Article contributed by Danielle
Starting a small business is immensely challenging, and growing your start-up into a successful, profitable business is even more difficult. Statistics from the Small Business Association Office of Advocacy show that 50% of small businesses fail within the first five years. Although these numbers may seem daunting, having a sound business plan and using strong marketing strategies will help you grow your business.
Challenges Facing Small Business Owners
1. Location, location, location. When operating a small business, location is key. Having an accessible location draws in customers and generates repeat business. Although prime locations sometimes translate into expensive rent, this isn’t always the case. Perhaps you own a small Christian store that sells baptism gifts, books, and music. Finding a storefront near several churches may be more advantageous than shelling out cash for a shop in the glitzy downtown shopping area. If you’re opening a trendy boutique, however, you want to be in a fashionable shopping area. Think strategically about your business plan, customer demographics, and products before choosing a location.
2. Getting and retaining new customers. Repeat customers are the lifeblood of a small business. Without a loyal customer base, it’ll be difficult to generate profits and grow your business. A strong advertising campaign can get customers in the door, but it’s the overall experience they have that will keep them coming back. Cultivate a welcoming environment by hiring pleasant staff members, instituting customer satisfaction policies, and offering promotions for loyal customers. Maintaining core values of honesty, respect, and trustworthiness earn your customer’s repeat business.
3. Marketing the business online. Traditional forms of advertising such as billboards and print ads still draw customers, but social media is a potent force for small businesses. Generate a social media presence by using Facebook, Twitter, Foursquare, Pinterest, and LinkedIn to connect with your customers. Offering discounts or announcing promotions over Twitter or Facebook is a great way to draw new customers. Giving a small reward to customers who “check in” on Foursquare also creates buzz about your business.
Using a Cash Mob to Grow Your Business
A relatively new phenomenon utilizes the power of social media to promote local businesses. Blogger Chris Smith from Buffalo, N.Y., came up with the idea of a cash mob after observing flash mobs, large groups of people who congregate at a particular location to perform an entertaining act before swiftly dispersing. Smith thought that cash mobs could be a great way to inject money into the local economy.
Cash mobs have sprouted up around the world, with over 200 cash mobs in the United States alone. The rules are simple: customers must show up at a local business at a predetermined time, spend approximately $20 and socialize with fellow cash mobbers. Cash mobs are organized via social media sites such as Twitter or Facebook. Organizers target small businesses that are independently owned to promote the local economy.
Getting involved with a cash mob can cause dramatic small business growth. In addition to a one-time injection of money on the day of the cash mob, these groups often return to the business as repeat customers. Cash mobs are sometimes featured in local news media, giving your small business further publicity.
Blogger Andrew Samtoy keeps track of cash mob activity on his Cash Mob blog. To encourage a cash mob to target your small business, reach out to organizers like Samtoy via Facebook or Twitter to make your case. Cash mobs look for businesses deeply tied to the local economy that give back to the community and depend on local customers for business. Contacting a cash mob organizer is the most efficient way to bring this type of activity to your business.
About the Author
Danielle recently participated in a small, local cash mob and is now the proud owner of a shiny new bible cover and cross necklace. Read her business musings on suitsandladders.co.uk where she blogs on behalf of Sears and other brands she uses.