Monday, July 4, 2016

I'm getting ready to open a store

Subject: I'm getting ready to open a store Author: Fanci

I'm getting ready to open a furniture & home accessory consignment shop. I have approx. $7000 of which I need to use to purchase some items for a variety and the rest will be working capital such as lease, utilities deposits, etc. At the moment I've located two buildings 1) approx. 1600sq.ft @ $675/mo. 2)the second is 6,000sq.ft @$2000/mo. They both have the traffic pattern that I like. The first (because of the lower rent) seems appealing because it's in the heart of a town that is being revitalized and there are
several shops I feel are good drawing cards. They would also be ideal to do co-op advertising with.

The second location is appealing due to the space. I could grow first of all, without moving. Secondly, I have an idea that I may offer 90 day lay-a-way and I'd have space to block off for such. My question I guess, Is it feasible to plunk out $2000. plus the extras for the larger space?

Thanks so much for your time.

Fanci

Hi Fanci:

Thank you for sending me your questions. This turned out to be a long letter of free advice. Just think how much I'd write if you're a client.

A basic tenet is - Don't ask a question, if you can't cope with the answer.
;^) My corollary is - Don't ask me a question if you can't cope with reading long answers. 8-)

Please realize my questions & statements are NOT meant to dissuade you. I want to persuade you to consider these issues so you'll be prepared.

Retailers & consultants should work together to prepare for, solve or mitigate problems. To fully serve clients, consultants need to be aware of issues to avoid as many problems as possible.

Worry & fear cause more trouble & aggravate current problems. Even awareness without action can be better than being negatively surprised.

Sometimes, some people think I over-think issues. I might think they're right - sometimes.
Some issues below are applicable only in a few situations.

Iterative Preparation

As you notice legal, consumption & economic changes, you can determine how conditions compare with your expectations & preparations. This will indicate which direction you need to iterate toward.

By knowing what to expect, you can iterate toward a compatible result. If you don't know what to expect, you'd probably have to make big, costly - disruptive - changes.

Some of these issues are long-term considerations calling for consistent preparation.

In effect, you can set up a plan - itinerary, so you'll be where you need to be at opportune times.

This part covers some external issues.

First, Some Benefits and Limitations Of Location

"You see, but you do not observe. The distinction is clear." Sherlock Holmes Quote from "A Scandal in Bohemia".

If your store is in a high traffic area, it can get a lot of peripheral visibility (in people's peripheral vision), but it doesn't guarantee significant exposure (not enough to make a meaningful impression).

That's obvious, yet retailers tend to think potential visibility is actual visibility. It's a bad assumption.

People are very distracted - consider how much people talk & text while they walk or drive.
Unless your store is their destination, they aren't in your neighborhood to buy from you.

You could use methods to attract them if their destinations would be near your store & especially if their activity is related to what you offer.

You'll need a good sign & window displays to get the attention you'll need.

Too many retailers have bland window displays. It's possible to push the envelope of interesting visibility without being offensive. You can probably find good ideas from other sources or hire a display designer.

You need to focus mostly on people who currently or soon will need/want what you offer. If people don't currently need/want what you offer, they don't need to be aware of your store.

Building long-term awareness won't keep you in business long enough to serve people more than a year from now. By then, if you're still in business, you might stock different merchandise anyway.

Could Be A Bad Sign

What are the signage laws for each location you're considering?

Sign regulations can include sizes & placements.

It's also good to be aware of precedents, proposed laws & petitions.

Depending on local laws, some business owners have bigger signs or positions than they're allowed to have legally, so they pay small fines each month. Those business owners consider the monthly fines to be a cost of doing business.

Be sure to get legal information from somebody who has authoritative knowledge in the matter.

Some city governments may require a sign to be taken down. In those cases, there are harsh penalties not small fines.

A city employee might show you the exact laws. You should get copies of all laws & be sure you understand them.

A sign maker should know about sign regulations, but you should also consult a lawyer about this & other issues.

It's like that with marketing laws. I know what the general laws are, but some business categories have more specialized laws. Since I'm not a lawyer, I won't guarantee full legal compliance. I work based on current information, some of which comes from clients, or I'd have to charge more to get information my clients should already have anyway.

I won't give legal advice except to advise consulting with a lawyer.

Though you can probably get copies of laws from government legislative web sites, attorneys are apt to know which search terms to use. Attorneys should also know how to interpret laws to determine which are applicable to clients.

