Lessons Learnt From The Business Coalface
- Jun 1, 2022
- 3 min read
Written by: Annette Densham, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Life is full of ‘from the outside looking in’ moments. People’s business success is one of those things that looks glossy from the outside but when you dig deep into the ins and outs of running a business, the day-to-day is anything but glam. What you don’t see on the Insta feeds or Facebook posts are the time-consuming and very steep learning curves so many go on.
While growing and running your own business is rewarding, there are a few things the prospective small business owner needs to know before getting started to make the outside journey match the inside one:
1. The tipping point
With any business, whether it is a service-based or a product-based one, there are certain fixed operating costs. To cover those costs, and to ensure there is some money in the back to pay you, the turnover needs to reach a certain tipping point.
If you’re selling a product, you need to forecast your cost of goods sold (including making or purchasing the item/s, shipping costs, customs and taxes, warehousing costs, etc). Your profit is then your sales profit, less your cost of goods sold, less your operating costs.
When starting a business, this is not information that you would necessarily realize you need. To work out what is realistic for your business model and product/service, seek out someone who has been there and done it before you. Facebook business groups are a great place to find a mentor or someone with prior experience (many Facebook groups have a mentoring program now).
2. A realistic marketing plan
The ‘cross the fingers and hope people find you is not an adequate marketing plan. Neither is winging it day by day. This is now your livelihood, and it warrants some time and energy expended to put in place a plan you can follow to drive sales and inquiries. While there are many ways to market a business, marketing does require input and focus from the owner. Those articles you’ve read about successful online stores that have found a niche and ‘just attracted’ a community of like-minded followers involved a lot of hard work.
Key elements of your plan should include social media, content marketing, search engine optimization, flyers, brochures, website content, blogs, Facebook lives and content, and PR. Google AdWords and lead generation activities to drive traffic to your website. This all hinges on your understanding of your target audience; if you know what they like, what they want, and where they hang out, you can craft your marketing to attract them to you.
3. Network, network, network (did I mention network?)
Even though your business may be online, a successful sales strategy is built on trust and likeability. People do business with people, and they want to know who you are. One of the keys to success is developing and nurturing your community (members and subscribers to your newsletter, social media fans, and brand advocates), both online and offline to develop positive relationships with your customers, your suppliers, and every business you encounter. Generating a buzz about your business can mean publishing articles on other people’s sites (people you know, people you advertise with, and other bloggers are good places to start) and in print media where possible. It means developing great content your customers are interested in and distributing it as widely as you can to attract more like-minded people, it means picking up the phone and talking to people whenever you can, rather than just emailing. It is also about the face-to-face interactions that come from attending events and functions. In other words, networking is still one of the cornerstones to success, even online.
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Annette Densham, Executive Contributor Brainz Magazine Multi-award-winning PR specialist Annette Densham is considered the go-to for all things business storytelling, award submission writing, and assisting business leaders in establishing themselves as authorities in their field. She has shared her insights into storytelling, media, and business across Australia, UK, and the US speaking for Professional Speakers Association, Stevie Awards, Queensland Government, and many more. Three times winner of the Grand Stevie Award for Women in Business, gold Stevie International Business Award, and a finalist in Australian Small Business Champion awards, Annette audaciously challenges anyone in small business to cast aside modesty, embrace their genius and share their stories.
