Journey of a Serial Entrepreneur

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How to get from where you are to where you want to be

5 Steps to Writing a Marketing Plan

“As real estate is location location location, marketing is frequency frequency frequency.” Jay Conrad Levinson

Marketing is a critical component of any business strategy. Unfortunately, it is not often given the importance it deserves. This is due to a multitude of misconceptions. For starters, it is treated as a cost instead of an investment. Using this stance, it is often one of the first things to take a cost cut when controls becomes tighter. Secondly, younger organizations hardly ever commit to long term campaigns with consistency, primarily because of lack of instant results. Along with a few other misconceptions involving lack of expertise and experience, marketing is often left on the back burner. If you are a startup or an upcoming organization, please bring this component to the fore.  Listed below are five steps to get your marketing strategy in place, with a plan.

1. Situational Analysis: Prior to starting any marketing campaign, it is essential you do a thorough analysis on the industry you want to operate in. Facts such as market share, growth, trends and economic policies are critical pieces of information. Next, find out about the entrenched competitors. Who are they ? What is their market share ? How fast have they been growing? Find out about major distributors in the industry, discounting policies, strategic alliances and any other information that may help you get a better understanding of where you may want to take a stance. To read more about doing a thorough situational analysis please click here.

2. Marketing Objectives: Every plan needs to have specific goals and targets that it wants to achieve. Use this section to plan what your organization’s major marketing objectives need to be. This could include market share, customer acquisition, customer retention, website traffic or expected ROI on certain marketing tactics. These need to be thought through, and be strongly linked to major objectives set out in your business plan. To read more about setting marketing objectives please click here.

3. Marketing Strategies: This section is a major component of the entire plan. The marketing objectives outlined in the previous section, need to be translated into strategies now. This is best done by segmenting the market, and identifying areas that can be most effectively targeted.  Correctly positioning yourself in the market place, and ensuring a differentiation strategy to the entrenched competition will be an added help. To read more about correctly formulating marketing strategies please click here.

4. Marketing Tactics: After formulating broad strategies regarding marketing stance and positioning, we need to convert them into executable actions. These can be done effectively using the 4P’s structure, which helps identify executable strategies for the product, price, placement and promotion. Each section can have specific strategies to help market the product/service and reach designated targets. To read more about specific marketing tactics please click here.

5. Marketing Budgets & Controls: The last section requires the marketing budget to be structured. This budget must be strongly correlated to marketing objectives and be allocated accordingly. There needs to be a strong focus on controlling costs and creating feedback loops to ensure that relevant information is being gathered, to help identify the most effective tactics. This budget must be treated as an investment and should therefore be pegged to ROI figures. To read more about marketing budgets and controls please click here.

These five steps constitute a simple marketing plan. The entire objective of this exercise is to bring structure to marketing activities, as well as to have clearly defined goals for what we expect it to do for our organization. Marketing is not limited to super bowl ads or billboards in Time Square. It requires you to be creative with the limited budget allocated. It must be used in such a way that activities are continuously monitored and tracked, and at year end, provide a significant ROI. Just make sure you stick with the marketing plan and do not bail out halfway through. Two things your plan should incorporate, consistency and SMART objectives. Best of luck!

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Marketing Budgets and Controls

“An important and often overlooked aspect of operational excellence is regularly comparing actual costs to budget assumptions – not just the numbers in the plan. Understanding assumption deviations will help improve the accuracy of future forecasting.” Bob Prosen

Budgets are a necessary evil, they draw boundaries to ensure we know how far to go with the marketing plan. With entrepreneurs , the boundary perimeter is often small and limited. This calls for ingenious tactics to make full use of creative and deal making mindsets. The budget of a marketing plan is directly correlated with objectives set by the team. The progress towards those objectives, must be monitored constantly by using control measures. These measures act as feedback mechanisms to help identify each tactic’s input. There are a few things I like to keep in mind when in the midst of setting budget and control measures:

1. Are our objectives and marketing budget in sync?: For a new business, it is important to outline realistic and attainable marketing objectives. I am all for optimistic and large goals, however, often these objectives are set without necessary resources allocated for realistic follow throughs. When discussing numbers, this is a good time to go back to objectives, and see whether attaining a 3% market share with your marketing budget, is a realistic target.

2. Have we committed more than 35% of our budget to one particular tactic, if so, is it justified?: I once had the misfortune of committing a large part of my marketing budget to running print ads in a particular magazine, specific to my target market. Unfortunately it didn’t go as well as planned, since then, I have made sure that committing a large part of the budget to one tactic or promotional activity is based on substantial research.