Under Construction

What has been/is planned in the city/cities you're considering?

The city where I live had some streets reconstructed. It disrupted some businesses.

Beware: If a street is part of a county/state highway (like here) the county/state may decide to reconstruct the highway even if some citizens oppose the plan.

Street designers were sent to talk to us & get our input. They told us about budgets, what to expect & how they were limited since some citizens wanted things that would conflict with what other citizens wanted.

They advised local businesses about having appropriate back doors or alternate street access. When streets are torn up in front of those stores, customers should get into them.

Depending on particular situations, emergency exits could be used as temporary entrances. But emergency exits aren't always optimal as entrances.

Even if stores are equipped with back doors for emergencies, disabled people could have trouble entering. In an emergency, somebody would probably hold a door open so people can quickly leave.

It probably isn't practical for a small store to have somebody watching constantly for people who might want to enter. If disabled people can reach a well-displayed door bell button, they can signal their intentions.

In some places, this could fail legal requirements.

Emergency exits probably aren't near convenient parking spaces, especially for disabled people.

There might be other barriers. Is there a river or something else that blocks access to the backs of these locations?

Our retailers survived. Construction was done quickly since a drought prevented rain delays.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Part 2

This part presents some issues for retailers in general also.

What kind of insurance coverage will you have for the inventory?

How will the actions (or lack) of building owners affect your liability & business property coverages?

Which actions (or neglected problems) of building owners should you report to the insurance company covering your business?

How would product owners be reimbursed if you aren't healthy enough to run your business?

It may seem strange for a marketing consultant to ask these questions. I'm not asking you to answer for me, you should answer many of these questions for yourself.

You should be ready to deal with as many of these issues (below) as are applicable to your store.

What About ...
... Choosing Inventory & Selling Enough To Cover Expenses?

Will all of your inventory be owned by others or will you buy some inventory?

Will you check furniture in people's homes (so they don't have to haul something you don't accept)? Or will you only check furniture at your store?

Considering space & money, how much inventory can you afford to have?

Will you offer only firm prices, 'or-best-offer' or both - depending on particular products?

How will you determine if it's time to break-even on a product or possibly accept less than a consignee expects you to pay him/her?

If you have enough inventory (but not enough space & money), but get an offer for some great inventory, how will you determine what to do? Could you afford to get a loan? Would you use barter?

Depending on your cash flow & financial needs, how much sales revenue will/do you need per square foot?

Some fixed costs might be almost the same in either building you're considering for your store. Depending on the building condition, heating & maintenance of a bigger space will probably cost more.

How likely are you to get enough sales revenue per square foot (or whatever your main metric is/will be)?

If you need more inventory despite your 'wanted-to-buy' ads, will you go to rummage/yard/garage sales?

If you do it, will you have to adjust your personal & professional schedules?

Will you have a staff &/or partner to share your work load?

... Old, Unsold Inventory?

If a consignee brings in a furniture set, will you ask if the set (not individual pieces) will be sold together only?

Who will have final discretion over how & when to sell products?

Will you have a time limit on how long you'll keep a piece of furniture before you call the owner to pick it up?

Example - After displaying a product for 3 months, you might want to use the space for things people might be more apt to buy.

Where would you put the furniture, if nobody picks it up in cases like these? Without being overbearing, you'll need a strong, clearly worded contract to detail what you're entitled to do in cases like these.

Will you charge for storage of unclaimed, unsold inventory?

Would you haul unsold inventory back to the owners?

If consignees move & list a faraway address (for payments you send), how would you deal with what remains unsold?

What will you do if mail is returned as undeliverable (especially if it contains checks you've sent to pay consignees)?

How will you document your communication (& attempts)?

How extensive do you need your consignment agreements to be?

What kind of restrictions are you willing to put on yourself?

Depending on what you require of yourself, people might be more comfortable with you.

How many terms & conditions will people tolerate? (Have you ever read the many pages of terms & conditions for software?) If people feel forced to agree to the terms & conditions, they might be resentful.

Always Some Legal Considerations

Will you limit the item values to avoid expensive litigation & so any legal hassles would be handled by arbitration or small claims court?

After people dispose of items, especially when they try consignment, they might resent a requirement to take items back.

It might depend which they want more - money from selling items or to be rid of items.

