Creativity without strategy is called art; creativity with strategy is called marketing
Let’s start with the most concise definition of marketing that you must live every day: Marketing is finding out what a customer needs or wants now or in the future, sell it to him for a profit, better than the competition.
This definition entails market research, business development, sales, strategy and operations: everything is marketing!
Marketing takes time, money, and preparation. One of the best ways to stay on schedule and on a budget is to make a marketing plan. It describes the actions you’ll take to persuade potential customers to buy your products or services.
Your business plan should contain the central elements of your marketing strategy. Make a marketing plan to persuade consumers to buy your products or services. Your marketing plan turns your strategy into action. Use the sections below in your marketing plan.
Target market
Describe your audience in detail. Look at the market’s size, demographics, unique traits, and trends that relate to demand for your business.
Competitive advantage
Sell the problem you solve, not the product you make…
Describe what gives your product or service an advantage over the competition, a unique selling proposition. It might be a better product, a lower price, or an excellent customer experience. Sometimes, an environmentally friendly certification or “made in the USA” on your label can be an important factor for customers.
Sales plan
“There are no shortcuts to the top of the palm tree.” African Proverb
Describe how you’ll literally sell your service or product to your customers. List the sales methods you’ll use, like retail, wholesale, or your own online store or a combination. Explain each step your customer takes once they decide to buy.
Marketing and sales goals
Being in business without marketing is like winking at a girl in the dark. You know what you are doing, but nobody else does.
Describe your marketing and sales goals for the next year. Common marketing and sales goals are to increase email subscribers, grow market share, or increase sales by a certain percent.
Marketing action plan
“There is only one way to avoid criticism. Do nothing. Be nothing. Say nothing.” Aristotle
Describe how you’ll achieve your marketing and sales goals. List marketing channels you’ll use, like online advertising, radio ads, or billboards. Explain your pricing strategy and how you’ll use promotions. Talk about the customer support that happens after the sale.
Budget
“Even an ant can hurt an elephant.” South African proverb
Include a complete breakdown of the costs of your marketing plan. Try to be as accurate as possible. You’ll want to keep tracking your costs once you put your plan into action.
Measure and update your plan
“My mother said to me, “If you are a soldier, you will become a general. If you are a monk, you will become the Pope.” Instead, I was a painter, and became Picasso.” Pablo Picasso
Plan to compare your marketing and sales costs to the revenue it generates. You want to make sure you’re getting a positive return on investment, or ROI.
Some tactics are hard to measure like print advertising or word-of-mouth campaigns. Get creative and use others’ advice, but be consistent in how you measure the effectiveness of your marketing efforts.
Marketing plans should be maintained on an annual basis, at a minimum. Measuring ROI will help you know which part of the plan is working and which part needs to be updated.
Operations
Not everyone agrees on the exact distinctions between marketing and sales, but most people recognize they’re connected. The influence operations has on marketing and sales is often overlooked.
Simple operations elements like your staff uniform, where your product is made, or the product return process contribute to your customer’s experience. That experience shapes how your customers view your company and can influence whether they’ll become loyal customers for life or tell their friends to stay away.
Choose how you’ll accept payments
The kinds of payments you accept can impact your marketing and sales, as well as your bottom line. Accept forms of payments that are cost-effective, secure, and provide a positive experience for your customers.
You’ll need a business bank account no matter what kind of payment you choose.
Credit cards
To accept credit and debit cards, you’ll need either a merchant services to account with a bank or an account with an independent payment processing company.
You’ll pay small processing fees for each credit or debit card transaction, plus costs for setting up any necessary equipment.
Accepting credit and debit cards exposes you to the risk of fraud, but most vendors provide a certain level of protection for your business. Make sure that you use an EMV chip reader, which will limit both fraud and your liability.
Checks
You only need a business bank account to accept checks.
You’ll want to create a policy for accepting checks to help you avoid bad or fraudulent checks. Standard practices include only taking checks from well-known or in-state banks, or requiring checks be only for the exact amount owed. You could also use a third-party service to help verify the quality of the check.
If a check bounces, your options to get the final payment will vary depending on your location. Some states require businesses to mail a registered letter and allow a designated waiting period to lapse before further action is taken. To get payment for a bounced check, you could end up in small claims court or using a collection agency.
