Consider Your Exit Strategy

You’ve had to consider and evaluate your product or service mix, location, competition, customer base, marketing, business growth, organization and more. So much of your focus has been on beginning, sustaining and growing your business, but if you haven’t done so already, you owe it to yourself to develop an exit strategy.

Having an exit for tomorrow can be a blueprint for today. One of the benefits of an exit strategy is that having an idea of how you would like to end your involvement in your business may make it easier for you to run the business today. You may plan to pass the business along to a family member or take the company public. Or perhaps you plan to sell to an investor or employee. Maybe you want to stay involved part-time but cede responsibility to someone else. You may also consider selling it on the open market or simply terminate the business. If you have an idea of how you plan to exit, you can begin to conduct your business with that objective in mind and change tactics if your desired exit should change over the course of time. There are practical and emotional pros and cons to any exit. Each should be carefully considered and weighed.
Please Contact Me to discuss how we can draft your exit strategy.
Tom Long 708-524-0886, telong@solidoakconsulting.com, www.solidoakconsulting.com.

Go for Customer Loyalty

Go for Customer Loyalty

A customer loyalty program is a great way to market your product or service to your existing customers. A classic example of a customer loyalty program is the frequent flyer program, which encourages travelers to use a specific airline as a way to earn free airline tickets. This has been a very popular program for many years. I've seen firsthand how hard people would try to use a specific airline so that they earned frequent flyer miles, even if it meant an extra layover here or there.

The frequent flyer program worked well for airlines for many years; unfortunately, now that many of them are in financial turmoil, it may not be the best time for them to redeem the frequent flyer miles. If you come up with a customer loyalty program, you may want to consider whether you could continue the program if the economy does not hold up.

Another example of the customer loyalty concept is the punchcard. Some stores give their customers punchcards that are punched every time they shop at the store. Once the shopper spends a certain amount of money or shops at the store a certain amount of time, they receive a discount or reward.

To discuss what customer loyalty programs might work best for your business, please Contact Me, Tom Long 708-524-0886, telong@solidoakconsulting.com, www.solidoakconsulting.com.

Marketing to Your Existing Clients

Marketing to Your Existing Clients

In business, there is a common term called the Pareto Principle, also known as the 80-20 Rule, which asserts that 80 percent of your results likely come from 20 percent of your input. This principle can be applied to almost anything, from the science of management to the physical world and, of course, to marketing.

Using the Pareto Principle, you can estimate that approximately 80 percent of your business comes from 20 percent of your existing clients. How does this apply to marketing? Well, quite simply, don’t forget about your existing clients when developing your marketing calendar. Too often, businesses focus on adding new clients and lose sight of retaining their existing client base, and using that base to build new client relationships. Now, I am not suggesting you only market to your existing clients or spend the majority of your marketing budget doing so. After all, you do want your business to grow and adding customers is a crucial part. But remember how crucial your existing clients are to your business. When developing your marketing calendar, include ways to market to your existing clients, whether it’s a customer loyalty program (see below) or a referral rewards program. Just because they are your clients now, that doesn’t mean your work is done.

To discuss the Pareto Principle further and how it can be applied to your business, please Contact Me, Tom Long 708-524-0886, telong@solidoakconsulting.com, www.solidoakconsulting.com.

Discounting as a Marketing Strategy

Discounting as a Marketing Strategy

Dear Tom: I have a new photography business. My framed portraits typically go for $800, but to bring in new customers I would like to offer a special promotional price of $300. Do you think I will get new customers from this?image

Dear Reader: I am going to answer your question with a few questions. Who is your target market? What is their income level? Are discounts important to your target market? Will this promotion attract your target market or just one-time customers who want to take advantage of your deal? Answering these questions yourself will help you answer your own question.

If you have any marketing questions, please send them to me. In each issue of Under the Oak Tree, I will respond to reader questions.

There's No Time To Procrastinate

There's No Time To Procrastinate

There are very few people in this world who don’t procrastinate. They procrastinate about different things and for different reasons. Now, I know what you’re saying, “Can’t we cover this next month?” My point exactly! When it comes to business, it is my experience that the one area many businesses procrastinate in is marketing, and this is one area where waiting until next month could mean the end of your business. There are a number of reasons why businesses delay their marketing efforts:

They spend so much time and energy planning what they are going to do that they forget to figure out how they are going to do it.
Marketing is a task they don’t know much about, so they are intimidated by it and avoid it altogether.
They are afraid to fail . What if they spend money and they don’t see an immediate return? What if …what if…what if…?
They are afraid to succeed. What if their marketing weapons work and bring in more business than they can handle? Are they prepared for that?
They are perfectionists. They won’t do something unless they know it’s perfect; therefore, most projects take a long time or are not even started.

Whatever the reason for procrastinating marketing efforts, I have a few ways to help motivate you and get you on the right track.

Set realistic expectations. First and foremost, determine whether you can afford what you are planning and whether you can realistically find the time or resources to “fire” your weapons.
Set priorities. Your marketing plan may include several marketing weapons. Establish a timeline for launching each weapon and manage their use efficiently and effectively.
Have external accountability. Once you set your priorities, ask someone, whether it is a coach or a friend, to hold you accountable for completing your tasks. Get feedback from them too on the quality and effectiveness of your marketing efforts.
Distinguish between what’s urgent and what’s important. Implementing your marketing plan is important and urgent. Therefore, it deserves your undivided attention and even warrants turning off your email and letting your calls go to voicemail while you work on it.
Reward yourself. Each time you complete a task in your marketing plan, reward yourself with something you like or like to do.

I would be happy to speak with you about implementing your marketing weapons and developing a marketing campaign. Please contact me if you would like to discuss your marketing efforts. Tom Long 708-524-0886, telong@solidoakconsulting.com, www.solidoakconsulting.com.