Who will be authorized to reclaim products or receive payments? Example - If I'd consign things from my parents' estate, my siblings could want an unsold item or the money. If they're frustrated with me & I may tell them to handle the estate. They could try to claim whatever they can.

You should consider what to require of people to receive the items or money. Would you expect the original consignment agreement or receipt? What would you require for identification?

Will you charge for delivery to buyers? People might pay (full or down payment) for furniture & choose to pick up it later. How long will you hold sold products for them? What if they don't claim it in that time?

Where/how will you keep that money - as cash or deposited in a financial institution?

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Wednesday, June 29, 2016

Keeping the High Profit Customer. Dump Difficult People

Subject: Keeping the High Profit Customer. Dump Difficult People. Author: Woody

Your right Dennis, Every year or so We CLEAN HOUSE that's what we call it anyway. Once we stop making profit on a customer we have to let them go. This hurts the cash-flow for the short term but it works. if a customer spends 500 a month but has hammered you down to cost or near cost why bother! Let them shop elsewhere and put them out of business.

Subject: Re: Keeping the High Profit Customer. Dump Difficult People Author: Dennis S. Vogel

In reply to: Woody 's message, "Keeping the High Profit Customer"

Hi Woody:

That's a good insight.

Thank you for posting it.

How do you do it?

Do you just stop calling them or take them off of your mailing list?

Do you let them know that they're not welcomed anymore?

Do you refer them to competitors?

Or do you do it another way?

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

In reply to: Dennis S. Vogel 's message, "Re: Keeping the High Profit Customer"  Author: Woody

Just charge Top Dollar plus Tax. No Discounts!!!!!No Price breaks at all.. They will run out of your shop to the guy down the street who is happy to sell to them at cost or below just to buy their business. Not only do you get rid of these low price only shoppers but the compeition will fold in a year or so. Treat your good customers like Royalty because they are. Some old faces have been stopping by the shop lately so on the way home tonight l stopped to SPY on the Low priced shop down the road. The store is empty and up for lease. Poor guy priced himself out of business:( ............ Woody

Subject: Re: Keeping the High Profit Customer. Dump Difficult People Author: Dennis S. Vogel

In reply to: Woody 's message, "Keeping the High Profit Customer"

Hi Woody,

Thank you for answering.
People seem to think they can start successful businesses by copying what others do. They might use low prices despite their high cost structures.

Because they notice what a successful store stocks, novices might stock too much or the wrong kind of inventory.

Since big retailers seem to attract "everybody", novices think they can do it successfully too.

There will always be differences between what successful businesses do & what outsiders observe.

The effects can be similar to a patient's body rejecting a transplanted organ.

Some case studies are valuable, but business owners should realize every situation will always have unnoticed & unreported factors. The combined effects of a few minor factors can make major differences.

Before a "best practice" or full case study is implemented in a different situation, there are unnoticed - or seemingly unimportant - factors in that situation.

Without optimal tactics & strategies, any combination of differences can lead to failure.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/




Saturday, June 25, 2016

Setting Your Market Niche's Buying Criteria Will Make You More Successful Than Your Competitors


Subject: Setting Your Market Niche's Buying Criteria Will Make You More Successful Than Your Competitors Author:Dennis S. Vogel

Why should anybody buy something from you instead of from a competitor?

Whatever that reason(s) is/are won't make a difference (won't do you any good) if they're not presented logically, with emotional appeal, to your target market.

If you have a mobile oil change service, here's something that will help you. If you have a different business, then adapt this.

1) What's the biggest benefit you offer?
2) Why is it such a big benefit (compared to other alternative products/services)?
3) Why is it more important to a certain group of people than to others?

Let's say your prospects are very busy and distracted, so they have a hard time remembering appointments. Also, when their work shifts are over, there's a lot of traffic, they're tired and just want to get home and rest. But they've driven their cars more than 3,000 miles since they had the oil changed.

They can set up an appointment with you, up to a month in advance. (When they have an accurate estimate how many miles they'll drive.) You'll call them the previous day to confirm your appointment, you'll already have the vehicle's description and license plate number, so you'll want to be sure you have a good idea where their vehicle will be at the appointed time.

So, knowing all that, let's set your market niche's buying criteria so you can reach and catch the attention of others like them. Their buying criteria is something they'll identify with and use when they consider what to buy or even whether or not buy anything.

"You work 8 or more hours per day. After work and on days off, you're tired and still too busy to fight traffic just to bring your vehicle to an oil change service. That's why ABC Mobile Oil Change comes to you and your vehicle.

