Today I will share with you one small business marketing tip that has enabled me to build my small business into a company that now enables me to pay all my bills even though I am a retiree from the 8 to 5 rat race.
This business marketing tip is actually an open secret. But it is a marketing strategy that is a game changer.
This marketing plan is focused on getting the foundation right.
As you know, if the foundation of a building is solid, the building can withstand any storm and stand for decades, even centuries.
Similarly, since everything rises and falls on marketing, a key factor that will determine what quantity of products you can sell (and hence, how much profit you can make) is the size of your target market.
Therefore, the number one small business marketing tip I have for you is this: Choose to market a product or service that you can sell to a large target market.
The bigger your target market, the greater the likelihood of your business selling more of the products that you sell. And the wealthier you will become before and after retirement.
Small Business Marketing Tip: Target Market And Conversion Ratio
Why is the size of your target market key to prosperous sales and marketing . . . and your profit?
Simple answer . . . it is because not everyone in your target market will buy from you.
The percentage of people in your target market that buy from your business is called the conversion ratio.
Think about it this way.
Suppose your small business is selling a product that has a target market consisting of about 10,000 people.
Suppose only 0.2 percent of the people in this target market buy from your business every year. It means that your conversion ratio is 0.2% of the population of your target market.
In this case, you will only be able to sell just 20 units of your product every year.
Even if you pump so much money into marketing promotions and doubled your sales to 0.4 percent of the target market, all your marketing spend will end up with a sales volume of just 40 units per year.
Suppose you sell a low priced product with just 5% profit margin.
If that is the case, selling just 20 units per year will not be sufficient to generate the level of profit to keep you in business. And increasing your marketing spend will not make the situation better because it will only yield another 20 units in sales.
What do you think is the root cause of all the money problems this small business has?
Yes, the size of the target market!
When developing a small business marketing plan, remember to use a holistic approach. And a holistic approach starts from choice of the product or service you wish to build your business on.
That is why our small business marketing tip for you today is that you should build your business around a product or service that has a large target market.
With a large target market, you could sell hundreds (even thousands) of products per year even if your conversion ratio is as low as 0.2 percent.
So, how do you sell to a large target market?
Simple. Build your business around a product or service you can sell at least statewide.
Actually, we recommend that you focus on products or services you can sell nationwide.
When your small business is built around products or services you can sell all over the country (as opposed to just the city or state where you live), then you are able to target a larger market population and position your small business to make more sales and more profit.
That is the secret I have used to build my business into a business that can pay all my bills even after my retirement from the 8 to 5 rat race.
Yes, bigger target market . . .
EQUALS more quantity sold . . .
EQUALS more profit for YOU, the business owner.
Therefore, focus on products or services that empowers you to sell to people living all over your country.
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