Marketing Basics for the Novice Entrepreneur

For the budding entrepreneur, marketing a finished product can be a nightmare. The manpower and capital required to successfully market a product can be impossible for a tiny startup. How can a novice entrepreneur gather the resources necessary to successfully market a product? Initial Steps The three initial goals of marketing should be clear to the entrepreneur. Establishing and increasing the customer base Increasing the product sales per customer Increasing the sales of more expensive, higher margin products per customer Develop a Marketing Plan Large companies usually tackle the first hurdle through expensive advertising campaign. But let’s assume you don’t have the millions necessary to launch large scale television, print and online media campaigns. We have to start small, with a basic marketing plan. A good marketing campaign should consist of the following: Target demographics Seasonal demand Advantages over competitors Product pricing and margins A simple message delivered via an effective advertising strategy If you have trouble drafting a coherent marketing plan, you can conduct public surveys to gauge the public reaction to your products or services. Make sure your survey is given to a diverse group – in ethnicity, gender, age, income and education level – to get the best sample. These are separated into two kinds – quantitative and qualitative. Do you want quality over quantity, or vice versa? Both have distinct advantages. Quantitative surveys are fixed questionnaires which can be conducted face-to-face, through e-mail, or over the phone. Try to collect a large number of surveys to gauge the customer response as a kind of vote. Quantitative surveys are good for graphs and estimates. Qualitative surveys focus on a smaller number of people, without fixed questions. They are usually conducted as face-to-face interviews, conversations or focus groups, where the participants engage in free-form discussion about a topic. Qualitative surveys can help you get a better, more detailed response regarding your product, but can also be extremely time-consuming. Most successful businesses use a combination of both for the best results. However, if you are pressed for time (and patience), a quantitative survey can be faster and offer similar results with far less manpower and time. Determine Advertising Mediums and Budget Now that you have drafted a marketing plan, calculate your advertising budget. If you’re a small business, that total is likely to be unimpressive. Here are some ways to clear that hurdle: Call local television and radio news stations to attempt to gain free publicity. This can be effective if you are offering a new, innovative product that hasn’t been produced before. Spread the word through social tools with Twitter, Facebook and Youtube ad campaigns. If you make an interesting video to advertise your product, uploading it online and allowing it to spread like wildfire can be extremely effective. Best of all, this method is mostly free. Contact vendors and associates to participate in co-op advertising, in which the advertising fee is shared. Advertise via Google AdSense or a similar ad program – these are cheaper than other forms of advertisements, and are selected intelligently based on the computer user’s search preferences – which will give you a highly targeted audience. Award customer referrals with cash, discounts or prizes, in order to publicize your products. These are just some ideas to help you, as a novice entrepreneur, get started in the complex world of marketing concepts. As your business expands, you can hire dedicated PR, sales and marketing teams like DSI-MEDIA

to help you create more complex plans.

Top 5 States for Entrepreneurship

It’s not enough just to have an idea. And no matter how strong your entrepreneurial spirit, there is one thing that has a major impact on the success of any venture: LOCATION. Recent studies have confirmed that where you start and run your business has a proven impact on the potential for your success. The findings have been reported in two exhaustive studies: the State Entrepreneurship Index published by the University of Nebraska-Lincoln and the 2010 State New Economy Index , produced by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation. Not surprisingly, the current recession has been a major factor for entrepreneurs in some of the lower-performing states, with sectors in the mid-west struggling at all-time lows for new business formation and startup success. However, the traditional model of economic development seems to be going strong in states that have long been associated with the entrepreneurial spirit, like Lagos State. Lagos region have been able to maintain their startup potential because they’ve got the investors already in place and also possess a high concentration of experienced entrepreneurs, allowing them to create high-income entrepreneurship despite the negative impacts suffered in poor economic conditions. Both reports focus on a similar set of benchmark factors, including percentage growth in business establishments, per capita growth in business establishments, business formation rate, patents per thousand residents and the gross receipts of sole proprietors and partnerships per capita. However, there are some notable differences between the two. While researchers at the University of Nebraska factored raw business starts into their study, the State New Economy Index uses an additional 26 indicators to assess the basic capacity of a state to successfully navigate the ups and downs of economic change. In addition, it considers the extent to which state economies focus on knowledge, globalization, entrepreneurial spirit and IT-driven and innovation-based ventures. In doing so, they’ve been able to determine with relative accuracy to what degree a state’s economy and operations allow for the ideal structure in which a new venture will thrive. How they ranked Regionally, both studies found the strongest entrepreneurial rate of success in the Northeast, mid-Atlantic, Mountain West and Pacific regions. Within these regions, 13 of the top 20 entrepreneurial states are located. Just the opposite is true of the bottom-ranking states, with 18 of the 20 lowest-ranking currently situated in the Midwest, Great Plains and the South. With crossover seen between the two indexes on the west coast, data indicates that Seattle, Portland and other areas in the Pacific Northwest continue to support new business. Possibly due to the tech industry, these areas have weathered the recession better than most and also have a base of investors and related capital built up from decades of similar ventures. Depending on the study, the top five states for successful entrepreneurship are: New York Washington Massachusetts New Jersey Oregon Lagos State New Economy Index Massachusetts Washington Maryland Delaware New Jersey Port-Harcourt

