Starting out a new business. Q on Marketing.

[Fusebox]

Hi Everyone.

Im planning/investigating to start a small part-time business.
This business will mainly revolve around providing basic/simple computer services for home and small business.

Now the question I want to ask is, how would you market this?
My preliminary thoughts have revolved around putting in small ads in the classifieds section of the local paper. (ie: the local paper of the area I want to target) Im thinking cost wise I can probably do for around $60/week.

As I wish to start anew, I want to keep my initial overheads as small as possible.

So the question I want to ask, is are there other alternatives available? what would you rate as their cost/benefit ratio etc?

The capital Im prepared to put in is about $1500 till Oct 07.

Some thoughts from fellow members would be much appreciated.

[fdjaudinesjr]

We're on the same business... only difference is i'm starting on a shoestring

Currently here are my ideas of marketing my service business:

1. Make Value. Dare to be different. Define USP (Unique Selling Proposition).
2. Computer service plus 2 hours computer tutorial 1 hour per week (add some value and uniqueness to your service)
3. Referral program. Every successful referral gets 10% of the service charge per customer even on repeat business (Help other people generate extra income and let them do the marketing for you).
4. Put those two strategies on flyers and distribute it yourself (it's cheaper and they can ask questions directly from you) or post it on strategic locations (in jeepneys in my case) or the classified ads that you mentioned.

I still have some more ideas in my head... but i'm trying to focus now on taking ACTION. See if it works then revise it quickly if not.

Please update me with your progress... maybe we can share ideas on how to make our business successful and help other people as well

[MartialDev]

Originally Posted by Fusebox

Now the question I want to ask is, how would you market this?

For basic marketing strategies, I strongly recommend the InfoGuru Marketing Manual. I bought a hard copy last year, and it was one of the best business investments I've ever made.

[fdjaudinesjr]

Btw, I learned a lot from this ebook:

ChangeThis :: Guerrilla Marketing

[Fusebox]

Thanks for responses fjd, and MartialDev.
I'll definitely look into those.

I'll keep this thread updated, as I do more research and I'll write my findings on here.

[Fusebox]

Quick update: Just found this site. There seems to be fair bit of info, might be worth checking out.

Business Marketing - Small Business Marketing

[Hugh Hollowell]

Run, do not walk to amazon.com and buy every book you can find with NO B.S. in the title by a guy named Dan Kennedy.

Dan is... incredible.

his website is dankennedy.com

[fdjaudinesjr]

99 Cows: -- Companies That Go For The Edges

[Fusebox]

Now youve got me thinking how I can create a purple cow

[apt94jesse@gmail.com]

You can never overestimate the value of customer service and word of mouth advertising. The fact is, nothing works better than word of mouth, and friendly recommendations.

Get some business cards, tell your friends and family and coworkers, and then focus like hell on your customer service.

Remember, people who will hire you to fix their computers are not interested in how much you know about computers, past the point of being able to fix their's, which is a given. You'll win them over by being friendly, approchable, and nonjudgmental.

So many people have the opinion of IT people as cold, unpersonable people. Many IT people prove this theory correct.

You'll win your customer base by defining your market, and appealing that market's personal side.

And make sure you can fix their computers, too

[Fusebox]

apt94jesse, your right about customer service being very important.

Ive previously worked in a help desk enviroment for about 15months and I can tell you how important it is to have good customer service skills, even if it is over the phone. All service based businesses require it.

The biggest hurdle I envisage will be just starting and getting those first 10/20 clients. Deep inside there is a belief I can succeed by starting a simple business like this, but there is also a deeper fear of failure.

Im currently thinking of starting via three different streams.
1: advertising in the local paper for a couple of months and see what response I get.
2: Target existing computer service businesses my services. (I think this has potential)
3: Also target a specific group of users, for example, primary schools, or senior citizens homes etc.

Creating a business card is on the agenda, Im still pondering what to put on it. As you can imagine I want to minimise my costs as much as I possibly can when starting out.

[prasad_lg]

Don't you guys think Google's AdWords will help you reach your customers?

[BigBossTalk]

honestly if your just doing it for your area, i would say sign up wtih the chamber of commerce, try to talk to local business's to have an account with you for there serious IT needs

[Fusebox]

well by local area i mean a particular part of Sydney. Which would include many suburbs not just one or two.

I come from an engineering background, thus trying to think in terms of marketing is not easy

[apt94jesse@gmail.com]

Google Adwords can work SOMETIMES, depending on your competition. Here in Savannah, GA, USA, a quick search for computer repair leads to many many advertisers, making me think that the keyword bids would be pretty high.

Plus, for a computer repair business, using Adwords assumes you have a computer that is healthy enough to surf the internet. That cuts out a portion of your target audience right there.

I think you're on the right path, fusebox, as you have a good idea where you're going to advertise, now you have to figure how what you're going to advertise, or what your ads will look like.

Try thinking about common problems in today's computing.

• Spyware slowing down your computer?
• Want to upgrade your Windows Installation?
• etc

The beauty (and a pitfall) of marketing is that you can appear as professional as you want to. If you don't have the skills yourself, you can hire designers to create your website, business cards, logo, slogan, etc. for a reasonable fee. And there are plenty of them out there (me being one of them shameless plug, sorry).

