BBB Blog

 Wayne Andrews, Director of the Yoknapatawpha Arts Council, share tips for grant writing. Thank you for following along with the Big Bad Business Blog. Did you know we have a newsletter too? To sign up for the newsletter and request more information about grant writing CLICK HERE

Every business needs to set goals to attain them. Though, most goals tend to be broad with no focus or plan to reach them. One way to get your business on track to achieve your goals is by the SMART method. It allows you to set your goals and create an action plan to achieve results.

Specific--Articulate your goals so that they are well defined and focused. Instead of stating your goal “to make more sales,'' be specific. Focus your goal to be something like “to generate more sales through my website”.

Measurable--Your goal should be measurable to achieve desired results. Using the above website sales as an example set a target for how many sales, both monetary goals and new customer interactions. Setting a target allows you to see if you are achieving your goal or if you fall short.

Attainable--Set goals within your reach. You can dream big but remember to keep yourself rooted in reality. Achieve realistic growth by aiming for attainable goals. It would be fantastic if you were able to generate 100 sales through your website a day, I do not doubt that you will get there one day. However, when you're just starting, set goals you can reach. That way you can celebrate the victories and not be defeated by your unrealistic expectations.

Relevant--Your goals should be based on the current market conditions of your industry. This falls in line with the above attainable goals. Look at the business climate, what your competition is doing, and then set your goals realistically based on relevant information.

Time-based--Goals only work if you set a time frame to achieve them. When there’s no deadline to work towards, objectives tend to go unaccomplished.

Once you’ve established your SMART business goals, break each objective down into tasks to accomplish the goal. These tasks form an action plan to achieve results. Thank you for following along with The Big Bad Business Blog. Do you have a topic you would like to hear more about? CLICK HERE to submit your idea and sign up for The Big Bad Business Newsletter, sending more in-depth information directly to your inbox!

SWOT stands for Strength, Weakness, Opportunity, and Threat. The goal of a SWOT Analysis is to assist your business or organization in assessing its current position before making a decision and creating a strategy. A SWOT Analysis allows you to make an informed decision based on 4 aspects of your business. SWOT compiles any internal (strength, weakness) and external factors (opportunity, threat) that may affect the decision-making process.

Reasons to do a SWOT Analysis:

>To provide regular analysis of your operations

>You need to pivot a plan to a new direction or redefine a plan. This can happen because of a new opportunity, unexpected threat, or downturn in business

>When you are at a turning point in your business and need to determine where changes should be made. An inquiry into your strengths and weaknesses can provide insight on which direction to take

>You need to identify a plan for a new venture and want to make an informed decision to solidify a path to success.

As you brainstorm, note the strengths, weaknesses, opportunities, or threats in the appropriate category. Be honest with yourself when considering your weaknesses, this will only work if you can note the areas in which you can improve. On that same note, proudly list your strengths. This is not the time to be humble!

When listing your strengths and weaknesses consider:

>Staff

>Funding

>Location

>Experience

When listing your opportunities and threats consider:

>Industry Trends

>Your Target Market

>Your Competition

After you’ve listed your strengths, weaknesses, opportunities, and threats begin processing strategies based on the result. Focus on leveraging your strengths and opportunities to overcome your weakness and threats. Look for connections in the SWOT. Do you have strengths that can lead to future opportunities? Create an action plan from the results. Prioritize these actions so that your plan will be efficient with your business’s time and money. Did you discover an oppourtunity or use a SWOT Anaylsis, or even a pros and cons chart, to pivot during the pandemic? We want to hear about it!

CLICK HERE to tell us about your experience and sign up for the Big Bad Business Newsletter!

Kelley Hunsberger, Managing Director at Red Window Communications, shares social media strategies for a Business Bites series.

A marketing strategy will include an overview of your business’s marketing and advertising goals for your business and a strategy to reach them within a period of time. In most cases your business plan will include your marketing strategy, a bit of market research, and a summary of the message you want to deliver to your potential customers. A plan will detail how to reach those goals. Your plan can be extremely basic, incorporating just a few of the following elements, or go into great detail about each one.

