October 30, 2014
Measuring marketing effectiveness isn’t just for C-Level Marketing Executives at Fortune 500 companies and marketing geeks like me; it’s also what separates successful small businesses from the failures.
Without putting sound tools in place to measure your marketing effectiveness, you’re going to be wasting a ton of time, money, energy and resources on the wrong marketing activities. How can you know what gives you your biggest bank for the buck if you don’t measure? Guessing can only get you so far. When we perform ROI analysis for the small businesses we work with they are always surprised to see how poorly most of their marketing is actually performing.
To make sure your business is on the right track to maximum profitability and marketing effectiveness implement these 5 marketing metrics immediately!
- Profit margin – Yes, I consider this a marketing metric because if you don’t know the margins on every type of work you do, product you sell, and/or every client you work with, you are most likely not operating at peak performance and profitability. Study this – constantly – and re-price, restructure, or abandon products, services, and customers that are bringing down your bottom line. Focus on what is most profitable and you will be more successful. Knowing your niche is half of the battle in marketing!
- Customer Acquisition Cost – How much does it cost you in marketing and advertising to earn a new client? This needs to be tracked and measured by each source. For example, does it cost less to acquire a client through networking than it does PPC advertising?
- Live Time Value of a Client (LTV) – Knowing the cost to acquire a client is great, but then you need to know the value of a client. How much is that new client worth to you over the life of the client? Is it a one-time sale or an ongoing sale? Do you cross and upsell knowing the LTV of your best clients is key to studying and learning where and how to attract more of them!
- Number of Leads by Source – If you don’t know this you may as well as grab your wallet, head into the restroom and flush all your money down the toilet now. Because that is exactly what you’re doing if you’re investing in marketing and not measuring whether or not you’re getting (leads from it. It’s imperative that every business knows exactly how many leads they get from every marketing; from advertising, to social media, to networking – and yes, even referrals.
- Conversion Rate – Leads are great and all but if they aren’t converting to actual paying clients, who cares? Knowing which sources convert the most leads to actual business (and the value of each conversion) is going to be key in measuring the success of any marketing campaign or promotion you do!
These are just the basic KPIs to track, there are literally dozens more that can be tracked to further refine your marketing and increase your profitability. But start here and become an expert at these 5 before moving on. And if you need help, this is what we love to do! Feel free to contact us to find out how you can get a professional ROI and KPI Analysis!
August 22, 2014
by Attorney at Law Michael Schachter of Pearson and Schachter, Walnut Crek
At some point, a an entrepreneur, you may decide that an LLC (Limited Liability Corporation) is right for your small business. But how do you go about it? All the mumbo jumbo on the internet can be confusing at best!
So this week I’m very happy to bring you a guest post from our friend Attorney at Law Michael Schachter. Michael is a business, corporate and real estate transactional attorney at Pearson and Schachter Law Firm in Walnut Creek, CA. I like working with Michael because he does does a great job of simplifying the information, and giving top notch legal advice in a way that small business owners can understand. So, here are his 6 Things You Need to Know about Filing an LLC in California!
1. Name. An individual must ensure that the name of the LLC is available with the California Secretary of State (“SOS”) or else the filing of the Articles of Organization to form the LLC could be rejected. You could check the name availability online by entering your proposed name, and any variations thereof, on the SOS website and clicking the “Limited Liability Company/Limited Partnership Name” tab at the following website: http://kepler.sos.ca.gov/. An individual may also call or write to the SOS to ascertain whether a certain name is available. If the individual ascertains that the proposed name is available, an individual could reserve the name by paying a fee to the SOS or move forward with the formation of the LLC. The SOS is a filing service and does not provide legal advice regarding the sufficiency of the name in the marketplace. Thus, it is prudent to check search engines for the proposed name and reserve the domain names to ensure that you are practically able to use the name without an issue even if the individual is able to register the LLC with the SOS.
2. Professional Services. An LLC may not provide “professional services” in California. “Professional services” are defined as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by laws. It is recommended that you contact the appropriate licensing authority in order to determine whether your services are considered professional.
