The ideal business plan is composed of more than just history, marketing and financial sections. It should also convey the value proposition to the angel investors you approach about business funding. Typically, angel investors are sought after a business has been established so it’s possible to show real products, actual customers and a working business model. However, the angel investors will want to know how you define the company’s value proposition.
The business value proposition is developed with the marketplace in mind. The value proposition defines why people in the target market should buy your products or services. It defines what benefits purchase of the goods or services will provide or what problem will be solved by product or service use. It sounds like the statement would be long, but it should be kept short which forces the business owner to concisely explain the value the company is bringing to the marketplace and the relevance of the product to the customer. If it takes a long winded explanation then there’s good chance the business owner has not fully developed the business concept.
The value proposition is important to the angel investor because it concisely differentiates the business among its competitors and reflects an alignment of business operations with the market. The value proposition must also reflect specific results or performance and is not a generalized statement that any business could use. For example, a consulting business could say that it can help customers get a high return on investment , but that would be a weak value proposition. A strong value proposition would say that the business can demonstrate customers will experience an improvement of 15% Return on Investment (ROI) by using the company’s state-of-the-art proprietary software.
Angel investors expect a business plan to have a value proposition that quantifies market results and also states the source of its competitive advantage. That should never be a problem if a company is serious about success.
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One of the important components of a business plan is clearly defining objectives. Stephen Harper in Starting Your Own Business (McGraw Hill) writes, “Objectives can be viewed as dreams with a deadline.” The point he is making is that objectives should be specific in terms of projected amounts and timeframe.
For example, you would not write an objective like this: The business will grow over the next 5 years. You would write it like this: Sales are expected to be $2 million in 5 years and the business will be one of the top 5 niche market leaders. The dreams you have for the business should look ahead and establish where you want the business to be positioned or how much growth is expected within a set period of time. The dreams should also be reasonable, based in facts and business reality, and achievable.
For example, if you plan on opening 5 franchise businesses within 10 years (1 every 5 years) the objective should be stated as such. However, you should also be able to support plans for opening these franchises in the competitive analysis section of the business plan. If the market is already close to being saturated, those 5 new franchises may be difficult to open. When objectives are focused and sensible, the business plan will become a living breathing document that supports your dream.
If you are having trouble setting objectives for the business plan, there are some questions you can ask yourself to develop focus. Ask yourself what your ultimate goal is 5 years from now. Picture yourself as an entrepreneur 5 years from today and imagine the level of business success you want to succeed. Ask yourself questions like how many sales people you hope to have working and how much market share you want to gain. Picture yourself as successful and put your definition of success in writing.
Objectives will become clear when you take the time to look into the future. Though a business plan is not a crystal ball, it is a driving force with strategies for achieving success. Set clear objectives first and the rest of the business plan will be a lot easier to develop.
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Starting up a business is a challenge. Whether it is small or big, you need to follow a series of steps along with different strategies to make it a profitable venture. To make a business worthy of your investment, it is necessary to perform thorough research on each aspect such as a business idea, market, competitors, and finances etc.
Once you find the best idea, your next step should be based on logistics of your business along with a well-crafted plan. These steps are fundamental and crucial. This way, you will create a strong base for your business as well.
So, if you are looking for a small startup that is worthy of your investment, have a look at these 10 fantastic business ideas.
1. Real Estate Broker
Working as an intermediary between sellers and buyers, real estate brokerage is one the most profitable businesses. You will only require a brokerage license. This is also a cost-effective business idea, which means you can run it without an office as well.
However, you need to know the industry and your competitors before beginning and then you are good to go. Plus, real estate brokering is all about contacts; make sure lots of people know about your business so you can achieve your milestones.
2. Catering Service
Catering is ideal if you are looking for a small but profitable business as you can provide these services from your home. Many people and even businesses do not think twice to pay high-quality caters. With reliable catering services, you are sure to make a handsome profit, especially on different special occasions.
If you are a hard worker and determined to build a successful small business, catering seems a decent business idea.
3. Online Tutor
Online tutoring involves creating professional social media profiles and letting people know about your skills. Whether you love to play musical instruments or know different languages, you can teach anything online and become an online tutor.