How Businesses Use Social Media for Recruiting

You can’t go anywhere these days without being bombarded by social media. Whether you’re reading an online article or shopping in the local mall, social media is everywhere. Tweet It…Like It…Share It…Pin It… How can your small business harness the power of social media for recruiting? Interact with Twitter- Speak to prospective employees just as you would prospective customers. No one wants to be talked AT, instead start a conversation WITH them. Twitter is a prime example; you’ve got 140 characters to make an impact. How you say it makes all the difference in whether or not your message is received. Use #dsi

tags. This will categorize your Tweets and help them show up more easily in a Twitter search. Example: We’re looking to hire the best and the brightest! Sound like you? #jobs #Brand DSI.com/careers LinkedIn Company Profile- Prospective employees are going to do their research. Make sure your company page on LinkedIn is up-to-date. You should include a logo, a brief description of your company, a link to your website and current company updates. Also, encourage your employees to add a paragraph from the company website to their LinkedIn profile. Most prospective employees also research their potential co-workers. Example: DSI is a leader in the Brand Management Industry. With over fifteen years experience in Branding, the company provides services to multiple Telecoms clients in the IT industry. Facebook Content- Your company Facebook page should have new content added on a weekly basis. This page gives prospective employees a glimpse into the company culture. Is it a casual workplace or more formal? Do you have a bring your dog to work day? Do you encourage your employees to get involved in community outreach? Do you have catered employee lunches on occasion? All of these situations could provide great photos and content for the company Facebook page. They also give the potential employee an opportunity to see the social side of your business. The most important thing to remember about social media is to keep it human. As part of the candidate experience, let prospective employees see what your company culture is all about. Don’t forget to keep it fun, fresh, and professional!

