Business Information for Entrepreneurs by an Entrepreneur

Small Business Marketing Tips

It is hard to start and run a small business successfully — I should know! It is also hard to market the products and services of a small business, as there are big companies providing the same products and services under a large, well known brand name.

Because owning a small business comes with its own marketing challenges, not the least of which is competing with the big boys, I've come up with 2 key areas to concentrate on:

Advertising

The most common mistake most small business owners make is that they try to market themselves like big businesses. If you are a small business owner, you need to find out the cheapest and most affective way to market your products and services. 

TV ads may be effective, but is also expensive — so you need to find a better way. Try giving away free samples to promote your products. Issue discount coupons, have a contest or offer a 2 for 1 deal.

Customers

There are some customers who would prefer to purchase products at a cheaper cost, while there are some who would prefer good quality and are not worried about the price. That said, it is essential to know the mindset of your targeted customers.

For example, if your product is targeted to middle class customers, then the price of the product should be lower. However, if the targeted customers are affluent, then you should consider providing good product quality, regardless of the price. You can also sell your products in packaging that will make the price reasonable and provide good enough quality.  

Remember that it is easier to maintain current, loyal customers than to get new ones. Provide good after-sales service and guarantee your products.  

The Advantages of a Drop Shipping Business

If you are looking to start a small business, consider becoming a drop shipper.  Drop shipping is a method of shipping products from the manufacturer to the end-user without any involvement of a middleman like a distributor. There are various advantages of having a drop shipping business.
 
Less Capital
 
Drop shipping requires low investment in capital. You don't have to invest in stocking products. Unlike distributors, a drop shipping merchant does not have to invest in inventory. There is no fixed overhead and the cost of inventory will vary.
 
Less Expense
 
There is no problem with stocking products that will not sell. As a drop shipper, you are not bound to having to sell certain products in a specific time period. Your job is to simply pick up the product from the manufacturer and deliver it to the customer.
 
Drop shipping a product is much less expensive, as it does not involve paying a middleman. Instead of buying goods from a dealer at wholesale price, businesses can save a lot of money by using a drop shipper. 
 
Loads of Profit
 
Once you've gotten started and the business is doing well, you can expand your drop shipping business. You can sell other business' products with your existing products and services to make additional profit. You earn money from the supplier of the product or service and then you can sell the products for a higher cost to customers. This way you make a profit from both ends.
 
Easy and Flexible Work
 
The work of a drop shipper includes picking up the product from the manufacturer, packing and delivering it to the customer. You can drop ship as few as one item at a time.  
 
Having a drop shipping business can be very lucrative, with none of the headaches of a ‘traditional' business — all you have to do is get started!

Key Tactics for the Small Business Owner             

For many people, owning a business is a dream come true. The feeling of being your own boss and making the best use of your skills on your own terms can be very satisfying.

However, in addition to the advantages, there is a lot of stress involved in owning a small business.  To counter this, I've found that a little strategy can help overcome lots of difficult situations when it comes to products and customers.

Tactics for Small Business Owners   

 
• If you want to stand out from the crowd, then you will have to create a unique selling point that will attract customers to your business. The selling point should stress the benefits of doing business with you. Dramatize it, but don't over do it and keep your customers as the focal point. Keep in mind key questions like ‘why will someone buy from me and not from others?' You don't need to create a different service or product, just add a special benefit to the ones you have.
•  Use testimonials, because they can play an important role in advertising your business. What your current customers think about you and your business will matter the most to any prospective customer. A testimonial can have a positive impact on how people perceive your business. 
• Upselling can and should be used, simply because it is successful. Your existing customers should know what other great products and services you have that can augment the products they have already purchased. Focus more on the customers you have.

Get more attention through effective  headlines. There may be many instances when you have had scanned a headline in a newspaper before deciding whether you want to read an article or not. So create a headline for your business that is effective and that will compel people to read further about your product or service.

Having a small business is stressful; but by using the tips above you can ensure that your business is attractive to customers and is successful.