Online tutoring neither requires extra expenses nor time. So, you can consider it if you can speak fluent French or play different piano tunes.
4. Food Truck
Food always stays in demand and attracts people. Therefore, you can never go wrong with a food truck, especially if you provide high-quality food and beverages. Take note that opening a small restaurant requires a considerable amount of money.
Plus, there is a risk of loss because of intense competition in the food industry. In this case, a food truck seems an interesting idea. You do not need space or extra staff which makes it a profitable small startup venture.
5. Personal Trainer
People who love to stay fit and healthy never mind paying their personal fitness trainer. Also, getting certification in personal training is affordable as well. Thus, you can get the required qualification and start offering personal training services.
This is one of the small businesses that are worthy of your investment as in current times people know the significance of a healthy lifestyle. Since this industry is competitive, you should use the internet to market your services and to build your client network.
6. Web Designing
Technology companies are always looking for web designers who can make top-notch websites. Web designing entails developing value-driven, intuitive and beautiful websites.
If you have got an eye for website designing, you can offer these services to various companies and brands and start your web designing business. If you are new to this field, you can even learn the basics of website crafting and become a pro. Moreover, there are many online courses available that can teach the latest website trends as well.
7. Social Media Marketer
Social media platforms have become a part of our daily life. Not only this, many people are running their businesses online on these platforms. You can start marketing on your social media profiles as well. For instance, you can use your Instagram account for marketing purposes.
All you need to do is decide the type of content you are willing to share such as technology, beauty, or health etc. and build up a considerable following on your account. Brands often look for social media accounts with a huge following to market their products. If your content is related to their business, they are likely to approach you.
8. Local Business Consultant
New startups are always in demand of consultants who can solve problems related to their business and provide solid advice. Therefore, if you have developed the right skills or are a pro in your industry, you can become a consultant.
Whether you are a business strategist, marketer, or have other skills, feel free to offer your services to local businesses. Plus, you can take help from online courses on how to get clients and build your brand that is worth your investment.
9. Travel Consultant
You can turn your love for traveling into a profitable small business. You can begin by creating official groups on Facebook or LinkedIn. This is an effective way to attract travel enthusiasts. In the group, you can share cheap flight rates and even recommendations for next traveling destinations.
Travelers are always in search of different recommendations to explore different places. In this case, they can count on you and you can teach them how to turn their dream trip into a reality.
10. Become a Photographer
Turning your skills into a small profitable business is easy if you have a passion for photography and you own a camera. All you need to do is learn top-notch editing skills which are crucial in this industry along with finding a suitable niche, such as food photography or travel photography etc.
To build an impressive online portfolio, you should do photo-shoots frequently so people will know about your skills. For this, you should not hesitate to capture a few photographs for free. With a professional portfolio, you are likely to get clients in a short time.
Bottom Line
There are plenty of ideas that are worthy of your investment. However, the competition in different industries can give you a tough time. You can overcome this part if you focus on the quality of your services.
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You have a business enterprise, but it’s just not taking off the way that you planned, or business has slowed down significantly after a stellar few years. Along the way though, you have been able to learn much more about what the market demands and can amend your approach with great success with the right funding. Sometimes it’s necessary to reinvent your business to fit the marketplace and take advantage of what you have learned to date through missteps or experience. It’s a sharp turn to the right that can help a business take off again and angel investors can help you turn the wheel with angel funding.
Sometimes entrepreneurs have a good idea that needs tweaking, but they don’t know it needs adjusting until they enter the marketplace. In the age of technology, customer needs can change rapidly, and you must be able to accommodate those needs through innovation. Business based on excellent ideas aren’t always successful after a period of time simply because they need a new look, a new approach, a refined marketing plan or an adaptation.
All too often businesses are driven into the ground because owners refuse to acknowledge that the economy has shifted or that their market niche has changed expectations. It’s a case of stubbornness in many circumstances because it’s tough to consider changing a brand that has time, money and effort behind it. However, your brand won’t do you much good if your company dies a slow death because you failed to listen to what the market is telling you.
