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Marketing is an important factor in the success and growth of any business. But entrepreneurs do not sell themselves as effectively as they could. Constrained by size and budgetary concerns, small businesses often miss big opportunities to position themselves. Nancy Michaels, founder of Concord (Mass.)-based Impression Impact, helps small outfits reach bigger markets through a variety of marketing strategies -- from grassroots outreach to designing a winning business card.
BusinessWeek Online reporter Stacy Perman recently spoke with Michaels, the author of Perfecting Your Pitch and other books on marketing, about where most small businesses go wrong and how they can make the most of stretched-thin resources. Edited excerpts of their conversation follow.
Q: Why do so many entrepreneurs struggle with marketing? A: Marketing is seeing an opportunity where other people don't. Most people start a business because they like what they do. But very few people have a great sense of how to market a product or a service that they may provide. If you have a small business you have to be the voice of the company and make sales and marketing a priority.
Q: For those that do make it a priority, what's the next step? A: Many wonder if they are doing enough. I often hear clients say that their marketing is mostly word-of-mouth. But they have to be doing something first, whether that is a great job, service, or product. To generate word-of-mouth they have to be making contact with clients on a regular basis, through e-mail, direct mail, or trade publications. But ultimately you need a mix over a period of time before people understand who you are and what you are trying to do.
Q: Where do you see companies go wrong? A: Because small business owners are writing the checks, they tend not to spend on marketing when they are busy and doing well. I think that is a mistake. You never know when things might dry up. You should not be putting your eggs in one basket when you could be planting seeds.
As well, because it is our money, we seem to be cheaper with ourselves. Sometimes people call me the business-card police because I'm always criticizing business cards. But it is sometimes the first impression somebody has of your business. Having a great logo and identity says a lot. I often recommend a company called LogoWorks.com. They use professional designers who can come up with an identity for you. It's affordable and it's done online. If you have a strong identity, you have the confidence to market yourself.
Q: What holds small businesses back? A: They are not taking enough risks. They are trying to do too many things and are not delegating appropriately. They are not hiring people who are smarter than they are in certain areas and not surrounding themselves with a good team, whether that is an accountant or an attorney. Nobody can do it alone. They can start and get to a certain point, but ultimately they are going to need those resources.
Q: Does having a small businesses mean having a small marketing program? A: Not necessarily. There are ways to be creative and effective. I'm an entrepreneur too. One of the best things I ever did was to bid on a silent auction lunch with the CEO of Office Depot [Bruce Nelson] at a success strategies conference in 2002. It cost me $1,000, but I had a meeting and ended up getting Office Depot (ODP) as a client. It was the most expensive lunch I ever had, but I am now going into my third year with Office Depot and it is my largest account.
The lesson is to network. People like to do business with people that they know and trust. I then asked him to write me an endorsement letter to provide to other CEOs and I got additional clients and business. This same strategy could be applied to a dry cleaner too. Ask somebody -- a really satisfied customer of yours, who may be the editor of the local paper or the head of the chamber of commerce -- to endorse a letter that you send out. You are doing the legwork. The letter could go out to all newcomers saying, "This is a great dry cleaners" with a coupon.
I am working with a woman who does corporate office parties in Boston. She got one of her clients, a personnel company, to write an endorsement that was sent out to 25 top public relations and law firms, offering a complimentary party for 10.
Q: What are some marketing essentials? A: If you can only have two things I'd say get an identity package together and invest in this kind of marketing material. Have a Web site and a great business card that offers something of value that people will keep. I am a fan of top 10 lists. For instance, if you are a pediatrician, have a business card that on the back says three things that will keep your kids safe.
Q: If your company has reached a plateau and you want to move forward and grow, what do you suggest? A: It is important to set goals: one- to three-year goals of what you want your business to look like at the start and at the end in terms of money, sales, clients, or what. And then you begin to figure out what needs to change and you can begin to strategize about how you can reach these goals. It is often good to have an outside sounding board to go to for advice. We all get stuck sometimes.
Q: What is some of the best advice you have received? A: George Nadaff, the founder of Boston Market, is a mentor of mine, and he told me he once sold baby carriages early in his career. One thing he told me was that he used to prospect for clients looking at diapers that were hung to dry on porches. It was so easy that it made sense. Sometimes a very commonsense, practical approach is the successful one.
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