Why You Aren’t Making It As An Entrepreneur
February 16, 2010
Do you think of yourself as an entrepreneur? Is it your intention to make enough money to live off your own business? Most of the self-employed folks I know answer yes to both of these questions. Yet, many of them also go on to say that they aren’t really profitable enough to support themselves on their entrepreneurial earnings. This is sad to me, because I know, absolutely, that it’s possible to do.
An entrepreneur needs three things to make money. Here they are:
1. A workable, solid business plan.
2. An effective, targeted marketing strategy.
3. A willingness to do the personal growth required of successful entrepreneurs.
A few days ago, I was on a group Mastermind call, listening as we started with a quick update from everyone. I was shocked! Over half the people on the call admitted that their e-newsletter was late, they had not posted to their blog in quite a while, or they had never gotten around to setting up basic social media accounts. This particular group of people are serious entrepreneurs. They have invested a substantial amount of money to participate in coaching and Mastermind groups over the past year or so. Most of them have created products and services that sell nicely. All of them are smart and full of new ideas.
So what is going on that these entrepreneurs are not paying attention to the very basics that keep their businesses up and running? I honestly believe that they’ve fallen into two traps.
1. They have poor time management skills, and they allow ‘everything else’ to get in the way of taking care of the basics.
2. They’ve come to feel that doing the basics is boring, not cutting edge or new, and therefore not really necessary for their businesses.
They are WRONG! It takes consistent action and focus to build a profitable business, and that means consistently attending to the basic building blocks. If you are someone who needs to built a list of potential clients (and who isn’t?) you need to make sure that your basic structure is in place and gets acted upon just like clockwork. None of these excuses are valid!
1. I was on vacation. (Do it before you leave)
2. It’s boring to do. (Hand it off to an assistant if you can’t tolerate doing the basic, routine things.
3. I don’t have anything to say. (Really? Then why would any potential new customer be interested in talking with you?)
4. I just can’t get around to it. (Yes, you can…schedule it and make sure nothing else steps on the time you need to keep your basics going.)
Paying attention to the basic building blocks of your business is just the same as paying attention to the basic maintenance of your car or your home. You can’t expect your car to run if you fail to rotate the tires, do oil changes, and replace the brakes now and then. If you ignore these things, one day when you least expect it, your car will come to a screeching halt right in the middle of the highway. It’s the very same for your business….ignoring the basics silently and slowly erodes your client base. One fine day it will hit you that your client subscriber list is smaller, your programs and services are not selling at the rate you are used to, and you haven’t talked to a potential new client in over two weeks. At that point, it’s too late. You will have put yourself back to the “I’m building my business up” stage. And it will be harder and take longer the second time around.
Think about it this way – building blocks are the basic clothing for your business. You wouldn’t walk out the door without clothing, you wouldn’t send your kids to school without their basic tools, and you wouldn’t try to bake a cake without the basic ingredients. So don’t try to build your business by ignoring the basics. Commit yourself to the building blocks, and you will become successful and stay that way for as long as you want. You will, in fact, make it as an entrepreneur.
Matching Your Target Market – A Lesson From Mexican Entrepreneurs
February 16, 2010
How to reach your peeps is just about always on my mind – it comes with the territory of being a marketing therapist. So here I was, two days ago, lounging around on the public beach in Puerto Vallarta. And I ended up, no big surprise, watching the vendors who sell up and down the beach. It is a great case study of how to figure out what to sell to a specific target market.
In the space of two hours we were visited by quite a number of beach vendors. Here’s a list of the items we were offered:
Cooked skewered shrimp, topped off by one of the limes hooked onto a separate skewer.
Heavy blankets in various colors that could be used on the beach or as a rug at home.
Brightly colored large pitchers that looked like ceramic but were actually wood.
Toys and gum from a basket.
Tuba-tuba, which is a chilled coconut drink served into a cup from a huge hollowed out double gourd.
Lace shawls.
All sorts of jewelry – silver, shells, beaded.
Elaborately carved cold fresh fruit, your choice, from a head-balanced platter.
Music from a 3-group band, complete with voice and instruments (including a bass fiddle)
Music from a two-person steel band percussion group, a 4-foot long instrument that unfolded and sat on a table, complete with sound system (battery operated).
Sunglasses
Bracelets hand-woven with your name on it
Straw hats
Large silver and mother of pearl fish which are jointed throughout the body so that the fish “swim” when wiggled.
I’m not quite sure this is everything, but the list covers most of the vendors we saw drifting by.
OK, let’s say that your job is to be a beach vendor on a warm Mexican beach. Some of your potential customers will be sitting in chairs under palapas, some will be already sitting in restaurants along the beach. Your job is to sell as much as you can from what you are offering. Can you name the top two things to sell? Can you name the bottom two things to sell? Remember that your target market is beach goers, some of whom are foreign, some of whom are locals, all of whom are on the beach, and some of whom are eating or drinking in restaurants. What are your picks for the two best things to sell to this market, and the two worst things?
Keep in mind, too, that you have to carry what you sell, walking in the sand, up and down the beach for miles and hours a day.
