Most business owners from time to time ask, “Where is the Money?”
They are usually referring to their day to day cash flow; waiting on payments from customers.
But the more astute business owners are asking “Where is the Value?”
They are looking to build the value in their business so that one day they . . .
might sell the business for a capital sum, perhaps for retirement, or use the value of the business to finance further growth.
Now, you can accumulate assets in a business, and that adds value to it.
However, assets do depreciate over time and then they need to be upgraded or replaced . . . which requires more capital outlay.
You can accumulate cash in the bank which is an awesome measure of success . . . but inflation and taxes invariably erode that away over time.
If your business deals in products, you can amass a large inventory of stock to better serve your customers . . . but stock can deteriorate, go stale or go out of style or even have no further purpose in society.
Who would have thought a few short years ago that videos and CD‘s would ever fall in this category?
You an invest in branding and marketing to make your company a household name. That certainly is valuable to the business . . . but you have to keep doing it to stay front-of-mind with your customers
So where is the real value in your business?
Well, we have already referred to it indirectly a number of times.
The value in your business is in your customers.
But more-so in the Database of your customers.
This is also known as the List.
It is well established that it costs a lot more to find a new customer than to sell to an existing customer.
That’s why someone buying your business places a high value on your List or customer Database.
Because they have an instant market that they can sell to for little or no marketing cost.
Scattergun Marketing
Some business owners insist that they sell to everyone, and use scattergun marketing to spread their message far and wide in the hope of “hitting” another customer.
While ignoring the customers who have bought from them before.
For many businesses, this is a great way to spend a lot of money on marketing while not getting a great return.
Build a Focused List
Instead, aim you marketing accurately at specific customers and groups of customers with messages that are meaningful and targeted.
Contact specific customer demographics, (groups of people), or industries.
Find where or how your customers meet or categorise themselves together.
Build Lists of these people and tailor your messages to them.
Keep your database in categories of customers, so you can better target your message to individual categories.
Build Rapport
Then build rapport with your list.
Do not market to or at them.
Provide them with relevant and useful information. Build trust. Be a resource that they can rely on.
Find your List
The way to find your list is to define your list.
Define the characteristics of your ideal customer – gender, age, career or industry.
Or if your clients are companies, then define the industry, the company size, and how best to reach the decision makers in them.
Then build your List, starting with the most obvious . . . your existing customers.
Well, that is quite simple really!
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Watch this short VIDEO
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What should you do now?
- Build Value in your business.
- Build a List.
- Want some help or ideas? Just contact us at Hotpink Websites now.
Or, CLICK HERE if you need a new website – Website Enquiry.
Quote
Do not educate your child to be rich. Educate him to be happy. So when he grows up, he’ll know the value of things, not the price.
~ Keren Zhims
Remember – Where is the Value
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Great information, so true that building rapport is so important.Thanks Phillip.Regards, Joyce
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