“The management process through which goods and services move from concept to the customer. As a practice, it consists in coordination of four elements called 4P’s: (1) identification, selection, and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer’s place, and (4) development and implementation of a promotional strategy.

As a philosophy, marketing is based on thinking about the business in terms of customer needs and their satisfaction. Marketing differs from selling because (in the words of Harvard Business School’s emeritus professor of marketing Theodore C. Levitt) ‘Selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse, and satisfy customer needs.’”1
http://www.businessdictionary.com/definition/marketing.html

The essence of marketing is to understand your customers’ needs and develop a plan that meets those needs. There are four goals of marketing: acquiring more customers, persuading each customer to buy more products, persuading each customer to buy more expensive products or up selling each customer, and/or persuading each customer to buy more profitable products. All four of these areas can increase your revenue and profit, but it depends on your own business model and budget which you pursue.

There are only so many marketing resources
When it comes to your marketing strategy, keep in mind the importance of knowing your target. By taking time pitch your sales and marketing efforts to the correct niche market you will be more productive and not waste your efforts or time.

Perhaps it would be most effective for you to market by creating a well rounded program that combines sales activities with your marketing tactics. Your sales activities will not only decrease your out-of-pocket marketing expense but it also adds the value of interacting with your prospective customers and clients. This interaction will provide you with information that is priceless.

Here are a few other marketing tactics to consider:
• Participate in co-op advertising.
• Take some time to send your existing customers referrals and buying incentives.
• Tell memorable stories that provide specific and practical examples of what you have done for clients. Use real projects you completed or problems you solved. If you are new business owner, create realistic scenarios about how you would help your ideal client.
• Create a short (2-3 minutes only) and compelling video that succinctly explains your product or service. This video not only informs, but entertains and/or personalizes you and your company. This can be done quickly and easily using a camera like a flip video. Then post the video to your site and as many video sharing sites as possible. The internet is a powerful marketing leveller!

By being diligent and consistent in your marketing and by creating real value for customers your business can grow, even during challenging economic times.

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A brand reflects the perception of how your market, clients and customers, think of your business. A brand also represents the immediate tangible and intangible images, emotions, or perceptions people have when they think of you. Brands create a perception in the minds of the customers that there is no other product or service on the market that is quite like yours. A brand promises to deliver value upon which consumers and prospective purchasers can rely to be consistent over time.

Here are just a few benefits you can enjoy when you create a solid brand:
• A strong brand influences the buying decision and shapes the customer’s experience.
• Branding creates trust and an emotional attachment to your product or company that then influences your market to make decisions based, at least in part, upon emotion– not necessarily just for logical or intellectual reasons.
• A strong brand can command a premium price.
• Branding helps make purchasing decisions easier.
• A strong brand signals that you want to build customer loyalty, not just sell product.
• A strong branding campaign will also signal that you are serious about marketing and that you intend to be around for a while.
• Branding builds name recognition for your company or product.
• A brand will help you articulate your company’s values and explain why you are competing in your market.

Branding consists of three layers:
• Brand awareness is an understanding of what sets you apart from the competition.
• Strategic awareness occurs when not only does the person recognize your brand, but you have differentiated your brand in the mind of your market.
• Brand preference occurs when consumers connect emotionally with your brand, making a decision that your brand is superior to others for some reason or combination of reasons, and choosing it over competing brands.

Some branding questions to ask yourself:
• Who are the leaders in your market?
• Where is your product or service positioned?
• Who are your closest competitors?
• What so they provide that you don’t?
• What do you provide that they don’t?
• Do your customers understand your product or service well enough to be able to describe your product or service clearly?
• Do your customers understand what makes your product or service special?
• Do your customers value your product or service so much that they are willing to pay more for whatever it is that make it special?
• Do your customers feel so strongly about your brand that they are willing to defend it, even at a higher price, when it comes under attack?

