How Fast Do You Want to Grow? The $20,000+ Marketing Investment Strategy for a Million-Dollar Business
If you're a small business owner or an entrepreneur, you have a burning question: How fast do I want to grow? Kristy Pack, owner of Pack Tax, had the same question. After seeking advice from a notable mentor previously unknown to her, she tackled the task with a multi-layered, local marketing strategy. She made the decision to spend what seemed like a fortune on marketing her business. The result? A million-dollar-plus business.
How to View Your Marketing Spend
Kristy had the desire to grow her tax filing business very quickly to replace her husband's income after he had been laid off. She had worked in tax preparation for many years but wanted to create something unique and powerful. One mentor she talked to told her he had grown his tax prep business over 10 years. She wanted to do it in just a few. What was the answer to doing that? 1. A Great Product. 2. Get Help From Mentors. 3. Spend Money On Marketing. 4. Rinse and Repeat.
It was scary when she decided to spend $20,000 on marketing. Kristy had invested everything to start this business, and she needed quick growth. She viewed marketing as an investment, not an expense. She paid attention to what worked and continued to spend on what returned best for her. She knew she had a good idea. She knew people needed the service. She just needed people to know she existed. So, she made the decision to aggressively market to her local community, and she was able to grow her business very quickly. Kristy’s business surpassed $1 million in revenue in her 5th year.
ROI: What You Get for $20,000
A $20,000+ marketing investment isn't just about throwing money into advertisements; it's about strategizing for the highest Return on Investment (ROI). By focusing on multiple marketing channels, from local premium placement print, networking, direct mail, and local sponsorship, Kristy established her brand in the local market. She has not focused on SEO, SEM, or social media, giving her a great opportunity to continue her meteoric growth. If you spend wisely and effectively execute a Strategic Marketing Plan, you can expect a positive ROI.
The Power of a Mentor in Your Business and Marketing Journey
Kristy credited much of her success to her mentors. She was brave enough to ask for help. She talked to a family member and a friend who also had a tax preparation firm in different areas. They helped her navigate setting up her company. She also contacted a previously unknown successful local business owner in North Ogden to ask for help with how to market her company. Sometimes, we ask for advice from friends. Although they probably mean well, they likely aren’t skilled in what you are trying to accomplish. It is much wiser to find someone who is willing to speak to you about what they have built. Don’t be shy, but also respect the time of a busy fellow business owner. Don’t get greedy with their time.
What a Mentor Can Teach You
Kristy didn’t know anything about running a business, so she decided to ask a local, successful business owner to help her with a plan to grow her business. Her mentor told her what the best solutions have been for her business, and helped Kristy choose the right marketing channels and to understand her target audience. Kristy followed the advice even though the investment seemed huge at the time, and it has been instrumental in growing Pack Tax—a mentor's advice can be priceless.
I have had some incredible mentors as I have grown my business. One was Rhett Long, who is now a good friend. Previously, as the publisher of the Standard-Examiner, he was a competitor. He also ran a company with 50 magazines and spent years in both the traditional and digital marketing worlds. I asked him for help after he retired, and he helped me for 3 years at no charge. I now consider him to be one of my best friends, but I didn’t go into the relationship expecting the level of help and friendship that would come out of it. I also offered to pay on multiple occasions, which he always graciously refused.
Marketing Channels: Where to Put Your Money
Choosing the right marketing channels is critical. Kristy utilized a multi-channel approach. But, surprisingly, Kristy wasn’t very tech-savvy, so she used non-tech solutions at first.
But, the biggest key for any business is making a plan, and knowing where your WHO spends their time, and WHY they’re doing business with you so that they will pay attention.
We are happy to help you with a plan if you want help. We have always taken the approach of giving free advice to anyone because we believe it will come back to us in future advertising revenue. We have a cool tool called a recommendation engine. It helps us with marketing research, so we know where a client should focus their marketing budget. It’s a great tool, and we’d be happy to see what it suggests for your company. Contact us here.
Here are some thoughts on where to focus your marketing efforts.
SEO and SEM: The Active Search King
As the backbone of online visibility, Search Engine Optimization (SEO) and Search Engine Marketing (SEM) are the yellow pages of modern times. They help your business show up where people are looking for you, making both techniques crucial for online success. Properly executed, they drive both organic and paid traffic to your website.
Social Media Marketing: The Passive Discovery Tool
Building a strong social media presence can boost your brand's visibility and customer engagement. This type of passive discovery helps land customers who weren’t previously looking for your product or service and also helps people remember your brand when they do eventually need you.
Local Advertising: Don't Ignore the Power of Community
Kristy's mentor emphasized the importance of local advertising because a strong local presence can be a cornerstone for growth. Her mentor also told her to get on the cover of local magazines, like Connection Publishing, and to become part of community events like parades and markets. Kristy did all of those things to establish her brand in the local community in a very short period of time.
Reinvesting in Marketing: The Plan for Growth
Marketing is not a one-time investment. It should be a part of your budget for the long haul. By investing in marketing, Kristy created a cycle of growth. The ROI from initial investments fueled further marketing campaigns, which fueled even more growth.
The Rule of 40% in Reinvestment.
It all depends on how quickly you want to grow. If you want to grow aggressively, you should spend more on marketing. One popular strategy is to invest 40% of your profits into marketing. This strategy often provides a good balance between taking profits and fuelling future growth.
Measuring Success: KPIs You Should Monitor
It's vital to measure the success of your marketing strategies. Key Performance Indicators (KPIs) like customer engagement rates, ROI, and conversion rates provide invaluable insights. Kristy reevaluates her marketing each year as a way to determine where she wants to continue, and what needs to change. It’s all based on ROI. If she spends $1000, will it come back as $2000, or more?
The Million-Dollar Question - Would You Invest $20,000+ in Marketing?
So, we're back to our initial question: How fast do you want to grow? Would you invest $20,000+ in marketing a year to help you build a million-dollar business? Kristy Pack did, and her strategy paid off. But she didn't do it alone. By utilizing a local marketing strategy, seeking mentorship, and continuously adapting, Kristy Pack turned her investment into a million-dollar business. If you're serious about business growth, perhaps it's time you considered doing the same. Connection Publishing reps are here to help with the marketing side of things. We are happy to help you develop a plan for growth.
One More Thing...
Unlocking the Secrets of Marketing Your Business. My 10-week course on creating the business of your dreams through marketing excellence is coming up September 13th. Sign up now for the course here. I will help you make the right decisions to grow and market your business. You can also get 40% off through the Utah Custom Fit Reimbursement program. See more info here.