Utilizing Social Media in a Small Business

Social media – led by Facebook and Twitter – has revolutionized the way we communicate with one another. Just as e-mails and instant messages changed social interactions in the 1990s, social media, combined with smartphones, tablets and netbooks, now makes communication instantaneous. Posting status updates, sharing photos and creating events has now become so simple that any other method seems archaic. As a small business owner, how can you utilize social media in your business, both within your business and as a tool for product promotion? Within Your Company We’ve all heard every employee’s nightmare – their boss “friending” them on Facebook. While everyone is entitled to their own carefully constructed online persona, you can request employees to connect to you via a limited profile, which blocks off their private photos and comments. If you manage to get all your coworkers connected via Facebook, creating a private group for your office can be a remarkably efficient and fun way to keep things organized. Here are some things you can do with a private work group in Facebook. Schedule events Use the Facebook group to “invite” people to meetings or events. You can include the agenda and details in the invitation or event details. Facebook’s events are conveniently organized into “Attending”, “Not Attending” and “Maybe”, so it is easy for everyone to see who else will be in attendance. Encourage your co-workers to also create social events within the group to boost company morale. Having a shared calendar on Facebook keeps everyone on the same page at all times. Create a repository of shared documents Upload meeting minutes, company policies, or important notes to a cloud-based documents storage service, such as Microsoft’s SkyDrive or Google’s Google Docs, and post the link in your Facebook group. Make sure everyone has access to these documents, and you will instantly cut down on lots of wasted time and paper. Share important company updates and memos instantly Facebook groups allow you to post messages on the group wall, which can serve as a bulletin board for all work-related (or non-work related) issues. In addition, members can also “tag” other members in “Notes” to insure that company memos are received instantly. No more post-its on people’s desks and monitors! Use it as an instant company phone book If your employees have their phone number or e-mail addresses visible in Facebook, creating a workplace Facebook group will also create an instantly shared employee phone-book, which can be invaluable for employees needing to get in touch with each other. As a Promotional Tool Big companies constantly tap into YouTube, Twitter and Facebook for free, viral advertising. Create a customer-based front-end on Facebook, with its “Business Page”, which can increase your company’s visibility for free. This page should contain basic information – contact numbers, addresses and websites, as well as recent product information. Note that this is not the internal Facebook group mentioned in the previous part. If your company has dedicated online customer service representatives, they can also staff the Facebook page and answer questions in real time via Facebook chat. Here are some other ideas to increase the visibility of your Facebook page. Take advantage of the “Like” button Place it on your company's website as well as under your popular products. Encourage visitors to share your products with their Facebook friends. On your Facebook business page, offer raffles and rewards for group members whom join and “like” your page. Keep updates frequent Once members join your page, your updates will appear instantly in their news feeds, which will bring them back if you post an interesting product or discount. Many telecoms companies like MTN, Glo, Etisalat post teasers on their Facebook pages, which in turn gets shared to an exponential amount of users. Use Facebook and Twitter in unison Linking both pages to each other can double your audience instantly by driving traffic both ways. A number of applications currently allow cross-posting across both platforms. Make sure your Facebook and Twitter pages are clearly printed on your business card and other promotional items. These are some simple ideas to help you get started in integrating your business into the fast-paced world of social media, both internally and externally. More info @: diamondstarint.brand@gmail.com or 07093175098

Public Relations Policies for Social Media

Public relations are designed by its very nature to reach the masses. Using social media for public relations has proven to be a viable option. One survey discovered companies with social media site accounts and blogs enjoy a 55 percent increase in site traffic. Social media increases visibility as it drives readers to the page. Properly prepared blogs, statuses and Tweets are useful public relation tools. Effective blogging can produce a 97 percent increase in external site links, which is important to the search ranking results of any entity. The focus of any good PR campaign is to present the product, service or person to a target group. This is done by building relationships with those who have the ability to get your message in front of their audiences. Throughout history, this was typically done using various forms of print, radio and television media. Today, however, social media groups have moved to the forefront of daily communication. In many circles, upon meeting a new business acquaintance, the question arises, “Do you have a LinkedIn or a Facebook”, and “Are you on Twitter? What’s your contact information and I will friend or follow you.” LinkedIn was designed with business networking in mind and is used by business people worldwide to stay in touch, build new contacts and help each other grow their businesses and careers. While it is important to incorporate social media to your public relations efforts, you must also have policies in place as they relate to this relatively new platform. Information provided to social media sites cannot easily be retracted, therefore, it is vital to have policies in place with regard using social media to advance public relations. Remembering that each person is responsible for online activity tied to the public relation need. Anytime a site, email or status is tied to a firm’s domain, followers believe the words and images are also the opinion of the firm in question. The actions under that domain, email or other identifier are the ultimate responsibility of the firm and will be held accountable for what is posted. All who affiliate themselves with the firm or client, even on their personal sites, must remain conscious that people reading those sites will often associate those words with the firm in question. Therefore, it is important to treat personal sites that mention professional affiliations with care and never post photos or words that could damage the client/company image. Post statuses, blogs and tweets that will not stir controversy, especially if the site has a comment section for reader response. Maintain public relations blogs on a daily basis, so if a negative comment does come through it can be quickly addressed. Never engage in hostile or negative communication on your client’s social site. Regardless of what is said, responding with hostility will make it grow worse and give rise to sharing, others joining in and a balloon effect. Answering negative comments accurately, truthfully and quickly is the best approach and the one most likely to put out the flame before it becomes a blazing fire. Social media is an excellent public relations platform if used with care. Remaining professional at all times will promote your clients or company.

