What is marketing? Is it advertising? Yes. Is it promotion? Yes. Something newsworthy? Yes. Public relations? Yes. Is marketing just about anything that gets your brand out there for the public to consume directly or subconsciously? Yes. At Startup Connection we recognize the unusual ability small agile firms have to successfully focus on and carry out successful “mini” marketing strategies. These strategies, help differentiate the new guys on the block from the competition. We constantly work to help startup firms create and take advantage of mini marketing opportunities. A simple example, a restaurant client who gives kids their own dough to make a small roll and then bakes it for them. [Read more…]
Do You Have a Plan to Make Money?
Of course, you have a plan to make money. That’s why you started a business. Actually, the question runs far deeper than that answer. You need a “pro forma income statement”. I know what you’re thinking,
“A pro forma income statement? Wow! Is it Christmas already?”
When running a new or existing business you always have to be thinking about money, particularly where is it coming from, whether it be from investors, profits, loans, or some combination. To be thinking and getting the money, you always have to be planning. There are often a number of red flags that frequently appear in business plans that tip off investors or users that you have not done your research, you are just guessing, or you are so enthusiastic about your idea you refuse to face reality. Some of the most common red flags include the following or similar terms: [Read more…]
Innovation Is Not Easy
Everyone talks about creating an environment that encourages innovation, change, openness, new ideas, etc. In many cases this enthusiasm for innovation, however, ignores a number of powerful practices:
“If it isn’t broke, don’t fix it!
Another is,
“We have always done it this way.“
We at Startup Connection believe in trying simple ideas and approaches that work to foster innovation: [Read more…]
“You can’t handle the truth.” – Jack Nicholson
I am constantly running into well intentioned and informed clients who ignore this simple advice:
“You can’t handle the truth.” – Jack Nicholson in a Few Good Men
This is especially true when clients are trying to identify target markets. Here is a perfect example,
I had a client who wanted to market a very complex and localized program to all 50 states. He was more worried about not serving potential customers than the minimal potential, high risks, high expenses, low efficiency, and probability of mistakes in the 20 states that made up only 10 % of the population. [Read more…]
Do You Really Know What Your Gross Margin Is?
There are lots of great tools, rules, and accountants to help businesses complete and analyze profits, sales, and costs. Unfortunately, this is an area where clients frequently throw out the baby with the bath water. They often fail to use Gross Margin Analysis. Most business people understand the basic rules surrounding Gross Margin. They just don’t execute them.
Gross profit calculations are best made by item, by category, by customer and many other variables, each of which may be critical to your success.
Gross profit—or “Gross Margin” is simply calculated by the following equation:
Gross Profit = (Sales – Costs) / Sales [Read more…]
The Internet: You Ain’t Seen Nothing Yet
In reviewing Internet Retailers, “2014 Top 500 Guide” there is tons of stuff that just keeps popping out that affects one’s marketing practices and potential. As important as we think the potential of the Internet is for business, we are actually underestimating its worth.
Below are just a few examples illustrating the Internet’s potential:
- Internet retailing is growing 15-20 % per year while brick and mortar retail is only growing 1-3 %. The implications for buying, retail stores, inventory management, and marketing are astounding.
- Diverse retailers Amazon, Wayfair, Etsy, Google Play, Groupon, Vistaprint, Netflix, Overstock, represent businesses we never heard of a few years ago, are revolutionizing industries, purchasing techniques, and business patterns.
- Much of the differentiation and value of the Internet resides in the connectivity, data aggregation, data-processing, and decision-making activities that take advantage of the data streams emanating from the Internet.
- Numerous and growing challenges face brick and mortar retail stores including for example, over saturation translated into an average 46 square feet of retail space for every person in the U.S.
- Inventory management, consumer tastes, deteriorating stores, and competitiveness are growing in importance.