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Why is it a good idea to franchise your business? How popular is franchising? What are some valid reasons to franchise? In this article, we will consider these questions and more as we learn why franchising is a good plan for you. Franchising is being used by more businesses today than it ever has. According to ‘Francorp’, almost any product or idea that has been created can now be distributed through franchising. For successful business owners who are looking to expand their businesses, franchising can be the route to go for growth. According to ‘FDS Franchising’, there are over fifteen hundred companies in the UK alone which are currently using franchising as a way to produce this growth. Let’s explore why your business could benefit from franchising as well.

Who Should Franchise?

Whether your business idea is brand new, or you are already a successful inventor who needs to grow his or her business, you may not have the capitol to expand as you would like. You may be asking yourself whether you can afford to grow your business slowly, and feel that trying to expand quickly could cost you everything. Franchising is the way the modern business person produces growth in their business. It is often cheaper to franchise a business than it is to establish even the smallest new outlet. Once the initial cost of the franchise operation has been paid, the rest of the risks and costs are taken on by the franchisees. Also, the franchisor is normally paid an upfront fee or royalties by the franchisee. This makes franchising a good plan for making quick money with low risks. As ‘Francorp’ explains, there are several scenarios which make franchising a great idea for raising the capitol you need to grow quickly. Among those scenarios is the following:

1. If you and your business does not have the time, people, or cash to create a system for growth within your company.
2. If you believe that your company will grow faster than most programs which are owned by large companies.
3. If you already have a distribution system that you need to supplement.
4. If you need your management to be more motivated, and tighter control over the business to improve the systems.

What is Franchising?

As explained by ‘FDS Franchise’, many different pyramid schemes, licenses, and business opportunities have used the term “franchising” so many times that the true definition has become a bit blurred. Because of this fact, the franchise industry proper adopted a new term, “Business Format Franchising,” which represents the different true franchises which have been properly structured, from the other opportunities which are in the market today. This term simple means the granting of a license from the franchisor (you) to the franchisee. This grant would allow the franchisee to use the trade mark or name of the franchisor. They may also use any other part of the company package. (Think, for example, of popular restaurants which are actually owned by different people, and thus ran a bit differently in each location yet keep the same name, logo, etc. The restaurant would be the franchisor and the actual owner of each individual location would be the franchisees.)

Why Franchise?

1. Growth of Your Network- Very often companies which only have one or two locations can actually expand very quickly through franchising. Within just a few years, a smaller business can actually become nationally known through the use of franchising. This would not be possible with development which is funded strictly through the company. You will need far less resources in order to open a franchise location than if you owned a separate place which was owned by the company. In these cases, the franchised business will grow much faster than a lone company would. The franchisee is actually responsible for the funds to lease the location, recruiting any needed employees, training those employees, and also running the marketing campaign on a local basis. With this method, you could actually open several locations at once, instead of one at a time, taking time to get each one started and on it’s feet.
2. Local Management With Motivation- When you grant a franchising to an individual, you are actually placing that location in the ownership of someone who is familiar with the local market and can become their own employer..so to speak. How much their salary is will depend on how hard they work to be a success. This is much more motivating than simply hiring a manager to run a new location which you have opened yourself. In that case, the manager may or may not be as motivated, since their salary does not directly rely on their work ethics, performance, etc. Included in the contract of a franchise agreement is a clause which prevents any franchisee from leaving your location and using your business ideas elsewhere. A simple manager or employee would not be under the same restrictions.
3. Fair Capitol Return- As previously stated, the initial cost of leasing, hiring, setting up, purchasing, and launching a franchise lies with the franchisee. You will have the true financial incentive of the ongoing Management Service Fee, which means that you will receive a percentage of every dime that the franchisee makes, even though they ate those initial costs. That fee is paid to cover the costs of your ongoing support, as well as any research and development which you continue on your product. It also covers any national marketing campaigns (local ones are covered by the franchisee.) You also receive compensation for the use of your intellectual property. As ‘FDS Franchise’ points out, since there is less capital employed, your profits will be generated on a lower capital investment. Even though the revenue which is received from franchised locations is normally less than it would be from those that are owned by the company, a higher percentage of the revenue is pure profit.

