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Get up! Get out! Get a Reality Check!
1999 TEN article
by Mark FX Parr, 419-843-9276,
Strategic Marketing Solutions,
Findlay, OH,
a regional coaching and consultancy network
specializing in markeing strategy
and business development
for small and early-stage businesses.
Email:
mparr@glasscity.net
Quick now,
what is the most important thing
that your business, product, or idea needs
to be successful?
What is that one thing
without which you absolutely cannot advance?
Are you thinking technology, quality,
serviceability, capital?
Certainly all of these elements
are important to the inventor or startup.
But one of the most fundamental
and largely ignored needs
for entrepreneurial success
is customer contact.
You have heard the grim statistics:
two per cent of all inventions
make it to commercialization.
Eighty per cent of new businesses
fail within the first five years.
In my experience,
the single best way to increase
the odds of success
is customer contact.
Talk to your customers
or potential customers.
Just get up, get out,
and start asking questions!
Many entrepreneurs and inventors
will try to bring the marketing element
into their project
by learning about and studying
the current business jargon.
In order to avoid this effort,
let's debunk a few
of the latest marketing buzzwords.
Real-time Marketing,
One-to-One Marketing,
Web Marketing,
Dialogue Marketing,
Permission Marketing,
and so on ad infinitum.
While each one has merits
in its own applications,
I prefer to search for and find
the common denominators.
What do they all have in common?
The simple answer -- customer contact.
All of them contain methods, processes,
technologies, and gimmicks
for getting closer to the customer.
But these are systems largely designed
for large-scale marketing efforts,
and the startup or early stage business
does not have the time or resources
to get involved with such stuff.
The good news is that it just takes some common sense
to bring the voice of the customer
close to your idea or product.
Get out of your lab,
get out of your office,
and get out of your head.
Get in front of your customers.
Get a Reality Check.
The marketing effort
at the critical early stages
of business or product launch
can be as simple
as a series of feedback type questions,
consistently applied at every level.
Ask, "Can you get
their personal reality check
on your product".
Ask questions involving price,
quality, and distribution, etc.,
depending on your contact.
A few questions aimed at the right people
can provide a roadmap to success.
At the very least,
it can save valuable resources
by preventing mistakes.
No matter at what stage you are --
idea, design, test, launch,
or even early stages of doing business --
get out and contact your customers,
and find out what they think
about your product!
Recently I attended
a convention in Atlanta
with a client that is
n the field test stage of development.
We took our Chief Engineer along with us.
It was hard to justify the expense
of three people,
but we decided that the "face time"
was necessary.
The payoff was in spades.
Our chief engineer joined us
in our efforts at raising capital
and doing our public relations.
His presence with our potential customers
gave us credibility in the marketplace,
but what we received was much more.
He learned by talking with our customers
that our bootstrap method was entirely possible.
He listened to their demands and needs.
He reality checked his own thinking
by getting in front
of a number of customers
and key industry people,
and by listening to their analysis
of our project.
He became a true believer
that "We can get there from here",
even without huge rounds of funding.
We all returned with renewed enthusiasm
and an outline for the next several months of work.
It is my contention that we shaved several months
off of the original timetable,
and created a whole new group
of strategic relationships.
The action plan is simple:
First, put yourself in a position
to see customers.
Go to conventions, trade shows,
forums, and other networking events.
Call up your customers
and start asking questions.
Will they buy it?
Will they sell it?
How many could they sell?
What changes would they make?
What do they know about the competition?
One of the best places
to get a reality check
is the trade associations and trade magazines.
Call them up.
Ask them their opinion
as to your product, market,
and distribution channels.
Ask them who would be a good person
to talk to that is "in the field".
These people will be happy to help.
After all, they are in the business
of staying on top of new developments
in their industry.
Second, add the feedback
to your business plan.
Most investors want
to see such feedback on the business plan.
I call this section
the "Who says so?" section.
After you zero in
on a few key buyers or distributors,
ask them to give you a letter
on company letterhead,
with a forecast for potential sales.
There are few better ways
to strengthen your business proposition
in the eyes of the investment community.
Third, and maybe most important,
repeat this process again and again.
Each time you incorporate customer feedback
into your project or business,
you increase your chances of success.
Don't guess at the next step -- ask the customer.
Resources that can help
with this action plan
are online newsletters
such as "Network Ink".
This newsletter,
written by consultant Nancy Roebke,
can serve as a consistent
and strong reminder
to get out and network
with your constituency.
It contains valuable techniques and tips
for garnering the valuable feedback
that is so important to your success.
I strongly recommend it
for any businessperson,
but even more so
for the development
and early stages of business.
You can sign up for the newsletter at
subscribe@just-business.com.
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