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When it comes to marketing, many small businesses have trouble measuring their investment. Sure you could always advertise in the local newspaper, or hire someone in a guerilla suit to stand on a busy intersection, but how do you know if your marketing efforts are paying off? This question becomes even more important when you’re a small business with a limited marketing budget.

Small business owners increasingly want to know how they can get the most of their marketing dollars. To answer this question we look at some of the tools Google is offering to help small businesses with marketing – many are free! Here are the top 6 Google tools that can help maximize return on marketing.

1. Ad Words – Allows you to target specific keywords that will appear on the right hand side of a Google search in the sponsored links section. Your ad words will also appear on Google’s partner sites as advertisements.
Google Adwords.

2. Keywords – You want to pick key words that are specific, not overly competitive, and relevant. The Google Keyword tool gives you this information on a local, national or global basis. Google Keyword Tool

3. News and Alerts – If you want information specific to your industry set up a Google alert. These alerts email you a list of news worthy items so you always have content for your social media accounts and so you can stay on-top of your competitors and your brand. Fresh and interesting content can make you a knowledge expert in your industry and may even provide content for journalists.
Google Alerts or Google News

4. Reader – This tool helps you access various blogs in one place allowing you to easily find, read, and comment on them. By commenting on other blogs you can attract readers and get ideas for content.
Google Reader for more.

5. Places – A Google listing helps people find your business online. If you enter the right keywords, people in your area will easily be able to find you through search results. You can also add media to make your listing more interesting.
Google Places

6. Google + Button – This button not only allows users to share content from your website, but more importantly lets people promote your page in Google search results. According to a recent study by HubSpot, websites that use Google’s +1 button got 3.5 times more traffic than websites who didn’t use the button.
Google Plus

For even more information on this topic, attend one of our free small business webinars.
Source: http://www.hubspot.com/

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Last week marked the 30th celebration of Canada’s small business week. Across the country, hundreds of activities were held to showcase and support Canada’s small business sector. I had the opportunity to attend the Small Business Forum at the Metro Toronto Convention Centre. With over 100 exhibitors and 15 seminars, excitement filled the air as entrepreneurs learned about the latest products and services available to help them build their business.

I was lucky to attend a seminar by Jeff Quipp from Search Engine People on the “Tips for Better Rankings on Search Engines”. After sitting in on the seminar I realized that in today’s competitive environment, having a website is not enough. You also need your website to appear high in Google search results so people can easily find the services you offer.

Search engine optimization (SEO) helps you to do just that. To explain SEO you need to understand that Google uses a complex formula to decide where your website should appear in search results. The exact formula remains a secret, but there are two major components (in-page and off-page factors) that help determine how high on the list a website will appear.

In-page factors are basically what you say about your website and rely on keywords to help Google identify your website in search results. Keywords can be used in your: website URL, the titles and headings you use to describe each web page, the navigation links on your site and in the text on your website. If you use a standard set of keywords to describe the areas mentioned above, Google recognizes your site as more relevant to search results. The key here is to focus on choosing keywords that properly represent your business. The other thing to keep in mind is that the more content you have on your site and the more often it is updated; the more valuable your site appears to Google. Content can include website copy, videos, images, and widgets. According to Jeff, in-page factors account for approximately 30% of your page ranking.

Off-page factors refer to what other people are saying about your website and are made up of links on other websites that lead back to your site. Jeff estimates that approximately 70% of your page ranking consists of off-page content. Most of this 70% is made up of the keywords that other people use to describe your site. Are they using the same keywords as you are?

After learning about off-page content, many people wonder how they can get links. Jeff suggested that you can get more links by providing quality content on your website, or by building them on other websites. For example, you can create content by writing news releases and articles that will increase media attention. To build links you can talk to suppliers and complementary businesses about linking to your site, or you can make directory submissions. It’s important to understand that off-page content is about quality not quantity. For example, if you can get media coverage from powerful sites that end in .edu or .gov, or from popular news websites, Google sees your site as more credible.

It is often said that entrepreneurs wear many hats. As we develop our skills, wearing different hats becomes a little more comfortable. That’s why – no matter what business you’re in – it’s important to always keep learning.