Turning Towards Success
Reinventing your business with the help of angel investors can change a struggling business into an adaptable one that is always one step ahead of customers. Angel investors don’t just fund brand new businesses. They also fund existing businesses ready to change course to take advantage of a changing economy or a changing marketplace. Companies reinvent themselves every day with enormous success and many are companies well recognized – Apple computers, HP, GE and others. However, you don’t have to be a major corporation to understand that market adaptability is one of the most important keys to success.
Unfortunately, there are thousands of entrepreneurs who refuse to admit they need to pivot in place and head in a new direction. The advantages of adapting is overshadowed by the fear of failing, so the business is allowed to die a slow death while reinvention ideas are left languishing in the dark. It’s not for lack of funding either. Angel investors are investors willing to accept risk for financial gain and are looking for companies that have a new idea and a new way to penetrate a changing economy. Angel investors, like venture capitalists and equity partners, embrace innovation, new approaches and new ideas.
Reinvention can take many forms.
Technological changes in products or processes
Response to competition in the form of new products or services
Upscale reinvention of brand
Change or expansion in products or services in response to changing customer base
Expansion in the definition of the niche market
Angel investors are more than willing to invest in companies that are ready to take a new path. In fact, you have a lot to offer angel investors right from the start because you have a business track record. The fact you are currently in business is a major benefit and selling point and often enough to get an investor’s attention sooner rather than later.
Pivoting on Core Competences
If you have a desire and need to take a sharp turn to the right in your business, the first step is developing a business plan around your core competencies. Those core competencies are the strengths of your business around which you will pivot your plans for new products or services, increased market penetration or business expansion based on a reinvention platform. Clearly explain your new idea, track record, the problem you will solve or the market you will serve, the benefits offered to the marketplace, the revenue opportunities and how reinvention strengthens and rather than weakens your enterprise, and angel investors will have plenty of good reasons to join your efforts.
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It might be surprising, but a lot of venture capitalists understand the situation of would-be entrepreneurs who are looking for investors who will finance their startups. The reason for this is simple: these people who now have millions of venture capital funds stashed in banks also started as a small company owner who experienced the challenges of looking for someone who is interested in providing financial support.
They might have followed the traditional venture capitalist model or used personal means – such as credit cards and personal guarantees – to raise significant amount of money. But one thing is clear – most venture capitalists understand the position of startup owners. And this shows their true nature when it comes to dealing with these kinds of partnerships.
Unlike the common conception that they are all too powerful and very difficult to please, venture capitalists are also human. And because most of them have experienced and succeeded in this industry, the requirements that they ask from startup owners should be seen as reasonable and realistic. Here are some of the traits that startup owners applying for financial support should have:
Passion – Those who are passionate, enthusiastic, and confident with their startups usually get not only the attention, but also the approval of investors.
Intelligence – Knowledgeable would-be entrepreneurs always have the advantage. Venture capitalists think that intelligence is tied with the success of the company.
Defensibility – Having a great concept is one thing, but being able to defend it at different levels is another. Most of the time, investors will point problems on the concept submitted by the startup owner. He or she must be able to defend the idea and convince venture capitalists that the problems can be resolved.
Contrarianism – Investors are waiting for the next big thing. Thus, unique ideas that have huge potential almost always get the nod of venture capitalists. After all, nobody wants another social networking site, not if we already have Facebook. We want something new.
Perseverance and Persistence – Startup owners who exhibit determination on their ideas always get the attention of investors. Consistent follow-ups and immediate response to queries sent by the potential investors show how important the deal is for the entrepreneur.
Humility – Despite the need for passion and determination, startup owners also need to have an ounce of humility. One must keep in mind that even the best actors or athletes have to follow the orders of their directors and coaches, respectively.
Aside from the traits enumerated above, would-be entrepreneurs should also understand what goes in the mind of venture capitalists. Usually, it only involves two things: fear and greed.
As noted earlier, investors want to put money on proposal that will be as big as Facebook. Because of this, they are afraid of letting a potential project go (fear). Also, venture capitalists look at the things that they will get once they finance a startup. This includes profit, recognition, and a powerful position within the company, among other benefits (greed).
In the end, it all comes down to these two. And startup owners might want to use these to their advantage. Of course, it would not be easy. Venture capitalists are experienced people who will know if they are being manipulated. But having the knowledge of what they want is something that could spell the difference between failure and success.
