Essential business tips

One of the biggest issues that face many business owners when it comes time to list and sell their business is whether they should continue, change or even stop their advertising.  This article provides a guideline of an effective marketing ‘exit strategy’ for your business.
 

Firstly let’s set the record straight.  A prospective buyer not only wants to see good books they want to see an active, thriving business with a steady flow of customers and a solid CRM (Customer Relationship Marketing) platform.  So never underestimate the importance of maintaining your marketing and advertising activity, in some shape or form, to ensure you don’t wind down your business prematurely prior to sale.  The question is not whether you should advertise but how could you go about it that is the key.

The first step, once you’ve made a decision to sell your business, is to assess your current marketing campaign and to consider if and how it should change to suit.  In reviewing your marketing, always start by answering these 6 key questions to ensure whatever marketing you’re doing, it is as effective as possible:
 

1. What is your key product or service benefit?
2. Who is your target market?
3. What type of media mix will be most effective in reaching the majority of your target market?
4. What is the key message you want to communicate to this target market?
5. What advertising style will best suit your products and/or services?
6. How can you reach the most people, have the most compelling first impression and get the most likely response for your advertising dollar?

Even though you’re about to sell your business it may be in your interest to get some assistance in answering these questions.  This isn’t a sales pitch – but a fact.  Research always pays off, whether you’re seeking advice from your Doctor, Dentist, Mechanic, Accountant or Marketing Specialist at least you know you are talking to someone who understands their area of specialty better than you and can give you the best advice to help you move forward.
 

It is important, especially now that you’re selling your business that any advertising you do generates sufficient sales to justify the costs of the campaign, so it’s crucial that you employ some sound strategy in compiling your campaign. 
 

Getting a little creative with your marketing is also a wise move at this time especially if you can maintain your marketing presence but reduce the cost of your advertising budget.  Many of the traditional mainstream advertising platforms remain inherently expensive but thanks to technology these days there are many other fantastic and more cost effective ways for you to get your message out there in front of your target market.  Social Media is an excellent example of this.  Many businesses have spent very little and had great results utilising Social Media.  The key benefits of this communication platform is that it’s cheap and quick to set up and run, it’s immediate and more and more people are using it. 
 

Whilst many business owners remain a little wary of Social Media it’s generally from a lack of understanding and appreciation of how this medium can work for their business.  More and more brands are using FaceBook, LinkedIn, Twitter and YouTube to connect with and influence their customers.  Research shows only 14% of people trust advertisements yet 78% trust the recommendations of their peers and at the very heart of Social Media is its ability to influence consumer behaviour and to encourage peer recommendations.
 

PR is another communication strategy that many business owners fail to utilise fully.  PR takes time and effort but the rewards can be immense.  If you can get editorial space in newspapers, online, on television, radio or in print about your product and/or services this is a powerful tactic for your brand.  PR, like social media, has the power to influence consumer behaviour, often without the consumer even being aware of it. 

Both PR and Social Media are two excellent means whereby you can also build your brand’s reputation and equity – both of these can actually translate into increasing the value of your business.  What many business owners fail to remember is that it’s not just the tangibles of a business that contribute to its value.  How a brand is perceived in the market place, how it is valued and how appealing it is to its target market all add to the overall value of a brand and effective advertising and marketing have the power directly affect this.

Want to discuss this further?  Call us or email Brand Startegist Sally Cooke on sally@tuskany.co.nz