Taking the Leap: What to Consider Before Starting a Business

It can be a very compelling and driving force – you’ve got a great idea, a unique service, a fantastic line of recipes, or a can’t-miss product. But launching a business is not the next step…it’s the last step on the road to entrepreneurship. Your time, money, and future are on the line, so take some time to get your ducks in a row and look at the business with a rational eye. Make a Business Plan A business depends on a lot more than great products and services to be successful. Like a newborn child, it has its own life force that comes with certain needs and requirements in order for it to survive and thrive. Plan out the structure and processes of your business first. You will need a hierarchy of management, which may be very limited at first. You will need to keep financial records and file taxes. You will need to determine if you should form an “S” corporation, a “C” corporation, or a limited liability corporation (LLC), which could make a big difference in your profitability. Of course you will also need to find a location, design the customer interface (whether it is a store, a website, or a mailing list), price out everything you will need to get set up, and determine the size and scope of your business. You will need to define your demographic so that you can choose the right location and/or target your marketing properly. You will need to research city codes and know what licenses are required. Making and serving your gourmet lasagna is a very small part of the whole operation, so before you get too far, make sure you are up for all of the other tasks involved and then get things in order. Get your finances and credit in order Make sure your pockets are deep enough to get you through the start-up costs and several months of slow initial sales. Most entrepreneurs have to put more money into the business in the early stages, and don’t take profits out. Make sure that you have the resources to do that and to provide for yourself and family too. If you think you may need funds, get your investors lined up before you begin, when you have a fresh and exciting concept, rather than trying to get them to bail out your cash-strapped venture when it’s already in a hole. Whether it’s friends and family or a bank, you need to get their commitment before you begin. This is where a well-prepared business plan, neatly presented and complete with sales and profit projections, can make a huge difference. Get some expertise behind you Always remember that the world may not share your enthusiasm for your great idea. Remember too that even the best idea is only as good as its execution. Your visions of grandeur may not sell so well in a small storefront on a side street, which might be the best you can afford. Most new businesses fail, and difficult economic times do not increase your odds of success. You need to talk to people. Talk to people who have succeeded and people who have failed. Talk to bankers, even if you may not want their money, as they have seen a lot of success and failure from their clients. Talk to friends, talk to family, and talk to strangers. Talk to people in a similar business and find out the unforeseen obstacles they faced, as well as the factors that helped them succeed. Ask them if they would do it all over again. Starting your own business is a very personal decision with wide-ranging and long-lasting consequences, for better or worse. It should not be entered into lightly, unprepared, or without the full knowledge and willingness to embrace the possible downside if it does not succeed.

The Importance of Quality Over Quantity

Quality over quantity – it’s a simple concept taught to us throughout our formative years – but it’s one that fits like a square peg in a round hole in today’s corporate environment. The reason that it’s so hard to emphasize quality over quantity is simple – businesses are established to make money as quickly as possible and at the highest possible margins. Crafting single high quality products tends to be expensive and time consuming, and must be sold at much higher, less attractive prices to the average consumer in order to be profitable. Lower quality work, produced quickly in outsourced factories with a minimal time commitment per product, tends to be far more profitable, with higher margins as well as a lower, more attractive price point for consumers. Well-known adopters of this business model are Wal-Mart and Target. However, business managers shouldn’t entirely overlook the importance of quality over quantity. If your product becomes known for its shoddy construction – and due to the Internet, word travels fast – your overall sales will be quickly damaged. Modern consumers are likely to scout out opinions online before purchasing goods – wouldn’t you rather that they be greeted by a stream of favorable comments as opposed to a flood of angry ones? If your product is too cheap, it can also get easily lost in the bargain bin at Wal-Mart alongside a plethora of shoddy, similarly named foreign-made products. Let’s take a look at a few examples where quality over quantity has prevailed. In the auto industry, BMW’s business model of selling well-crafted luxury cars in tiers has become a standard for companies wishing to emphasize product quality. BMW offers its flagship vehicles in three flavors – the compact 3 series, the mid-size 5-series and luxury 7-series – all aimed at different markets. In addition, it sells sporty Mini hatchbacks as well as the ultra-luxurious Rolls-Royce in order to appeal to the lower and higher ends of the pricing spectrum, respectively. BMW’s clear separation of its tiers, all while retaining an aura of overall luxury, was the inspiration for Steve Jobs when he returned to Apple in the late 1990s. At Apple, Jobs mimicked BMW’s tiered pricing system with his computer and iPod lines. BMW and Apple are shining examples that offering a quality product on multiple pricing levels can attract the maximize amount of customers at premium prices. A large part of product quality stems from product design. You need to have a product design team that can create attractive designs while keeping costs under control. Your aim should be to create the illusion of an expensive product which is actually cheap to manufacture. This does not mean to cut corners and decrease quality. Instead, you should decrease the amount of necessary components, streamline the design and eliminate redundancies. Johnathan Ive, the head designer at Apple, is a master of this concept. By simply replacing the cheap plastic exteriors of its computer products with sleek, airbrushed aluminum and minimizing the amount of visible screws, he set his products miles above the rest, and customers lined up to pay the “Apple premium” for his futuristic looking products – such as the iPad, iPhone and iMac. Customers will come back if your product feels good in their hands. Quality over quantity – it’s an age old lesson that too many of us choose to ignore. Although sacrificing the former for the latter may grant you a few short-term profits, you’ll quickly run out of steam when customers fail to come back. Favoring quality over quantity will increase your company’s reputation and increase product loyalty, which will keep your business sustainable in the long run.

