Ever notice what definitely tends to happen, more times than not, when a resourced challenged small business owner, service provider and or under capitalized startup entrepreneur, has the business expenses to profits ratio, become inverted? 😀
Meaning, there’s more debt and front end expenses, than there are gross profit revenue consistently being generated! Yep!
You most certainly got that right. It isn’t very long, before the entrepreneurial endeavor, is merely a brief foot note in history.
Meaning, it’s gone, before it ever truly got started. On the other hand, when (just like) the image of the iceberg featured in this particular post.
The vast majority, of your long term profit-gross- margin ratios, are structured on the back end of your overall sales funnels.
It’s really difficult, to whined up, upside down. Let’s have a closer look, at a instance or two,in order to further demonstrate, this critically important marketing concept.
So What’s The Major Benefits To Your Small Business Marketing Strategies And Or Tactics Being Structured Like A Iceberg?
First of all, take a really close look at the image featured in this particular post.Notice how the vast majority of it, is clearly below the surface? Bingo!
And by an large, the most successful small business owners, service providers, and or mega successful entrepreneurs (you and I) can think of!
They structure their businesses in such a way, so they are not an inverted pyramid.
Meaning, their wide base is at the bottom, not the top. And while they clearly do create some gross front end profit margins.
For the most part, the vast majority of their long term profitability, is continuously generated, on the back end of their sales funnel!
Your Properly Structured Small Business Marketing Strategies Should Lead To Stability Not Instability!
Case in point; let’s say you run a local catering business, and your ideal target customer, is the higher end corporate clientele.
And their current, total lifetime customer value metrics, are $5,500 dollars over the next five to seven year period.
You could systematically go at trying to constantly generate,(outrageously expensive!), brand new first time customers, like the vast majority of your major competitors do!
Which is to, constantly spend a fortune on the front end of your sales funnel, by paying for traditional advertising, and or promotional campaigns etc.
Structuring Your Small Business Marketing Plans Like An Iceberg Will Definitely Lead To Some Long Term Profitability!
For ex; as you structure more sophisticated joint venture (JV) partnerships, and or cross promotional arrangements, you can then afford, to literally, (either) break -dead dog- even, on the initial front end of your sales funnel.
Knowing, the vast majority, of your long term profits, will be generated on the back end.
For ex; let’say one of your joint venture (JV) partners, is a local, independently owned, retail appliance dealer.
And their ideal customers, total lifetime value metrics, are $7,500 dollars,(or X amount of dollars) over the next five to seven years.
So the appliance dealer, is more than willing, to foot, (anywhere) from 80-100% of your front end cost, for you to offer, high end corporate clients, their very first, on site demonstration, at anywhere from a 30-50% discount! 😀
Make Sure You Structure Your Small Business For The Long Not The Short Term!
You get in the door, basically at your hard cost. And get major exposure, to the big wigs of local corporations.(And both their extensive inner personal and professional inner circles.for literally pennies on the dollar.)
And you strategically cross promote, the appliance dealers, extremely time sensitive, brand new, first time customer only, discount coupons, to both the regular employees/associates, on the back end.
Plus you promote (distribute) both your, high end private party catering services coupons, and the appliance dealers, extremely time sensitive, discount coupons, to upper management as well. 😀
And you’ll obviously charge them much closer to your normal retail rates, on each subsequent, private party and or additional, corporate on site engagement you book. Make sense? 😀
Are you finally starting to appreciate, how and why, your semi resourced challenged small business and or service, definitely needs to structure your long term marketing plans, just like an iceberg? Great!
P.S.Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can
apply to your business, product or service in the next 30 days or less!
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