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If you’re a startup, there is nothing surprising in facing teething troubles. But none of these challenges or troubles is as big or critical as funding your business. That means finding investment to get your business off the ground is, without a doubt a daunting task. From production space, buying goods to renting office, and hiring staff, turning a simple idea into a business practically requires funds and money.
Unless you are wealthy enough to finance
your business or your benevolent relative has left you a lot of money, you
probably have to find ways to fund your business. Luckily, there are some smart ways you can
resolve this problem. Here are some of those unique ways to help you fund your
business.
How Can You Fund Your Small Business?
1.
Crowdfunding
One of
the easiest way to find your business enough funds is crowdfunding- which is a
practice of raising funds from different forums or people. It is an alternative finance and a kind of
crowd sourcing. Luckily, there are
plenty of crowdfunding options available for you right on the internet.
When
asking for investment funds for your businesses from a variety of investors, it
is highly recommended to come up with an impressive pitch. The success of your
crowdfunding campaign depends more on how you pitch the idea than it does on
the idea itself. Of course, you need a team with you to plan out your
crowdfunding campaign.
A
common reason why startups choose this method of funding is because of the
flexibility of options. Venture capitals are known for being strict with their
investments. They will demand more equity in your business than you will ever
have to offer through a crowdfunding model. They usually focus more on their
returns than the success of the startup. The situation is quite the opposite
when you go with the crowdfunding option.
2. Angel Investors
Angel Investors is no doubt one of the unique funding options among all as they are always looking for innovative ideas to invest in the business. Originally business giants like Yahoo and Google were also used this funding option. It is worth noting that taking funds from Angel Investors requires entrepreneurs to give them some equity share in the company.
3.
Small Business Loans (SBA)
This funding option is a result
of the U.S government’s interest in rampant growth of the small business
industry. The s Small Business
Administration, in this regard, offers a wide range of loan types and business
investments to help business owners get started. Exploring the SBA loan options is a great way
to kick start your business, if intend to run an educational institute or non-profits
set-up. For easy funding, you might want to request
for SBA grants.
4.
Venture Capitalists
Much like angel investors, the
funding option invest money in up-and-coming- businesses that have high
potential to not only grow but also monetary returns. In addition to that, Venture Capitalist looks
for equity share in the business it invests money in. The investors are also
interested in getting a right in company’s directorial decisions. In short, VCs make money through their
investments and consider having some control or authority in the business is
the best way to do that. It is always
better to investigate this funding option thoroughly before opting it.
5.
Microloans
Reserved specifically for small non-profit
businesses, finance institutions grant microloans to entrepreneurs who don’t
qualify for a bank loans. Microloan organizations, instead of giving donations
to the non-profit companies allow entrepreneurs to invest in various economic
opportunities. Microloans are also a
popular financing option in developing nations.
6.
Personal Financing
There is no denying that investing in a startup entails a lot of risks and these risks are what prevent traditional lenders from giving loans to business owners. This becomes even more skeptical if business owner doesn’t invest his/her own money in the startup.
7.
Purchase Order Financing
There is an array of factors that affect the
cash flows of any business. These factors may include supply and demand and
seasonality. For examples, sometimes a
company is unable to complete the orders due to fewer funds to buys inventory
and material to make the products.
In situations like these,
purchase order financing can be the panacea to the problems. It helps companies
extend advance to purchase material they need to make products. Purchase order
financing collect back money when products are sold. If your business deals in manufactured goods,
it stands a chance to makes 20% more on its sales by opting purchase order
financing.
8.
Vendor Financing
If your bill
payment record is contingent on your product selling record, you may take the
benefits by negotiating longer payment terms with the vendors. Vendors, typically require payments on invoices
within thirty days before imposing penalties and late fees. Negotiating longer payment terms will allow
you work with more cash in the interim.
This is even more
important if your business has a longer sales cycle than thirty days. That means
if sales cycle takes forty to forty-five
days from purchasing to selling goods,
you will not be able to make invoices payment within a month. In that case, you need negotiations to avail
vendor financing to benefit your sales cycle.
