Make room for a
marketing budget.
One of the
biggest mistakes new business owners make is not including a
marketing budget in their operating costs. In a nutshell, this is
the money you invest every week or month to inform your community
why they need your product or service and why your company is the
one they should choose.
�If you do not
reach and retain customers, you won�t be in business � you�ll be
bankrupt,� Castrina warns. �First, figure out what makes your
business unique: what it offers, why people need your product or
service, and why consumers should choose your company over any
other. This is called your �unique selling proposition.�
�Use all or
part of it to create taglines, logos, and other marketing messages
that will enable you to advertise through websites, social media,
newspapers, fliers, etc. Then do some research to estimate how much
your advertising is likely to cost, so that you can budget for
them.�
Hire smart.
The idea is to
prevent your side business from eating up a lot of time. That�s why
the goal is for you to NEVER EVER be the one actually performing the
service you provide. And that means hiring smart is a must. If your
business will need one or more employees other than yourself � which
is especially likely if you�re starting a service business � be
aware that how and whom you hire will affect how successful your
business will become.
Before you even
think about placing your first employment ads, get familiar with
federal, state, and local labor laws (these cover areas like hiring
discrimination, child labor, independent contractors, immigration
law, and more). Don�t worry, you don�t need to navigate these areas
on your own. If you become a member of the National Federation of
Independent Business (NFIB), you�ll have free access to its labor
law hotline. You can also consult with an attorney.
�Once you�re
familiar with all applicable hiring laws, it�s time to get the ball
rolling,� Castrina confirms. �I recommend making sure that you can
get the labor you need before you officially open your doors, by
running test ads. If you don�t get five applicants within three
days, you might want to rethink which field you�re going into �
because you want a business that is effortless to hire for.
�At this stage,
if you prefer, you can hire respondents as subcontractors (not
official employees). They will only work when you have jobs for them
� after thoroughly vetting them, of course. Once your business
becomes more popular, you can consider hiring your subcontractors
full-time.
�When you do
reach the full-time hiring stage, be sure to look for talented,
smart, experienced, and competent people with integrity,� Castrina
continues. �Don�t automatically hire friends and family members just
because it�s convenient! Remember � experience, competence, and
commitment are invaluable assets.�
Become king of
your own corner of the web.
Many would-be
small business owners (especially those who plan to do all of their
business locally) figure that traditional print or radio advertising
will be enough to spread the word about their companies. That�s
archaic thinking, according to Castrina. Since most of your
prospective customers � even those born during the heyday of
newspaper and radio � are surfing the Internet, having a website is
no longer optional.
�Developing an
online presence is as essential as having a business card,� Castrina
declares. �At minimum, you need a homepage that functions as a
business storefront, conveying your unique selling proposition,
pricing, and contact information � though sections for customer
testimonials, employee bios, and photos wouldn�t hurt! Check out the
competition�s websites to see what works and what doesn�t. If you
can�t afford to hire a website designer, check into the growing
number of DIY systems that allow you to plug your specific
information into cheap built-in templates.�
Don�t let the
other guy outperform you.
After your
business opens its doors, it will develop a reputation. Whether it�s
a good or bad one is largely up to you. To make sure that customers
hold your company in high esteem, focus on providing great service
to each and every customer from day one. Word of mouth is important
for the growth of any business and providing those little extra
touches will get people talking about you in a positive way.
�Let�s use a
lawn mowing company as an example,� suggests Castrina. �To show that
you do the little things that big companies won�t, you decide your
employees will pick weeds out of flowerbeds for no extra charge. In
this scenario, I would recommend giving employees a postcard printed
with two boxes (labeled �lawn mowed� and �flowerbeds weeded�) for
each visit. At the end of the job, employees check each box and
leave the card with the customer. Not only does this make sure your
employee does the work � it also shows the customer how important
this �extra� weeding service is to you.
�Another aspect
of providing great service is putting quality control measures in
place,� Castrina continues. �In other words, make sure your
customers get what they pay for. Be prepared to listen to the
occasional complaint, and then rectify the problem. It�s also a good
idea to periodically survey customers to make sure that they�re
satisfied with the goods or services you�re providing, and to ask if
they have any ideas for how you could improve.�
Give
A Gift To A Friend Or Associate.
If you know someone who might benefit from this newsletter, feel
free to forward it to them! (See the �box� at the end of the
newsletter for the forwarding service.)
Use your time
wisely.
Good time
management is an important skill for any entrepreneur to have, but
it�s especially crucial if you�re a part-time entrepreneur. If you
aren�t purposeful and efficient, your responsibilities will start to
resemble another full-time job � and soon you�ll be slipping up in
both roles.
�Whenever
possible, I recommend planning each day the night before,� Castrina
declares. �Write down all of the things � family, day job, and small
business related � that you�d like to do the next day. Then, mark
each one with an A, B, or C. A�s are tasks that must be done. B�s
should be done, and C�s would be nice to get around to. This system
will help ensure that you�re spending your time on high-value
activities instead of reactively chasing every shiny ball that rolls
by.
�While these
rules don�t cover every step of creating your own part-time
business, they will help you focus on heading in the right
direction,� he concludes. �So stop procrastinating. There�s no time
like the present to start becoming your own boss.
�Remember my
entrepreneur poker buddies?� he asks. �Because we took informed (not
reckless!) risks, we�re now able to sit around and plan trips to
events like the Daytona 500 or the Super Bowl. We spend days in
these locales enjoying it with our families, while our businesses
continue to bring in the sales. Consider this my invitation for you
to join us.�
(END)