"Your vehicle is too valuable to neglect oil changes, and your time is too valuable to use it driving to a service station.

"ABC Mobile Oil Change saves your vehicle and your time. Call ###-#### for time and energy saving details today before you drive too many more miles."

That's how to do it. It seems simple and maybe even simplistic, but it can make the difference between thousands of people picking you or your competitors. It's literally that important.

An added note- you should send them or leave a reminder card or magnet for their next oil change (what the mileage will be when another change is needed).

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Subject: My big competitors sell the same brands Author: Cassandra

My major competitors sell the same brands. Their store brands are just like the private label products I sell.

How can I set or reset the buying criteria, when it's already set - DISCOUNT prices?

Subject: Re: My big competitors sell the same brands Author:Dennis S. Vogel

Hi Cassandra:

Brands are important to some people and others will buy whatever is less expensive. There are other things that matter to people also.

I don't what kind of business you have, so let's concentrate on your location and what could be important about it.

Some of your competitors are probably further away from your prospective customers than you are. So you may be able to save people time and hassle in traffic.

If you have a ground level store with one floor and your competitors have stairs or slow elevators, shopping at your store may be more convenient. Especially if you have products that appeal to people with joint pain (especially in their knees).

I don't mean to be sexist but let's try this. Other males and I tend to go into a store commando-style. We go in, get the mission done, then we get out quickly.

Some women tend to browse as they shop. That's the experience they want. I'm not judging them.

Do you have your store set up in a way that makes it easy to shop quickly? Or is it set up for browsing?

Is on one floor? The ground floor?

Are your competitors in the middle of a business district while your store is near a residential area?

NOTE- Don't think that if your store has been there for 20 years that everybody knows and remembers it's there. They don't. They don't own it so they think about many other things that don't include your store.

Don't think that just because you advertise your message is received. It may not be understood. It may not be compelling to prospects. You may think it's great because it pushes your hot buttons, but you're not your market niche.

Let's try this buying criteria. I'm writing this in a way that I hope will appeal to some people, but it hasn't been tested. (You can adapt it to your business and test it for effectiveness. Please read my posts about testing for an explanation.)

"In between working and your time off at home is your life as a commuter. You want to get home and enjoy the rest you deserve. But there are things you need at home.

"When you're on your way home from work, you're tired & possibly frustrated. You're not in the mood to shop. At Life's Necessities, you can shop quickly because everything is easy to find & reach.

"The store is on one floor, you don't have to climb stairs or wait for elevators. We've even timed some typical customers who agreed to test our system. Most of them were able to complete their usual shopping in 20 minutes. They told us that they're able to get to the store within 10 minutes from when they leave work. They get home five minutes after they leave the store.

"Your situation may be different, but it probably won't take you much more than 35 minutes to do your shopping after work. That is unless you want to browse for a while. Our sales floor is set up so you can quickly find things that you need weekly, in just a few minutes. Things you need less often are set up so you have enough room to look at your own pace."

The criteria I wrote is 209 words long (depending on what's considered a word, just number or symbol), so it's a bit long. You'd need to adapt and edit it for your situation.

If you want specific guidance, please contact me or post another message.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

What Should My USP Be?


Subject: What Should My USP Be? Author: candyshack

OK, I know I should have a unique selling proposition for my business. I don't want to set one until I know it's the right one.

The wrong one will bring in the wrong people or worse yet nobody!!

But until I set one, how can I know if it's right?
I'm not sure I'm asking this the right way.

Subject: Re: What Should My USP Be? Author: Dennis S. Vogel

Hi:

Just as a guess, I'm figuring you have a candy store. Even if you don't you can apply the information in this post to a different business.

Sometimes USPs can be used as headlines in ads. So, what I advise you to do is test different possibilities in ads or other marketing messages. Find out which one gets the best response. This doesn't mean the most responses though.

It means that it gets you profitable sales, not just people looking for on-sale/discount items.

So, here's the way you can do this -
1) Pick businesses that serve the same target market.
2) Ask the owners to distribute (give not just put on the counter top) your flyers.
3) Then develop two or more different flyers. Everything on each should be the same except the headline.
Have instructions on the flyers for people to bring them in when they come to your store.
4) Collate/shuffle them so that (If you have two different flyers) - customer #1 gets flyer #1; customer #2 gets flyer #2; customer #3 gets flyer #1; customer #4 gets flyer #2; and so on.
5) Carefully track which flyer induces more people to come in.