3. Have we established tactic specific controls?: As entrepreneurs we do not often have access to a lot of funds in our marketing budgets. It is hence essential, to ensure that control measures are established for every tactic, to maintain monthly or quarterly monitoring. If you notice the tactic is consistently not delivering as planned , adjust the plan accordingly. Having control measures in place also forces the responsible individuals to provide constructive feedback.

4. What is our expected return on investment (ROI) on our marketing budget?: This is a complex topic, and has been written about widely. To keep it simple, we have to look at our marketing budget as an investment rather than a cost. Whenever we make an investment, we look for a certain ROI to justify it. We must do the same for our marketing budget. Keep tracking your investments meticulously, and see how to improve on your investment to ensure your expected ROI. This must be discussed with the finance people at the company. I have found, they remain impartial and are able to see the forest from trees.

A well defined marketing budget can be the difference between, a good and a great result. If you have not developed one for your company, there is no better time than, now. It is important to keep in mind, that funds are wisely invested, and that you have the ability to adapt to feedback along the way.

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Marketing Tactics

“We can never have enough strategies. We have enough tactics but not enough strategies.” Matthew Dowd

After all the research and strategizing is done,  the strategies need to be translated into executable actions. It is important to remember that without the effort that goes into correctly identifying strategies for your business, marketing tactics will not work. Their success is largely dependent on how clearly and thoughtfully the strategies have been laid out. Once you have established goals, objectives and marketing strategies based on segmentation, positioning and differentiation,  selection of marketing tactics can begin. The first thing that comes to mind about tactics, the 4P’s ( Product, Price, Placement, Promotion ). The next thing that comes to mind is the lecture I had regarding them, then it becomes fuzzy.

I am all for structured frameworks, however, structured frameworks should enable you to develop executable strategies. If they become roadblocks, you have a problem. So keeping the 4P framework in mind you can devise tactics to drive sales and push your company further. These are four questions I like to ask when determining marketing tactics:

1. What is unique about our product/service that our customers should know?

For example, the MacBook Air did really well ( I really admire Apple’s corporate branding efforts). They brought out an ultra portable laptop and when it was revealed to the world, it came out of a manila envelope. Such a simple, yet effective introduction, made this product the talk of the town.

2. What is our price point strategy and why?

As mentioned earlier, competing on price is a losing strategy, one which entrepreneurs frequently use unfortunately. The inability to set correct price points can make or break a business. Pricing strategy must be based on comprehensive market research and comparison. Take a look at the competition,  then take a decision on how you want to be perceived by the market. Use pricing as a strategy to help slot you in a particular segment in the customers mind.

3. How are we going to get our product/service to our target segment?

According to objectives regarding volume, there needs to be identification of channels, to reach those targets. Do a thorough analysis of available channels of distribution, target those which can be used most cost effectively. However, keep in mind, the more channels you open up, the more resources required. Choose your channels carefully, focus on developing them to reach their potential.

4. How best can we promote our product/service to our target audience?

This is the segment that entrepreneurs need to get creative about. We usually don’t have large marketing budgets at our disposal, hence need to come up with ingenious ways to promote ourselves. One book which I would recommend to entrepreneurs with tight marketing budgets is “Guerrilla Marketing” by Jay Conrad Levinson. It is full of ideas which can be used by organizations on tight budgets.

These questions should help spark conversation,  and get you to think about marketing tactics to be used. Remember, remain focused on bottom line objectives, it is easy to slip into heated discussions about specific tactics and forget about end goals. Marketing can be simple and complex, it is advisable that at the onset of your entrepreneurial ventures, to keep things simple!

 

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Marketing Strategies

“All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” Sun Tzu

Strategy and tactics formulate the heart of a marketing plan. What happens is, these two sections are often thought of as one. This is a critical error. These two segments are interlinked closely, they do however, serve two very different purposes. The marketing strategy segment, uses marketing objectives discussed earlier, as end goals, which need to be achieved. In order to reach those goals it is not however advisable, to start planning how many brochures you require to be printed, or your next marketing seminar. Before you go into any of these detailed tactics, you need to take time out to think through the best ways to reach your goals. Some important points to keep in mind when developing your marketing strategies are;

1. Market Segmentation: Identify a niche in the market where you will be able to use your strengths to their maximum potential. I know first hand, treating everyone out there, as a potential customer is appealing. However, as a startup with limited resources, you need to focus on one segment initially. This will allow you to consolidate your efforts and resources. It is true, putting all your eggs in one basket may appear risky, but experience says, a startup needs to be focused from the beginning, getting distracted by other potential opportunities usually gets you into deeper water than can be handled.