In short, it takes successful franchises for the process to be a success. When it is structured in a proper manner, a franchise agreement can help small companies to compete with the larger ones. It can also benefit larger companies by placing very motivated managers in new locations with barely any overhead costs. With no worries of recruiting new employees, training, localised marketing, leasing, and such, you are free to focus on how you can improve your product, and develop your business. In today’s struggling marketing, franchising is the way to go for expanding your company with little risks.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eyesofananjel@gmail.com. Follow Angela on Twitter. Find her on Facebook .

©2012 entrepreneurweek.com, all rights reserved.

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According to a report from ‘The San Francisco Chronicle’ Novatorium was extremely
busy during it’s first six months of existence, helping many entrepreneurs to get
started with their dreams. General Manager, Mike Krupit explains that they have
done so through their programs which are both productive and innovative. Mike calls
himself the “survivor” of six prior startups.

Krupit explains the stairway which leads to the second floor offices of Novatorium.
He says that there is inspiring graffiti on the walls which surround the stairs, which
forces most people out of their comfort zone, and admits that he loves the excitement
of working with other entrepreneurs. (newsworks.org). Most entrepreneurs and
business people would not write on the walls. Mike admits his addiction to the world
of entrepreneurship and shares that it is like a drug for most, the culture of it, the
passion, the fast paced world where you never know what to expect. He took his love
for the game and desire to be around other innovative minds and decided to launch
Novatorium, a business incubator.

Novatorium opened for business in November of 2011 in the Philadelphia area. Since
that opening, they have began a good number of programs which were designed to
help entrepreneurs to grow their new businesses. Mike shares that their programs
range from incubation full time, to acceleration groups which are held monthly. They
also feature individual classes, co-working, and sponsorships for those programs
which are focused on entrepreneurs. There are no fees, nor in any equity required
from those entrepreneurs at the outset.

Mike explains that when they first bring a new business into the incubator, they sit
down with them and decide on three month goals. They discuss an action plan, a
resource plan, and then the business is turned loose. It is only after those three months
that Novatorium will even consider any sort of financial investment in the company.
This is different from most business accelerators. He only deals with entrepreneurs
who are interested in long term business ownership, and has no interest in those who
simply wish to start a business and quickly sell.

Mike says that Novatorium is actually not worried about whether or not the idea
is actually a good one. He is more interested in the entrepreneur than in the idea.
It’s very first client was a business website, where people can order food from
local restaurants, and have it delivered to them. Novatorium has four full time staff
members, and a network which consists of over thirty partners. According to their
website, they have, “established a diverse and large (and growing!) team of advisers,
mentors, and service providers. These partners work with Novatorium companies
in a number of different ways – ad hoc support, regular office hours, classes and
seminars, and specific assigned projects. While there might be some email and phone
support, a majority of the teams’ interactions will be on-site to benefit from the
openness and collaboration.

These partners include successful entrepreneurs, senior technologists, finance
professionals, marketers, design and user experience specialists, lawyers, HR

managers, copywriters, and seasoned sales executives. We have many specialties
covered. In marketing alone, we can provide guidance with online, SEO/SEM, email,
direct, print, and PR and publicity. Novotorium’s advisers and mentors also come
from a wide range of verticals, so in many cases we will be able to tailor the expertise
to a given market.”

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eyesofananjel@gmail.com. Follow Angela on Twitter. Find her on Facebook .

©2012 entrepreneurweek.com, all rights reserved.

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Okay, you think you are ready. You’ve got a great idea for a business or product. You have done your homework and discovered that there is a good potential market for your idea. You may have even managed to create a sample of the product or a business plan which can show others how your idea will work. Now how in the world will you ever raise enough cash to turn your dreams into reality? There are many ways for entrepreneurs to fund their ventures. Here are a few for you to consider:

Bootstrapping It- Starting a business with no money at all is, of course, the best way to go if it is possible. An article posted in inc.com shares how one very successful entrepreneur started with no capital and became the founder of a thirty-million-dollar business. Greg Gianforte, founder of RightNow Technologies Inc feels that this is the best way to launch a new business…and he has the track record to prove it! He also feels that to lack money, equipment, employees and even product becomes an advantage, since it forces the entrepreneur to focus on selling in order to bring in money. And he is not the only person to start with nothing and end up with a huge company. A previous www.entrepreneurweek article discussed how Steve Jobs and Steve Wozniak raised one thousand dollars to start their business by selling a calculator and a car. Apple Computers was thus born, in a garage!

