12 Do's and Don'ts for Small
Business
By Jeffrey Warren Dobkin
1. Do: send press releases every
month.
I don't care to
whom, or where. Unless, of
course, you have all the business you can stand and I
mean you're running three shifts. If you can use more business,
press releases are no longer
a luxury or sent on a whim. In these days of tight
marketing, schedule them as any other marketing function gets
scheduled. Put them on the calendar
for mailings on a regular basis, like
every month.
2. Do: use personal letters as
sales tools.
Right from
your computer, you can wage
the cheapest, most effective sales campaign ever. A letter
is an incredible sales weapon. More
effective than any ad, and lower in cost
than any other sales campaign, bar none. A whole campaign can be
waged without ever having to pick
up the phone. The most effective campaign
I have ever written was a series of personal letters.
3. Don't: send one letter and
call it a marketing campaign. A campaign is
not a single effort of anything. Think of it this way - that
long, boring three-page
letter you have been sending would make three excellent,
vibrant one-page letters in a three-letter sales campaign.
Write a short series of letters
and send them to your best prospects over
a selected time frame in a program that takes your best
prospects more seriously
than just sending one letter.
4. Don't: mail 25 letters to
inquiries from an ad, then when you get only
one response say, "I tried direct mail and it didn't work
for us." Direct
mail is a game of numbers. One response in 25 is 4% - not a bad
draw in the direct mail domain. I
wish some of my low percentage clients'
mailings did this - we'd all be rich! Well, now mail 100, get
4 more sales. Now mail 1,000 - get
40 sales. By the way, to test a new list,
the industry standard is to mail 5,000 pieces.
5. Do: have open business
discussions with consultants or your peers.
As
broad as your vision may be, you can only see your business from
your own singular
perspective. Ask open-ended questions, then listen. For example,
"What would you do to advance my business? What do you
think I should change? What
is our company's greatest opportunity? Our gravest weakness?
Where are we missing the boat? How can we be more profitable?
How can we move forward? Where can we save money?"
6. Don't: forget to put money
in a growth fund. Don't paint yourself into
a non-profit business or a non-growth corner. How many times
have I seen clients who have
no potential to grow, even though they want to?
If you make a comfortable living
and that's all you want, fine. But if you
want to grow, you need to know how - and have the money
earmarked as a growth fund.
Every business peaks out at a certain level - if your level
is high enough, you can be pretty comfortable. But if not, you
need a plan to break through that
level and into the next phase, and chances
are you're going to need money to do it. Assign a certain
percent of your income to a growth
account.
7. Do: learn to delegate.
You can't do everything yourself; this is a given.
In order to grow, you're going to need to assign tasks and
functions to others, and figure out
if they are doing their jobs effectively.
Learn benchmarking. Let others know how you are going to judge
their success, so they will have overall goals. Be quick with
rewards, slow but fair with
discipline. Learn early how to lead and inspire
- so people will want to do their best for you (and your company).
No one likes a dictator for a boss, although some put up with
it. Learn to motivate the people
who work with you, and their 110% effort
will help ensure your success - and theirs too. There are plenty
of great books on leadership in the
library.
8. Do: have clear goals.
Know what you want and what you expect from your
business. These goals should be set for both immediate rewards
and future expectations. So
if you say, "I'd like to produce this product for
one year, perhaps without making any money," you then need
to say, "The next year,
I'll take out some cash, and in five years I'll grow to a
firm this size." This puts things in perspective, and
lets you know what it will
take to get where you'd like to go. Once you know where you're
going, the roads to get there become more self-evident.
9. Don't: proceed without a
realistic time frame. Know in advance how long
each step will take and how much time you will allow for it. I
know, I know, it's easier said than
done. But if you don't start roughing
in the time element now, how will you know when things have
taken too long, when to celebrate
because you finished early, or when your
time is up?
10. Don't: forget to go to
the library every month or so. If you need new
information more frequently, go more often. Use the library as a
reference source for your business.
To the dismay of my college professors,
I'm pretty much all self-taught. When I couldn't afford books
at a bookstore, I read them at the library. I've never been to
the library without knowing,
when I left, how valuable the time I spent there
was, how much information I received, and how much it helped me.
11. Don't: forget to create Plan
B. While success is
nice, and necessary to stay
in business, you should have a contingent plan in case what
you are doing isn't working. What happens if...is a scenario you
should deal with up front, before
it happens. Even if there is no Plan B,
you should know that in the beginning. I'll give you an example.
When I started Merion Station Mail
Order, I mortgaged my house to the hilt and jumped into
business. My older and wiser brother asked what would
happen if the initial mailings didn't work. "Well," I
coughed reluctantly,
"I'll refinance what's left on the house, and try new
offers and new mailing
packages." That was Plan B. What happened if that
didn't work? The options at that time all looked worse.
"Fail" was one of
them. But you know, I'd rather have tried and failed, than
never have had the courage to try.
12. Do: have an exit plan.
No one likes to call it quits, but you should
decide up front how much time you'll devote to a project that
isn't living up to your
expectations. An exit plan is one of the hardest
strategies to write; no one likes to think there is even a
chance of failure. To complicate
issues, failure may not be so clear-cut.
Your successes may only be partial. How long do you settle
for second best to your dreams? If
you're not at your maximum potential,
know when to call it a day, and where to go from there - and
how.
Jeffrey Warren Dobkin © 1998
Jeffrey Dobkin, author of two
excellent books on marketing: How
To Market
A Product For Under $500!, and
Uncommon Marketing Techniques
(from where these tips were taken)
is a specialist in direct response. He
writes sizzling, response-driven web content, sales letters,
persuasive catalog copy, and
exceptionally responsive direct mail packages
for his clients. He also analyzes web site copy, marketing
packages, ads, catalogs, and
campaigns. To place an order or speak with him
directly call 610-642-1000. Fax to 610-642-6832. Or write to the
Danielle Adams Publishing Company, Box 100, Merion Station, PA
19066. www.dobkin.com.
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