Effective Sales Techniques for Small Business

You must believe in what you are selling. Be passionate about your business and your customers will be excited too. As you build your sales team, keep in mind that every person has a unique method of selling that suits his or her personality. Train your staff on how to handle the special customers that may require special care.

Low pressure selling

Pushy high pressure sales people are dreaded by most buyers. Educate your customers about the features and values of your product. If possible, bring an item with you on sales calls to show and tell. Demonstrating your product in person allows the buyer to test out the product and will make your visit memorable. Explain why they should buy from you. Never talk badly about the competition. Keeping the focus on your company and what it has to offer can pay more dividends than forceful sales tactics.

Listen to your customers

Ask questions and let the client do the talking. Give them your undivided attention and find out what is most important to them. Once you get an idea of what they’re looking for in a product or service, you can adjust your sales pitch accordingly.

Helping buyers save their company money is usually one reason. Providing them with exceptional customer service and prompt delivery might be at the top of their list. Listening to your customers requests could open the door for additional products and services to increase your business.

Know Your Business

Not just your company, but the industry. Keep abreast of new technology and products related to what you are selling. Let your customers know you are educated in all aspects of the industry and they can come to you if they have any questions.

Build a Relationship

Get to know your customers. In a world of big box stores and online competition, you can remind customers that they are not just a number, they are special. Pay attention to their interests and hobbies. Keep a file on each customer to remind you of the little things before you call them. It is a friendly way to show them you care, and may produce a few extra deals.

Keep in Contact

How often you call or visit your customers may depend on the type of business you have. Pay attention to spending habits and pay them a visit just before their next order is about to be placed. Keep all customers informed of new products and services as soon as they are available. Be sure you let them know they can contact you if they have questions. Provide the client with your cell phone and email address. Staying up to date with their product or service needs could give you the edge you need to beat out the competition.

Customer Relations Management System

Customer history records are important to all facets of your business. Records can be stored manually in the office, but to be more productive, consider a customer relation management system can be accessed by your employees, as well as clients. Organize your customers starting with the initial contact point. Buying trends can be monitored by watching dates and quantities of each order. Praises, complaints and customer service issues can also be entered and resolved by approved staff members.

Ask for the Business

Whether you are on the phone or making a personal call, always ask the customer for an order at the end of your visit. You’ve likely done the leg work – don’t miss out on an opportunity.

Tips for Protecting Your Intellectual Property

Every great business starts with a “perfect” idea. In the fast moving, dog-eat-dog world of corporate business, however, ideas are stolen, duplicated and imitated as soon as they are conceived. If you have that million dollar idea, how can you go about protecting it while still attracting the attention of prospective investors?