Family and Friends – Although it may not seem the most desirable way to raise cash, many entrepreneurs raise the money that they need to start their businesses by turning to the ones they love. Some of these may be gifts of cash, and others may be considered loans, but many businesses have been built on money that was borrowed from family and friends. It is an easy and informal way to get a loan, since you normally won’t need to write a business plan. It is a good idea, however, to write up some form of contract so that there are no hard feelings later.

Borrowing Money From Banks, etc. - In most cases, trying to get money from a bank for a start-up is a long shot. Most of the time a company has to be in business for at least two years before a bank will even consider loaning any money. The bank may also want to see that there is tangible collateral to be used as security. If you cannot prove that you are definitely going to be able to pay back the loan, odds are that a bank is not going to give you the money. If you can get your loan guaranteed by the Small Business Administration (SBA), your chances will improve. A bank will be much more likely to accept your loan application if your company has a SBA guarantee. You still may need property to use for collateral, however.

Grants and Other Loans – There are many different grants and loans that are available for small businesses and entrepreneurs. In a previous article, it was announced that the United States government has passed a bill that approves funding help for entrepreneurs as well. A Google search shares so many different types of loans for new entrepreneurs that it is impossible to name them all here. There are loans for mothers starting their own businesses, loans for college student entrepreneurs, loans for first businesses and more. It is probably best to have an attorney look over any long-term loan, any loan that mentions equity sharing or any other form of sharing company profits in the future. Grants are helpful as well for women and minorities. And investors are often attracted to your company by grants.

These are just a few ways to raise the money to start your business or fuel your product idea. Be sure to research well and have an attorney look over anything before you sign.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .

©2012 entrepreneurweek.com, all rights reserved.

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In a previous www.entrepreneurweek.com article, characteristics that are common amongst entrepreneurs were discussed. Although those characteristics were all positive ones, there are quite a few of them that could be challenges for entrepreneurs as well. A few of those characteristics are here in this article.

Perfectionism:

Although many people have the misconception that perfection is something for which we should all strive, the drive to be perfect is actually one of the worst characteristics that an entrepreneur can have. As a perfectionist, you are seldom satisfied with your own work and have a tendency to over-do everything. You may also have a hard time trusting tasks to others and therefore will try to run everything on your own. When this happens, your focus is often taken off of the vision and focus that you need in order to accomplish the important tasks of your business. In order to avoid perfectionism, you should just relax and allow yourself to make mistakes. After all, it is from mistakes that we learn.

Multitasking Overload:

Although many entrepreneurs have a dozen ideas in their heads of a new product or business idea that could be great for the universe, trying to actually do them all at once can be disastrous. Trying to spread yourself too thin can make you lose focus of the vital goals that will lead you to success. You may continue to shift your focus and therefore everything that you attempt to do will be given less than one hundred percent. In order to avoid multitasking overload, focus on one venture at a time, and pour all of your time and energy into that one goal.

Wearing Rose Colored Glasses:

Although being creative and dreaming big are good qualities in an entrepreneur, you must be careful to be realistic in your dreams. There will always be naysayers, those who tell you that something is impossible, but you must be able to determine for yourself if it really is. Any thing that is worth doing will, of course, be hard, but you don’t want to waste your time and energy on a dream that has no basis in reality. Listen to your friends, family and colleagues. Although many of them may sadly be negative about any venture that you may try, pay close attention to those who are usually supportive. When they feel that what you are trying may be a bad idea, then do the numbers. Talk to others in your field and make sure that your plan is do-able.

Inability to Compromise:

When the women’s fitness locations known as “Curves” first opened, they were a huge success. In recent years, however, that success has dropped drastically because other fitness franchises began to stay open twenty-four hours a day. When “Curves” refused to compromise and do the same, many customers opted for the convenience of the other locations. The old saying, “The customer is always right,” is an important one. Although we have all seen those customers who are demanding and can never be pleased, this saying has roots in truth. If you refuse to compromise to meet the needs of your customers and clients, someone else will. In order to avoid this trait, you must be willing to compromise, and work with others. The needs of your clientele must be a major consideration, because without them, your idea will not flourish.

