Being that this is a post primarily geared towards the new entrepreneur, I thought I’d discuss the elemental question of how to best acquire funds for your start-up capital. From my experience there is no single best answer to this, but, of course, I do have my own slant on what may work best for you. If you are serious about your business to the point that you are willing to do what ever it takes to get this venture off the ground and successful, you’ll need to create a business plan. If you were hoping to skim past this aspect of your business building proposition, think again. A well written business plan not only will give you a much clearer idea of what will be needed to start and run your own business, it will give anyone else who may want to invest in your business the necessary information for them to determine if what you are proposing is a sound and viable use of their money.

Even if your business will not require large amounts of seed capital, you will still want to develop a working business plan. This simply is the most important fist step you an take towards any kind of potential success you may have. The odds are already stacked against you and you may or may not know the exact percentage of failed fist five-year businesses, but let’s leave it to say it’s ominous. I encourage you to not dwell on these stats as much as just spending the time necessary to work all the kinks out on paper, with your business plan. There are many many books on how to write an effective business and marketing plan as well as companies that specialize in writing business plans for you. The latter should only be considered after you have gone through the process yourself, giving you the exposure to what you, as a business owner, will need to know and accomplish in the months and years ahead. But if you are seeking a large sum on cash investment, you may indeed want to talk to a business plan expert for assistance. Go ahead and contact me if you want several resources for this.

Read more…

Successful marketing in 2008, be it internet based or not, just may require entrepreneurs to embrace a certain amount of risk.

I’m always interested in discovering new slants on how businesses market a new product or service. So when my wife, Kim, who is much better than I am about finding coupons in the newspaper or discovering promotional pieces in the mail, mentioned that there was a $1,000 check redeemable from Anderson Windows, my ears perked up. Half the fun is finding just where the gimmick is hidden in these things. Usually you have to spend a minimal amount (on product purchases or even installation services) that enables the promotion to be worthwhile for the incentive to kick in. So we sat down and took a closer look at the mailer promotion and the very professional looking $1,000 check. After closer scrutiny and a thorough reading of all the fine print, I could not find the “gimmick.” The promotion basically offers us a new Anderson window with a dollar-worth of up to $1,000 – for free.

The mailer even makes a point of saying that there are no gimmicks – with the exception that only the first 20 people who call are entitled to the promotion. Wow! Since we actually are in desperate need for a new window in our bedroom because when it’s windy outside, I’ve resorted to sticking socks in the window frame just to keep the window from rattling to much. So we called the information on the mailer and had the rep come on out and give us their canned presentation. Before he got here I assured my wife that this is where the ‘hidden’ charges will be uncovered and for her to be preprepared for a reality check.

Ten minutes after the rep, (Greg) arrived and we had looked at the briefcase version of the new window, I could tell that we were looking at a superior product, the Rolls Royce of windows. Socks hanging from my windows would be a thing of the past – and that alone would make my wife immeasurably happy.

With the presentation coming to an end and the total dollar amount being close to $1,400.00, Greg folded up his display and headed out. Once Kim and I were alone again I went over the numbers again. “So this will cost us about $1,400.00, including the window and the installation – that’s still pretty good – I think we should think about it, don’t you?” Kim just looked at me and rolled her eyes just enough to let me know that I was missing the big point. “Yep, $1,400.00 but the window and the installation end up being free! This amount did not include the $1,000 rebate check.”

Only after flagging Greg down halfway to his car and going over the numbers again did I realize that my wife was right and that this truly was a great offer. I also asked Greg just how can the manufacturer afford to give away what translates to thousands of dollars in free windows, free installation as well as expensive marketing/promotion costs? Greg explained that this is a big risk, but if you take a long-term look at how satisfied customers buy windows and how they inevitably will buy other additional ‘matching’ windows down the road, the promotion may just be a huge success.
Only time will tell if this promotion will bear fruit. But I must admit I am impressed with their willingness to take a calculated, measured risk with their marketing program. It certainly got my attention and even a certain amount of loyalty as well.

Mark McGinnis, bringyousuccess.com

P.S. If you like this blog, please click the icons below (i.e. Stumble it!).
And please Subscribe, I am deeply and sincerely thankful for your support… Thank you.