My two picks for the worst? The brightly colored large pitchers, which look like ceramic but are made of wood. They are awkward to carry, the vendor can’t actually carry more than about 4 at a time, and who on the beach wants one of these pitchers right then? Even if a potential customer was not on the beach, the pitchers are too large to easily carry home if you are a foreigner, and more than likely the locals don’t even use them as they don’t hold liquid. I think the guy who chose to sell the pitchers needs a few marketing lessons!
My second choice for the worst to sell, although a close race, is the steel band percussion. The instrument was huge to carry (requiring both persons) up and down the sand, hard to set up, and had to be hauled along with a fold-out table and the battery-operated sound system. That’s a lot to set up and take down for just one song, even if you had good luck selling the music to a lot of people. Plus, many people besides the one person who paid for the music can hear it, so you aren’t exactly going to sell music to the next person, are you? And frankly, most beach goers are busy sleeping, reading, riding the waves, or walking up and down the beach…..they don’t really have hearing live music on their minds.
My two choices for the best things to sell? Straw hats, because lots of beachgoers get to the beach thinking they won’t need a hat. But when they get there, they realize they do! The hats are relatively light to carry (I saw one vendor with a stack of about 50 straw hats on his head). As I watched him sell to someone on the sand, I realized he also had an upsell! He took leather braided bands out of his pocket and offered to add one to the hat for just a few more pesos. Smart guy – beach goers need hats, and they didn’t wear him out to carry.
My second choice for the best thing to sell is the cold, fresh fruit. It both gives a beach person something to eat and quenches thirst. It’s colorful and appetizing, and very noticable since most of the fresh fruit vendors carry the trays on their heads. It’s not expensive, it’s healthy, and even the kids seemed to like it. It’s probably one of the easiest things to carry on the beach, and the tray actually gives the vendor a little shade as he walks.
The point to this is that there are many things to consider when you are deciding what and how to sell to your target market. You do have to consider the pound of flesh it takes out of you, the costs you have in obtaining the product, and, of course, what you believe your market will want.
This doesn’t apply to the beach vendors as much as it does to you, but one way to quit guessing what your market wants is to ask them! Use a brief survey, talk to a subset of your prospects now and then, keep your ear to the ground. You’ll be more apt to design something that is wanted and needed than if you just put something on your back and start walking.
(c) Sue Painter
Can You Really Describe Your Ultimate Target Market?
February 7, 2010
One of the real “rookie” mistakes made by new entrepreneurs is to completely fail to know her target market. This is something that is very easy to spot. A few of the signs are:
- Her business is not thriving, meaning she needs more customers and she is not financially successful.
- When asked who she works with, she replies “Oh, I work with just about anyone.”
- If asked to thoroughly and completely describe her target market, she is flustered and can’t give more than a sentence.
The “Oh, I work with just about anyone” response is one I’ve heard from both new and not-so-new entrepreneurs many times. So many times, in fact, that it now drives me a little nuts. When someone says that, they are setting no boundaries for who they work with, which is a deadly thing. Let me ask the “just about anyone” entrepreneurs these questions:
1. Does it matter to you if a customer stiffs you?
2. Are you open 24/7?
3. If you were, for instance, a seller of curtains and blinds, would you drive 400 miles to sell a set of blinds to someone?
Of course, the answer to each of these is almost always NO! And that’s a good, thing, because that entrepreneur has just started on a path of better describing her target market. Her target market are people who have the money to pay for her products or services, she works with those who contact her during specific days and hours of business, and she has a limited geographical area in which to sell her blinds. This isn’t a complete description of her target market, but it is a start.
You can picture the creation of your target market as setting fences and gates around a specific group of people with whom you really want to work. You might not be as blatantly obvious about it as the gatekeepers are at hot night clubs, where one must stand outside on the sidewalk and get personally picked to go inside, but that is one very good example of a business who is very picky about who they want to serve.
I’ve learned about finding your niche and describing your target market from 3 or 4 of my coaches and mentors, but the one who made me work the hardest to describe my market, hands down, was Suzanne Falter-Barnes. She has a very long list of questions that one must answer to get through one of her platform building classes. The first time I saw that fat list of questions I just about fainted. In fact, the document she proposed I fill out to describe my market was 17 pages long! Still, Suzanne knows her stuff and I was there to learn, so I plowed into the questions. At the end, I felt like I’d invented something akin to a kid’s secret playmate. I started getting actual pictures of how my target market person looked, how she dressed, what she spent her money on, and more. I got so familiar with her in that 17 pages of ruthless questioning that I decided I knew her well enough to name her, for Pete’s sake! And that is what I strongly suggest you do, too.
My suggestion is to sit down with your computer or a piece of paper and describe a “sample” person from your target market as if she (or he) is a character in a book you are writing, and it’s up to you to fill your reader’s head with a detailed, specific, colorful image of the character you are writing about. Describe age, education, the kind of work she does, where she lives, her likes and dislikes – anything you can think of that will add to the picture in your head. This may lead you to dig around on the web for demographic or other information.