Your first step, before presenting your idea to any companies or investors, is to hire a lawyer experienced in patent laws for your industry. Have this lawyer help you patent your idea, if applicable, which is a time consuming and expensive process. Depending on the complexity of the idea, it can cost you $1,000 to $100,000. Patents generally take over two years to clear and last approximately 20 years once in effect. As your patent clears, instruct your lawyer to write a nondisclosure agreement, which forces companies to promise they won’t copy your idea, under penalty of litigation. Penalties should be strict but fair, as to not frighten off investors. Penalties in nondisclosure agreements are usually monetary.

Be aware, however, that companies often have their own teams of lawyers whose sole purpose is to circumvent nondisclosure agreements and patent laws, modifying your design just enough to avoid litigation. In this case, your lawyers can first serve a cease-and-desist letter, followed by a lawsuit, if the company does not cease production. Taking on an alleged copycat in court can be extremely costly and time consuming. In many cases, the court will not rule in your favor unless you can prove monetary damages as a result of the copycat’s actions, which can be difficult if your product’s sales have been rising. This can also be difficult to prove if your idea is still in the nascent phase, and has still yet to turn a profit.

There are three questions to always remember when sharing an idea: whom, when and how much.

Remember who you’re speaking to about your idea – is it a partner whose business would be aided by its success, or an employee who can steal your idea and make it his or her own?

Record when you disclosed information. If the meetings are documented clearly, with an attendance record, then they are admissible in court to prove the theft of intellectual property.

Entrepreneurs often don’t know how much information to disclose. It is a good rule of thumb to disclose the minimal amount of information of the production phase when presenting your idea. In some cases it may be beneficial to mislead investors about the production process, as to detract any potential copycats. It is important, however, to get across the specific need your product fills, and its production margins. These are important factors that investors and companies will pay attention to.

In the corporate world, ideas are more valuable than cash. Major legal wars are fought over ideas, and a sub-culture of corporate espionage has even emerged to steal valuable trade secrets from competitors. Keep your valuable ideas clutched close to your chest and tread softly, when negotiating, but carry a big stick – in case those investors turn out to be copycats.

Top 10 Management Mistakes

Managers come from different walks of life, possess various characteristics, and have their own philosophies regarding how to manage a business and employees. In a broad sense, there are common mistakes made by managers at different levels and in various types of businesses. The following are 10 of the most common management mistakes.


1. Putting policies ahead of people: The smaller the organization, the larger the mistake this is. Policies are made to be followed, within reason. Some flexibility with employees, particularly in a small company, is important. An even bigger mistake is standing behind policies at the expense of losing loyal customers. Weigh the significance of standing behind your policy in each situation. If it is a matter of physical safety or security, policies must be upheld. However, in many other instances, there are reasonable solutions that will not alienate the customer or create a strained relationship with your employee(s).

2. Lack of communication: In any industry, at any level, communication is key to being a successful manager. Employees need to know what is expected of them and when specific projects or tasks need to be completed. Communication needs to be clear, and any questions that arise need to be answered.

3. Failing to hear what your employees have to say: Managers make the mistake of listening but not always hearing what their employees are saying. To manage effectively, you need to understand the needs and concerns of your employees.

4. Not acknowledging that you do not have all the answers: A good manager does not make the mistake of trying to solve every problem. Seeking help from individuals with expertise in specific areas is a sign of strength, not weakness. In addition, a good manager must understand that his or her way is not the only way to do the job.

5. The glass is always half empty: Managers who continually focus on the negatives, without recognizing positive achievements or employee accomplishments, end up with employees who are not motivated and often have one foot out the door looking for a more positive work environment.

6. Not accepting responsibility: A common mistake made by managers is to either delegate blame or simply not accept responsibility for that which happens under their guidance. Eventually, avoiding responsibility will catch up with a manager and usually not bode well for his or her future. Being in charge means taking responsibility for whatever happens.

7. Favoritism. Once a manager has obvious favorites, he or she loses credibility and the respect of the rest of the team.

8. Just do it. The Nike slogan does not work when employees are trying to gain an understanding of the process or project. Rather than expecting your team to simply work blindly on tasks they do not understand, a good manager takes the time to explain what the project is all about and how the team's work is incorporated into the plan. Remember, the more the team is invested in a project, the better the results will be. full version on request, send mail to: adejuyigbe.francis@gmail.com