how to spend money to make money

For many, being a business owner is part of the American dream. They find the resources, location, and invest the money to open the doors … and yet not many customers walk through them. For a lot of business owners, this is baffling. But this “build it and they will come” business philosophy only works in the movies. What is often forgotten is that business success is built through awareness. Simply put, people do business with whom they know. That’s why companies such as McDonalds, Burger King, Coke, Pepsi, etc. enjoy continued growth and business success. These companies don’t necessarily offer superior products or services, they excel because people know who they are and what they do. Many failed companies made hamburgers far better than McDonalds ever dreamed of. But unless your potential customers know you exist, they’ll remain “potential” and not become real customers.
To be successful in business it’s important to understand the basics of marketing:
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Marketing is what brings customers to you
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Your product and/or service is what brings them back
Having the best product or service is an important piece of the puzzle. But if you don’t invest in marketing to bring the first wave of customers to you, chances are your business may not see its first year anniversary.
Why invest in marketing? Because marketing creates top of mind awareness. Top of mind awareness results in action or market share which is what a successful business needs to have. Remember, when you start a business, it’s not all about how good you are, it’s also about how many people know you exist that gets them to the door the first time.
Advertising is an investment that many business owners don’t understand. They think that “word of mouth” and a superior product will be enough. Word of mouth is slow and most businesses can’t afford a slow build. Many small businesses don’t realize this until it’s usually too late. Many successful business owners have failed before finally finding success, and what most of them have learned is that it would have been far better and less expensive had they invested in some well targeted networking and advertising that would have gotten their message out to the masses from the start.
Do all forms of advertising work? No. Not all methods of advertising work for all types of businesses. A common mistake made by business owners is to select certain advertising avenues based on price versus what is effective. Marketing is not about cost, it’s about knowing your customer and learning how to best reach them utilizing the budget you have. That is the first step in successful marketing.
It’s extremely important that all business owners (aspiring or existing) take the time to learn who the customer is and how to reach them. Create a marketing mix utilizing several different forms of advertising from radio or newspaper to direct mail, signage, and networking. Whatever your marketing budget is, it needs to be spent wisely based on outlets that reach your target market and not based on price alone.