In case you hadn’t noticed, many articles, experts, textbooks, etc. tell you that you are “confused” if you don’t subscribe to their particular definition of business terms.  I too have my set of definitions, and because this is my Blog you will find them listed below.

Please understand that my definitions, along with everybody else’s, are only words.  To each of us, in our attempt to convey those illusive, intangible concepts of business success, believe our words best describe them. 

The important thing, however, is that You are able to grasp the basic key concepts necessary to drive your business to its greatest potential.   

My favorite quote is, “If you don’t know where you are going, then you are probably already there.”  Becoming as clear as possible as to “Where You are Going” is often the difference between success and failure. 

I’m for success – by any definition.

 #1. Strategy or Action augmentation:

Here you utilize your “big picture” goal and begin enhancing that picture with the information accumulated in #1 & #5. From this collection of information, you can initially set the course

• for your business,
• its marketing direction and
• define the milestones to “make it happen”! 

 Bonus: Ultimately you want your strategies implemented in a way that your company is making money without you even being there – the quicker the better.

 #2. Financial Tracking: 

All income needs to be tracked daily – e.g. cash-flow and expenditures, sales, distribution, payroll and benefits, assets, inventory – in other words anything to do with what is happening to your company’s money.

 Bonus: Whenever funding is needed, you can create the requested documentation from your operation and financial summaries. 

 #3. A Marketing Plan is only one piece of your Grand Plan – albeit a very important and visible piece.  A Marketing Plan promotes your product to a specific segment of the marketplace.  By generating excitement and recognition for your product or service, Marketing’s role is to drive customers in your door. Once in the door, you close the sale, deliver their order and collect your money. 

 #4. Sales:

While Marketing creates the customer excitement and desire for the product or service, Sales does the actual close of the sale and collects the payment.  Although Marketing and Sales work closely together, their purpose and execution is very different.  Marketing creates a positive marketplace enabling Sales to utilize Marketing’s materials and created “need” to close the sale with individual clients.

 Bonus: Marketing generates interested prospects, Sales convert prospects into clients.

 Customer Service and Customer Retention are an important part of Marketing and Sales.  Questions and problems must be handled promptly and cheerfully along with scheduled on-going customer follow-up.

 #5. Operations:

Orders need to be filled quickly and efficiently so customers will be happy to reorder again, and become long-term clients. Quality of service while keeping costs in line is a major responsibility of Operations.  Depending upon the company structure,  employees are usually accountable to Operations.

 Bonus: Operations implements systems/procedures building toward company maturity while maintaining a unified and coordinated staff to achieve the company’s goals and purpose. 

 Congratulations! You now have a Working Business Plan!  All of the Steps listed #1-#5, are only segments of your total “Business Plan”.  Together the segments lay out a coordinated, tangible picture of your business, adjustable to the changing needs of the marketplace.

 Bonus: During this process, you have run various scenarios illustrating what will work and what won’t, and what would have only cost you time and m

By taking these preliminary planning steps,  

Your business will be set-up for long-term success.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

During our original discussion of “Identify your Target Market” we narrowed it to 4 main points:

1.  Become a specialist!  One of the first things you need to do is refine your product or service so you are NOT trying to be ‘all things to all people.’

2.  Next, you need to understand that Individuals and Businesses purchase products or services for different reasons. 

• Individuals purchase products or services for three basic reasons:
  • To satisfy basic needs.
  • To solve problems.
  • To make themselves feel good
• Businesses buy products or services for three additional reasons:
• • To increase revenue
  • To maintain the status quo
  • To decrease expenses.

3.  Once you have determined how your product or service fulfills the specific need of those in your target market, you can then laser-focus your marketing strategy.

4.  The next step in creating an effective marketing strategy zeroing in on your target market by way of Market Segmentation.

After reviewing the purchase motivations of the individual customer and the purchase motivation of businesses listed above you should be starting to visualize who you think your ‘ideal’ customer should be … or at least who you want it to be. Depending upon the nature of your business, (product or service), begin writing a description of this distinct customer.  Once that customer is clearly identified, you will be able to automatically screen everyone as to whether or not they are a potential customer.  This ability saves untold time and expense.

Based on the numbers you already have in your research, you even know approximately how many of those potential customers are in your area! Even subtracting the number of those you know are already loyal to some of the competitors, it is relatively simple to see who are available to be converted, or who have not yet purchased your product or service. 

Many times, of course, prospective customers don’t know about your company, or can’t tell the difference between your company and others. The good news is, once you know who fits into your defined criteria, you are able to ‘target’ that specific group.  Even if they are currently with the competition, you can help them understand the desirability of your product, or service, and its unique place in the marketplace.

As you become better established, you may decide that you would like to extend your target market outside of your local area. Going back to the basic reasons why people purchase goods or services, you will find new ways to channel your efforts toward your designated market.  Implementing the updated formula will make it possible for you to successfully continue capturing larger market shares.

On the other hand, if you ‘specialized’ your product or service but, following your local target market research, you discover that your actual market share is much less than first anticipated, what do you do? 

First of all, if the local target market customers will consistently spend enough on your product or service annually to keep you in the black, then you have nothing to fear.  While closely following your strategy plan, you will be able to increase your profitability as you are expanding your range of exposure.

BUT if that local market niche is only going to spend a minimum amount sporadically on your product or service – then you need to go ‘back to the drawing board’. 

Fortunately, as a result of your initial research and planning, you were able to discover this “short-fall” before investing too much time and money.  It is always disappointing to find it wasn’t the profitable niche you had anticipated, but the good news is, your research and fundamental planning will supply you with all the information needed to restructure your plan. 

When all of the pieces and parts are arranged to accommodate the needs of the customer, the result can be a thriving company.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com