Please know there are lots of ways to spend your time and money building, growing and running your small business. But not all activities are created equal. Today, I want to share with you what I consider to be five must do things for small business owners. These are some of the “strategic” and “big picture” tasks that every entrepreneur should do, but normally doesn’t do.
# 1 Create a Unique Selling Proposition (USP)
The first thing every small business owner should do is create a unique selling proposition, also referred to as a USP. Your unique selling proposition is a short statement that explains what makes your business unique and different from your competitors and WHY people should do business with your business. It should be a one to two sentence statement that describes what you do and highlights the benefits of doing business with you. A couple example USP’s include:
Fed Ex – “When it absolutely, positively has to be there overnight.”
Domino’s Pizza – “You get fresh, hot pizza delivered to your door in 30 minutes or less or it’s free.”
Once you have a USP, make sure you put it on your business cards, your stationery, on your signage and in all of your advertising.
When it comes to network marketing you should do the same thing. Find ways that you can differentiate yourself from every other distributor in your company. This makes it easier for you to stand out in the crowd. Basically, look at what everyone else is doing and do the complete opposite.
# 2 Determine Who Your Best Customers Are
If you have an established business, you need to study your records and receipts and determine who your best customers are. Which customers spend the most money with you? Which ones come back most often? Who gives you the most referrals? Where do they live? What do they do for a living? How much money do they make? What publications do they read? What are their age, gender, race and religion?
The reason you want to determine who your best customers are is so you can focus your marketing budget finding more customers within the same demographics. Once you know who your best customers are, you can send them a survey to get additional information, so you can figure out these demographics.
When it comes to network marketing, you have two target markets. Your first target market is people interested in the business opportunity side of things. I’ve found that entrepreneurs, sales professionals and other network marketers are great prospects. When it comes to retail customers, look for people with disposable income who are already buying similar products.
# 3 Develop a Written Marketing Plan
Every business needs a written marketing plan. This doesn’t have to be a 50-100 page document. Instead, it should be a simple one to two page document that identifies (1) your USP, (2) your best customers, (3) how you will reach your customers, (4) what form of advertising you will use (5) your budget, and (6) what specific steps you will take to execute your marketing. When you have your own marketing plan, you will know exactly what you need to do to keep moving your business in the right direction.
When it comes to network marketing, I think you need a written business plan and marketing plan. This should outline your strategy and what you will do on a daily, weekly and monthly basis to grow your business.
# 4 Create a Back End Business
The real money and real profit is in the back end business. Very few people ever talk about that, but it is the truth. Front end business is what you sell on the initial sale to new customers. The back end business is the additional products and services you sell on future purchases that put the real profits in your pocket.
For instance, car dealerships sell cars on the front end (which they make very little money on) and their back end business is parts, service, trade ins, warranties, and financing (where they make the real money). For one of my businesses I sell eBooks on the front end, but I sell private coaching and consulting on the back end. I make 10 to 20 times as much with my back end business, compared to my front end business.
You need to do something similar with your business. Your back end products should be more expensive than your front end products and they should put more money in your pockets.
When it comes to network marketing, recruiting will make you money and retention will make you rich. What you want is a large customer base who use the products month after month, not a one time purchase. In addition, it might be in your best interest to sell leads, affiliate products, training products and other products or services that add value to your business, in addition to your MLM Company.
# 5 Spend Most of Your Time and Money on Marketing
Once you’ve done the four steps mentioned above, your final objective is to become a master at marketing. You must study marketing and then you must spend a majority of your time and money on marketing. No other activity is more important in a small business. This is one area you should never delegate to anyone else. Once you become proficient at marketing, you can turn business on, off, up and down whenever you want. If you aren’t willing to spend money on marketing I’d argue that you shouldn’t even have a business to begin with.
When it comes to network marketing, knowing how to market your business is vitally important. I build my entire business by simply answering my phone. Ultimately, you want to learn marketing so you have an endless supply of new leads to talk to. Without leads, you’re doomed for failure. That’s where good marketing comes in handy.
In summary, these are five must do things for small business owners. If you take the time and money to focus on these activities, and master them, you can significantly improve the bottom line in your business.
What are your thoughts? What do you think are some of the must do things in a network marketing business or small business? Leave a comment below to let me know what you think. I look forward to hearing from you.