Start ups are a fun and exciting thing but they can also be very scary because you don’t really know if your idea is going to work or not so I wanted to share a few tips on how you can start marketing your baby!
The first thing you want to do when you are just starting up is you want to create your perfect customer avatar. Think about who you are trying to attract to buy your product and/or service. The reason why this is important is you want to make sure that you are speaking their language and you are living inside of their heads seeing their problems from their lens.
One tip of precaution when it comes to marketing not only your start up but any business or product in general is to NOT think about what YOU would like. Especially when it comes to choosing a sales channel you will use.
I will give you an example, a lot of business owners especially start up business owners will think about what they read and listen to everyday and assume their customer does the exact same.
The problem with this thinking is if you are thinking purely on what would sell you…. you are going to miss out on a LOT of opportunities and most likely make big mistakes on choosing your marketing strategy. You do not want to do this!
Instead think purely about your customer and the journey they most likely are going to go on. Think about what they are up to everyday and how they listen, read, and watch material. So DO NOT make that mistake of thinking you are your customer.
The next tip I would give on marketing your start up is to then think about your economics of your business and how much you are going to charge and then start coming up with a guesstimate of what the lifetime value of a customer is.
The definition of a lifetime customer value is what the customer will pay you over time. For example, if a customer pays you $50 per month and they stay around for 12 months then the lifetime value of a customer is $600.
So do your best in your start up phase of figuring out what your expected lifetime value of a customer will be. In this step I would underestimate to start so you don’t run into bigger cash flow problems in the future.
Once you figure out what your lifetime value of a customer is the next thing you want to do is figure out what your targeted customer acquisition cost will be.
The definition of a customer acquisition cost is how much you spent in money to get the customer to purchase your product or service.
For example, if you spent $500 on a marketing campaign and you acquired 4 new paying customers from that campaign then your acquisition cost (CPA) is $125. Now the way you determine what is a good or bad acquisition cost is basically going to be how your cash flow and your lifetime value of a customer is.
If your expenses and payroll exceed what the customer is paying upfront you are going to be in trouble unless you have a big bankroll so make sure to keep a VERY close eye on the cash flow of your business.
So when you are first starting out you are going to want to keep your expenses, payroll, and rent as low as humanly possible so you can get a good understanding of the economics of your business first so you don’t overly stress your budget and kill your start up.
Once you figure out the economics of your business and how much you are willing to spend comfortably the next thing you want to do is you want to start testing different sales channels to see what converts the best.
A sales channel is anything from social media, direct mail, email, public speaking, etc. What you want to do is do small tests on different channels to see where you can get the most traction and conversions and then when you find a channel that does well focus a majority if not all of your resources on that one channel.
The key to figure out which channel is the best for your business is tracking and measuring. Most start ups do a poor job of tracking and measuring where there money is coming from and because of that they end up either overspending or under spending missing big opportunities.
Track everything on a spreadsheet or hand write it in the beginning to get a good mental understanding of what is going on in your business.
Use these fundamentals for your business when you are starting out and you will have a much better chance of success. Start ups like I said are fun and challenging so use it as a learning experience to continuously improve your business skills!!
If you ever need help or have questions email me at firstname.lastname@example.org