Final Thoughts
In a nutshell, investments and business funding are of paramount importance no matter what industry you want to get into. If you lack sufficient finances, it is important to weigh all options you can choose to give a kick start your business. Given that, the mentioned funding options are great to consider if they suit your requirements.
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When your business is in its starting phase, you need a loan to grow it. Yes, there are ways for you to start your business with very little capital, but even in the age of the internet you need loans for the growth and expansion of your business. Oftentimes, startup and small business owners are scared of taking loans because they believe returning the same loan with interest on it will hinder their growth. The fact is a loan is not such a big liability if you have done your homework before getting it. Hastily getting a loan without researching the market and knowing your business’ growth potential can be detrimental to the business.
Your Business Plan Matters Big Time
It does not matter how experienced your management team is when your business plan is weak. When you ask for a loan from lenders, they are trying to find reasons to forward you the desired loan. They want to be sure that the loan they forward is returned in time and according to the terms and conditions set at the time of loaning. Lenders will seldom gauge the potential of your business to return the loan based on what you speak. What they want to see is a solid business plan and that’s why you need to have an impressive one. A strong business plan will consist of the following and some more.
The company description
Management role and experience
The product description
Strategy for marketing
Financial projections
An executive summary
Documented cash flow
Keep in mind that banks often look at the cash flow in the documented form, and their scrutiny is not limited to what your projections are for the future but more importantly how you have managed things in the past. They will look at your company’s cash flow records for past couple of years to see if you should be given the loan you are asking for. So, keep your business plan in mind and make sure you have worked on every aspect of it to present something impressive to the investors.
Your Loan Options Are Many
Sometimes, you have a solid business plan and everything else is in place, but your understanding of loan options is not at its best. Many small business owners live with the impression that the only institution available to them for obtaining a loan is a bank. That’s far from truth because there are dozens of other ways to obtain the loan or investment for your startups that’s much easier to manage than a bank loan. Some of the options available to you include SBA loans from the government, invoice financing, business equipment financing loans, etc. If you are just a startup and none of those options seem viable to you, there is online fundraising. Online fundraising has become quite a popular method of getting investments for your startup from individuals who trust in your idea and concept of the business using websites like Funded.com.
The Right People Can Make the Difference
Delegating responsibilities to the right people is an art and skill that not many business owners have. Oftentimes, small business owners rely too much on their own skills and are scared to trust any other person to do things for them. This can be a grave mistake because you cannot be the jack and master of all the trades at the same time. For example, you might be great at crunching numbers and making accurate projections for the business but not very great at sales and pitching ideas. If you have to pitch your business idea, its marketability and scope to the investors, choose the person who can best present it. Despite your great business plan, you will fail to obtain a loan because of your nervousness and lack of confidence when it comes to acting like a clever salesperson.
You have to bear in mind that investors are not investing only in your business, they are also investing in you. It is very important for them to like your personality to invest in your project. Appearing unprepared or nervous in front of them will send an impression that you are not fit to lead the project, your decision making is faulty and that you cannot create strong teams.
A Well-prepared Presentation Can Win Hearts
It does not matter who is giving the presentation when the content is boring and does not address the points that investors are most curious to know. First, get your numbers straight and bring them into the presentation at the right points. Be the investor in your mind and think of the questions you would ask if someone presented the same product/service to you. Have your accountant, advisor and business lawyer by your side when preparing the presentation. You don’t want to give wrong figures during the presentation and fall for a bad deal at the end of it. The most important thing is to explain your business idea as clearly as possible. Many times, the presentations are so all-over-the-place that investors can’t make heads and tails of it. If they don’t understand your business, they will never invest.
So, bear in mind that obtaining a loan is not that big of a challenge. Most of the times, it is just some small mistakes in the areas mentioned above that become the cause of lost opportunities to get the right loans for your business. Create a solid business plan, choose the right people to represent your business and use all the options that are available to you at the right time to grow your business at the pace you want.
Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com
You can review our featured partners to help your success with your business or project.
Angel investment is on the rise,and your small business startup needs to capitalize on all the opportunities at hand. Venture capitalists are on the hunt for business startups to invest in that are currently at the cutting edge of technology and taking risks with these advancements’ trends. You find that investors are eager to sink their investment dollars in these technologies so that they can reap the future returns. While the payoff might be big for an angel investor, these tech trends will also help your business startup to attract those funding dollars.