Refusal to Learn:

A successful entrepreneur is always learning new things. Just because something worked well last year, does not mean that it will this year. It is important to keep up with the new information that is being created about your field. It is a great idea to network and be surrounded by people who are experienced in your type of interests and listen to their advice and feedback. Refusal to accept criticism and learn new things will leave an entrepreneur stuck behind as the rest of the pack moves forward. In order to avoid this characteristic, you must always be learning and remain willing to learn.

Procrastination:

The Bible says in James that faith, without works, is dead. It is not enough to simply have this terrific idea for a new product but sit on it thinking that you’ll get to it one day. If you are creative, intelligent and gifted enough to realize the need for your idea in the market place, what makes you think that other entrepreneurs won’t think of it as well? By the time your “one day” gets here, it may be too late. It takes action to be a successful entrepreneur. In order to avoid procrastination, of course, one must act! The time is now….don’t wait.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .

©2012 entrepreneurweek.com, all rights reserved.

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Entrepreneurship is a word that is becoming more and more popular as the people of America, as well as around the globe, try to find ways to become successful while solving the serious issues plaguing the nation and the world. The President of the United States, Barack Hussein Obama has mentioned entrepreneurship many times in his speeches, including in his most recent State of the Union Address for 2012. For some, it seems as though entrepreneurship may be their only way to survive the economic crisis that is affecting so many people. But what characteristics make a person become known as an entrepreneur?

In a previous article, a few of the definitions that have been given for the word “entrepreneur” have been discussed. Most of those definitions seem to agree that entrepreneurs have a certain drive, ambition and creativity that sets them apart from other business men and women. Entrepreneurs will see the opportunities that others might miss. If there is an unmet need in the market, many people will simply say to one another, “Well someone needs to invent (insert missing product here). It would make life so much easier!” But an entrepreneur will see the need, figure out a potential way to meet that need and work to make it happen.

The entrepreneur’s mind is always working, and at any point, they may have a myriad of ideas for new business opportunities or ideas that could improve life while providing monetary rewards. They may assess those ideas and decide which one is more lucrative before moving on to the next step to starting a business. Other entrepreneurs may only have one big idea. They will mold and form that idea until it has become their baby, and they nurture it and watch it grow.

The entrepreneur uses creativity to figure out the best way to meet the needs of the market and provide a product or idea that will benefit themselves as well as others. Their passion will keep them motivated even when everything does not fall into place as they hope. Their persistence and determination will push through where others may give up. They are focused on the end goal and will work towards it, often without worrying about the obstacles that may be standing along the way. The entrepreneur plans carefully to work through those obstacles when they pop up and uses his or her intelligence and energy to overcome the odds and make their dreams happen.

It does take more than just these characteristics in order to become a successful entrepreneur. Planning, discipline and more will help you along the path. A good business plan is needed, although a college degree may not be. Having no overhead when you start on your venture is also a big help. An entrepreneur will realize that becoming a successful business owner is hard work and that a company does not run itself. They will also know when to say “no” to an idea. Although they are risk takers, those risks are calculated and well evaluated before an entrepreneur acts upon them.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .

©2012 entrepreneurweek.com, all rights reserved.

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As Thanksgiving weekend comes to a close, people all over the United States have spent
time with their families and loved ones as they reflected on what they are
thankful for. Steve Strauss shares in ‘USA Today’ a few of the things that entrepreneurs
should be thankful for, not just during the Holidays, but always. Here are a few of those
things.

Not Being Closed Down

With the current status of the nation’s economy, and so many going through the
Holidays without a job, anyone who has one should be grateful. This is even truer of
those who work at home or operate a small business. If you are able to maintain your
lifestyle and can take care of the needs of you family, then you are truly blessed to be an
entrepreneur in today’s world.

Customers and Clients

Let’s face it, if it were not for our customers and clients, we would be out of a job.
All too often we as entrepreneurs can let ourselves slack, and feel that we work for
ourselves, so it won’t matter. This is actually far from the truth…we do not work for
ourselves. Entrepreneurs work for their customers and clients, and without them, we
do not work at all. Those customers who are loyal, and stick with us are truly something
to be thankful for and to never take for granted. Slacking off, even for just a little while,
can cost us those loyal customers.