Spend quality time here, for it pays off in the end. Ask yourself (with pen and paper or keyboard nearby) “who is the most perfect customer for me?” If you have a hard time doing that, prime the pump by listing the characteristics of your most favorite or best customer so far. From there, dream on. Who would be delightful to work with? Who would you dread working with? What characteristics drive you crazy? Who have you worked with who bugs you so much you hope she never calls you again? You get the picture – and that’s whole point. For here is a secret about financially successful entrepreneurs:
Those who describe and visualize their target market well have started the process of manifesting exactly that type of customer for themselves. You now have a vision of who you want to attract, in detail. Put that right on your business vision board and keep it in your mind’s eye, for who you focus on tends to come your way.
Having this vision and description on hand also makes it easier to walk away from business that isn’t right for you, doesn’t truly interest you, and has a downside to it. (The downside being that while you are spending time with uninteresting client A, you cannot very well be also working with or running into very interesting and exciting client B. This is called “opportunity cost.”) Realize that it actually COSTS YOU to work with the wrong customer, for you are giving up the opportunity to work with who is just right for you.
Taking the time to dream up your ideal target market person makes finding that type of person much easier. You now know where to focus your efforts. If you are spending a lot of time and money networking in a group of direct marketers, and these are not your target market, it’s time to make a change. Pull your time and money from the wrong group, and go find the right group. You’ll find more and better business in the new group and waste less of your precious time.
When you are creating marketing plans, writing sales copy, or pulling together a presentation you’ll be able to keep your secret target market person right with you, writing to them. There will be less agony over creating these things.
And finally, when you have the opportunity to build a relationship with a potential customer, you will be much more at ease because, after all, you will pretty much feel as if you know that person in a way. You’ll be confident that you’ve spent time with someone who has a much higher chance of needing what you offer. This will shorten your sales cycle and make you more money faster. I don’t know of any entrepreneur who doesn’t want that!
So, get that blank paper or computer screen and get going. Breath some life into your target market, and you’ll breath new life into your business, as well. It’s a win-win for every entrepreneur.
(c) Sue Painter
Who Is In Your Entrepreneurial Community?
February 6, 2010
For the past few years now I’ve experimented with just about every method of coaching and mentoring that is available to solo professional and entrepreneurs. All of them have their pros and cons. But one thing that I’ve come to know for sure is that if you are in your own business, you need a great community of like-minded entrepreneurs around you. Why?
- Running your own business is a solitary endeavor. Decisions are up to you and you alone. You need the perspective of other business owners to round out your own thoughts. The perspective of your employees (if you have any) isn’t the same thing.
- Your own energy waxes and wanes. I’m not talking about the moon or hormones, either. The best business owners know that their own energy has to attract others to them – good staff, great customers, good deals for rents or whatever else. And it is very hard to keep your own energy up where it needs to be without sometimes drawing from the good energy of others.
- Time inevitably puts you in the box. What do I mean by this? When you created your business you did it to put forward a new, not previously done type of business. You felt what you had to offer was unique and special. In other words, you were out of the box. But as time rocks on, your own thinking gets boxed in by the very dailiness of what you do, by your own fatigue, and by the fact that others will emulate you. To keep on re-creating a business that continually pleases and serves your customers, you need to keep yourself out of the box.
- Your ideas, although they are great, can be sharpened and improved by your entrepreneurial community. Simply put, multiple heads are better than one. Here’s a quick example of this. In one of my own communities, a woman had a deal with a book publisher for her very first book. But she was balking about what the publisher wanted to title the book, taking issue with both the main title and the tagline. She brought it up in our next get together, only to find that her adamant opinion was not shared by a single one of us! We all though the title was good and that, furthermore, the publisher knew what would sell much more than the author did. As I pointed out, the author is the subject matter expert but her publisher is the marketing and sales expert for her book. All but one of the entire community basically told her to suck it up. And after she listened to us, she did! She ended up coming all the way back around to what the publisher had suggested, with only a very minor one-word change. Which leads me to my next point about the benefit of being in an entrepreneurial community….
- It helps you get your own ego out of the way, and think about what you offer from your customer’s point of view. Believe you me, you will ONLY be successful if you offer what your customers want and need, not what you in all your wisdom think they need.
I could probably come up with a few more good reasons, but I think you, smart as you are, get the point. It may take a village to raise a child, but it takes a community to foster a solo business. I cannot even begin to list for you all that I have learned from constantly participating in my own communities. I’ve gotten both wonderful, gentle, loving support and a sharp kick in the pants….and both have been beneficial to me. It will be the same for you.
I’m excited to tell you that I’m forming a new community for solo business owners that will offer these benefits ( and more) in just about a month. I’m calling it Private Matters because I’m creating a group to which you can bring your most private thoughts and worries. These deeply affect your business, they matter. So….in a nutshell….Private Matters. It will be small, full of sharp thinkers and dedicated solo business owners, and it will change you and your business in ways that you can only dream of. If you feel you are a good match for Private Matters, you can e-mail me and I’ll make sure you get the application and information.
Meanwhile, keep your business focused on who you serve, what those people need, and how you can best offer products and services that meet those needs. And remember to reach out for community regularly. Both you and your customers will benefit.
(c) Sue Painter