12 Step Marketing for Profit Plan

Below are 12 steps to help you think through and develop a focused marketing for profit strategy. Creating a strategy is about thinking, analyzing and planning, it is not about doing. That comes later. First you must get a perspective on your business and where you want it to go.

1. What were your total sales/revenue last year? Break that figure out into the dollars per major category of products or services your business offers.
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2. What are your top three producing categories of products or services? Market demands change. Should you add to or eliminate any categories? Do you need or want to up grade your customer base in any category? Define on paper the characteristics of this ideal customer. What does this customer want or need that you do not currently offer or by improving a system you could up grade customer service?

3. What is your “Bread and Butter” business? Of the goods and services you provide which one could or does provides a consistent 12-month revenue stream? Could it be expanded to cover all your basic overhead costs? It must be an area where you have a very high level of capability to perform extremely well at low cost. It may not have a high profit margin but it is easy to perform, is in high demand and could pay the basic bills. In a men’s store, bread and butter items are under ware and shirts.

4. Based on current revenues from your “bread and butter” category, how many more customers or product sales per month do you need to completely cover your overhead costs plus 10%?

The extra 10% allows for attrition with out suffering. There may be some current customers in this category who need to be replaced because they are not profitable enough, are too hard to work with or don't pay on time. In order to increase business in this category will you need to add any people, equipment, or improve your internal systems?

A landscape maintenance client decide that adding more acreage mowing business was better than going after apartment complexes. This required investing in more heavy equipment but had a lower labor cost and fewer customer headaches.

5. Set a specific time frame (three months or less) to meet your goal and put 90% of your marketing attention into building this area of the business until your goals are met. This will free you up to think more creatively and expansively about business growth and development.

6. Is there is an area of your business that is not very profitable, one in which your company does not excel or you just don't like producing that particular product or service? Cut that category out today! Refer that business to someone else.

You do not have the time or resources to be good at everything so pick the areas of your business that give you the most satisfaction and personal juice in return.

7. Of the categories left which one can or does give you the greatest profit for the least effort, the least effort to produce not the least effort to market. This is a good candidate for your next marketing focus.

8. Is there a small thing you can do with this product or service that will add value to the customer and differentiate you from your competition? You only need to be 1% better than your competition to have an edge.

The best way to add value is to ask your customers what could be add to this product or service which would solve a problem for them. For one client 'zero billing errors' was enough to make him the only supplier of parts to a major corporation.

9. Is there an area in which you wish to expand or add services? How could this benefit the clients you already have? What training, licenses, equipment, supplies, systems, procedures and personnel need to be in place to effectively expand or offer this service?

Based on these considerations in what month can you realistically start delivering the service or product? How much marketing lead-time will you need to introduce it to customers? Remember, to under promise and over deliver always.

10. Now that you have clarified your products, services and ideal customers prepare a 12-month calendar just for marketing. Mark out special holidays important to your industry including special national focus weeks for your industry.

For example: spring break, the Christmas holidays and the month before school starts are key times for optometrist and dentists to remind parents to get the kids in for check ups. In October and November all medical professionals who take insurance claims should send letters to patients to remind them to get any medical needs handled under the current years deductible.

11. Create a basic weekly marketing plan for maintaining bread and butter business all year. That might be as simple as 10 calls a week to current and potential customers. Consistency is the key! A good contact database like ACT is essential.

In an area which you want to initiate or expand a particular product or service work backward from the date you want sales to occur and plan the infrastructure and marketing steps you will need to take to make that happen.

12. What Gets Measured Gets Done! Finally, set up and publish measurements all along the way so you and your staff will clearly see what is working and what is not. If you do not plan goals and track achievements, things fall through the cracks and priorities easily shift from what is important, to the fire of the day.

Use this kind of thinking for each product or service you provide and you will see a clear and reasonable strategy and plan begin to unfold before your eyes. You will begin to see where you can use one product or service to build support and momentum for another product or service. Your business is an organic entity. Thinking holistically about your business will allow you to create the greatest value from the resources available.

Would like help in formulating your own plan? If so, email or call me for a free no obligation consultation.

For an easy to manage marketing process click here