Artificial Intelligence
AI is not new to the scene, but for 2018, it is making a significant headway. By allowing companies to do more with less, AI will turn out to be a fundamental change in the way a company does business today and tomorrow. Startups that integrate AI into the fold will experience a shift in how they are able to perform routine tasks, freeing them up to focus on their customers. Angel investors see this as a win-win as they are able to invest in an advancing technology as well as a startup that is leading the way with its use. Your business startup will do well by having AI as a part of your repertoire and see more funding interest come your way in 2018.
Social Media
The uses of social media to enhance your consumer game is a boon for investors looking to find business startups that are succeeding in their customer engagement. While social media isn’t a newcomer technology, those that have a strong endgame will win big in terms of revenue sales. Social media is proving to be the technology platform that links us all together and gives business startups the recognition they need early on. Venture capitalists are enamored with its use by business startup as they see the power it offers and the benefits a business startup can take advantage of. Using social media to boost your business in 2018 will be key to gaining funding from an investor as they recognize the strengths it offers to your consumers.
Blockchain
Blockchain is another technology on the fringe waiting to bust on to the scene in a fury in 2018. It’s ability to provide a real-time ledger of transactions can give your business startup the transparency it needs to garner the nod of a venture capitalist waiting in the wings. Your business startup will benefit from Blockchain’s ability provide stable and error-free operations while angel investors gain by investing in a technology that has proven its worth. You’ll see funding offers from a series of investors if your business startup utilizes Blockchain to its full advantage within your organization.
Internet of Things
The Internet of Things is advancing at a steady clip for the New Year,and you’ll see IoT virtually everywhere you look. With consumers becoming more connected than ever, IoT offers an opportunity for new products and services that enhance IoT’s capabilities in the home, business,and community. Angel investors are savvy to the draw of IoT and how it is changing the way consumers interact and live their lives. They want to get in with business startups that are using this technology to move their business forward, engage with consumers, and improve their business operations. Count on IoT as a way to entice venture capitalists and secure funding in 2018.
Big Data
Data is everywhere these days,and it will only get bigger this coming year. Business startups such as yours will be able to use big data to understand every aspect, detail,and nuance of your customers, so you can create products and services they desire. With big data changing the way that business startups engage with their clients and provide unique customer experiences, it means plenty of evolution is on the horizon. Angel investors are keen on the possibilities all this available data can provide and know that companies that take advantage of the information can lead their industry in leaps and bounds. Use big data to enhance your business startup operations and stay tuned for venture capitalists to come calling with much interest and fanfare about your company this year.
Cyber-Security
While 2017 was a year that many will remember for its security breaches, this year provides a turn of events as business startup integrate or offer cybersecurity services to better protect their customer data. This cybersecurity will change how companies in all sectors operate and provide the level of security that is needed to protect that confidential information from getting into the wrong hands. Business startups that use cyber-security to protect their company or create products and services for others that help them secure their information will do well in the following year. Angel investors will show interest in these endeavors as the need for secure data protocol is growing without hesitation.
Virtual Reality
Also, on the fringe in 2018 is VR. This technology gives you the ability to engage with your customers in a new and exciting way. Through a more desirable customer experience, VR can help your business startupto increase its customer numbers as well as its revenue as VR improves workflow and access to customers all over your niche. Angel investors want in on AR as an investment opportunity, and your business startup will attract their attention now and into future with this technology at your helm.
Integrating any of these technologies in your business startup shows a strong sense of understanding and initiative to increase your customer base and profits this year and the coming year. Angel investors want to be able to get their hands wet with these new technologies so that they can be where the growth is with these trends. Think about how these technologies can help your business startup succeed in 2018 and secure the funding you need to get off the ground. You’ll be surprised at how much attention you receive by taking the first step with any of these technology trends and reap the rewards of investment into your company by an investor.
Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com
You can review our featured partners to help your success with your business or project.
If you are doing all you can to grow your small business but nothing is working, you might want to take a step back and reconsider your marketing mix. Doing the right type of marketing at the right place and at the right time requires some brainstorming, research and analytical approach. Take a look at what marketing mix is and how you can use this concept to grow your small business.
