When you think of where your business comes from, what comes to mind first? Do you immediately think of referrals? If you are running a retail store, do you first think of foot traffic?
Counting on one source of income for your business can be dangerous. When you have 1 major source of income that can leave you stuck in “survival mode”. Survival mode means that you might pay bills some months and at other times you can struggle to make ends meet. It’s not a fun way to run a business and sadly 98% of entrepreneurs fall into this category. They have a passion for their business, but it is tough to keep going.
Does that sound all too familiar?
Now, I invite you to consider, how many sources of income can you count each month? What percentage is each of them of your total revenue?
Instead of counting on 1 source of income, consider having 4 marketing systems working for your business. A marketing system can’t be something like “I run a yellow pages ad”. Sure, a yellow pages ad, might be one of your marketing systems, but here is what you will need to know for it to qualify:
1. How many phone calls/store visitors does your ad bring?
2. How many people call/visit your store compared to who buy from your ad?
3. What is the average purchase someone makes from your ad?
4. What is the cost of your ad?
If you can’t answer a minimum of these 4 questions, just for your yellow pages ad, it’s likely it isn’t working. Most business owners throw money at different advertising mediums and “hope” it works out. That can leave you struggling to pay advertising that isn’t bringing in revenue. Instead of paying a bill that likely isn’t helping, consider the following rules for your marketing in order to call it a system.
1. What is an average sale worth to me?
2. How many leads do I need before I make a single sale?
3. Can the marketing method be repeated monthly?
4. When the marketing system works, can I spend more money to bring in more business? (when it’s a true system you should be able to test with a small amount and spend more to make more)
Those are the first 4 questions to ask of yourself before you put any marketing system into action. When you want 11 more questions to ask of yourself before putting a marketing program into action, dive in today with my free power-packed 15 minute business planning session call, live!