Big businesses use focus groups to determine how they advertise their products. You don't have to have 100s of people in yours, but you can guage friends, family, and coworkers as to the effectiveness of your rough draft material. Outside opinions always help... and if you subscribe to the "subjective reality" theory, then those outside opinions are really your own then, aren't they?

Bottom line: If you feel there is a need in your market for this type of business, then don't let fear stand in your way. It will drive you crazy!

-Jesse

[Fusebox]

Bottom line: If you feel there is a need in your market for this type of business, then don't let fear stand in your way. It will drive you crazy!

Again, right on.

Ive just been thinking about marketing and all that. And ive had a thought. Instead of thinking just about marketing, why not also focus on sales strategies.

Basically, whats the difference between sales vs marketing??

In my opinion, sales strategy is something you activately participate in to generate revenue.
Whereas marketing in my opinion is more to do with brand name recognition, research, focus groups etc.

I was thinking of actually using a commission based structure to get friends family to spread the word. Any sales that result from this, pay them a fixed price fee (something reasonable yet not too extragavant). And seeing im starting out, and thinking long term, this strategy may really help in building word of mouth sales over many months, and it'll only really put a dent in the revenue cashflow over the short term.

I believe, once I try this strategy, depending on if its successful or not, I can move onto other strategies. Strategies which I'll need to research and find out. Id love to come up with a purple cow type sales/marketing strategy.

[apt94jesse@gmail.com]

I see the commission strategy as being a good thing only if a few conditions are met.

What a commission strategy does is basically provide employment for other people. Not full time employment, especially in your case, but you're trying to motivate people by paying them. For this to happen, you have to do two things.

1. Pay them enough to make it worth their while

2. Have a system where they can succeed enough to make the payment worth their while

If you offer something where the payout of $10 per month is only met with hours and hours of effort, then you're not likely to get many takers.

My theory, not that it counts for much, is to have a good and superior product, with a focus on a great customer experience. That way, anyone who experiences your service and your product will passively market you everywhere. Instead of enlisting people to go out and hunt down customers for money, you will be recruiting real life walking testimonials. And you'll be keeping 100% of your profit.

I'm not saying the the commission won't work, just that you have to make sure the commission process is worth it for other people.

And nothing is stopping you from doing both.

[Fusebox]

Heres what I was thinking...

Computer service/IT people here in Sydney (from my observations) charge $100/hr for their services... this is practically $100 in the pocket, as they charge extra for installing software/hardware etc.

So if I were to charge $89/hr for my services (most will only take maybe 15min to 45min) I can afford to maybe give $40 in commission to folks who recommend my services. I have full confidence in my customer service ability and actually providing the said service.

There are few things I need to get done first before I start. ie: website, business cards. (thats about it). Rest is working slowly on marketing.

[Robert Avila]

Fusebox...

The first idea that comes to mind is to print an offer on your business cards with a call to action directing people to your website.

"Visit my site and receive $X dollars off your next visit"

Once visiting your site have them leave their first name, last name and email address to claim their coupon. This will allow you to build your database of potential customers. You can email them a coupon....and periodically offer some specials.

Your site can provide visitors with your USP and you can establish credibility. It will also allow you to educate visitors on the benefits of maintaining a smooth running computer.

Are there any computer related stores....not offering computer support that can distribute coupons for you.....?

The store can "win" by offering something of additional value to their customers.....and you can in turn build your client base.

Good Luck!

[Fusebox]

Today, out of the blue I get a call from a client I once sold a computer system to, back over 2 years ago. He goes he wants me to help him fix his computer of viruses and reload windows without losing any files!

Ive got his number I'll be seeing him sometime in the new week. This could be the first of many.

Law of Attraction at work.

[Liara Covert]

I recommend a book by Carol Costello called, "The Soul of Selling" (How to achieve extraordinary results with remarkable ease--and not lose your soul in the process)

[sunraybrett]

Hi Fusebox, Good to see you are a fellow risk taker. I would just like to rewind you for a minute. You stated that the competition is $100/hr and you are looking at $89.

Firstly where do you what to place yourself in the market?
What is your competitive advantage?
What is your point of difference?

With these three answered you can then target your style of advertising and marketing. If you plan to compete on price then be prepaired to have your profit margin squeezed. Your competition will be in a position to join the price war if you start one. Unless you see a niche for a lower priced service and have backed this up with market research then this will just reduce your profit with small market share gain. Low price does not always mean good value. Value added is perceived better then budget in the marketplace.

You need to know your market and what the competion does wrong and how you can improve the service clients receive. Customer service is a key focus in most businesses. In highlighting this, your advertising will come across as more a 'user-friendly' service. Clear, professional, to the point, targeted advertising will stand out. A little more time invested at the start in market research, pays off in repeat customers in the future.

In a business venture of mine in the past we missed the point on what the customer wanted. We priced low to try and get market share, but the customers thought we were cheap. In a market survey we found what our customers really wanted was prompt service. We raised our prices 300% and guaranteed delivery which improved sales 1000%. Not to say your market is the same, just that what we think our customers want is not necessary a fact, but our opinion.

Good luck with your venture.

[Antiventurecapital]

A great new marketing book for those with no budget is Duct Tape Marketing.