OK, now for the flyer content.

Base the messages on what customers have told about the candy. If your business has just started, use information from your trade association or your marketing survey.

You can try marketing candy as people's way of rewarding themselves for working hard or accomplishing something.

If you sell gourmet candy, you can focus on the better, deeper taste and/or better ingredients.

Dennis S. Vogel

Subject: Re: What Should My USP Be? Author: Dion Jackson

Hi Dennis:

My main local competitor seems to have the best USP and has upstaged me. That's besides the competition from the national chains.

He used to be a successful stock car driver and his own mechanic. Now he owns an auto parts store. Mechanics that buy wholesale parts from him even advertise that they get parts from him.

I'm embarassed to do but I'll take a chance on advertising for him.

His business is Winner's Circle Auto Parts. His USP is
"Life is a race you've got to win."

Should I concede the race or do you have something I can use?

Dion Jackson

Subject: Re: What Should My USP Be? Author: Dennis S. Vogel

Thank you for being patient, I hope you were patient.

I ended up moving into another apartment so my computers were out of service for a while.

I won't and can't decide for you what to do. But I do have
something you can test for effectiveness.

I'm glad you included information about your competitor and his business, because that helps me to help you.

I want to point out that this isn't a USP, it's a slogan -"Life is a race you've got to win." Yes, it does tie in with his reputation and business name but it doesn't really "say" anything.

A Unique Selling Proposition is different.

If you have a strong USP, you won't have to concede the race. All you need to do is get the USP out to your target market.

The locally-based auto parts stores where I live are affiliated with or franchisees of CarQuest and NAPA. If yours is like these (near me) you may be better off tying in with the supplier's/ manufacturer's USP. If you're involved with one that doesn't have a USP or has an ineffective USP, then let's develop one for your business.

I know many people are racing fans, but to me, racing isn't the real, everyday world. What I mean is that many people may admire stock car drivers and aspire to be like them, but that's not true reality. (Though to racing fans it may seem like reality.) And your business may never appeal to them. That may seem bad, but you can make it into something good.

You shouldn't try to appeal to everybody because:
1) Different people like different things so nothing will appeal to everybody except pure survival items;
2) It's too expensive to try to reach everybody consistently enough to make a difference.

True reality is driving a regular vehicle - car, (mini)van or truck in traffic. So, your USP could be -
"You need what’s here: Auto parts and supplies for vehicles like yours that have to work in real world traffic." You should test it like I'd advised "candyshack" to do.

If you can get a public domain (non-copyrighted) picture of a stock car on trailer next to a regular car or mini-van, I have an idea that may work. Or you could have a picture like that you own the copyright to.

With a picture like that, you can use a supporting statement like -- "Your car, truck or van doesn't get pulled on a trailer, so it has to work in traffic day after day."

Or a picture of a pit crew working on stock car may work, but again don't use a picture if you don't have a legal right to use it. (If you don't know if you can legally use it, then please don't just to be safe.) Your supporting statement could be - "If you could afford to have a crew work on your car like this, then you may be to afford the same parts that are used in this car. But if one repair has to last through years of traffic, then you need the right parts and supplies for your situation."

Of course, a good USP, as important as it is, is only part of a good marketing program.

If you were a long-term client I'd ask you a lot of questions before I'd be able to develop a whole marketing program. So please, keep my advice in perspective. I believe it will help you, but you need more than just a good USP.

You may be to differentiate yourself (set yourself a *PART* - Come on, Dion at least smile) by giving your customers good information about car repairs and maintenance.

If the local mechanics buy from your competitor anyway, you may be able to afford to tick them off by having clinics in which you show people how to do basic repairs and maintenance. Consider appealing to people who want to do repairs themselves or who can't afford to pay a mechanic to do it.

Just be sure you have insurance to cover you in case somebody gets hurts while following your advice or somebody messes up his/her vehicle despite your good advice. Ask a lawyer about having people sign a waiver form stating they take full responsibility for the work they do.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Starting a business


Subject: Starting a business Author: Melissa

NOTE - This message was sent to me via my e-mail address. I'm posting it here to help you. If you like to send me a question and have me post it, then please do that.
My e-mail address is - thrivingbusiness@email.com

I really would like to open a business. I want to open a restaurant with entertainment. I have chosen a name but don't know where to begin. Could you give me some insight on where I start. I don't have the understanding or know
how to begin. So I feel like I am procrastinating from starting something I want so badly. I am not sure what type of information you need from me to help. I want to start small and go from there.
HELP!!!