Your Employees

For those small businesses and entrepreneurs who have employees, you should never
forget how difficult it would be to run the company without them. No matter how hard
you work, you could not be a success all on your own, and it is important to appreciate
your staff, and be thankful for them all. Whether your staff is full time, part time, in
person, or online, they are valuable assets to your business and vital to its success.

Your Family

Entrepreneurs and small business owners often work more hours and spend even
less time with their families than do those who put in a forty hour week. So for those
families who not only put up with the crazy hours, but support you every step of the
way, it is important to realize how special they are. Our families watch as we dream, hear
as we plan, cheer as we succeed and support if we fall, and without them we would be
lost, and it would all be in vain. Those entrepreneurs and business owners who have
families to support them are truly blessed.

America

Despite the fact that our country is going through difficult times, more entrepreneurs
come from other countries to start their businesses in America than they do anywhere
else. The reason for this is simple- here in the United States, we have the freedom to
pursue our own ideas. The people of this country are able to try out their plans and
if they fail, try and try again. While most other countries frown upon taking risks, it is
celebrated in America. Entrepreneurship has a history in this country and is encouraged
every step of the way. For the chance just to chase the American Dream, we should all
be thankful.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .
©2011 entrepreneurweek.com, all rights reserved.

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With the state of the economy all over the world, and the jobless rate continuing to rise, many people are turning toward entrepreneurship as a way to take care of themselves as well as their families. Many of these people are striving to find a way to maintain an income in a jobless time. But as they entertain the idea of starting their own business, many entrepreneurs worry whether or not they can pull it off. For those who are willing to work hard, willing to learn new things, and persevere, the answer is a definite, “Yes.”

Start Out Slow

Often, the key to being successful in the world of entrepreneurship is simply to take it slow. It is easy to get excited as your ideas turn into reality, but starting a business is something you need to wade in to a little at the time. Don’t rush it. There is no need for you to take huge risks or worry yourself into a frenzy. As ‘Forbes’ points out, moving slowly into a new venture can help you to take confident steps as you transition and experiment. As you gain the knowledge and resources which you need to create a successful business, your confidence will continue to grow. For those who are thinking of stepping into the waters of business ownership, here are a few ideas for treading lightly into those waves.

Build Relationships:

It is likely that you have an acquaintance or two who is a business owner, or entrepreneur. With that said, it is also likely that you do not have enough entrepreneurial friends. For those who have not watched, and seen firsthand what it is like for an entrepreneur starting out, it is easy to see the future with rose colored glasses and expect too much too soon. When you are friends with entrepreneurs, and get to watch as they work to build their companies from the ground up, you can get a feel of what it is really like to succeed in entrepreneurship. It is likely that as you get to know a few entrepreneurs, get their advice and watch them grow, that you will gain more confidence in your venture.

Create Your Manifesto:

In order to create your business with a strong foundation, you need to understand your purpose and vision. It pays to sit down and take the time to get a clear picture in your head, and then write your ideas down. You will need to ask yourself questions such as, “What opportunities will I gain by becoming an entrepreneur?” You may also want to ask yourself exactly what type of business you wish to start. Decide what defines “success” for you. You should get a vision of where you want to be in the next three to five years. These types of questions will get your mind working on your goals, and help you become prepared for moving forward.

Study And Learn All You Can Before Diving In:

There are many ways for a new entrepreneur to gain the knowledge they need to get started. Many websites and Universities offer free entrepreneur classes online and there are also several forums, communities and other places to learn. Even if you have not yet committed to make an investment or long term decisions, the knowledge you get from these free resources is priceless. Searching through entrepreneurship blogs, articles, and news sites are also a great way to learn from others’ experiences.

Step Out Into the Water:

In the Bible it says that you can move mountains with faith. It also states that faith without works is dead. A Chinese proverb shares that one cannot move a mountain all at once, but stone by stone the mountain is removed. So, acting on your faith that your new venture will be successful, and working step by step to make it happen, your mountain can be moved. Progress is not taking giant leaps, but by moving one step at a time. So take small steps, research on exactly the type of business you want one week, write out your business plan on another day, and start a Twitter account for your business as you continue to move along. Little by little, you will begin to feel like a legitimate business owner, and that confidence will help you continue taking the steps you need.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .
©2011 entrepreneurweek.com, all rights reserved.

