Marketing for start up businesses

New business start ups generally have need of effective marketing, but little resource to invest. How can a new business succeed?

One source notes that one in three new businesses fail within the first three years and lists a number of reasons. Guess what? Top of the list is 'poor marketing'. Marketing is also closely associated with other reasons cited for failure such as lack of planning and financial liquidity. Although there have been and continue to be, various government initiatives to encourage start up businesses, having a good product or service idea is not enough on its own and becoming an immediate expert in marketing, finance, selling, stock control, distribution and many other skills is simply unrealistic.

In running a small business ourselves for many years we have tended to divide our work effort into 3 main categories:-

• The process of generating enquiries, acquiring new customers or clients and getting an order or  a brief for the work required.
• Actually doing the work itself and delivering this to the client.
• Then, all the back office work such as book keeping, paying invoices and taxes, issuing invoices and progressing payments, banking, maintenance of premisses, ordering supplies and everything else it takes to keep the business functioning.

The most important thing to remember is that only selling a product or service generates an income. Getting business is an investment to help create sales and administration is an expense. Small businesses     are often very small in the start up phase - just one or two people - and resources are measured in both time and money, both are scarce.

Because marketing is such a key element, even a start up business should budget some money and time and consider this an investment that needs to earn its way in bringing in quality sales leads. Before even starting a business, market research is essential to drawing up a realistic business plan. OK  so you have a great product or service concept. Now you need to research pricing, competition, estimate the market size, the target market for your product and who are you selling to - the target audience. The business plan should have an objective which can be simply stated such as to sell X  products in year 1, gain X% market share or achieve £X sales. New businesses often over estimate sales and predict unrealistic growth. It is better to be conservative and set a marketing strategy to hit achievable targets and plan finances to suit.

Marketing communications is the key to telling your target audience that you are in business, you have a product which has benefits to them - think about user benefits not a list of product features they may neither understand or care about - and use several communications channels to get your message to the type of people who you have identified as potential customers. 

So finally a word on what marketing communication channels to use. First of all avoid the sales pitch of advertising space salesmen. The "just closing the issue at a special discount if you buy now" type of offer should be resisted. Time for paid for advertising later once you are established, understand your market better and which media is relevant. Likewise exhibitions can be expensive; build a sustainable business first. Do build a competent web site and invest in professional design too for not only the web site but all relevant communication collateral. Use word of mouth marketing, get satisfied customers to endorse and recommend your product, use online tools such as social media to promote news about your product. Maybe use your passion for the subject to build up a an audience that sees your blog as an authority in your market niche. And above all nurture your customers, get repeat business and encourage them to spread the word.