For more information about SEO, attend a free webinar.
Source: Search Engine People

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Finally a platform has launched where small business owners can take advantage of corporate sized deals. Rewardli, a San Francisco based company founded by two Canadians George Favvas and JS Boulanger, launched today at TechCrunch Disrupt. The launch came with positive feedback and high hopes for the platform as more and more SMB’s recognize the benefits of group buying.

“It just doesn’t seem fair that large corporations are the ones getting bulk discounts, while small businesses can’t because of their lack of volume purchases. We launched Rewardli to help small business owners group together to receive the same sort of treatment”, says Mr. Favvas, Co-Founder.

Rewardli lets small businesses tap the buying power of their social graph by offering better deals on the products and services they need most. With 60 vendors and counting from Expedia, GoDaddy, and Priceline, Rewardli is the best way to earn cash back on the services and products small businesses buy anyway.

The browser extension adds even more opportunity to get cash back. Once installed, the user is notified when the site they are visiting is a participating vendor. The savings show up as a drop down menu that quickly dissolves to show the site. Clicking on the drop down brings you to that deal for instant savings.

Participants can even create their own groups to increase their buying power and ultimately their savings. The more people a user invites into the platform the more they all save. It’s win-win for all.

It’s free to use. Join thousands of small business owners today at www.rewardli.com.

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Order Built to Sell: Creating a Business That Can Thrive Without You this week and take advantage of the special offer.

Click here to find out more

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CYBF Newcomer Entrepreneur Program helps recent immigrants to Canada become successful business owners

Montreal, March 17, 2011– Business Development Bank of Canada (BDC) and the Canadian Youth Business Foundation (CYBF) are pleased to announce an enhanced partnership that will help young, newly arrived immigrants to Canada become successful entrepreneurs.

The CYBF Newcomer Entrepreneur Program recognizes that recent immigrants may require targeted support to start their own businesses. In addition to offering flexible financing, the program is designed to overcome the difficulty many young, newly arrived immigrants have in accessing credit because they do not have a Canadian credit history. The program also offers mentoring and business resources so newcomers can learn about operating a business in Canada and improve their chances of success. For details, please visit: www.cybf.ca/entrepreneurs/newcomer/.

“Recently arrived immigrants to Canada are among the country’s most dynamic and entrepreneurial group of individuals,” says Edmée Métivier, BDC Executive Vice President, Financing and Consulting, who also sits on the CYBF Board of Directors. “Newcomers have an acute desire to succeed and anything BDC and CYFB can do to help them start and, subsequently, operate a business is certainly worth encouraging. Entrepreneurs play a key role in ensuring Canada’s long term prosperity.”

“During the Year of the Entrepreneur, in a country deeply entrenched in the principles of multiculturalism, it’s only fitting that we partner with BDC to offer this unique opportunity to young new Canadians,” says Vivian Prokop, Chief Executive Officer, CYBF. “Our unique program directly addresses the challenges faced by newcomers and provides the critical financial, mentoring and educational support they need to succeed in the Canadian business landscape.”

Under the BDC-CYBF partnership, permanent Canadian residents between the ages of 18 and 34 can apply for up to $15,000 in financing. The CYBF Newcomer Entrepreneur Program provides residents who have lived in Canada for less than 36 months and possess a solid working knowledge of English or French with the opportunity to build sound, sustainable and profitable businesses with.

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1.) When in doubt, disclose – When setting up a business insurance policy you must insure that you disclose all relevant information about your business operations and work related history. Providing inaccurate or incomplete information could result in a claim being denied as a result of misrepresentation. The more information a broker has, the more accurate their assessment of the risk will be. This will ultimately help to insure that coverage will be provided in the event of a claim.

2.) Use your Business plan as a road map – When starting a business from scratch it is helpful to disclose the information in your business plan to your broker. Many of the questions the broker / insurance company will have can be found in a business plan. A strong business plan allows for a detailed understanding of your business and where it is going. It also helps the broker market your business to competing insurance companies and ultimately get you the most competitive rate available.