2. Positioning: Once you have identified the segment you will be operating in, the next step will involve a most important aspect of your marketing plan; positioning. Who is your target customer and why? What benefits can you provide to them as compared to taking a completely different positioning stance? For example, If you are developing a new media company, have you positioned yourself in a manner which provides a certain segment more value?  Positioning will be a reflection of your organization identity. Make sure you do this step correctly, it has long term impact.

3. Differentiation: Once you have selected a segment, and certain market positions, you are likely to find direct and indirect competition. This is the time to think how you are going to differentiate yourself from the others. For example, if you selected the educational segment of the market for your company events and positioned yourself to specialize in planning graduation ceremonies, what will set you apart from other events and companies who provide the same services? Some differentiation points could involve the development of a unique alumni website or specialized gifts for every graduate. The last thing you want to do is, differentiate on price!

Use this section to develop a strategy which will complement the objectives that you have set for yourself. It is very important that these go hand in hand to ensure desired results. By selecting a narrow niche or one too overpopulated with strong competition, will make reaching your targets that much more difficult. Once you have outlined a strategy, you are ready to drill down to specific tactics through which your strategy will be deployed.

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Marketing Objectives

“The major reason for setting a goal is for what it makes you accomplish. What it makes of you will always be the far greater value than what you get.” Jim Rohn

Using the opportunities identified in the situational analysis post, we will construct the next part of the marketing plan, which includes establishing objectives. These objectives will serve as beacons to be used as guides when developing specific strategies. It is important that these objectives should be specific, measurable, attainable, realistic and time specific. Without clearly identifying targets, is like throwing darts blindfolded. Listed below are some broad segments, for which specific objectives should be established:

1. Market Penetration: Using data collected during the research phase, should give an approximate idea of the market share held by the competition. Sometimes this data is difficult to come by, in the past, my teams and I have drawn up simple lists of our major competitors when adequate information was not available. The point of this task is to identify the competition, and set realistic targets of where you want to be on that list. The important part is setting a target. GE set targets of being number one or two in a particular segment or exiting the business line.

2. Marketing Metrics: When setting yourselves objectives, it is important to use key benchmarks which you can continuously compare yourself with. These objectives can be pegged to major activities such as website traffic, newsletter sign-up rates, number of queries, pipeline activity, deal closings or sales staff turnover. These numbers will be a reflection of whether your promotional strategies are paying off or not. More importantly you can develop your promotional strategies around these numbers as well. If your current website is attracting a 1000 visitors daily, what will it take to hit your website traffic objectives of 2000 visitors? When establishing these metrics make sure they are realistic and attainable.

3. Financial Objectives: The company CFO is always wary of the marketing budget. The reason being, there are often no clear financial objectives justifying marketing plans. This section of your plan should outline specific financial targets that need to be achieved when devising your plan. This would include turnover targets, profitability targets as well as improvement of product/service margins. At the end of the quarter or year, there should be justification for the expenditure incurred on marketing. It is important for a startup with limited resources to think this section through carefully. Usually the opportunity cost is high, it is imperative that it is used correctly.

It is upto the team to set objectives in such a manner, that responsibility for certain key metrics and objectives, is person specific. It is that individual’s responsibility to continually monitor  progress and provide feedback to the team. This will create a culture where responsibility will be shared, and more importantly, will help the team realize the importance of good marketing. If you have developed a business plan, use this section to support the financial objectives outlined in it and make sure that your marketing objectives are in sync.

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Situation Analysis

“A man who does not plan long ahead will find trouble right at his door.” Confucius

Marketing was one of the more exciting classes I took at college. There was however, a part of the marketing course that required a massive amount of research and data collection. Looking at the title of this post, I remember vaguely, a class I took, where we talked about this topic at great length. I say vaguely, because in all probability, I must have tuned out when the word “macro economic factors” was used. Don’t get me wrong, finding out about macro conditions before entering a particular industry is critical. However, my only complaint was, the discussions were too detailed. I experienced this when we started writing our first couple of marketing plans as well. When you go into minor details, you begin to lose focus on the end goal, a balance needs to be maintained here.

Listed below are some of the critical things I look at when doing a situational analysis:

1. The Industry: Before going any further, you need information regarding the growth rate of the particular industry. What are it’s historic trends? What were the revenue figures for the segment? Have any major technological innovations taken place in it recently? Is the industry very segmented? These are some preliminary questions of interest and importance when looking at an opportunity in a particular industry.

