With the tough economy we have a lot of new entrepreneurs starting up. Many worked for other people and are getting their first taste of how business really works.
I highly recommend reading The E-Myth by Michael Gerber, which spells out the difference between a business and a job.
We’ve been getting a lot of “beginner” questions lately- and so I thought I’d share some answers:
As to the question in the title of this post- just having a website doesn’t bring customers anymore than having a business on a side street. You still need to advertise, marker, or beat a drum. Building a reputation requires continuous action and reaction.
SEO be damned- even turning up first on Google isn’t anymore of a strategy than being listed first in the yellow pages- even if your name is really “Aardvark.” Although turning up in Google somewhere is mandatory- but, a quick trip to places.google.com can solve that.
“I want to buy a bunch of email addresses and send out a newsletter to get them to my website so they’ll buy.” Sure- and what do you do with e-mail that comes from strangers? Do you read it all?
“Call the paper and find out why they didn’t write a story about my new business.” Right now newspapers are having a hard enough time writing real news- and getting people to read it. Some have a “press release submission” page on their site- and post everything. When was the last time you went and read it?
“My prices are the best in the {pick one: City, State, Nation, Continent, Planet, Universe} why aren’t people buying from me?” If you are planning on using price as your main marketing tool, get out of business now. It’s hard enough competing with price comparisons a google click away.
Here are some bits of wisdom for all new entrepreneurs:
- People do business with people they like. Do thinks that make friends- online and offline, and then work like hell to get your friends to talk well of you.
- Trust is the most important currency in business today, don’t play games with prices, people, or promotion. Mean what you say- stick to your word and under-promise and over deliver and you’ll be fine.
- Branding does matter. If people are going to talk about you- they need a name to talk about. If we print it on a t-shirt for our employees- will customers want to buy the shirt from you to wear around town? That’s the quick way of figuring out if you have a brand people like- or not.
- In this economy there are no “safe” moves. Don’t do things like your competition- do things that make them want to be like you. Being flamboyant is cool again- be it with constant self-promotion via social media like Twitter, YouTube, Facebook- or, driving a billboard. Don’t be shy- it’s not going to get your name out there.
- As a warning- many of you will find that working for someone else isn’t the same as working for yourself, you thought you got rid of your old boss- now every customer is now your boss. The idea that when you own your own business you can take a half day off anytime you want- the correct answer is which half, the first 12 hours or the second 12. Young businesses are like babies- they need a lot of attention.
- Banks aren’t lending like they used to. Be warned, credit cards aren’t your friends. Learn quickly the value of cash- and never forget it. It’s probably the least pushed part of small business accounting in business school- but, cash is king- you heard it here first. With cash- drive a super-hard bargain every chance you get- and try to get your vendors to finance as much of your business as possible- then they have a real stake in if you will succeed or not.
And if you still are wondering where the customers are- you can always call a good ad agency who can help you find them and deliver your core message. We’re available btw.
Excellent insight David. Points well made, and more importantly points that all “web entrepreneurs” should carefully consider. Making friends with your customers is good, to a point. When customers BECOME your competition, mainly through imitation, then there’s a problem, especially in a small market. Twitter followers are fine. FB “friends” should be selected with an eye on that potential problem. Another problem with so much social media is when all sorts of people start running numbers on you, with the “well, if he can afford that, then he or she can afford . . . blah, blah, blah.” Not good. Self-promote, most definitely, but exercise caution.