That Smith

I was sitting at work the other day trying to come up with ways to make money on the side (because my current job doesn’t pay enough for a house) and came up with some fairly clever ideas for a new business. My goal was to think of something that would cost me little, require a small amount of time, and be something I enjoy doing. I also wanted it to be somewhat unique because no one likes a copycat. While I am not quite ready to reveal my new idea, here are some helpful tips on how not to market your new business.

Eight ways not to market your new business:

• Anyone could potentially be a client.

If you build your new business around the idea that everyone will be interested in what you are offering, or anybody could potentially be a client then most likely you have not done a good job planning.

I have seen entrepreneurs come up with what I thought were brilliant ideas, but they do a poor job working with the idea, just because they have unrealistic expectations or fail to see that not everyone will buy their product. My number one policy is if I can’t think of one specific client (rather than a broad definition of who might use it) then you probably need to plan more. Instead you should plan your business with a specific client in mind, and expand from there.

• If you build it they will come.

Another thing I see are a lot of people who create an excellent service or an excellent website to promote their service but do nothing else after that. Just because you have a product or website, it doesn’t mean you are in business. Again, without proper planning you will go nowhere. Here are two examples of what I mean:

1) A girl I know decided to create a matchmaking service which, with her knowledge and experience, seemed like a perfect way for her to make extra money. She was going to make the service more intimate and thorough by interviewing candidates one-on-one to find out their quirks and expectations. (This is funny because I recently talked with two more girls through my current job that want to do the same thing.) Unfortunately, after creating a website, an application, and complex system to match personalities, she failed to do anything to actually market her business.

2) A guy I know ran a lawn mowing service when he was a kid. Clearly his service wasn’t unique and could easily be copied, but what made his business successful was that he began his business with a particular neighbor in mind and constantly asked his clients for referrals. Then once each lawn was complete he followed up to ensure they were satisfied, and made sure the day he planned on returning would fit their schedule. He ran the business until he had to move away for college, but managed to make a good chunk of change in doing so.

• Market to everyone.

If you are marketing to the masses then you are spending more money than you should. Even if you have a perfect business idea, not everyone will need your service (read about that above). Because of this, it does not make sense to market to everyone. Instead, plan and segment carefully so your marketing dollars will take you further. A poor example of this is a company that I used to work for who ran advertisements in every newspaper in town, including in wealthy neighborhoods. Their service was mainly used by poor, working class individuals so it didn’t make sense to advertise in the business journal or in certain neighborhoods. In the same manner, it also wouldn’t make sense for a real estate company to run commercials during Nick Jr.

• Make your clients do business on your terms.

If you have a great service, good marketing, and have clients knocking on your door then it is probably a good idea to cater to their needs rather than yours. The worst example of this I have seen was from a man who is unique in his trade (at least in this area) yet he refuses to return phone calls or schedule meetings unless it is convenient for his lifestyle. Word of advice to small businesses: be flexible.

• Lie, cheat, and steal.

The reasons for this should be obvious, but apparently people still do it to make their business profitable in the beginning. If you desire longevity and a good reputation, you should be honest at all times.

I knew a man who started a business to mimic the services of a successful counterpart. His problem though was he didn’t have the same skills or background as his colleague, so in order to appear credible to prospects he lied about his qualifications and disappeared. Most likely, after offering - and embellishing - his services as a strategic planning expert so he can break into the field, he discovered the work required more than he was able to produce so he disappeared. Unfortunately his disappearance was after the prospect shared insider information, which probably left them feeling uneasy as well.

• Nag everyone you know.

This also relates to #1 and #3. While it may be beneficial to ask your friends and family for referrals, you should not incessantly try to sell your business to someone if they are not interested. I have been the recipient of a lot of “unwanted solicitations” in my day (usually when I am at work or shopping) and see it as the number one way to get people to dislike you and your business. A trick I learned from my days as a telephone surveyor (I had to make money in college somehow) is if someone says no to your first solicitation and you want to try again, ask them when would be a better time to talk. This will give you a chance to try again and gives them the opportunity to politely say don’t bother. Unwanted nagging however is never a good thing.

• Spend money, then develop a strategy.

Chances are, if you are in business because you want to make money, then you probably have a limited supply to get things rolling with in the first place. Before you ever spend money finding clients or promoting your business, you should make damn sure you have a good strategy. As they say… aim twice, fire once. I recently worked for a company that could have grown a lot faster had they placed me in charge of the thousands they spent on marketing, rather than the person they let blow extravagant amounts while they were still nailing out details of their business plan. You should also nail down your plans before attracting customers because you do not want to appear inconsistent either. Being inconsistent in your business will make you seem less qualified for what you are trying to get them to pay you for.

• Don’t bother with a business plan.

HAVE A BUSINESS PLAN! You must plan your business. That is the number one thing you should gather from this list, otherwise you will be doomed to failure. If you do not set out with a good business plan, you will end up spending more on marketing than you should, you will appear to be inconsistent, and will probably lose focus on what you hoped to accomplish. You are going into business for a reason and can either guarantee failure by not developing an actual plan, or can come up with one and have the chance to succeed.

For other reading on creating and marketing a new business, I suggest the following:

How to Market Your Business on a Shoestring
10 Business Lessons From a Snarky Entrepreneur
The 10 Biggest Mistakes Freelancers Make, and How to Avoid Them
The Dos And Don’ts Of Selling To Clients
If You Want To Succeed, Here’s How NOT To Promote Yourself Or Your Business
Ten Smart Moves to Improve your Business

I will share more on my new venture once I finish some preliminary research and finalize my business plan.

Chad Smith is the assistant director of marketing for a company that leases office space to entrepreneurs and small businesses in Wichita, KS, and is a graduate student in business and economics at Wichita State University.

Photo: trbpix