Understanding Marketing Mix
In simple words, marketing mix involves the techniques, tactics and strategies you implement to promote your product, service or brand. The marketing mix consists of four Ps: Promotion, Product, Place and Price. If you research the idea a bit more you will find that people are adding more Ps to the mix but their understanding is not as important as the understanding of these four factors. In the new definition of marketing mix, they have also included other Ps like: people, positioning, packaging and politics. Here is a basic understanding of the four essential Ps of the mix.
Product: It could also be a service—anything that you are selling
Price: The value that you want to obtain when you sell the item.
Place: The exact location where you sell the product.
Promotion: The mixture of activities and campaigns that you put in to spread awareness of your product and increase its sales and additional funds to your business.
To expand your business you have to achieve perfection in your marketing mix. You have to attain a balance in all the areas of the mix for a successful strategy. Working on attaining the right balance right from the beginning will help you lay the foundation of a business that faces least amount of struggle when it comes to expansion and growth.
Using Marketing Mix for Small Business’ Growth
To create the right marketing mix, you have to understand your product at its core. When it comes to the product, you have to have a full understanding of it. What is your product? What problem does it solve? Even if your product solves a problem, have you designed to in a way that a potential customer would look at it and know what it is supposed to do? Once you know your product well, you can get to the other Ps of the marketing mix. Here is a little understanding of how marketing mix works.
Tying Product with Price
It can be one of the toughest things for most business owners to do. While it is a job for the marketing department, you don’t always have a dedicated marketing department when you are still a startup. When you are about to price your product, you have to consider a lot of factors. First, what type of audience does your product appeal to? What materials have you created the product with? How much competition you have in the market? What is the buying power of the market for which you have designed the product? It is only after taking all of these factors into consideration can you price your product appropriately. Keep in mind that when you are a new business, you cannot charge your customers for your value because there is no value for customers in buying your product at this stage.
Tying Price with Place
You cannot be thinking of one individual component of the marketing mix at one time. You might have created the right product but the question is “are you selling it to the right people?” What if your product is more appealing for teenagers but you are targeting people over the age of 35? What if you know your target audience but are placing the product in the wrong places? Maybe your item is more sellable online but you are putting it on retail store shelves. Now that you know the “place” where you need to sell the product, you have price the item aptly too. For example, a product that you have designed for teenagers should be affordable within their pocket money.
Moreover, your product might be appealing for a niche market but you might have priced it too low. As a result, too few people would buy it and your revenue will not cover your expenses. You have to be sure that you cover your costs within the limited number of purchases that occur.
Tying Place with Promotion
When looking at place and promotion as a combination, you have to be sure that you are promoting your product in the right place. Is your product more appealing for women than it is for men? If yes then you should consider promoting it on social networking platforms where women are more active e.g. Pinterest. Moreover, your promotional activities should match the place. For example, if you are promoting in an area where there are Oakland Athletics fans, you don’t want to be wearing San Francisco Giants’ t-shirts and gear.
Combining All the Ps
Once you have created the right product, priced it perfectly and strategized your promotional campaigns, you have to bring the product in the right place so all the Ps work successfully. Creating the right product, pricing it right and promoting it with passion but in the wrong place will result in disappointing response. Just because you are good with one of the Ps does not mean you will be successful in others as well.
Now that you have a good idea of tying the Ps together, you should have a complete road plan of how you are going to sell your product. It will require a lot of working at initial stages. You cannot know your market unless you do some surveys and spend time collecting data about the market. At the same time, you have to perform a thorough research of the market to know how you will price your product. When it comes to promotion, you will have to come out of the conventional methods and think more digital. You might as well set up a dedicated team for social media marketing and website analytics.
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Entrepreneurs are not born; they learn things by experiencing ups and downs in a business. To make consistent improvement to improve your business status is critical to maintaining sustainability. Successful entrepreneurs perpetually monitor their business process in order to identify loopholes. Monitoring your business cash flow and identifying your strengths and weaknesses is a key process that helps you improve your business.
Apart from this, there are several things you can do to keep the risk minimum while enjoying a double-digit growth every year.