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For many entrepreneurs, the marketing budget for their startup is not very large. In many cases, it is non-existent, which leaves them feeling hopeless about being able to market their service or product properly. In many cases, the only marketing strategy which they have at all is word of mouth, which is good, but not nearly enough. So what are some effective marketing strategies which can be implemented on a small budget? Let’s take a look.

Word of Mouth Promotion

‘USA Today’ recently shared some of the ideas of author Michael Gerber from his book ‘The E-Myth’. Gerber feels that entrepreneurs spend far too much time working in their business, but not enough of their time working on their business. He shares several ways in which you can grow your business without going broke. One of those methods is, of course, word of mouth. One of the best advertisements for your business is the word of a satisfied customer. This is more reliable to potential clients and consumers than any other marketing tool, because it is the word of a third party.

Now that you know what a great marketing tool a customer’s word of mouth can be, here are a few ways to use this marketing strategy. Have your customers write you a testimonial. These Letters, written on their own stationary, can then be placed in the windows of your business, or on a cork board on the walls. They can also be scanned and uploaded to your company website, blog, or e-newsletter. Video testimonials could also be used for those online web tools.

Social Media Marketing

Social media is another terrific way to spread the news about your business without paying an arm and a leg. Creating a Facebook page for your company is easy, free, and has the potential to reach literally millions of people. It is important to keep your page active, and post any news or promotions you may have. You can create contests, and have the user who brings the most people to “like” your page wins a prize. That prize could be anything from a Wal-Mart gift card to free services from your business. Twitter accounts can also be used for this method of free marketing.

E-mail Marketing

E-mail marketing is also a terrific way to share the news of your company. With this method, you have customers and potential clients sign up for your free e-newsletter. This helps you to keep in touch with your customers, and keep them informed. Those are both very important in business, since keeping in touch with the client helps to keep them feeling like they are important to you. When you make someone feel good about them self, they will want to use your services, and will spread the word to others.

There is also a lot of inexpensive and even free help out there for entrepreneurs to market their small business. Counseling and training is available from the Small Business Administration. Other such organizations include the Small Business Development Centers, and SCORE. You can also become a part on online forums and groups on entrepreneurship, marketing, and small business.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .
©2011 entrepreneurweek.com, all rights reserved.

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Managing and operating a small business is a learning experience. Marketing is one aspect of a business operation, in which mistakes can be costly. There are things a small business owner can do, in order to avoid wasting time and money on ill-suited marketing approach. Although it is accurate that a marketing approach varies from one industry to another, it does not have as significant of an effect as the implementation of it. If truth be made, a considerable amount of small businesses commit costly mistakes after costly mistakes as a result of their inadequate understanding of a marketing mechanism, and costly mistakes are what small businesses cannot afford. Here are some of the common marketing mistakes that small businesses make.

Launching Generic Marketing Effort

It is a common misconception for small businesses to think that the more groups they can target in their marketing effort, the better. They think that by focusing on one group, they are turning their backs on a group that can be a potentially profitable market. Although for a company to be all things to everyone is ideal, it is rarely achievable. Successful businesses focus their marketing efforts on a target audience to boost their brand’s appeal, grabbing interest and ultimately generating profit.

Employing a Rational Marketing Approach

Several studies show that most buying decisions are influenced by emotions and not by rationality. Since marketing planning involves rational thinking, such as creating strategies and determining budgets, it is a common mistake for small businesses to use a marketing approach aimed at rationalizing with or convincing their target audience, instead of establishing a connection. Effective marketing efforts are those that appeal to emotions rather than reason.

Relying Solely on Market Research Data

Most marketing failures occur as a result of the growing reliance of small businesses to market research data. To say these data have limitations is an understatement especially when most of the time, they are just inaccurate. The inaccuracy lies on the fact that consumers don’t always express the truth, not to mention the fact that sometimes, they are not even aware of how they feel, what they want and what they think. Research may be a useful marketing tool, but a marketing campaign should not rely solely on it.

