By Omar Barraza
The most common mistake I see people make as they plan, start, and grow their businesses is to focus more on the marketing than the business. That is, they invest all of their energies following someone's "system" before determining if their business is viable (or that the system works for anyone other than its publisher).
Also, no matter what type of business you have, you will need to ensure that your costs to acquire and support a customer are significantly less than the expenses.
Suppose you need to reach out to 1,000 strangers (aka prospects) in order for 100 to become acquaintances (aka opportunities) and 10 to become a friend (aka buyer). Then suppose selling one of your items (product or service) provides a gross profit (selling price minus item cost) of $100 total. This means you will need to spend 10 cents or less to reach each stranger/prospect just to appear to break even. In reality, you'll risk loose money on every sale at 10 cents because of other business expenses.
You need to get your business formula (model) figured out before you begin to pour money into your marketing to ensure your business can succeed.
The most common mistake I see people make as they plan, start, and grow their businesses is to focus more on the marketing than the business. That is, they invest all of their energies following someone's "system" before determining if their business is viable (or that the system works for anyone other than its publisher).
Also, no matter what type of business you have, you will need to ensure that your costs to acquire and support a customer are significantly less than the expenses.
Suppose you need to reach out to 1,000 strangers (aka prospects) in order for 100 to become acquaintances (aka opportunities) and 10 to become a friend (aka buyer). Then suppose selling one of your items (product or service) provides a gross profit (selling price minus item cost) of $100 total. This means you will need to spend 10 cents or less to reach each stranger/prospect just to appear to break even. In reality, you'll risk loose money on every sale at 10 cents because of other business expenses.
You need to get your business formula (model) figured out before you begin to pour money into your marketing to ensure your business can succeed.
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