Editor's Note: This is the second in our Small Business series, ‘So You Want to Be An Entrepreneur’

By Cheryl Antao-Xavier  »   Successful marketing of your business is all about “positioning”, says marketing guru Peter Sirois of Sachem & Scribe. “It is carving out a place in the consumer’s mind and owning that space such that no competitor can penetrate it to any significant degree.”

“Entrepreneurs must know what they want to be famous for and to whom, exactly, they want to be famous. Ask yourself why people should buy from you and not your competitor. Determine that and you have your unique selling position (USP) which is the crux of your marketing plan. From there should flow your marketing strategy and your sales plan.”

The basic rules in marketing your business, therefore, is to have a thorough understanding of your target market, your product or service, and how the two can come together in a good fit. “This is what ‘positioning’ is all about,” says Sirois. “And it all stems from market research. If a new entrepreneur does not take the time required to ask the right questions and get the necessary answers, effective positioning is virtually impossible.”

Very often the biggest mistake small businesses make is “trying to be too many things to too many people. This is the shortest route to disaster,” says Sirois. “That is usually the end result of ineffective positioning.”

His advice is: “Provide a tightly focused offering to a well-defined target market. That is the basis for success. That is the magnet to draw customers who want the value you are offering.”

Sirois has assisted thousands of new entrepreneurs through self-employment training programs in Toronto. Confidence Bound asked him to illustrate marketing options available to business start ups, particularly those on shoe-string marketing budgets, by commenting on the marketing initiatives of two of his former student entrepreneurs who have recently launched their businesses.

Making music. Having been born into a music-loving family in Moscow, Russia, Dennis Kostaki had a passion for music from a young age. As he became proficient in a variety of musical instruments, a second passion developed – a hobby for repairing these instruments. By the time he came to Canada in 1981, Kostaki was the chief conductor of the Moscow Circus and a master technician in the repair of woodwind and brass musical instruments.

In 2006, Kostaki retired as translator from a government job and switched fulltime to playing music professionally and repairing instruments. He set up a musical instrument repair shop called Sharps and Flats Clinic in Toronto, specializing in woodwinds and brass repairs. He continued his annual trek to Michigan to attend a workshop by celebrated North American repair technician Gary Ferree. Ferree paid his student the ultimate compliment by saying he would put his signature on any repair job Kostaki performed.

Kostaki’s marketing initiatives have consisted of advertising in two local magazines catering to the arts and entertainment community. He is a member of the National Association of Professional Band Instruments Repair Technicians (NAPBIRT) and is listed as a repair technician on their website www.napbirt.com. He attends concerts and jam sessions regularly as a performer as well as to network with other musicians. He drops off flyers at these events and in music stores. His website www.sharpsandflatsclinic.com hopes to attract customers through keywords and advertising.

On reviewing Kostaki’s marketing initiatives, Peter Sirois came up with several suggestions for a more aggressive marketing strategy.

“It is obvious that 100% of Kostaki’s customers are people who own or care for brass or woodwind instruments,” says Sirois. “To be successful, he must then become “the go to guy” to owners who want to keep these instruments in top condition. For the sake of efficiency, he should prepare a well-written, preferably one-page letter to send to key contacts in local community orchestras and bands, school music directors and private music teachers. The letter should offer a free tune-up or inspection, and an introductory discount on first service purchase.”

Sirois also suggested that Kostaki should connect with music competition and festival organizers at events such as the Kiwanis Music Festival, to provide on-site ‘emergency repairs’ at event venues, in exchange for an ad in the programme and circulation of his business cards and basic ‘tips’ brochure (e.g. three tips to keep your instrument in tip-top shape). Kostaki should continue his visits to local stores selling musical instruments to introduce and reinforce his position as the brass and woodwind “repair expert”.

“A great idea would be for Kostaki to promote his services on his vehicle,” says Sirois. “The more musicians who see it, the more he will be known for his craft.”