The elements of a marketing plan include:

>Information about your business, product, or service. This can include your business’s unique selling position (USP)

>Research about your target market

>Your competitive advantage and research on your competition

>Marketing & Sales goals

>How you will track the costs and effectiveness of your marketing plan

>Your business operations. This includes your website, employees uniforms, product packaging, client policy, and other aspects of your business to give customers the full brand experience.

Marketing brings awareness to the products or services your business offers by highlighting the value and sharing your voice with the right audience. This can be done effectively by connecting with your audience through the channels they normally use. Social media marketing, or content marketing, is a low cost effective way to connect with your audience.

Content marketing can direct more traffic to your website than traditional advertising, even more than social media “pay per click” advertising. Use your content to build brand awareness, convert followers into email marketing, and encourage reshares to enhance visibility. Find your brand’s voice and keep your efforts centralized towards it. Your followers can be your brand ambassadors. Reshare photos they have posted including your goods or services. If you are a jewelry maker, painter, or chef encourage your clients to tag you in their photos when they are wearing, displaying, or enjoying your creations. Reshare those photos. Engage your brand with your audience. Use keywords and hashtags to increase your visitibly in searches. Establish a regular posting schedule, a quick Google search will reveal the best times to publish on your chosen platform. Not all platforms are created equally. Choose the right channel/channels for your brand and your customers.

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You need to take into account many factors when pricing your product or service. Consider competitor pricing, market trends, business costs, and profit goals. It is important to find a pricing strategy that fits your business. Your first step is to know your costs. Track costs by creating a spreadsheet. Break down all costs as separate lines. This includes any cost of goods sold (or COGS) such as ingredients, raw materials, production fees, and other costs to bring your product or service to market. Include any overhead expenses such as utilities, office expenses, and real estate. 

There are a few standard approaches to pricing:

Cost-Based Pricing:

This approach is also referred to as cost plus pricing or mark up pricing. Prices are based on cost with a fixed percentage markup. This is the simplest and most common approach. With a cost based pricing system all you need to do is break down your expenses and add the fixed percentage to the costs of the goods or services provided. The drawback of this approach is that it doesn't take into account market conditions or competitor pricing.

Simply doubling the cost of a product, or keystone pricing, is an easy pricing strategy. It is straightforward and allows for a healthy profit margin. However, this does not always take into account market trends or conditions. Depending on the product or service you may end up with a price that is too high or too low.

Here is a simple  formula for retail markup that allows you to set your profit margin:
--Retail price = [cost of item ÷ (100 - markup percentage)] x 100

Using that formula, if you wanted your product or service that has a cost of $25 to have a 40% markup you would subtract 40 from 100 to get 60. Divide your COGS, or $25, by 60 and the result is 0.416667. Multiply that by 100 resulting in $41.67. From that you can establish your retail price by rounding up or down to $42, $41, or even $41.95. Here’s what that looks like in the formula:
--Retail price = [25 ÷ (100 - 40)] x 100
--Retail price = [25 ÷60] x 100 = $42

Market-Based Pricing:

Market-based pricing is also referred to as competition-based pricing. It is based solely on what your competitor’s prices are. This approach is usually driven by the market value of a product or service. The downside to this approach is you’re allowing your competition to set the prices and make up the rules of the market. It doesn’t allow you to capitalize on your unique selling proposition.

Value-Based Pricing:

This is a great approach to pricing when you are bringing a new service or product to market. It is based on the customer’s perceived value. However, in a real world market with alternative options it might change what the customer is actually willing to pay. The knowledge of what the customer will pay will set a benchmark for your price point moving forward.

Play around with the numbers, see what strategy is the best for your business. It might be a combination of approaches. Remember, your pricing isn’t set in stone just because it’s the price that you launch with. You can revisit and remix the various pricing approaches. Decide what works best for your brand, customer base, and profit margin. Do you have a business topic that you would like to know more about? CLICK HERE to submit your ideas and sign up for our Big Bad Business Newsletter.