Small businesses have similar challenges to many nonprofit organizations. There’s never enough money or human resources…
to do what the “big boys” do. Many small business owners are Jacks or Jills of all trades – often fulfilling multiples roles – the business development rep, the service provider, the product shipper, the administrative person, the marketer. Even when there’s staff on board, turnover can be higher than average without the means to offer health care benefits or competitive salaries, leaving the owner or partners with operations difficulties.
There were 18.6 million nonemployer businesses (those without paid employees) in 2003, representing over 70% of all American businesses. Add to that the 5.3 million business establishments with fewer than 10 employees, and you get very busy business owners trying to live the American dream.
It should come as no surprise that marketing will often come last on the “to do” list. I often wonder how many of these small businesses have developed a marketing plan. In my networking circles, I’ve come across many nonemployer business owners who don’t even have a written business plan. If they’re lucky, they’re making money in spite of that fact, depending on word-of-mouth marketing and referrals. But, it probably took them years to build to where they are now. Today’s competitive marketplace is harder than ever to break through, so small start-ups can experience major hurdles from the get-go.
It’s easy to get bogged down in the everyday tasks of running a business. For those small business owners who are unfamiliar with marketing, there are some shoestring tactics that are affordable. But, it’s so necessary – absolutely imperative – that even the smallest of businesses develop a business and marketing strategy first. Without it, there’s no roadmap or direction, and small businesses can chase their tails for a long time, finding out the hard way, what they could have learned early on if only they did their homework.
Tags: Startups
I couldn’t agree more with you. I’m also amazed at the lack of insight small business owners have into who their target audience is. The comments range from everyone should buy my product to anyone can afford it. Point being, I believe you can never over-prepare in business.
I agree I have seen all size companies ignore marketing or do it here and there when they have time. The most sucessful companies budget for marketing and set goals and projects that support the goals. Finally they assign tasks that are measured and time specific.
True enough — those companies might get to the same place with or without planning, but (as Elaine points out) it’s definitely the harder road.
What’s interesting is that business owners who take the hard road then assume that the path to success was pocked with boulders and potholes, when in fact a little forethought could have paved a smoother way to begin with.
(Not sure how long I can continue this road analogy…so I’m ending here.)
Although I agree with Elaine on small biz’s lack of planning due to strained resources, I don’t believe the solution is always the full-blown marketing plan. That’s the ideal.
For my small biz clients, I create “marketing action plans”, down-and-dirty-let’s- get ‘er-done marketing. This document is more than a tactics sheet, however. With it I try to educate and move my clients toward branding, creating a USP, etc. This seems to be the best of both worlds; it can either serve as a good plan where there was no plan or an interim step to the full blown marketing plan.
Wow! I think I hit a nerve. One point of clarification. I do agree with Sandra. I don’t help my small biz clients develop a lengthy thesis for a marketing plan either. It does resemble a full-fledged plan in that the categories are similar, but there’s no money for market research other than a few phone calls, so it turns out to be a “Reader’s Digest” strategy.
At least there’s some thought that goes into it and I ask my clients the hard questions to make them think – What does success look like to you? Do you want to eventually grow and hire staff or just manage it alone? You’d be surprised how many don’t have the answers to these basic questions without giving it a lot of consideration.
For some reason, many small business owners I meet have an unrealistic right of entitlement. They think – If I offer it, they will come. Unfortunately, reality does strike, and without a marketing strategy and even shoestring tactics, the dream of a nice retirement may not pan out.
MarketingProfs is geared to the converted. How do we make the case for marketing to the 24 million small business owners? Now, there’s a challenge!
Amen, Elaine, amen! Let’s find that way to preach it.
And THAT will require . . . strategy.
Addenda — Elaine’s last plea to make the marketing case to small biz got me thinking.
Although I have some ideas, I’ve chattered enough for now, so . . . does anybody out there want to pick up the ball & run with it? What are your thoughts?
Ok there were some very interesting post here. Most referring to how if a small business doesn’t have a roadmap or plan they are destined for failure but nobody offers solutions… its just the same old thing do your homework. Stating a problem without offering any meaninful solution is never good.
Kevin, that is true; however, didn’t you see some of those solutions already offered: marketing action plan, “Reader’s Digest” plan, etc.? And what are your thoughts, your solutions?
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