Fun with pottery. Natalie Waddell had spent 10 years training in ceramics and running a studio when she went on maternity leave. When it was time to return to the workforce she realized she didn’t want to give up fulltime parenting to work out of the home. From that need of a flex-time occupation was born the idea of her own mobile ceramic studio.

Waddell set up The ClayMobile, a service that takes creative pottery entertainment to parties of all age groups within the GTA. She brings all the required material, except the kiln, to the party venue. Under Waddell’s guidance, the guests use stencils and stamps on the mugs, plates, bowls and other pottery to make their own signature creations. Waddell then carefully packs the pottery, takes it to a studio to be glazed and fired in a kiln and delivered to the party organizer for distribution to the guests.

For party hosts, the biggest selling point for The ClayMobile’s party fun is the before and after service that includes covering the floor and furniture to protect it from paint splashes and cleaning up the mess afterwards. The paints are all washable, non-staining and non-toxic.

Since she started her mobile studio this year, Waddell has been on track with an ambitious marketing plan that should see her getting busier and richer through the year, achieving her financial breakeven point by October 2008. She has printed advertising postcards, to be distributed to high-end stores catering to kids’ or parents’ interests. But in general, The ClayMobile’s advertising relies on referrals and word of mouth.

Her website www.theclaymobile.com – expected to be fully functional by the time this magazine hits newsstands – will become the main marketing tool in drawing hits from links and blogs targeted at parents and mothers in particular.

Commenting on Waddell’s business and marketing initiatives, Peter Sirois says, “With such an intriguing offering combining both product and services, the fun factor and individual creativity, Waddell should aim to get prospects to witness The ClayMobile experience first hand. She needs to demonstrate her service and the unique take-home end-product wherever kids and parents congregate.”

For starters, Sirois suggests Waddell target community festivals, farmer’s markets, local arts events, girl guides, brownies, cubs meetings, fundraisers, and silent auctions. Good kid attraction events are summer day camps and before and after school daycare programs. As well she should be targeting the seniors market, community centres and church groups, etc.

Themed packages will also spark interest, says Sirois. “These can be worked through the year to mark celebratory and holiday periods with focussed marketing messages for Christmas, Mother’s/Father’s Days, Valentine’s Day, Easter, birthdays and anniversaries. Each of these events gives people an opportunity to create a special, unique gift.”

“The idea is to promote The ClayMobile as a party option where one’s friends can all join in the fun and have something creative to keep at the end of it. Once they see that demonstrated they will remember that option and the sales are likely to happen.”

Sirois strongly recommends that Waddell create a website where she can feature photographs of willing ‘artists’ having creative fun. Customers can be invited to go online to view their work, but more importantly, share the link with others on their mailing lists thus creating “electronic referrals” who will then only need to hit a ‘more info’ button to connect directly to The ClayMobile.

Networking works - when you do it right 

‘For small business owners looking to save big-time on marketing dollars, networking is the way to go to build business relationships,” says Elizabeth Verwey, president of Small Business Mentors, a Toronto-based company. “It’s a sure-fire way to get closer to your target market and your sales goals.”

When done well, networking taps into the wealth of information that buoys the successes of successful people, says Verwey. When you consider that a referral generates 80% more results than a cold call and 70% of all jobs come through personal networks, “it pays to turn networking into a fundamental skill and a high priority activity.”

“It’s all about who you know, and who they know. Very often we don’t tap into the vast network that surrounds us. It is aptly said: ‘You are only five or six people away from an important contact’,” Verwey adds.

But the key to effective networking is to test various events and measure the results, and then go after what works for you. Choose your network carefully and assess its efficacy regularly.

“Play smart and be discriminatory with your networking dollars. Otherwise, it can be a waste of time and money.”

Verwey, who mentors small business entrepreneurs on a host of business start-up services (view her website: www.officementors.com) has seen most of the mistakes that newbie networkers make.

