Just because you can, doesn’t mean you should: Marketing talk with Cassie Piasecki and Susan Rich

You’ve got a great idea for a new business.

That’s awesome — but before you race to the bank, or ask friends and family for some start-up cash, spend some time doing some serious thinking: Who do you want to sell to, who is your competition, how much money do you want to make, and what’s the time-frame for success?

All good questions, and some are easier to answer than others. That’s what business brainstorm pros Susan Rich and Cassie Piasecki talked about on Your Marketing Plan, a weekly internet radio show that airs 11 am ET Thursdays.

Some ideas are money-makers out the gate, while others need some nurturing. And…some ideas are real duds. The trick is to identify which is which before you invest time, energy, and money, Cassie explains. One way to figure this out on the cheap is to use social media. Cassie suggests these sites: Pinterest, Tumblr, Twitter (her personal favorite) and Etsy, if you’re into arts and crafts.

The idea here is to tell the world what you’re up to, and see what sticks. That means pick a business name with your name in it, and also choose one that identifies what you sell or the service you provide. Then start posting — news, links, how you help folks, more news, more links, etc. Then track interest. If you suddenly start booking more orders than you can fill, you’ve probably got a business idea that will work. Now you need to add some structure.

Business Plan, yay or nay?

Cassie is a serial entrepreneur, and has launched businesses with and without a business plan. Either way is hard, she admits, but if you’ve landed start-up capital, the plan is more important, because it makes you accountable to your investors. Sometimes it takes time for a business to grow, other times it starts with a fire, then fizzles. An exit strategy should be part of the business plan, she adds. “Sometimes small businesses and marriages don’t mix” she observes, so make it clear to your loved ones how long you plan to work on your new business. “No one wants to pull the plug on you,” but sometimes you need to be willing to pull the plug yourself.

If you decide to forgo a full-blown plan — especially if you don’t need funding — that doesn’t mean don’t plan. You still have to set goals, and then track your progress.

It’s as simple as saying: I want to make $45,000/year. First figure out your fixed costs, then add some extra money to cover the unexpected expenses. Add the $45k onto that. That grand total — let’s say $65,000 — is how much you need to make per year in order to net $45,000. Now work backward: How much money do you need to generate per month? You might not be able to hit your initial sales target in the first year, and that’s ok. Just be practical. Set the goal, and work towards it.

Ah, good advice. What it comes down to is this: Just because you can, doesn’t mean you should. Sometimes the best business ideas don’t have legs, and they can walk you into debt.

 Watch the competition

They can teach you plenty: First, if they’re successful in their niche, study them. Figure out why. They can even be your ‘silent’ mentor, Susan notes. “Evaluate what they’re doing, then look for ways to improve. What are they leaving undone? What can you do better? We’re all competitors, because we’re all in duplicated industries. Even if we have the field to ourselves, it’s only momentary.”

Susan describes it as a three-eyed race: One eye looks ahead, and keeps your business evolving, one eye looks behind so you can see who is on your tail, and then there’s that third eye: The one that keeps your business on track.

No one ever said being an entrepreneur was easy!

Did you miss the show?

No worries – Susan Rich Talks airs live 5 days a week, 11 am ET on The All Women’s Radio Network, and Your Marketing Plan is every Thursday morning.

If you want to be a guest, a co-host, or sponsor the show, contact me. I can help boost your personal visibility with some great, get-you-noticed tactics.

~sr~