings, or whatever promotional means you choose. To find out if a publication will give you the exposure you want and fit in your marketing budget, call and ask for their media kit. Not only will you find out a magazine's ad rates, but you'll learn about its circulation, demographic focus, etc. Extra! Extra! Read All About It! Newspaper ads are very effective for home-based businesses that market their products and services locally. Not only can you reach a large number of people in specific metropolitan locations, but you can also target pros pects via their interests (e.g. sports, lifestyle, and business sections). Go to your local library to study back issues of the newspaper in which you're interested in placing an ad. What would be the best day for you to run an ad? If you were running a catering business, for example, you would choose Wednesday or Thursday because those are the days most newspapers print their food sections. What section of the paper would be best geared to your target market? If your offer is directed toward males, the sports section would be one for you to consider. Advertising costs depend on a number of factors including: the size of the ad, where in the paper it's placed, the day it runs, etc. As with magazines, call and request a media kit from the newspaper to determine what advertising steps you can take that will fit within your marketing budget. Making Waves With Radio Radio advertising enables you to home in on your target market depending upon the type of station, time of day and day of week you run an ad. The advertising costs for the large, more popular stations are out of reach for most home-based entrepreneurs. However, smaller stations provide less expensive options. When deciding whether or not you can afford to place a radio ad, determine how many times you need to run the ad in order for it to be effective. Initial placement may fit well into your budget, but the true test is to consider the overall costs of running an effective radio advertising campaign. For many home-based entrepreneurs, radio is not a cost-effective medium for home business owners, especially those who market to a national audience. However, if you target a local market and have the funds to run your ads consistently on a number or stations throughout the year, radio advertising may very well be the ticket you need to take your business to the next level. Now You Too Can Be on TV! A television commercial — when done properly — is the most powerful way to get your message across. The combination of video and audio appeal to more senses than any other advertising method. His torically, be cause of television's drawing power, only the big-name companies could afford to use it to advertise. However, with the dawn of satellite and cable TV, more affordable options are available for the home-based entrepreneur. As with radio, consider how often you need to run a TV ad for it to be effective. Then add up expenses. Placement costs have plummeted significantly, but if you purchase only one or two thirty second segments, you won't likely make enough impact on your target market. Therefore, decide how much of your marketing budget you're willing to devote to television advertising. If you cannot afford a significant number of runs, invest your advertising dollars elsewhere, such as magazine advertising. If you can, take full advantage of this powerful medium. The Power Of Printed Material Once your ad has generated interest, how do you keep your prospects hungry to know more about what your business can do for them? Brochures To Generate Closures Whet their appetites with a compelling brochure that showcases your business' features and benefits and promotes your business expertise. Add attractive graphics and attention-grabbing headlines to give your brochure a professional appearance and build your business credibility. Home-Based Basics Your brochure is just one component in you marketing arsenal. Don't overlook the sales-generating potential of basic business printed materials: • Letterhead and Stationary: Use high quality paper. Consider including your mission statement and a brief listing of services. Incorporate all ways to contact you, such as e-mail and fax. • Faxes: A fax cover sheet should mirror the letterhead. Include your company name and number across the top of the page. • Business Cards: When meeting a potential client, the business card is your first introduction. Put a headline on it that defines your mission. Fill the blank space on the back the card with the top three benefits your business has to offer. • Invoices, Statements & Mis c ellaneous Correspondence: In all correspondence you have with a client, even sending a bill, use these as opportunities to market your business. As an example, an invoice to a client might contain a special discount only for previous customers. • Flyers: Less formal and shorter than a brochure, flyers are used for impersonal promotions targeted to a time-specific event (special discount, sale item, etc.). Home-based entrepreneurs who market to a local audience can tack them up on utility poles and bulletin boards, place under car windshields, insert in newspapers, or deliver through carrier route mail. For national marketing, flyers can be send through the mail. Catching Clients With The Web Imagine! You can have a salesperson working for you 24 hours a day, seven days a week — even while you sleep — for nearly pennies a day. A web site and effective use of e-mail can make your small-time, home-based operation into a major international force — truly putting you on a level playing field with the big companies. And now with web page design software available, getting a web site up and running by yourself has never been easier. How can you best use cyber-technology to boost your business image and profits? See Jeffrey Spen cer's article, "Cyber Malls: 7 Criteria for Sel ect ing a Successful Provider," on page 68, and "E-mail: The Most Important Online Communication Tool in Your Marketing Toolbox" by Terry Wil liams on page 28. Direct-Mail Marketing For the price of a stamp, you can home in on almost any target market, be as detailed or brief as you wish, and expect relatively high re sponse. "All other forms of marketing can help you immensely," comments Jay Conrad