Cash
Many small businesses operate as “cash only” merchants because it’s fast, easy, and inexpensive.
If you accept cash, remember that large sums of cash can add to accounting time and come with an additional security risk. You’ll want a secure way to hold your cash, like a register and a safe.
There are special reporting requirements for cash. The IRS requires you to report if your business gets more than $10,000 in cash, or a cash equivalent, from one buyer as a result of a single transaction or two or more related transactions.
Online payments
If you sell your product or service online, you could accept payment through your website with an online payment service.
Online payment services typically accept credit and debit cards in addition to other popular online money transfer services. You’ll pay fees to in order to accept payments online, just like accepting credit cards in a physical location.
Online payment services require a virtual shopping cart to calculate the total, tax, and shipping costs of an order, in addition to collecting customer account and shipping information. Some online payment service providers offer free shopping cart services to businesses.
Hire and manage employees
Before finding the right person for the job, you’ll need to create a plan for paying employees. Follow these steps to set up payroll:
- Get an Employer Identification Number (EIN)
- Find out whether you need a state or local Tax ID.
- Decide if you want an independent contractor or an employee
- Ensure new employees return a completed W-4 form
- Schedule pay periods to coordinate tax withholding for IRS
- Create a compensation plan for holiday, vacation and leave
- Choose an in-house or external service for administering payroll
- Decide who will manage your payroll system
- Know which records must stay on file and for how long
- Report payroll taxes as needed on quarterly and annual basis
The IRS maintains the Employer’s Tax Guide, which provides guidance on all federal tax filing requirements that could apply to the obligations for your small business. Check with your state tax agency for employer filing stipulations.
Employees and independent contractors
Distinguishing between employees and independent contractors can impact your bottom line, as this affects how you withhold taxes and avoid costly legal consequences. Learn the differences before hiring your first employee.
An independent contractor operates under a separate business name from your company and invoices for work completed. Independent contractors can sometimes qualify as employees in a legal sense. The Equal Employment Opportunity Commission created a guide for making the determination.
If your contractor is discovered to meet the legal definition of employee, you may need to pay back taxes and penalties, provide benefits, and reimburse for wages stipulated under the Fair Labor Standards Act.
Employees
Independent contractors
Build your team
Plan to offer employee benefits
Healthcare and other benefits play a significant role in hiring and retaining employees. Find out what employee benefits are required by law. Consider additional optional benefits that will attract potential employees to your business.
Required employee benefits
- Social Security taxes: Employers must pay Social Securitytaxes at the same rate as their employees
- Workers’ Compensation: Required through a commercial carrier, self-insured basis, or state Workers’ Compensation Program
- Disability Insurance: Disability pay is requiredin California, Hawaii, New Jersey, New York, Rhode Island and Puerto Rico
- Leave benefits: Most leave benefits are optional outside those stipulated in the Family and Medical Leave Act (FMLA)
- Unemployment insurance: Varies by state, and you may need to register with your state workforce agency
Optional employee benefits
Your small businesses can offer a complete range of optional benefits to help attract and retain employees. Even if a benefit you offer is optional, it might still have to comply with certain laws if you choose to offer it.
Businesses that offer group health plans must comply with federal laws, for which the Department of Labor hosts a guide.
Employees can expand coverage through the Affordable Care Act and some may qualify for benefits via the Consolidated Omnibus Budget Reconciliation Act (COBRA). Businesses must extend the option of COBRA benefits to employees who are terminated or laid off.
Retirement plans are a very popular employee benefit. Consider offering an employer-sponsored plan like a 401k or a pension plan. The federal government offers a wide range of resources to aid small business owners in choosing their retirement plan and pension.
Employee incentive programs
Employee incentive programs can boost morale and create more draw for open positions: Common incentives such as stock options, flex time, wellness programs, corporate memberships and company events.
Consider benefits administration software if your budget allows. It can make your accounting easier and more efficient. Detailing these benefits in the employee handbook helps your staff make decisions, and they can use it as a reference for workplace requirements.
Follow federal and state labour laws
Protect workers’ rights and your business by adhering to labour laws, which means you must ensure that business practices align with industry regulations.
This includes learning applicable laws for hiring veterans, foreign workers, household employees, child labour and people with disabilities, among other groups. You must also comply when terminating an employee, laying off workers, or downsizing the company.