Three, Two, One…Launch My Small Business

Poker

When the brave pioneers that want to start their own business are ready to get going, they approach ad agencies and marketing firms. They are the NASA controllers with the launch pad and you are the rocket ship. This initial phase is very much like the game of poker and the conversation ultimately gets to “what do you have?” That is, the agency asks what kind of cards do you have in your hand, which translates to “what’s your budget?”

Budgets, we’ll call them poker hands for now, are what will propel your rocket ship and they really can run the gamut. There’s Business A that says, “we have $3,000, do you think that’s enough?” Let’s call that two pair (at best). There’s Business B who has $2,500 a month for the first 6 months. We’ll call that a flush—they are thinking intelligently and funding the best they can. There are a few hands in between until you get to the fortunate few that have a loan or backers or lots of savings, let’s say $50,000+. That is a royal flush.

Since budgetary needs vary, what constitutes a royal flush for any start-up? If you have enough money to (a) build your brand, (b) research your competition and demographic, and (c) get the word out over and over again—with sustained marketing. The number it takes to do (a), (b), and (c) is a royal flush and an appropriate launch budget.

Most People Underfund The Launch

In his great book Winning, the former CEO of GE, Jack Welch suggests that you cannot afford to underfund a business launch. I would like to hear the contrary argument, but there isn’t one. It’s a plain and simple fact—it takes money to make money. Though if you are clever about saving and your business flourishes, you’ll have a great story to tell. The list of start up costs can really add up so it is no surprise that an underfunded launch is commonplace for small businesses, especially home businesses. So, the question becomes how does one navigate this dichotomy of pioneer spirit and a lack of cash?

This is a stressor and one that you will have to get used to. You may consider asking a few businesses how they solved this age old problem. Researching success stories will not only give you knowledge, but inspiration and motivation. If you can’t afford to hand the problem off to someone else, you will need to learn some things on your own.

Remember, it’s about branding, research, and marketing. So learn a little about each and when you start working with a graphic designer and marketing firm—you will be an intelligent client. You may not be a designer, but you can learn about consistent design. You may not be a market researcher, but you can have an idea of your ideal consumer. You may not be a marketing whiz, but you can understand that direct mail reaches a lot of people and costs less than producing and placing a television commercial. The Internet is a tremendous source of information for learning about branding and marketing on your own.

How To Launch On A Budget

If you have a royal flush, then congratulations are in order. Keep tabs on how the money is spent. Oversight helps to build strong CEO muscles. If you are like most people and have limited start up cash, here’s some advice. You want the strongest most professional look you can get for your company. You want to make sure you have ample money for marketing after building your brand. A marketing mix has at least a dozen options of how you can deploy your brand to the public. If you really have very little money for marketing, consider the three most cost efficient strategies.

1. Networking. Get the word out yourself.


2. The Internet. Make sure your website is rich in content and highly visible to search engines for your key search terms.


3. Direct mail, particularly if you are launching a local business.

Replace Worry with Courage

Ultimately, if you don’t have money to hand the work and worry off to someone else’s desk, you are going to enter numerous learning curves to do things yourself. The trade off is simple. You will sweat and work long hours but save money. Even if you have the money, you will sweat about other details—like wondering if your investment is being spent wisely. It’s all part of the journey. There is nothing like the thrill of successful ownership of your own business. Begin with the best poker hand you can and start playing the game.

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About the Author: Matthew Grant has over a decade of marketing and advertising experience both on Madison Avenue and Main Street. Matthew has been an SEO consultant at large since 2003 and is currently the head of marketing for the newly launched Raleigh area business directory, TomResults.com.