Here we have included an overview of some necessary means you can use to improve your business growth
Ways to Improve your Business
1. Assess Your Business Situation
As mentioned earlier, monitoring the progress of your business is a key to bring improvement. This is where you identify the areas that need change. However, before you make the changes, it is ideal to ensure that you are aware of the factors that are affecting the success of your business.
These factors may include emerging market trends, your current business strategies, weak market strategies or even lack of competent staff. Fortunately, there are a number of tools you can use to assess your business status. Following tools can help you:
SWOT Analysis:
It is an effective tool that is designed to identify the strengths and weaknesses of your business. Not only does it help you assess the strong areas of your business operations, but also threats and opportunities. You can work out all internal as well as external factors that keep your business from growing.
SWOT is one of the widely used analytical tools to help you in the decision-making process.
SWOT
Builds on strengths
Minimizes weaknesses
Seizes opportunities
Counteracts threats
Market research
It is another important tool to investigate the business market to help entrepreneurs identify emerging trends, new technologies, and customer demands
Trend Analysis
The tool uses your business data for the last five years to identify and assess consistent trends.
Benchmarking
It is a smart tool that is used to measure business performances with the same size of business being operated in the industry.
2. Business Goals
Whether it is business or your life, without goals it is completely directionless. Business goals keep you focused and energetic, which makes your business successful. You can use these objectives as a part of your ongoing business plan to make sure you keep moving forward.
However, there are certain criteria that need to be considered while setting these goals. Your goals have to be SMART- specific, measurable, achievable, relevant and timely. That means they have to be practical to be achieved within a set timeline. It would be better to prioritize your business goals or to write them down on paper.
You can plan short or long -term strategies to accomplish them. It will help you determine the time, finances and resources.
3. Develop a Strategic Plan
There is no doubt that businesses whether small or big, take time to progress. That is why it is important to create a smart strategic plan that has an outlook of at least 3 to 4 years. The plan should be made keeping the business goals ahead.
Make sure each year defines your business goals plus how your team will achieve those goals over the estimated time. Besides this, it is important to prepare a financial plan to meet the growing needs of your business.
That means the business strategy will not only define how your business will make profits, but also where and how much you will invest.
According to expert entrepreneurs, it is always beneficial to review your business strategic plans. It helps you match the set goals with the profit your business has produced.
4. Be Passionate About Meeting the Goals
This might seem a no-brainer or something trivial, but it can make a huge difference when it comes to accomplishing your business goals. When you are passionate about your work, your colleagues and employees can feel this energy as well.
In other words, showing enthusiasm and excitement cannot be underestimated as it plays a critical role to make your team more hardworking, and focused toward their work productivity. The passion and enthusiasm translate to a better outcome.
Unhappy workers, on the other hand, pass through negative energy and make work more challenging.
5. Implement Strategies
You cannot achieve business goals unless you implement the changes. Once you have made the strategic plan and estimated finances, it is the time to implement strategies. The implementation process includes several tasks and actions.
It is always a good idea to device an action plan, divides the workload, and tasks accordingly. Following are some of the important points to help you implement the changes for business improvement.
Time Frame: Determine how long a specific task will take to complete. Set tentative dates for the task.
Actions: Divide the tasks among those employees that you think are the most appropriate to accomplish them. State actions to be taken precisely.
Responsibilities: Assign responsibilities; make sure your teams get the work done in time
Resources: Compile a list of supplies, budget, and other finances
Outcomes: State your desired outcomes and how the results will be evaluated
6. Evaluate Success
You need to establish some measures to evaluate whether you have achieved your business goal or not. These assessment measures depend on the type of tasks you are working on. If your business goals are significant, the measurement process will be more complex, such as measuring profits by a set percentage.
Along with these measures, you can set percentages for each task. It will help you evaluate the success statistically. Plus, you need to consider how frequently you wish to measure your business achievements. It is very helpful when it is about setting new goals.
Final Thoughts
Your business does not only need your time, but also smart strategies and an effective action plan to improve revenues and profits. The above-mentioned tips are necessary means all entrepreneurs must adopt to sustain a prosperous business.
Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com
You can review our featured partners to help your success with your business or project.
