Do you know how many businesses are started each year? The Small Business Association estimates that the number of new businesses reaches more than 627,000 on an annual basis. However, around 595,000 business also close in the same amount of time. Over half of new small businesses fail within five years of their start date. Why is this?
These small businesses' operations fail because consumers do not see the need for these businesses' products or services. Or, failure can also happen because consumers find a less expensive alternative or better solution than the small businesses provide. Before all that takes place, there’s another reason for failure. Consumers do not know about the business because the owners don’t properly market themselves. You can help your small business clients change that and avoid closure by practicing network marketing; one of the things you need to start a business.
Keeping How Many Business are Started Each Year on Your Client List Open
BIA/Kelsey’s latest Local Commerce Monitor takes a look at the network marketing new local businesses are doing to get the word out to potential customers. Not surprisingly, the owners are turning to low-cost media. By sponsoring a local charity or event, new businesses can make a name for themselves in the local marketplace. These businesses also tend to promote giveaways in free or low-cost media. Consumers will quickly spread the word if a business is giving away something of value, like a free living room furniture set or a season’s worth of free lawn mowing.
However, this kind of network marketing is not enough to increase widespread awareness for a small business. The good news is, BIA/Kelsey reports that new businesses are also open to the use paid media. Both traditional and digital ads are things you need to start a business. For traditional formats, radio and TV deliver the biggest return on investment for small businesses. Additionally, mobile advertising has become increasingly important for local businesses. In this survey, small to medium-sized business start-ups credit enhanced mobile listings, mobile display ads, and mobile apps with generating customer activity for their business.
For media sellers, no matter how many businesses are started each year that you are partially responsible for now, the key to succeeding with new businesses is having an in-depth discussion with the owners. These entrepreneurs are overwhelmed with the details of managing inventory, cash flow and training their employees. They can’t afford to drop the ball on any critical part of their operations. And, this includes advertising. So, you need to talk with them about how they plan to increase awareness in the community. Work with them to tie together a consistent message across their sponsorship efforts and their paid media advertising. Before you talk with them, check out the Local Account Intelligence Reports available at AdMall from SalesFuel. These reports will help you understand the opportunities and challenges facing these business owners.
Remind them that they will never have a second chance to make an awesome first impression on consumers in the local market. And a good first impression is among the things you need to start a business. With your help, they can succeed at that goal, while generating enough business to increase their odds of surviving for the long term.