You can also subscribe to the Tea Break Marketing Podcast on Stitcher“No Marketing = No Revenue” Whether we like it or not in a market downturn one of the first costs that are cut is marketing. The reason for this is that businesses do not always see the value of marketing. I totally get it, that marketing is a soft service and that you cannot always relate income with marketing activities, and this is especially hard for small business to see the link No Marketing = No Revenue.
The industry norm when things get tough is to cut costs by reducing marketing activities and is especially so during a recession. Then redeploy those savings elsewhere in your business. I understand that cuts need to be made but it is the perceived low value ones that suffer the most and unfortunately marketing falls into that bracket.
When pressure is brought to bare by customers asking for more and more discount to such an extent that your almost buying the project. One of the first things that is done is cut the margins, on the surface it appears to be one of the easiest ways to keep your business afloat, and yes it will, in the short term. But look down the road a few months, even a year and you will find your customers will see that you are compliant to there requests and continue to force you to buckle under the pressure, eventually you will not be able to continue to trade. For sure not a desirable outcome.
There is a solution, actually there are many, but don’t have the time to go into more in this episode.
What a lot of small business owners don’t understand is that marketing is a powerful tool, if used correctly. Remember in a downturn all businesses in your space will be feeling the same pressure and some may fail others will not. I want you to be one that will.You need to be known so should use your marketing money to get out in the marketplace and hoover up some of those customers who are being let down by your competition whether it be deliveries, quality or support. It’s happening now so you need to get out there.
Don’t take a scatter gun approach as that just does not work effectively. Be super targeted and give these businesses a call. Not an email or a flyer but a call, no one knows your business better than you. Period!
You’re probably saying I can’t sell and maybe you can’t but you have passion for your business so you have to exploit what tools you have. If it’s a networking event then got to it, breakfast or evening not during your business day, you need to be focussing on “doing stuff”
Look for help. How about a merger with a competitor?
Outsource some of the tasks that prevent you from focussing on generating revenue. For example if you opt to do your own accounting, you’re not generating revenue, if aircraft is not flying they are not generating revenue, if the miners are not digging ore, they are not generating revenue. If the pizza delivery guy/gal is not delivering they are not generating revenue. And finally if you’re not marketing you’re not generating revenue.
So in a time of austerity like now, for small businesses, employing a marketing executive/manager can be expensive, with many skilled practitioners renumeration in the £25K+ per year mark. But there are ways in which this some of this cost can be offset.
Using a serve like ours where we provide you business ,marketing services whether it be projects or short term long term contracts, even if you only want us for a few hours a week we’re totally flexible and affordable.
In Scotland we have the “ScotGrad” project where the government will pay 30% of salary for the first year. And until recently that was set at a maximum of £6,000, but has now been increased and is unlimited. So now you can target a more experienced or suitable candidate rather than pitching for the candidate that meets the 30% budget. There is also the Adopt an Intern project which can aid your business in many ways by give those young graduates and may I add future business leaders. With either programme there are rules you need to abide by so I would suggest that you speak with your local Scottish Enterprise or Business Gateway office and they will guide you in the right direction.
Contributing Source: Paul MunroMentions in this Podcast: ScotGrad Adopt an Intern UK National Living Wage 2016 UK National Minimum Wage @ 2015 Wild Haggis – Helping You Get Stuff Done Thanks for Listening
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