Levinson, author of the best-selling Guerilla Marketing titles, "but direct marketing can help you more." What can direct-mail marketing empower you to do? • Generate inquiries with potential clients. Mailing lists targeted to high probability contacts, home-based business owners can generate interest in their product or service. Following up the direct mail-letter with a telephone call or personal meeting will increase your chances of closing the sale. • Maintain communication with current clients. So many businesses, particularly larger ones, neglect ongoing client communication. Contact gets to be centered only on conducting business. Home-based businesses can bridge this gap with a letter in the mail. Making Direct Mail Work Here are the time-honored tips for effective direct mail (See also Hilton Johnson's article, "Ace Components of Good Direct Marketing," on page 34): • Mail to a person. Avoid mailing blindly to a company. If you cannot get an actual contact, address the letter to the appropriate department or title (i.e. Marketing Director). • Grab the reader's attention. You have about five seconds to generate interest before the letter joins today's junk mail in the trash. Use headlines and highlight benefits. • Write the way you speak; maintain a conversational tone to your letter. • Start the sales process. In most cases, direct mail is used to start the sales pro cess with a new or present client. Make it easy to continue with the sale, such as explaining what to do to learn more about the product (i.e. phone number to call). • Future Action. As the direct letter starts the sales process, show the recipient how he or she can take further action. • Study your audience. Learn as much as you can about your prospect before sending the letter. You will come across as having the reader's best interest in mind. • Follow-up. Follow up. Follow up! Often four or five letters are needed to clinch the sale or generate a telephone response. Techniques for Designing a Direct Mailer • Use the estimated date that the recipient will receive the mail • Use first names for the "Dear" block. • Within the first few sentences of the letter describe key benefits, mention any businesses or points of contact who you can reference, and explain your purpose for writing • Deliver credibility by including customer testimonials. You want to show the recipient why he or she should continue to read your letter. • Provide a strong incentive for the recipient to act. • Ask for action. • Include a guarantee (if soliciting for a direct sale) • Reference any enclosures you have in the envelope, such a brochure or flyer. • Postscripts (P.S.): Use postscripts to maximum effect. Postscripts al most always get read, and provide an excellent place to make a written offer. Tele-Power! The telephone is an often overlooked tool for home-based marketing success. You can qualify prospects, generate interest in your business and even close sales — all with the touch of a few buttons. Imagine how much time and money you can save when you use the telephone to your advantage. Generating Incoming Telephone Calls If a prospect calls you first, the chances of you closing the sale greatly increase. So how do you get the phone ringing? • Create an incentive, such as offering a benefit for making a call. • Have a toll-free number. This can increase your response rate by 30-700%. However, if you're dealing exclusively with local clients, a toll-free number is not necessary. • Use telephone numbers that are easy to remember. • Find ways to get people to hold-on to your telephone number (magnetic stick-ons, memo pads, business cards, pens, etc.). Maximizing Telephone Calls Making calls takes time — and as you know — time is money. How do maximize you profit potential with your phone time? • Call only prospects who are pre-qualified, either through being a referral, a response to a direct mailer or other marketing promotion, having a "gatekeeper" to whom you can refer, etc. • Know who you are trying to reach. If you have to ask for a department head, such as the Director of Sales, you are not targeted enough for home-based telephone sales. • Ask the caller if it is a good time to call. Besides making sure that you do not irritate the prospect, you will appear considerate. • Be specific and get to the point. When you reach the client, state the reason why you are calling within the first 30 seconds. • Establish a relationship with the prospect before making the sales pitch. • Keep the sales process moving. Telephone Tact You have one chance to make a good first impression, increasing your chances of a sale down the road. Here's how to do it on the telephone: • Answer the phone. Your telephone advantage as a home-based entrepreneur is that the client can reach you, the decision maker, without having to cut through secretaries and other buffers found in larger companies. You can't do that if your phone is busy or rolls into voice mail. Put callers on hold — no more than 15 seconds — to take call-back messages from other incoming calls. If a call goes to voice mail, call that person back immediately. Keep phone conversations brief. If using a Personal Information Manager (PIM) on your computer, time the sales call. • Be goal oriented. Know what you want to accomplish and what information you need before you pick up the phone. • Speak slowly, concisely and clearly. Avoid rambling. • Be enthusiastic. The biggest hurdle to staying enthusiastic is making numerous phone calls at one time. Pace your phone calls out, a little bit each day. • Speak in terms of benefits, not features. • Solicit feedback but avoid direct questions. Keep inquiries open-ended so that the caller has the option to make answers if he or she feels comfortable doing so. • Thank the person for their time. • Follow-up with a letter. Compu terized form letters can be easily personalized and even started while you are talking with the person on the telephone. Tantalizing Testimonials Satisfied customers can be one of your best sales forces. Request that they write a testimonial on their letterhead. Include these in advertisements to lend more credibility to your offer and in a professional portfolio to show prospective clients during a sales presentation. You may also want to request permission from a client