If we don’t know where we are, we can’t plot a route to reach our location.
Imagine a ship sets sail with a destination of Perth, Australia. The captain believes that it’s currently in The Port of Cape Town in South Africa. The captain believes that if the ship sails directly East, they should reach their destination in about 2 weeks. The ship sails on, & after 6 weeks at sea, still has not discovered land. After a further week of sailing East, eventually they reach dry land. As the crew climb onto dry land, one of them spots a sign in the harbour, “Bienvenido a puerto vallarta” - In English, “ Welcome to Puerto Vallarta “. Although they’d been travelling east toward what they believed to be their destination, the place they started, was also very different to what they believed. They traveled from the South coast of China, and landed in Mexico.
This is an extreme example, demonstrating that if we head towards a destination in our business or personal life, we have to first understand where we are.
The same can be said for marketing. The majority of businesses don’t know where their customers come from. They’ll often spend money on advertising because they believe it plays a role in bringing them more customers, but most of the time, it’s just money wasted. For example, if your business was around 15 years ago, how much money did you spend on yellow pages advertising? Fast forward to the modern world, looking at Twitter, Facebook & other social media platforms. How much time and money to you spend on trying to promote your business on them? How many customers have you received as a result?
I’m not saying Yay or Nay to any of these. What’s right for one business is not so good for another, it all depends on your target customer, and where they spend their time. The medium isn’t my argument. The argument is based on knowing the results. Knowing exactly how much time, energy & resource you spent on each, and knowing how many orders, or at least enquiries, came back in the door from each.
When you know this information, you can then properly know where you are, before raising the anchor, and setting sail. Your historic results will then let you plot your course toward your destination, confident that you’ll reach it.
A marketing analysis is a measured analysis, assessing the results of your historic marketing actions, that let you make the right decisions to move you and your business forward toward your goals. If you know what worked previously, and more importantly what didn’t, you can achieve your vision faster, more efficiently, and more importantly the in most cost effective way.
So here’s an example of what your marketing analysis will include.
Cost per Enquiry
Cost per Sale
When analyzing your findings, you’ll be able to identify which helped you achieve the biggest result, for the smallest cost.
In preparing your plan, or route map to reach your destination, it would be a good idea not to put all your eggs into one basket, choosing only the best performing medium, but perhaps choose the best three or four routes. There are numerous things that may have come into play that helped motivate customers to buy for example, which might not be around now.
In the next post, we’re going to look at the sixth piece of the jigsaw, that you’ll need to sell your business. ‘Building your audience - The Number 1 secret to achieving your vision’, Click here to read it now.
We hope you’ve received some value from this article, and some information that you can use to move forward toward your vision.
If you’re confident that selling your business is the way to go, or perhaps you’re undecided, it’s important to consider the significant amount of effort and resource you’ll need to make it happen. It’s a full time job. - The time investment alone is enough to put anyone off. So imagine for just a minute, that you didn’t need to do all of this work. What if this could be done over the next 3 - 5 years (by someone else). Everything we’ve listed in this article, is what you’d need to do, if you were selling through a business broker, or direct to a buyer.
Unlike other private equity firms, our focus is on growing businesses at the smaller end of the market. We’ve worked in, and grown our own businesses in the exact same fields you work today. We’ve spent years coaching and supporting small businesses just like yours, developing their teams, and helping them to grow, but now, we’d like to help you.
We have a solution for business owners that need to sell their business immediately, or for those who want to stick around for a few years.
If you’re considering the options to grow or sell over the next five years, read more about how we're helping others just like you. Click here to read about our unique approach to helping you get what you want with the YokeFormula™ for your business.
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