Thanks, Melissa

Subject: Re: Starting a business Author: Dennis S. Vogel

My specialty starts after a business has started. I only have a few tips about starting businesses.
The advice I gave Melissa wasn't as much as she wanted or as much as I wish I could have given her. The basics of it may help you. Please read the warnings I gave her.

Hi Melissa:

One thing I definitely know about the restaurant business is that it's hard to make a restaurant profitable. So, if you open one you need to know a lot more than I know about it.

A web site you can get information from is https://www.entrepreneur.com/

I could give you good ideas to market a restaurant, but first it's best for you start it.

Is there a restaurateur near you who may be retiring soon and would let you exchange work (sweat equity) for partial ownership?

Or is there a restaurateur in a nearby city who will want a second restaurant in the near future? If so, you may be able to work yourself into an ownership position.

Just be careful whom you get involved with. If you feel uneasy about somebody, don't get involved with that person no matter how good the opportunity may seem. Our intuition won't look us in the eye and say "Don't do it!"

Intuition just gives us strong hints - gut reactions, tension/insomnia, or feelings of well-being. Don't ignore any of these.

When you're ready to open your restaurant, then I can help you market it.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

What Kind of Business Should I Have?


Subject: What Kind of Business Should I Have? Author: Larry

NOTE - This message was sent to me via my e-mail address. I'm posting it here to help you.
I only post what people send, I don't correct spelling or grammar.
If you like to send me a question and have me post it, then please do that.
My e-mail address is - thrivingbusiness@email.com

Hi there!!!

I was just browsing through Yahoo when I came across your wonderful website but given my deadlines at work (I am still
working for someone else i.e not self-employed yet) I could not read through a lot of important stuff you have in there.

All I need is information regarding what business can I venture into.I have currently raised about R30 000(About $5000),and currently looking for some small business that I can start but that firstly :won't require a huge capital
investment,secondly it should not require 100% of my time as I am currently working for some other IT company but it should be a viable option.

Even though it can earn me some R1000($250) per month.The idea is I want a secondary income as my current salary is way too low to make ends meet.

I am South African but I am sure anywhere in a capitalist market,good business ideas will always thrive. I have started up a small car-wash and valet service business but it is not doing very well. My cousin is helping me take of the business but it is not making enough moolah yet,i guess we are just breaking even as we can just afford to pay the rent, rates & taxes,other expenses and that's it.

We have been going on for almost a year now and I do not think it's a succesful venture.

If you can please advise me on ways I can make this car-wash thingy work or should I give up on it and start something new with the money I have raised, or should I rather keep my money in the bank (though banks give very little interest in return).

Your urgent response will be appreciated.

Regards Larry

NOTE - I answered his questions via e-mail but I'm also including my answer for him here.


Subject: Re: What Kind of Business Should I Have? Author: Dennis S. Vogel

Here's the answer I sent to Larry. The questions I asked him to consider may pertain to you and your situation too.

Hi Larry:

I could give you advice that might help you get some profit from your business. Considering what you wrote, I don't know if that would be best for you.

I'd need more details to customize my advice for you.

I'm not able to able to make your decision, but I can give you some guidance.

There are many things to consider here -
1) Do you like the car-wash and valet service business?
2) If you closed the business down, would you feel frustrated?
2a) If so, why would you feel frustrated?
2b) If  you wouldn't feel frustrated, would you feel relieved because having the business is a burden?
3) Why do you have that business? 3a) Is it because it seemed like a way of getting money?
3b) Or because you enthusiastically want to do it/you're passionate about it?
4) Does it seem like you have a car-wash and valet JOB instead of a BUSINESS?

A personal note - I used to be a janitor just to bring in money for myself and my family. But when I cleaned, I did it to my standards. If I didn't like the results, somebody's compliments were meaningless. When I returned to work the next night, I was mad if somebody messed up what I did.

I was glad to quit because I dislike the company & because I want to be a marketing consultant.

So how might this apply to you?

How would you feel if you just cleaned a car and got paid for it, then you saw somebody throw mud on it?

Could you walk away from your current business and not feel bad about it?