Jumping on the Latest Marketing Bandwagon

Marketing field is so dynamic that there are always new marketing tactics and media claiming to be the next big thing. Not to say these are not worth considering, but nothing is worth tipping over an established marketing efforts for, especially for a small business. Let the big businesses with money to spare, try out new tactics, unless you are desperate and have nothing to lose.

Trying to Be Better Instead of Trying to Be Different

In the planning board, competition is ideal, but in reality, it is challenging. This holds particularly true when your competitors are coming up with something you think you can beat. It is always tempting to match what they can offer and offer something extra. However, by trying to be better, it is easy to lose track of what makes your company different.

Skimping on the Marketing Budget

Every business needs to have a certain percentage of their budget allocated to marketing. Small businesses should find an effective way to get their message out and should not skimp while doing so. However, this does not mean that a company can go all out and spending unreasonable amount of money on marketing expenses. For small businesses, it is best to seek professional help.

Expecting Customers to Act Instantly

Do not be too quick in reinventing your marketing campaigns just because you are not seeing results, because every time you decide to start over, you are really starting over. Most small business owners expect results immediately after launching a marketing campaign. What they don’t realize is it takes a considerable amount of time to send a message, and even longer to establish credibility, and even much longer for that credibility to have impact on sales. Plan your market efforts with care, and give it time to work. Not all of your marketing efforts will work, but with the mistakes you make, you will learn and grow.

Kimberly is a researcher, writer, business woman, and contributor at entrepreneurweek.com blog network.  She may be reached at eweekcomauthor@gmail.com.

©2011 entrepreneurweek.com, all rights reserved

Credit: renjith krishnan / FreeDigitalPhotos.net

According to a report in Social-Media Today, about eighty percent of all small businesses
will fail in their first twelve months of existence. There are many reasons for this, and
many of them are completely avoidable. Those who are hoping to start their own
businesses need to take a look at those mistakes, and make a note on how to be sure
not to make them. How can you experience entrepreneurial success? Read on and see
for a few ideas.

Research, and Do The Math!

Sadly, one of the first mistakes that new business owners make is not doing enough
research and skipping the math. All too often new entrepreneurs will choose a product
or service for which there is simply not enough demand to make a profit. You idea may
seem like a great idea to you, but it I important to research and make sure that others
will actually buy it. It is also important to be sure that your plan is not already being
done. Even if the idea is a great one, a profit cannot be made if the idea has already
been implemented.

Focus on the Long Term

You will also need to make sure that you are more concerned with building a business
which is sustainable, instead of simply striving for a quick profit. When someone offers
you a huge contract which will pay off several of your bills, it is often very difficult to
look at the long term payoff. It is much better in the long run to accept those smaller,
long term deals than taking that one big deal which will make you lose focus. Once the
large deal has ended, so does the paycheck.

Take Time to Grow

Believe it or not, growing too fast is also an issue which causes failure for a lot of
entrepreneurs. One of the most disappointing reasons that small businesses do not
make it is because they grew too quickly. If your business explodes from the beginning,
take that success for what it is, everyone loves to try new things. Keep in mind that the
new will likely wear off, and the booming business will slow down to a normal pace. It

is this speed that will slowly build your business into a profitable success. You must also
avoid opening new locations too soon, as this will take away from your profits from the
first business for quite some time.

The Company You Keep

Finally, it is very important to watch out who you hang out with, and who you choose
as your co-workers and employees. Make sure that you choose clients who will value
your time, as well as your talents. When choosing who to hire, make sure you are not
choosing an employee based only on education and skills. Although these are important,
personality, ambition, and integrity are even more so. While both education and skills
can be taught, these other attributes are ingrained behavior and often cannot be
changed. No matter how educated or skilled an employee is, they are no good to you if
their personality clashes with yours or that of others on your team. This is also true of
those you may choose to partner with. Even if you need the financial backing, taking an
investor or partner with which you cannot work well long term can kill your drive, and
your dream.

Angela Kaye Mason is an online researcher, writer, and contributor at entrepreneurweek.com blog network. She may be reached at eweekcomauthor@gmail.com. Follow Angela on Twitter. Find her on Facebook .
©2011 entrepreneurweek.com, all rights reserved