2. Competitors: This is an important segment, one in which you need to document as many direct and indirect competitors in the market place as possible. Look at their teams, products/services, pricing and any other marketing collateral which you can find. Remain constantly vigilant about your competitors, this is a must for any company regardless of size. Create document files which can be referenced easily, this will come in handy during later sections, when you are positioning and promoting your product as well.

3. Distributors: Is the industry dependent on any major suppliers or distributors? If this is the case, then find out maximum information regarding their operations, team, pricing and discounting practices. Developing strategic partnerships with key distributors in the market place can become a very strong competitive advantage in the market place. Dell has executed this superbly in partnerships with Intel and Microsoft.

4. Internal Assessment: If you have already developed, or are in the process of developing a product/service line, this section will highlight where you stand in the current market place. Through this section, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is available. This analysis will also help identify your strengths, and pinpoint where you should avoid competing in the market place.

Using data assembled in this section, you will be able to identify, where you face major threats and where the most opportunities lie. It will also help you gauge market demand with a closer and more precise perspective. This step requires considerable searching and scouring for data, do this as a team,  it becomes a little more exciting!

Related Posts:

Market Risk

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What is Your Marketing Strategy?

“Business has only two functions – marketing and innovation.” Milan Kundera

I remember the time I was asked this question by a mentor some years ago. My answer included our website, brochures, name cards and some events planned out for our prospect market. He didn’t look too pleased with the answer, probed further, asking whether we had outlined our strategy in the form of a plan to help crystalize our concepts and ideas. Unfortunately, our marketing plan was limited to a couple of pages in our brief business plan. He then quoted the above statement, and said it was a serious error to not having devoted more time in thinking through this critical segment of business strategy. Since that day, I  place a lot more emphasis on marketing and have begun to fully comprehend it’s importance.

Rewinding back a bit, prior to this conversation, I realized, I had gravely confused sales with marketing. As such, there had never been a major emphasis on developing a dedicated plan around it. Marketing strategies were discussed on a very sporadic basis. We had thought that by developing a website, brochures and some name cards we were doing pretty well in the marketing department. Being a startup, we thought marketing strategies would be developed when we finally made it “big”. Once I got a reality check into this, I understood how skewed my thinking had been. It finally started to make sense. I realized why demand did not scale up as projected, as also why the perception of the product in the market place was contrary to how it was meant to be perceived. We had completely ignored and bypassed one of the major functions of any business.

The following series will be one of many, where I will begin outlining a basic marketing plan for startup development. It will give you a bird’s eye view of major components which will be discussed in greater detail in the following weeks. I hope that through the information provided, you will be able to answer the above question with more confidence. I would also really like to learn about some of the marketing strategies which you may have used at your startup. This will help create a pool of ideas which can become an invaluable resource to entrepreneurs all around the world.

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5 Steps to Close Your First Sale

“Victory is sweetest when you’ve known defeat.” Malcom Forbes

Closing your first sale is one of the greatest highs you experience in your journey as an entrepreneur. It is a validation of your skills, passion and commitment to achieving something more than just the ordinary in life. There is no doubt that the journey to this milestone is a challenging one, it will test to the max and you will be able to gauge whether you have it in you to actually persevere and reach your goal. Having been through this exercise, I am now part of other teams on this leg of their journey I have put together a list of five concepts which have helped me .

1. Envision it: Before starting this journey, clearly identify where you want to go, how you want to get there and by when. Establish a picture of the entire process to enable you to visualize how you want everything to work. Once you have this image deeply embedded in your subconscious, you are ready to begin your journey. To read more about envisioning the sales process please click here.

2. Be Proactive: To be able to reach any goal in life you have to take action. Without it you will not be able to gather the momentum that is required to close that first deal and then successive deals after that. There is a need to be continuously proactive if you want to have success in any part of your life. If you want to achieve your goals and close that sale, you need to start taking responsibility for your success and action, today. To read tips on becoming more proactive please click here.

3. Ask: If you have hit a point where you are meeting a lot of people, pitching your idea and getting some interest but no sales then you are not asking for the sale correctly. Subconsciously we do not want to be the pushy salesperson . We begin to let this thought influence the sales pitch process and what happens is that the prospect is never really posed the question to buy. You need to start asking for the sale much more proactively to start closing deals. To read more about asking for the sale please click here.

4. Patience: There will be times during this journey where you will get frustrated, irritated and sometimes quite angry because you are unable to hit your targets and goals. This impacts detrimentally on the entire sales process as it decreases productivity, efficiency and your positivity. Having patience during this journey will be critical in your progress, remember, research shows that we usually quit just before we are about to hit something really big. To read more about this critical success factor please click here.