3.) Remember that your road map can change- When starting a business your direction can often change and/or expand. Adding new products and services to your core business can change how an insurance company views the risk associated with your company. It is important to update your broker of any major changes in your business so they provide accurate coverage. Take a proactive approach and review your policy with your broker on a yearly basis at the very least. This will help ensure that you and your broker are always on the same page.

4.) Count your chips before you go all in- When acquiring an existing business, it is normal for the purchaser(s) to assume they can take over the insurance policies of the seller. Generally speaking, insurance policies are not assignable. This is why it is important to do your home work ahead of time to insure that the purchase is not held up while you are scrambling to find a last minute insurance solution.

5.) Who has interest in my business? – Third parties such as landlords, clients, mortgagee or loss payee will ask for confirmation of insurance in writing. They will often require you carry certain limits of insurance. These requirements should be relayed to your broker to confirm that the appropriate coverage is put in place.

6.) Finding the right recipe- No two businesses are alike and therefore it is up to you and your broker to determine what coverage’s and limits are required to properly insure the risks associate with your company. Not only do you want to purchase insurance on your buildings and business property, but also your business income, liability protection should include protection for your products and completed operations, professional liability, vehicles, employee fidelity and so on.

7.) Finding the Value in insurance- When evaluating your property limits with your broker you must take into consideration what the cost would be to replace your building, stock, equipment, or tools in the event of a loss. It is important to review these limits on an regularl basis to make sure they meet the requirements of the co-insurance clause stated in your insurance policy. It is also important to inform your broker when new buildings, inventory, equipment are purchased so they can provide the appropriate coverage.

8.) Evaluate your options- Review your coverage and limits options available to you including important coverage’s such as business interruption, liability and umbrella options and deductible options. Identifying what types of losses that your company could withstand helps to establish which coverage’s should be purchased. Ideally you want to purchase insurance for situations that can be financially crippling not for small losses that the company can afford to absorb.

9.) Make sure your order is correct- When you receive your insurance policy make sure you take the time to review it in detail to make sure what your purchased was in fact what you ordered. Confirming the insuring agreement, exclusions, limitations and conditions within your policy helps ensure that your company is accurately covered.

10.) Finding the right teammate- It is important to find the right broker for you, one that becomes a part of your professional team. Establishing a comfort level with your broker is important. Feeling comfortable with the broker helps to foster a long term working relationship. It is also important to look at the brokers credentials. Those brokers who hold a CAIB or CIP designation have a higher level of education and expertise and are often more qualified to provide an accurate insurance solution for your business.

Thanks for reading my article. I hope you have learned something about insurance for small business and start ups. For more information about business insurance please feel free to contact me at 905-281-0042 x 153 or via email at marcussargent@argyleinsurance.ca. I look forward to working with you and hope to become a part of your professional team. Together we will find the right insurance solution for your business.

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Break-even point for a retail business

Business Operating Expenses ÷ Gross Margin % = Break-even

Example: $12,000(operating expenses) ÷ 25% (gross margin %) = $48,000 (break-even sales)

1. You need to know your break-even point for a month.
2. If your expenses go up, so does your break-even point.
3. If your Gross Margin % goes up, your break-even point comes down.
4. If your Gross Margin % comes down, your break-even point goes up.

Break-even point for a service business

Operating Expenses ÷ Hourly Charge Out Rate = Break-even point

$12,000(operating expsnses) ÷ $100(charge out rate per hour) = 120 charge out hours need to be sold to break even

1. If you sell your time, your break-even number of hours will be your monthly operating expenses (including your salary) divided by your hourly charge-out rate.
2. If your expenses go up, so does your break-even point.
3. If your charge out rate goes up, your break-even point comes down.
4. If your charge out rate falls, your break-even point goes up.

Know your numbers if you want to succeed in your own business. For free small business webinars visit: www.bizlaunch.com

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