Is it reasonable to think that you should have a profitable business by now? For most businesses, one year isn't long enough to get a profit.

If you make the business profitable, you may be sell it and use the money to start a different business.

If you decide to stay in your current business, let me know.
I can give you some advice if you give me some details about it.

Warmly,
Dennis
thrivingbusiness@email.com
When you compete against big businesses with big budgets you need powerful marketing strategies and tactics.

Updated Response -

Where I live in the USA, car wash businesses are in buildings & have machines to do the work. Some of these car wash businesses have self-service vacuum cleaners for customers. 

I've heard about some custom car wash businesses. Instead of relying on machines to do all of the work, employees clean the vehicles. They give customers other options. Some options are advanced formula waxes, cleaning vehicle interiors & detailing work, 

Detailing can include removing small, shallow dents, removing rust & fixing small scratches.

Your valet service could overlap with your car wash. Valets can drive vehicles to your shop & deliver the vehicles after the work is done.

Based on the popularity of Uber & Lyft, people might want chauffeur service at scheduled times &/or unplanned rides.

Business Team Work Adds Value

You can add more revenue & profit by helping other business owners add more value.

You could work with mechanics by providing rides for people whose vehicles are being serviced.

During unpleasant weather, you might provide service for store customers. If you bring people from homes & work places & drive up to store entrances. After they finish shopping, your drivers can help customers with their packages & bring people to their next destinations. 

Unpleasant weather is whatever atmospheric issues people don't like. So, this business could be consistent, especially when people enjoy the services.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Wednesday, June 22, 2016

How to market a Software Game?

Subject: How to market a Software Game? Author: veerla

Hi,
I developed a software application which plays some game with the users. The game could be more interesting for students as it deals with words in Dictionary.
I want to launch this product into the market.
I would like to know how to select the Market Segment and how to advertise my product.
Could anyone please help me?

Thanks,
Veerla.


Subject: Re: How to market a Software Game? Author: Dennis S. Vogel

Hi:

I don't know which grade level(s) your product is for. If what I wrote below doesn't apply to your situation, please give me more details so I'll have a better chance of helping you.

Let's try this for starters -
The public school my daughter is in has "Book Fairs" to raise money for the school. (This is necessary because of budget cuts.) But they sell candy, software and other things too.

If you have connections (or want to establish some) in a school or school system that sells things like this, you may be able to find out if one or more teachers will endorse the game.

Some teachers here are active in fund-raising. If that's the case where you live, they may be eager to try your game if you tell them you want it used as a fund-raiser. But their endorsement(s), if any, should be impartial.

You'd end up letting them try out a copy possibly with students. Consider a cost of operations donation.

There's a possible snag here. Does your software run on PCs or Macs?

The classrooms, where my daughter goes to school, are equipped with Macs.

If one or more teachers will endorse your game, you can ask the principal or school administrator about them selling copies of your game to raise money. S/he may refer you to the leader of the PTO (Parent-Teacher-Organization).

In addition to PTOs, boy scouts, girl scouts, The Big Brothers/Big Sisters organizations may be interested in helping you sell your game also if you'll donate some of your profits to them.

You should be willing to do this because they'll get you sales you may not get any other way. Whether or not donations like this would be tax-deductible is something you ask an accountant or the IRS.

If the game does well in fund raisers, then you'd have a target market. If you can get testimonials from teachers and those in the PTO (or other grooups) about it's effectiveness and the level of sales, you may be able to get store owners to stock it.

Store owners don't want to fill shelves with products that people won't buy. If you show that your game is popular they won't be so shy about stocking it. If they don't want to buy it wholesale, offer them a consignment arrangement.

The basic way this would work is -
You leave (let's say) 10 copies with them. Then you'd go back in a week or a month to check how many they have left. They'd pay you for any copies they don't have left unless some were returned as defective or damaged.

They may only stock your game if you advertise it. (Too often if a product isn't advertised people won't know it exists, so they won't buy it.)

If that's the case, let me know and I'll suggest a few low cost ways of doing it. I may be able to help you with some compelling sales copy also.

Now if you've read some of my other posts, you know how I feel about Wal-Mart. However, if you're able to 1) show buyers of big stores how well your game has sold in small stores and 2) produce thousands of units, you may be able to get it sold on a national basis.

If you're just starting in your business, you should start out by testing your product in small risk situations.

Thanks for the question.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/