5. Learn from Failures: There is no failure only feedback. When times are tough, patience is low and we face setbacks, an entrepreneur starts to question everything. We begin to start blaming external factors, our team, our product or the economy. However this stance will not change the outcome or increase the probability of your closing the sale. You need to take the failures that you face and convert them into feedback to help you succeed. To read about strategies to convert failures into feedback please click here.

I sincerely believe that by following these steps coupled with hard work, determination and belief in your capabilities you will achieve your goals. We have to stop making excuses for ourselves and playing the blame game. If we truly want to succeed we have to do whatever it takes. Believe in yourself, your product/service and the your ability to successfully sell. No hurdle will be too high and when you finally get there, embrace the moment. Be thankful that you have been given the opportunity to prove yourself because, believe me, the journey is just starting, and it doesn’t become any easier!

I wish all of you the best of luck!

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There is no Failure only Feedback

“Develop success from failures. Discouragement and failure are two of the surest stepping stones to success.” Dale Carnegie

If there are 6 words which have truly helped me in my journey as an entrepreneur to date, they are, “There is no Failure only Feedback”. They have allowed me to flip just about any situation when things are not doing well and I begin to doubt myself. The process of doubt starts with losing a sale when you were relatively close to finalising it.  The world seems to come crashing down at this point . You start to wonder about your future as an entrepreneur or in sales, next, you start to doubt the viability of what you are selling. You begin to blame all sorts of external circumstances for the situation you are in and, motivation, productivity and optimism take a nose dive.

During my second start company which was in the Import/Export business I experienced this situation at the beginning. Disillusioned at this, because of the success of my prior company I began to wonder what was happening and I started blaming everyone apart from myself. At this point a close friend who has done very well for himself in the same line of work, gave me some much needed advice. When I explained the situation to him, he reaffirmed my share of bad luck but helped me understand that my attitude towards failure was the real culprit. I had begun to take it too personally and it began to blur everything around me to a point where I was unable to put myself in a position to close that sale. He left me with the advice to use each one of my failures as feedback to refine my approach in the future.

At first it was confusing, I was not being given any apparent reason when I missed an opportunity. How was I supposed to get feedback? That is when the lightbulb went off in my head. I started asking myself the right questions which then led us to develop customer feedback forms on marketing material, presentations, quality, price and overall satisfaction. I started to listen to what my customers wanted and how we could position ourselves to fulfilling these requests. That was a turnaround for me in my journey and now, when I speak to, listen or read about successful entrepreneurs there is a common thread “Failures are pillars to your success”, we have to respond to them in the correct manner to make sure that we learn, adapt and provide what the market truly wants.

If you haven’t had success in closing your first deal yet, break down your current sales process from start to the finish. Get feedback, talk to individuals who have had success in that area, survey your target segment and figure out ‘Why your customers are not buying from you ?’. Then, use that information to adjust your sales process to get the results you want!

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The Key to Success

“Patience is waiting. Not passively waiting. That is laziness. But to keep going when the going is hard and slow – that is patience.” Anonymous

During the tizzy of making a prospect list, calling potential clients and fanatically focusing on closing that first deal we forget a fundamental concept which will in turn be a fundamental component in your final sale,  that is, “Patience”. Earlier on, we established the need to set SMART deadlines to reach our goal. Setting that goal does not mean however that you immediately make a dash for it in a 400m race. If you do, by mid race you will run out of steam, and that will drastically impact the probability of closing a deal within your specified time frame.

From the word ‘go’ roadblocks will be encountered along the way, unless these are faced with patience it will be difficult to reach your goal. It is definitely not fun when you make 4 calls without generating any interest, I know the feeling . However it is usually a later call where you actually hit something. If we lose patience, it directly impacts our ability to move forward effectively and in a positive and persistent manner.

During the next couple of stages in the sales process whether it is pitching, negotiating or managing a client as sales individuals or entrepreneurs, patience is definitive for productivity. Rushing in and giving too many discounts, negotiating too quickly or getting fed up with a clients constant complaining will lead to leaving money on the table and not building the sort of relationships which will be based on an equal footing in the future.

Sales is a challenging process and securing that first deal seems almost impossible at times. You need to remember to pace yourself during the process, pay attention to details without rushing through the process. This will not only be a more satisfying process, I have found it provides you with a level of inner peace and calmness which helps you focus and eventually get that sale a lot more efficiently, effectively and often at a quicker pace. If you want to succeed at anything in life remember,  “Patience” is going to be a critical success factor. Best of luck!

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