Think that it doesn’t matter what your business
is called? Not so. Your business’s name is the first opportunity
to make an impact on potential customers. In choosing a name, you want
one that reflects your firm’s mission but you don’t want something
so specific that it won’t work in the long run. A real-life case
in point is Amazon.com. CEO Jeff Bezos explained that his new e-book store
would be the largest bookseller in the world, like the Amazon was the
largest river in the world. Amazon.com doesn’t only sell books anymore
but it still stands for the size of the e-store’s inventory.
Advertising Options
When you mention “advertising,” most people assume you are referring
to a display ad in a magazine or newspaper. But there are other options.
For instance, a classified ad in the newspaper is not only less expensive
but can be more effective than a display ad if the business is local.
Are there business directories in your area that would target your customers?
How about an ad in the Yellow Pages or other telephone directory? Then
there is telemarketing. Many companies have also found that establishment
of a home page on the Internet to be effective provided they have listed
with appropriate search engines. And you can also send direct-mail brochures
to a list of prospects.
Once you launch your business, you need to continue
to gain new customers and keep the old ones. Yes, that means effective
presentation of your business—whether it is the quality of your business
card or your packaging. They help you make an impression. So whatever
means of marketing you undertake—whether telemarketing, a press release,
or a radio ad—you need to do it well. But marketing extends beyond
the obvious to the impression that the firm’s founders and quality
of products and services make on prospects. In dealings with customers
and potential customers, young businesses need to emanate professionalism
by the way they handle accounts and personal behavior and dress.
Before you put up your business sign, you need to ask
some important questions—in other words, market research. Is there
a genuine need for what you want to offer? Will the product you market
generate enough income to support you and your business? Is your intent
to sell a lot of low-priced products or fewer high-priced products? Will
your pricing enable you to clear a reasonable profit, beyond the cost
of materials, labor and overhead?
What about potential competition? Are there already
similar products on the market? Can yours compete? If you make it better
or slightly different, can you make the product more appealing? And what
about customers? Do you know where potential customers can be located?
And don’t forget operational issues. How different
is production of the product? Are the raw materials and supplies available?
Will you need extensive inventory or can you buy supplies as needed? Obviously,
the latter is preferable. If the product demands service, will you be
able to do so?
And most important, what about cash flow? Can you expect
to finance the development, manufacture and marketing of the product with
the financial resources you can realistically obtain? Will the payback
be soon enough to allow you to keep the business going?
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