“The biggest blunder of new entries in the networking game is going in unprepared. Paying to attend a meeting that you are not even sure caters to your target market is not a wise use of your precious marketing dollars. Do the homework, call ahead, ask someone, Google or otherwise research the event. Make sure it is going to help you in your business or personal life before you open your wallet. Even free networking events can be a waste of time if you are strapped for time. When you are in business for yourself, time translates into money.”

Another mistake is networking with a one-sided ‘gimme’ attitude. “It’s very much a give and take, if it is going to work for you long-term. It is about building and nurturing relationships. Go out wanting to help others and give without expectation of returns. The rewards will come. Always over-deliver and keep your promises. If you want positive referrals, then you have to earn the other’s trust and respect.”

Being prepared means more than having the right attire and your business cards handy. If conversation and small talk don’t come easy to you, plan a self-introduction, “your one-minute micromercial” and have a few of your business success stories to relate. Plan questions to ask to learn about others and their businesses.

“Ask and listen to their story. In doing so you pay them a compliment,” says Verwey. “You want people to take away a positive impression of you and remember you when they need to refer you. That is the whole point of networking.”

Wallflower to compulsive networker. Few people are naturals when it comes to networking. The majority struggle through many sessions before reaching their comfort level. When Jennifer Beale started her public relations company six years ago, she decided to market it exclusively through business networking. Being “extremely shy”, that was easier said than done. She disliked what she then considered “bragging” about how good she was at PR.

“As for working a room and schmoozing with people I didn’t know, I’d rather have died.”

She attended a meeting of the Business Networking International (BNI) and at that first meeting received a lead that turned into a client. “I was hooked,” she says.

Within months, Beale went from a shy wallflower at networking meetings to a ‘compulsive networker.’ She zealously researched each event before attending in order to know where she was going and prepare accordingly. In doing so she laboriously built up a networking databank of information that soon became useful to others.

Her brainchild BizNetworkNews.com was born out of that frustration of having to do her own research on networking events, and learning, oftentimes the hard way, the do’s and don’ts of networking.

“I thought: this is nuts – if I am going to go through all this work I am going to share my efforts with everyone and then more people will show up at these events and we’ll all win.”

Beale works her leads at lightening speed, following up on referrals, connecting and in turn putting out leads to assist others.

“I share leads generously with people I meet. Anyone can develop the skills of asking questions, listening, and being genuinely interested in helping others succeed by connecting them to other people. Then they want to do business with you and connect you to others. It really is that simple.”

Today BizNetworkNews.com has become the starting point for networking newbies. Conscious of that fact, Beale packs the site with useful information on local networking events in all provinces and links to informative articles. She offers a free e-book on Business Networking Essentials for those who register at the site. For beginners in the networking game, this is a must-read.

Networking for med pros. Promoting his practice through Business Networking International (BNI) has helped chiropractor Dr. Mike Skiby turn ‘cold calling’ into warm introductions. Through a networker in his Streetsville chapter, Skiby recently got a lead to two golf tournaments seeking chiropractic services. That lead translated into substantial business.

In the year and a half since he signed up with BNI his leads through networking have generated roughly 10 per cent of his business.

But Skiby readily agrees that a networking organization that works for some may not work for others. “You ought to try out a meeting before deciding if it is a good fit for you,” he says.

Having decided that it is a good fit for his practice, Skiby follows BNI’s attendance commitment requisites by scheduling the early morning meetings into his weekly planner.

“I find it structures my week really well. I schedule in two weekly networking meetings in the mornings and then everything else around it.”

Like many in his profession, Skiby has begun using the power of the Internet to reach his web-savvy target ‘market.’ His website www.myhealth.ca attracts hits with attention-grabbing information on the wide-ranging health benefits of chiropractic and related services. Patients and visitors to the site can sign up for a newsy newsletter that covers timely topics.

“It’s all about having a presence,” says Skiby. “People are spending more time on the Internet and this gives them information that they can go through at their own pace.”

He knows that by the time they come into his clinic, they have read up on the service they want and are ready or close to signing up.

