(Newswire.net — December 19, 2019) — According to the Small Business Administration, approximately 627,000 businesses open every year. Similarly, approximately 595,000 businesses close every year. By understanding these issues, businesses need to make sure that they do what they can to avoid becoming a statistic.
No business should feel as though they don’t have the support that they need. The Small Business Administration provides tips for starting a business that involves conducting market research, writing a business plan, and providing funding.
All of the tips that are provided have one thing in common: the need to market.
20 percent of businesses don’t make it to their second year. Thirty percent don’t make it to the third year. 44 percent don’t make it to their fifth year. While startup statistics show that small business failure is due to a number of reasons, the most common ones are no market need, running out of money, and not having the right team.
Marketing That Works
Successful startups all agree that it’s critical to market. Businesses cannot succeed if consumers don’t know where they are located. As such, deciding on the right commercial sign company is critical as it can provide the needed support.
Marketing materials have to stand out. It ensures that consumers learn not only of a business’ location but also of the services or products that are offered. In order to do this effectively, various marketing materials will be needed. A commercial sign is one of the most important components as it sets the theme for the rest of the business. A glimpse around any town in the US will make it possible to point out successful businesses from the road because of the prominent signs that are being used to call out to those who pass by.
Consumers are interested in what the cover of the book looks like, regardless of how many times businesses try to convince themselves that they don’t. Aesthetics are an important factor when choosing who to do business with. Businesses that take the time to invest in a sign with bright colors, large letters, and an attractive quality are the ones that get more attention.
Commercial signage can be used in order to attract consumers who have never heard of the business before. Additionally, it can help consumers who are looking for the business to locate it quickly when driving down the road.
Even after a location has been located, commercial signage continues throughout the interior of the location. Consumers will depend on signage to tell them more about the various products, guide them toward sales, and even sell them items at the register. This is an investment on the part of the business, but it can pay off in a dramatic way.
As the Small Business Administration reminds, one of the steps for businesses to follow is to write a business plan. Smart businesses incorporate marketing into their plan so that they can make sure that consumers learn about the business. Additionally, it’s important to establish what the cost of marketing is going to be, particularly within the first year.
With another step provided by the Small Business Administration, businesses need to have the proper amount of funding. One of the top reasons why businesses go under in the first year is because they run out of money. Businesses try to cut corners in order to launch themselves successfully in the first year. However, if there isn’t enough funding to start, it can result in failure before a business has even had a chance to penetrate the market.
Not all marketing efforts will work for all businesses. Therefore, businesses have to do some research. They have to figure out what works best for their industry. Additionally, they have to test a few different marketing strategies to find ones that work. Using exterior signage to identify the presence of a business is a must for any marketing strategy. Meanwhile, various types of banners and signage to promote events and specials can vary based on the overall brand that the business is trying to achieve.
Connect with an Audience Using Branded Materials
Many consumers choose to interact with a particular business because of the brand that is being promoted. They like the professional or the laid-back approach that the business takes. The colors, the logo design, the fonts, and the manner of speech are all components that go into the brand. When signage is created for a business, the audience must be able to connect with it.
A variety of studies have been done on the psychology of color. Various colors can help people feel different emotions. Additionally, certain colors may connect with one age demographic over another. Businesses, therefore, must do their market research in order to find out not only who their target audience is but how their audience will respond to the use of particular colors.
14% of businesses will fail due to poor marketing. Combine that with 19% getting outcompeted, and businesses need to make sure that they are competitive in nature. One of the best ways to be competitive is to market effectively – and many businesses still feel that they can spend money in other areas to avoid having to market.
Businesses who want to succeed have the ability to do so. It ultimately comes down to the planning phase. Those who do the market research and pay attention to their target audience will have the ability to succeed. Businesses who try to cut corners and avoid spending money in the area of marketing will fail. Consumers simply cannot do business with anyone if they do not know that they exist. Signage and other forms of marketing are a necessity.
Many businesses will spend a significant amount of money in their first year due to the need to promote themselves. Brick and mortar businesses will need commercial signage, print marketing, and online marketing ads to ensure that they are able to gain the necessary foot traffic. Marketing should be incorporated into the start-up funding to ensure that funds do not fall short.
In the first year, businesses will generally publish two numbers: a cash flow number and a sales goal. While the sales goal is a desired number, the cash flow number is the bare minimum to ensure that bills get paid. Business owners that recognize this will use a portion of their profits each month toward marketing to ensure that the cash flow number is easily achievable. It is when that number is missed month after month that a business has to worry about having to close their doors and becoming a statistic.
It’s not just startups that have to worry about becoming a statistic. Every business can fail if they stop marketing and if they stop being relevant. Many businesses make the fatal mistake of assuming that they will always be relevant. If Blockbuster could have realized that they were going to go extinct, they would have made some adjustments. Marketing is designed to maintain relevancy, ensure that consumers know who they are, and to remain competitive within their industry.
With so many reasons for why a business can go under, businesses have to be ready to change direction when something isn’t working. Reading reviews can identify when there is a problem with the user experience. Producing monthly statements can identify issues with cash flow. New business (or the lack thereof) can also point to problems with marketing.
When businesses take the time to plan for the launch of their startup and they are realistic in what the market needs, it’s easier to be successful. Sometimes, it’s as simple as knowing when to use a commercial sign in order to avoid being a statistic. If you build it, they will come – as long as you have a sign showing where it’s been built.