3. Articles of Organization (Form LLC-1) (“Articles”). The Articles registers the LLC with the SOS and the form is found at: http://www.sos.ca.gov/business/llc/forms/llc-1.pdf. Once the Articles is correctly completed and signed, the individual would submit the Articles with the SOS via mail or hand delivery. The SOS generally takes 7-10 business days to file the Articles but could take longer depending on the time of the year. An individual could expedite the filing, if necessary, for a fee. It is also possible to check the status of the Articles by referring to the “Processing Times” page on the SOS website: http://www.sos.ca.gov/business/llc/forms/llc-1.pdf. Filing the Articles will obligate the LLC to pay an annual minimum tax of $800 to the California Franchise Tax Board.
4. Employer Identification Number (EIN). Every LLC is required to have an EIN. An EIN is the identification number for the LLC for tax purposes with the IRS. An individual could obtain an EIN online at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online.
5. Operating Agreement. An Operating Agreement for an LLC sets forth how the LLC will be managed and run. It will also state the ownership interests and officers, if any. Although an Operating Agreement is not required in California, it is highly recommended. Operating Agreements are to be maintained by the LLC and are not to be filed with the SOS.
6. Statement of Information. A Statement of Information for the LLC must be filed with the SOS within 90 days after filing the Articles and biennially thereafter during the applicable filing period. The applicable filing period is the calendar month in which the Articles was filed and the immediately preceding five calendar months. The form of Statement of Information is found at: .http://www.sos.ca.gov/business/llc/forms/llc-12.pdf
Have additional questions or need help figuring out if an LLC or Corporation is right for your business in the Walnut Creek area? Contact Michael for a consultation!
March 31, 2014
You’re a successful business owner by anyone’s standards: you’ve been around a few years and at one point had all the business you wanted. You hired a staff, your sales pipeline was full, and the phone was ringing off the hook! Maybe you even felt overwhelmed at times, but felt excited about expanding.
Marketing didn’t even feel like marketing: you either got lucky and business boomed with no marketing plan at all or you joined a few networking groups, bought a yellow pages ad, and the business just flooded in. You didn’t need any so-called ‘experts’, you did it all – and were pretty damn good at it too! Or so you thought…
And then it all changed. Suddenly the phone stopped ringing, the pipeline was empty, and you practically had to beg, borrow, and steal to get your next client.
Marketing was easy when there was an abundance of money and credit. Getting clients was a breeze for well established companies with great reputations. But almost overnight the game changed. While the national economy was spiraling into a black hole, distressed consumers were becoming more prudent about how and where they spend their hard earned cash.
Today, social media allows consumers to shop, share experiences, and compare products like never before. They’re armed with the power of knowledge and small business owners are still scratching their heads trying to figure out what happened, asking:
- What do you mean you don’t look in the yellow pages anymore? (Check out my blog, “Does Your Advertising Make You Look Cheap?” for more info about advertising)
- My competitors do ‘what’? How am I supposed to compete with ‘that’?
- What do customers want from me??? (Read, “Good Customer Service Isn’t Enough” for more info!)
In denial, many thwarted their businesses by asking for marketing advice from their accountant or hairdresser – or even worse – from the sales reps who make a commission off selling yellow pages ads and advertising. Frustrated and confused, many small business owners just quit marketing all together.
NO Marketing = NO Business
Giving up on marketing is not the answer. The answer is simple: if consumers are smarter, YOU have to be smarter. And the first step in becoming smarter is realizing and accepting what you don’t know. You started a business because you are a great dentist, attorney, CPA, or other service professional but chances are you’re not a marketing expert.
Hiring a Marketing Consultant can help you STOP guessing and wasting money on marketing that doesn’t work. A good marketing consultant will help you attract the right clients (the ones with money) and stand apart from your competition which will result in an increase in revenue – and profits!
A Marketing Consultant will also:
- Help you set goals, giving you and your company direction
- Develop, plan, and execute a strategic marketing plan
- Add much-needed marketing experience, expertise, and objectivity to your business
- Bring a network of specialists to make your marketing more effective!
A marketing consultant can be a valuable addition to your team, freeing you up to focus on building your business and doing what you do best! Be sure to choose a professional with experience who can challenge you and help you achieve your business goals! If you would like to learn more about how Fortune Marketing Company can help you grow your business, click here.