Risk
It snowed today. It is March and it snowed....wow now I bet there were plenty of people who started their spring plantings and thought winter was over. Taking a risk, albeit a measured one, that they could get started on this year’s crops etc...and then it snowed in March.
Now most of us have some opinions about risk in its many different forms. Most business owners run into risk every single day. In growing your business you take a lot of risks. How to market, who to hire, where to locate what name to choose, who to target, how much room is too big, get a temp or hire a permanent how much staff is too much or too little; the list is really quiet endless. One of the more troublesome things to deal with for me is the marketing aspect and spending the dollars. How much is to much for an ad? Should I use a prepackaged marketing seminar? should i try the radio, or TV? Mass mail? Cold Calling? And don't forget the internet! All of these have their cost some substantially more expensive then others but which one, or combination, is/are the right one(s) for your business.
Well they will all tell you there is the best and they will have a multitude of facts and stats to back it up and why the others will fail miserably or be so costly that you will go out of business in a month trying it. So we are at the point where there has been a good monthly inflow of cash, and we can choose to put it to work in the business hoping it will generate more cash in the form of new clients, or we pack it away for a rainy day.
The truth is I'm stuck. The PR/Marketing side of me knows that advertising and capitalizing on dollars is what we need to do. The cash poor need to pay the bills buddy side of me says put that cash in the bank and stockpile for a bit. And maybe I should try to find a way to do a little of both. The question is what avenue to spend on for advertising. Most people would agree that cold calling is about the worst return on your time. Seminar/networking gets great marks but is more costly due to the meals you feel the plate lickers. Been there done that with Radio, works but is really expensive in the short run and you have to have the cash flow to sustain it long term. TV works on a more regional level not so much so for the independent not to mention it really doesn't bring in business as much as establish your name. Again that’s another costly long term bet. Print ads, newspapers magazines can work if you have a timely rate to publish or a pertinent topic to cover. Can be a great form of advertising takes a bit longer than seminars but may be half as expensive in the short term. The problem is from my understanding it takes a good 6-12 months before print advertising pays off, and now you are about 2x the cost of the seminar mass mail drop program, but at least it was spread out.
So here I am at the crossroads trying to figure out which way to go.
Cheers
Now most of us have some opinions about risk in its many different forms. Most business owners run into risk every single day. In growing your business you take a lot of risks. How to market, who to hire, where to locate what name to choose, who to target, how much room is too big, get a temp or hire a permanent how much staff is too much or too little; the list is really quiet endless. One of the more troublesome things to deal with for me is the marketing aspect and spending the dollars. How much is to much for an ad? Should I use a prepackaged marketing seminar? should i try the radio, or TV? Mass mail? Cold Calling? And don't forget the internet! All of these have their cost some substantially more expensive then others but which one, or combination, is/are the right one(s) for your business.
Well they will all tell you there is the best and they will have a multitude of facts and stats to back it up and why the others will fail miserably or be so costly that you will go out of business in a month trying it. So we are at the point where there has been a good monthly inflow of cash, and we can choose to put it to work in the business hoping it will generate more cash in the form of new clients, or we pack it away for a rainy day.
The truth is I'm stuck. The PR/Marketing side of me knows that advertising and capitalizing on dollars is what we need to do. The cash poor need to pay the bills buddy side of me says put that cash in the bank and stockpile for a bit. And maybe I should try to find a way to do a little of both. The question is what avenue to spend on for advertising. Most people would agree that cold calling is about the worst return on your time. Seminar/networking gets great marks but is more costly due to the meals you feel the plate lickers. Been there done that with Radio, works but is really expensive in the short run and you have to have the cash flow to sustain it long term. TV works on a more regional level not so much so for the independent not to mention it really doesn't bring in business as much as establish your name. Again that’s another costly long term bet. Print ads, newspapers magazines can work if you have a timely rate to publish or a pertinent topic to cover. Can be a great form of advertising takes a bit longer than seminars but may be half as expensive in the short term. The problem is from my understanding it takes a good 6-12 months before print advertising pays off, and now you are about 2x the cost of the seminar mass mail drop program, but at least it was spread out.
So here I am at the crossroads trying to figure out which way to go.
Cheers
posted by Jay | 8:38 AM
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