You have a place you want to get to in your business, a “Desired State”. Maybe you want to be a millionaire, maybe you want to build a business big enough that you can come and go as you please. Or maybe you want to work so hard you drop dead on the job site at 95, having lived a long, rich life.
Whatever your desired state is requires some planning, and planning requires knowing, because you can’t manage what you don’t track. So today I am going to give you a 15 minute exercise that is going to help you get a better understanding of your business, your market and your future. So let’s get busy.
I am going to create a fictitious company to do this example, let’s call it Tess’ Flowers. Now Tess has a flower shop here in town, and she needs some help. So I give Tess some homework, a ‘market brief’ if you will.
Name: Tess’ Flowers
Target Audience: Residential or businesses. Newcomers to the area as well as females, birthday and anniversary customers, wedding clients and repeat customers.
Call to Action: Tess offers a “Same Day Delivery Guaranteed!” which is perfect for knuckleheads like me who ALWAYS wait to the last minute.
Convenience Factors: You would have thought same day delivery was enough, but Tess also does 7-day delivery and provides personal service in selecting the right arrangement.
Profit Centers: Looking around her business, Tess earns revenue from the following parts of her business – Nursery stock, house plants, fresh-cut flowers, arrangements for weddings and events.
Confidence Factors: Tess has a wide selection, more than anyone else in the local area, and she is the only florist in the area that offers Christmas decorating.
Business Function: Simple enough, Tess wants to provide outstanding floral service with quality and integrity.
What Makes You Different: Tess is a member of the Society of American Florists, offers quick response, has exotic flowers from all over the world, and guarantees all of her work.
Competition: There are several other shops in the area, but none offer Christmas decorating and none provide the level of service Tess does.
Additional Lines of Business: Tess is considering teaching floral arrangement classes in the shop as well as opening a Christmas store.
Why Should You Advertise: To grow the business, to establish prestige and promote her business in the local marketplace. Defend her referrals and to gain new customers.
Current Advertising Activities: Local community guides, magazines and newspapers
Seasonality: Tess is open all year
Co-Op: None available
Customer Type: Predominantly female, middle to high income, all ages. Holiday, birthday and corporate customers make up a wider demographic.
Ad Headline: Tess uses “Trust Tess, Your Flower Expert” in her marketing to build even more brand awareness.
Financial: Tess spends about $1000 a month on advertising. She generates about 40 leads a month that convert into new sales. Her desired state was 28 leads, so she is above her objective.
She wants to make at least 1 ½ times her investment, and each new client is worth about $300 to her business. So 40 new clients worth $300 equals $12,000 in new business, giving Tess a much higher return on her investment, achieving her desired state.
Now I want you to use this format to evaluate your business. If you want, you can stop back and let us all know how well you are doing now, and what you want to do to get to your “desired state”.