to have prospects call that person about your products and services. This shows that you build relationships with your clients and you are confident in the quality of what you offer. (see "Add a Personal Touch to Dealing With Custo mers", page 45) Network To Boost Your Net Worth Use networking to leverage existing business contacts into new customers. Networking is particularly critical in local service businesses. For certain types of specialized professional consulting fields, such as engineering or accounting, networking makes the difference between success and failure. Start with your family and friends and expand into business, civic and even political groups. If your company has a local focus, build relationships within the Chamber of Commerce. Free Marketing! Public Relations And Publicity Favorable publicity in mass media is an excellent way to build credibility in the marketplace. But how do you get media people to notice you? Think of how you can make your business newsworthy. What kind of "hook" will generate interest with journalists? Then consider the perspective of the audience. What kind of story will interest them? To achieve results, public relations often requires long-term persistence. Spend time to evaluate and compile a list of the best candidates likely to print or report on your business. For example, if your local newspaper tends to focus on regional and national business activities, then to send them a news releases on your business will probably be a waste. A smaller community newsletter is a better publicity option. Press Release Power Unless your business is new and unique, the most common way to generate publicity is to weave a human interest story around your business. For example, write a press release that tells the trials and tribulations of starting up the business. You often have to submit several versions of your press release to the same media representatives, such as a local business editor. Try to develop at least some telephone familiarity with the individual with whom you are trying to gain publicity. The best tactic to capitalize on press releases is to start small with your local newspapers and newsletters. Talk personally with the editors. Upon getting a local press release printed, use it to put together a new press release to submit to larger publications, perhaps even a national one. The objective of a press release is to get a news editor to report on your business activity. Keep in mind that the editor's goal is to appeal to the widest cross section of their readership. Therefore: • Get to the Point. The press release must be able to be read and comprehended in less than a minute • Watch the current events. What are the hot topics? What are people talking about? Try to weave your press release around a current event. • Be an Expert. The way people usually become experts in any field is that they have received publicity that recognizes them as an expert. (For example, a professional consultant gets written up in his or her respective professional journal.) Determine on what you can be an expert and then sell yourself as that authority. It works. • Provide Facts and Data. News editors build credibility for their stories by weaving in facts and figures. If you can provide credible information, your chances increase dramatically of being included in a news story. • Form a Group. The news media love to report on the activities of new organizations, because new groups are of natural source of interest to readers. Get the most mileage out of any favorable publicity that comes your way. Publicity is a game that builds upon itself. Small press releases bag the bigger ones. Broadcast Your Business — For Free Although not common for home-based entrepreneurs, radio and TV can offer a way for a home-based business to gain exposure. See Gregory J.P. Godek's article, "14 Tips for Pro moting Your Book on TV and Radio" on page 44. Penetrate the Market with a Service Edge Any seasoned business person knows that it costs five times more to sell to a new prospect than to an existing client. Studies show that each satisfied customer will spread the good word about your business to at least one other person. On the flip-side: a dissatisfied customer will complain to between five and ten potential customers. Your mission in getting customer referrals is to turn passive satisfied customers into actively enthusiastic supporters who will promote your business. The best way to do this is through superior performance, and it goes beyond just providing a product or service: • Deliver your product in a timely manner, always beating the deadline. • Solve your customer's problems. This means going beyond what they tell you to discover new problems that they need to conquer. • Seek out questions and provide intelligent answers. • Maintain regular contact with the customer. Don't let more than six months slip by without dropping a customer a quick note or phone call. • Follow up. After you have delivered a product and service and have been paid, follow-up with a call to ensure everything is still OK. Often a disgruntled customer will fester like a cancer, without having the nerve to talk with you about their dissatisfaction. Follow-up calls facilitate constructive dialog to smooth over any problems. • Long-term perspective. Work to establish a long-term relationship with customers. • Act immediately on complaints. Jump on any sign of dissatisfaction by your clients. This requires "active listening" and the ability to read behind the lines, because most people have difficulties confronting someone when they are dissatisfied. But they have no problem gossiping with your other customers about their complaints. • Personalize your service. Treat the customer as if they are family. • Walk away from business if it is in the customer's best interest. Forgoing a sale that is not right for your potential client is one of the most powerful ways to generate favorable word-of-mouth publicity. The Close Whether you're just launching your home business or have been building one for years, don't allow lack of information keep you from achieving your financial dreams. Study your marketing options and decide which ones will best position you for long-term success. HBM Originally Published at http://www.homebusinessmag.com/