Networking and internet marketing have now become the mainstay of Skiby’s marketing strategy.

Networking for newcomers. When Anita Marchildon launched her executive recruitment business HROne Consulting earlier this year, she was able to make a running start thanks to an instinct for sensing business potential in others and a few well-chosen networking events.

“Even while I was in a business program fine-tuning my business plan, I was already picking up potential leads from all over the place,” she says. “One contact would lead to another. A chance meeting would turn into a hot lead. And lunch meetings were deal sealers so many times that they are now a staple in my marketing strategy.”

Marchildon has a background in human resources and uses her training and time-honoured recruitment coaching methods in working a room at a networking session.

“Simple things like being the first to say ‘hello’ and smiling can be effective ice-breakers and get you off to a flying start,” she says.

Keeping the conversation positive, non-controversial and non-intrusive can become second nature with experience. The cardinal rule for a good networker is to be a good listener.

“Listen actively and give feedback where appropriate,” says Marchildon. “Keep the conversation going with open-ended questions and resist the urge to monopolize attention.”

Oftentimes Marchildon finds herself counselling newcomers to the country and noted that cultural differences in etiquette can be misconstrued by both parties in a conversation.

“Canadian society is so multicultural that you are bound to rub shoulders with people of different cultures at almost every networking session you attend. It is what makes these sessions interesting, but it can also be a challenge if you are unaware or insensitive to the social etiquette and taboos of other cultures,” she says.

Her advice to those planning on attending multicultural networking events: “It will definitely help newcomers as well as mainstream cultures to get educated on some of the more common issues and be more accepting and respectful of all opinions and differences.”

Do’s & don’ts of internet marketing

‘A serious mistake small business owners make is in thinking they don’t need a website,” says internet marketing consultant Michael Quelch. “They think of it as a costly and unnecessary expense.”

Quelch, who owns a franchise with internet marketing and web development giants WSI, cautions against this dismissal of what he calls a vital marketing investment tool. “A website gives you presence and equalizes the playing field because no one knows how big or small you are. If you plan to use your site as a lead generation source, develop an internet market strategy before you build it so you know what you want it to accomplish. ”

Some do’s and don’ts in web design:

Do’s:

• Site should look clean, professional.
• Every page should have a call to action (phone number, contact form, etc.)
• Use attractive and inviting colours.
• Free of typos. Proofread carefully.
• Structure your content in logical sequence and consistent style.
• Use keywords that draw traffic to your site.
• Add quality content continually.
• Make your site popular to get high search engine rankings.

Don’ts:

• Don’t build it yourself unless competent to do so.
• Don’t build an expensive site initially, unless it is to be used for e-commerce. Spend what you can afford. An inexpensive website can cost as little as $500. Some government services offer free assistance.        

Media releases can bring you free publicity

If you have a product or service that has an interesting story to tell, you can save on costly advertising by pitching it to the media in a release.

In his book, How to Write Media Releases: to Promote Your Business, Organization or Event (available online at www.paullima.com), Paul Lima, media relations consultant, illustrates how this form of publicity, if handled well, can generate considerable interest in a business.

“Public relations generates 28% of sales inquiries, second only to advertising (38%),” says Lima. “Why is PR so effective? In simple terms, the media is credible.”

In his book, Lima outlines the how-to’s in writing a powerful media release that gets noticed, who to direct it to and when and if to follow up.  All these factors, says Lima, determines your chances of scoring a ‘hit’ when your information is accepted for publishing in the target publication.

Know your target market and pick publications that cater to that market. Address the release to a specific department or editor dealing with that subject to raise your chances of scoring a hit. Write the release well, structure it properly and include all the information of Who, What, Where, When, Why and How.

“Make sure the information is in the body of the email with no graphics to slow down download times,” says Lima. “Important information goes at the top and other details follow sequentially. Editors may pick up your release as a ‘filler’ and its length will determine its usability.”

Developing a media list helps, says Lima. But watch out for spam filters that can block your release from getting to its protected target.